Why Canadians need a life insurance quote. One of the most bandied about terms in the insurance industry is
the ever mutable concept of "risk". Risk assessment is a core component
of how insurance brokers determine coverage and premiums for their
clients, understanding the client's history, expectations of coverage,
and liabilities in providing an insurance package while still remaining
profitable.
However on the consumer side of the insurance
industry, risk has been transposed to mean an aversion or distrust of
insurance. The most common phrases you'll hear when people decide not
to purchase insurance is "Oh, it's not for me", "That will never happen
to me", and the myopic "I'll think about when I'm older".
The late Andy Rooney said it best when he called death "... a distant rumor to the young."
The
2013 RBC Insurance Poll indicated a rather startling trend in Canadians
today, particularly on fathers. It's estimated that up to 30% of
Canadian fathers do not own any form of life insurance, and do not seek a
quote on such. The reasons? 44% of the uninsured believe they have
enough investments and other resources to provide for their family.
While personal savings can go a long way in securing your family's
future when you die, the same poll reported that two out of the five
participants had no idea how much their families would actually need
when they're gone.
Overall, it's estimated that one in three
Canadians adults have no form of life insurance, and are less likely to
seek a quote to find what life insurance can offer them. The greatest
risk being adults 18-29 and seniors over the age of 59. The reality of
the rationalization of the uninsured stems from two major beliefs: that
insurance isn't worth the financial risk, or that this risk does not
apply to them.
And understandably, with a population so grossly
undereducated about insurance policies, life insurance has come be seen
as akin to homeowner's, disability, or auto insurance: "Nice to have if
it happens, but what if it doesn't happen?" Life insurance, in reality,
is conversely risk-free. No one in the world proposes to live forever,
so why has life insurance been seen as a risky decision? Interestingly,
22% of Canadians without life insurance have responded that they admit
they should have a policy, yet don't evaluate their options or quote
their costs.
Read more Why we Carry Life Insurance ?
Short-sighted planning is one cause, particularly
among younger demographics. With a cultural presence and ethos
increasingly centered in the "now", Canadians feel that planning for the
future simply isn't worth the time, effort, and money. Life insurance
through an employer is one solution, but this insurance isn't portable
and won't protect you if you're laid off or terminated from your job.
Furthermore, long-term planning for life insurance guarantees younger
adults can obtain lower premiums and greater protection when they start a
family or purchase a home. With a market saturated with product
options, and ready access to life insurance quotes, this lack of
initiative is to blame on the consumer. Life insurance companies want to
sell, but consumers are hesitant to buy.
The other issue is
simply knowledge, and this affects all demographics equally, though in
different ways. Someone in poor health, a senior, or someone who's been
spurned or denied by insurance companies in the past may not even
realize the options available to them. No medical or guaranteed issue
insurance may not always offer the grand cash benefit that everyone
wants, but reasonable coverage can always be offered to help you settle
your affairs and guarantee tax free benefits to your dependents and
family. After all, seniors and those with medical issues are still a
market demographic for insurance companies, and these companies are
increasingly making efforts to be competitive in that environment.
Knowledge
is priceless, and a pint of sweat can save a gallon of blood, so to
speak. Your passing will always incur financial costs, your estate will
always face taxes, your assets will always be distributed, and your
family will always benefit from financial aid. Planning early, and
planning smartly by researching your life insurance options, obtaining
quotes, and researching the market can provide you with peace of mind,
and protection for your family. Anything less is just risk taking
behavior.
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