The Covid 19 global pandemic has made many people think about how they can improve the financial security for their families, now and through the generations. Life Insurance for your family and Critical Illness insurance for yourself, have moved to the top of the list.
As a result of the restrictions put in place to curb the spread of the virus, the notoriously slow-moving insurance industry was forced to react and move fast, something it is not used to. As an advisor this is a major positive. As a consumer who is looking to protect themselves and their families, the news is even better.
The Canadian life and health insurance industry has been changing very rapidly in many areas because of the pandemic, but most significantly in their technology, which was badly in need of it. It has transformed the lives of customers, employees, and advisors.
The insurance industry was forced to adopt more digital practices in a few weeks than they had in years. That initial burst of changed has matured into over a year of everyone working remotely, as we all have, and the results are very good indeed.
Whether you were thinking about looking into life insurance or critical illness insurance for years before the pandemic and never got around to it, or it has suddenly moved up your priorities list, there is never bad time to protect your family or yourself and lock in coverage. As the saying goes, the best time to buy life insurance is 20 years ago. The second-best time is today.
But today may be the best time to shop for insurance in years!
Most of the big insurers have shown that they can be nimble, understanding and even proactive (!) in the face of the current circumstances. They have granted grace periods on premiums for those that have been economically affected and are offering eligibility and coverage period extensions to help meet the needs of policyholders.
That makes right now a prime time to apply for life or critical illness insurance that won’t require a medical exam. Before the pandemic, buying no-exam insurance policies usually meant paying more because the insurance company had less information on you to calculate their risk. The labs, nurse visits and in-person face to face meetings made the experience long and cumbersome. The pandemic made most of the steps impractical or impossible. That has changed.
The insurance industry, which is notoriously resistant to change and slow moving when they do change when it comes to technology and innovation, has had to move in new directions because of the pandemic. They have adopted electronic signatures and other tools for clients, and they have also adapted standards for coverage when the pandemic made it impossible to get medical exams.
Limits on non-medical coverage have more than doubled up to around $2 million, depending on age and other factors.
Many life insurance products are priced at all-time lows, but the winds are shifting.
The point I am labouring to make is that now is a perfect time to be in the market of living benefits and life insurance.
Things happen, pandemics happen, and it is important that you and your family know that you are covered.
You never need insurance, until you need it.
I will take a moment to step off my soap box now and get back to the insurance companies and how they have tried to make getting insurance easier during the pandemic.
The pandemic has affected folks in so many ways. Some have lost loved ones, or businesses or jobs. Many have put their careers on hold to become home schoolteachers or to care for their children. Others have had their ideas and plans for retirement drastically altered or upended.
But even those that have been reasonably unaffected by covid’s impact have likely questioned themselves about the way they live. It is causing families to think about where they live, how they want to spend their leisure time, and how they make decisions around family and work.
Over the last 16 or so months, many Canadians have been thinking about moving, changing careers, qualifying for government income replacement benefits or business loans, managing their cash flow, and taking advantage of low interest rates. It has reinforced the need for financial plans and insurance. People understand how important financial security is.
Today, getting life insurance now is a simple, quick, and online process for shoppers. It has never been easier.
People get ill. People have accidents. I could tell stories here about tragic circumstances that have affected so many families, but I am sure you know your own stories too. We all do now.
P.S. If you would like to have a chat about your own situation, I would be happy to hear form you. You can book a zoom or phone call by clicking here: Book KB 15 MinutesJoin My Newsletter
THIS ARTICLE IS PROVIDED AS A GENERAL SOURCE OF INFORMATION ONLY AND SHOULD NOT BE CONSIDERED TO BE PERSONAL INVESTMENT OR LEGAL ADVICE. READERS SHOULD CONSULT WITH THEIR FINANCIAL OR LEGAL ADVISOR TO ENSURE IT IS SUITABLE FOR THEIR CIRCUMSTANCES.