Last week I wrote about 5 reasons why you may hate insurance but might want it. If you missed that article, you can find it here https://secureplan.ca/5-reasons-may-hate-insurance-might-want/.
Insurance can be frustrating at times, especially when you are not working with an expert to help navigate you through the process. I wanted to share with you 5 things that frustrates me the most when it comes to selling insurance.
1. Insurance is typically sold, not purchased. Many do not go out looking for the coverage, especially while they are young and healthy. Insurance is an important part of your overall financial plan and I wish it wasn’t so often neglected.
While it’s true that a big part of our job is to initiate the conversation of insurance, it doesn’t mean that all advisors are using high-pressure sales tactics to sell. Make sure you work with a broker who will take the time to help you understand both your options and the value of insurance. This will allow you to make an informed decision on what to purchase.
2. Procrastination can be costly. One of the most difficult aspects of my career is telling someone that they are no longer insurable due to a recent change in health.
Depending on the health concern, you may still be able to obtain coverage. It’s best to work with a broker who will discuss your health concern with several different companies prior to applying. This approach will help you obtain the best coverage and price for the coverage you are looking for. It’s relatively common to find that one insurer may provide coverage where other insurers may decline. This is one of the biggest advantages of working with a broker compared to working with a captive agent who can only sell products that their company offers. While a broker will do their very best to find you coverage, it is in fact health that buys insurance. At times, it may be impossible for you to obtain coverage – especially if you are looking to purchase coverage for a medical concern that already exists.
3. Some think that the big bad insurance companies are only out to get them. At times, these same individuals think that it’s ok to lie on the application to get a better rate or a better policy.
Insurance policies are contracts. Some policies are stronger than others. The stronger the contract, the better off you are. While I will not disagree that insurance companies are in the business of being profitable, it has been my experience that the people working in claims do in fact care about clients. I have several stories of insurance companies going above and beyond at time of claim. I also have stories where claims were denied due to exclusions within the contract or non-disclosure at time of application. It’s important to purchase quality coverage with limited exclusions and provide full disclosure at time of application.
4. Clients opt to purchase simplified coverage as it is quick and easy. Many times, they do not even take the time to compare what their other options are.
It’s amazing how many families still elect to take the life insurance that can come with a mortgage. I am a strong advocate to stay away from simplified plans like mortgage insurance. These quick and easy to apply for contracts are the ones that usually have the most headaches at time of claim. Not only are the contacts of lessor quality, but accidental non-disclosure can become a serious concern due to the nature of the application process. In addition, the cost of this coverage is typically more expensive than a fully-underwritten personal policy. If you currently have mortgage insurance, I would strongly encourage you to reach out to a broker to compare your options.
5. It’s not sexy. People do not take an interest in learning more about insurance. Many people will spend more time researching a family vacation over taking the time to understand their insurance options.
I get it, who wants to talk about death and disability? While it may not be the most pleasant conversation, it is one worth having. Don’t just agree with any insurance advisor who shows you just one product. Find an insurance broker who will take the time to better understand your situation and outline various options for you. If you don’t understand the coverage, ask more questions and make sure you are informed on exactly what it is you are purchasing. Don’t be the one who just wants to check “insurance” off their to-do list, take the time to educate yourself and make an informed decision.
I am always happy to provide a free, no-obligation insurance consultation or second opinion. Feel free to reach out!
By Jeff Romansky
CHS, CPCA Principal, SecurePlan Insurance Solutions
Jeff started his insurance career in 2006 by helping hundreds of insurance advisors grow their business by providing them with comprehensive advice, consultation and training. After nine successful years, he decided to take his knowledge and start his own practice to ensure his clients are getting the best advice. His office is based in Grimsby, ON and he serves clients throughout Southwestern Ontario and the GTA.