What is Right About The Life Insurance Industry

The life insurance industry looks bright.

The potential that a man first saw in an untapped colony is now a fundamental part of many Canadians’ financial planning. Canadian life insurance, which promises security and stability, has evolved from its humble beginnings to become one of the biggest investors in the Canadian economy.

Hugh C. Baker was the founder of Canada’s first life insurance company, Canada Life Assurance Company, in 1846. Out of the desire to create stability for his new family, Baker saw Canada as a market brimming with opportunity.

“The first policy issued in 1847 was for Baker, and over the course of the first year, the company grew and turned a substantial profit, an amazing result for a new company,” says Canada Life on its early years. Although the new company met with numerous challenges along the way, it paved the way for Canadian life insurance. Canada Life became a mutual company in 1959 and is now part of Great-West Life Assurance Company.

According to the CLHIA, “the Canadian life and health insurance industry provides financial security products to almost 27 million Canadians” and “pays out $66.4 billion a year in benefits.”

To an industry that employs over 142,600 people and garners international attention, success is probably the best word to describe it.

The Benefits of a Broker

The industry’s success mainly stems from the numerous financial products available to individuals. With over “90 life and health insurers” to choose from, the options are endless and can be quite challenging to sift through.

Brian So of AAFS Insurance remarks on what he likes best about the insurance industry:

@LSMinsurance @Jerome_Dean_ @InsCanada @PreferredInsCtr Moving in right direction. Compared to captive agents, more choice for consumers

— Brian So (@AAFSinsurance) July 21, 2014

This is where the role of the advisor comes in. An advisor who is knowledgeable about the array of options and policies available to you can help you come to a decision as to which product would be the best fit for your needs.

“He or she will conduct a needs analysis that addresses your financial situation,” says Advocis, “then will document current and future goals to develop an individualized financial plan to achieve those goals.”

The benefit from interacting with a person so knowledgeable about the industry is that they will offer you more than just an insurance policy. When we asked the Twitter world what makes the life insurance industry so successful, they shared their thoughts:

@LSMinsurance @SteveTennis @MIGInsurance @brokingcait @brokingbod life insurance offers a unique value proposition to each individual.

— Sarah G. Henry (@SarahGHenry) July 21, 2014

Many reasons, but planning gives clients control & peace of mind @LSMinsurance @agentmint_ @JASInsurance @premium_hunter @BC_InsuranceGal

— Roger Hamilton (@RogerFinancial) July 21, 2014

When you employ the services of a financial broker, you are asking a trusted authority for their help. As your financial situation changes over time, your financial goals will differ as well. Your trusted broker who understands your needs, will work in your interest to adapt to these changes, and will make the necessary recommendations. Instead of simply selling you a policy, their dedication in periodic follow-ups is all a part of the value they promise.

Security and Stability

Having the security of insurance as a part of your financial plan can make a huge difference. Not only is it there to provide support for your dependents, but your family will also be able to maintain a desired quality of life.

In the case of Dawn Luhning, a financial advisor for Desjardins Financial Security Investments, critical illness insurance played a huge role in helping her to a speedy recovery with her fight against breast cancer.

Luhning emphasized that a person’s greatest asset is their income and how reassuring it felt when she got the money that would replace her income. After receiving the money promptly after filing the claim, Luhning finished 21 days of radiation treatment and she is now in remission. She reassessed some of her previous choices and decided to do the house renovations she had always dreamed of ─ you never know what the future entails, so it’s best to simply enjoy the present.

While life insurance is reassuring on its own, the industry also connects you to brokers who empathize with you and genuinely want to answer your concerns to help you make an informed decision.

Tamara Humphries, insurance expert from LSM Insurance, concludes with her view on the life insurance industry: “The life insurance industry offers advisors and brokers a unique opportunity to help people secure their financial freedom while at the same building a successful business. Success in this great industry is not a sprint but a marathon. The golden rule definitely applies: Treat your clients the way you would want to be treated and the word will spread and the foundation will be built for future success.”

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