A guide to empower your insurance conversations with an advisor

Step One:
The first step in getting a Life Insurance quote is to figure out how much coverage you need. Many people just consider debt coverage but that's only part of the equation. It kind of opens up a can of worms too and that's why advisors try to have a conversation with prospective clients so they can wade through the options together. You'll see what I mean as we go through it. There are lots of online tools for this. I explain in the video why this is my favourite for someone that doesn't have access to all the quoting software...ie. you or an institutional advisor. REMEMBER TO SAVE YOUR NEEDS ANALYSIS!

Click > Needs Analysis Tool

Step Two:
Now that you know how much coverage you need it's time to figure out how much it is and play with some things to fit within your budget. I'd use this tool to run your quotes for a number of reasons I explain in the video. This is where I give you the protips on how to cut premiums in half. A broker will usually be able to get you lower cost insurance than advisors who only deal with 1-3 insurance companies. The fewer companies they can access the more biased their advice may be. This is very important if you smoke tobacco or pot or both.

Click > Instant Quotes

Step Three:
Now you have information that will help you in your conversations. Find a broker that deals with the companies that you've quoted from. A simple call and they'll be able to tell you if they do. You can bring your NEEDS ANALYSIS with you or email it to them and apply for the insurance you want.

With your new information you don't have to worry about being oversold or figure out if you "trust" them. On this level it's pretty well transactional.

Insights:

  1. The reason why you tend to come out with more insurance than planned when talking to an insurance agent is because they've likely done a needs analysis for you which they are required to keep on file. The purpose of that needs analysis is to prove that they recommended the coverage you "should" have according to the regulators. If you walk in with a completed needs analysis and then ask for whatever coverage you've decided on you'll likely be met with open arms because you've saved them time and reduced their liability. It also makes it clear you're making an informed decision.
  2. Always apply for insurance before worrying about making a final decision. I say this because the insurance company first needs to decide if they are going to cover you. IF they do, then you choose to accept the policy and pay.
  3. There is no required out-of-pocket cost to apply. Depending on what insurance company you've applied with you may have approval in an hour, 48 hours, or months. This is where you get extra value dealing with a broker that has access to all the insurance firms in Canada and can tell you what to expect....that sounds like a good next video topic.
  4. IF you opt to have a shorter term insurance policy to fit your budget, most insurance providers give you the options to "convert" your policy up WITHOUT medical evidence within 5-7 years of when your policy was approved. You would just quote based on the new age and if you did a 20 year term then your 20 year term would start on the day you converted the policy. This is really helpful if you don't have as much income as you might 5-7 years later and opt for a shorter term policy to fit your budget.


Alternatively, you can email me and I'll go through it with you. 

Joe