Mike Liem of Canada Protection Plan graciously joined me again to cover another pressing insurance question. This question is simple, yet holds so much merit: why is life insurance so important and how do we deliver the message that much better to our clients?
Mike: We certainly get that question a lot and what I try to remind people and advisors that in Ontario, home and auto insurance is mandatory, yet life insurance is totally optional. However, I do know that one day, you will die, so you certainly will utilize the life insurance, but you may not ever use your home and auto insurance. I tell people that because, again, people do not really take it seriously and what happens with life insurance we, more often than not, see the claims of “we should have purchased more” or “we should have got some insurance” and typically, it is too late. When we get the phone calls, it’s most likely due to the fact that something has happened to someone, whether it’s cancer, heart attack, or stroke, for example.
We feel good that we can actually help them to a certain extent, but they always want more of course. That is why it is important to sell the life insurance before something happens because it doesn’t come down to how much you can afford, but rather, how healthy you are that actually qualifies you for a policy.
Lorne: You make a great point. I think a lot of brokers really have to stress that with their clients and we have to deliver that message that if you can get the life insurance policy while you are in good health, you are going to get a much better deal, you are going to qualify for more coverage, and you will also qualify for the coverage on an immediate paid basis.
The great thing about it is if you apply for life insurance and you do have some health issues, you can always reapply for a better classification or a better rate if your health does improve over time. What’s great with Canada Protection Plan’s is that they are building in that ‘worst case scenario’ in terms of, “if this happens, at least my family has this now.” I think that is very crucial and Canada Protection Plan is certainly doing an excellent job at that, as well as stressing the importance of life insurance.
