Nov 12, 2013 | News
Nov. 12, 2013, aka 11-12-13, is expected to be a popular day for weddings. And as thousands of couples say I do – or commit to do so over the next few months (39 percent of marriage proposals happen between Thanksgiving and Valentine’s Day) – a new study shows many of these couples are ignoring important discussions about insurance.
A recent survey by the U.S. National Association of Insurance Commissioners (NAIC) cites notable discrepancies between what couples know they should talk about before tying the knot, and what they actually discuss.
The NAIC survey found that before the wedding, many couples had not fully probed topics that affect insurability. For example, while 71 percent of newly married couples acknowledged the importance of sharing beneficiary designations before marrying, nearly half never got around to addressing their life insurance needs before saying “I do.”
“This survey captures a sentiment we often encounter that consumers want insurance education, but often don’t know where to begin,” said NAIC President Jim Donelon.
The survey highlighted several trends common to young couples:
- Though 61 percent of couples ages 18-24 talked about combining auto policies before marrying, only 30 percent cited their spouse’s driving record a key factor in calculating premiums as an important topic to discuss before marriage. In fact, across all age groups, more couples viewed “where we will spend the holidays” as more important to discuss before marriage than their partner’s driving record.
- 84 percent of respondents ages 18-24 said it was important or extremely important to share details about pre-existing health conditions before marriage. But before the big day, only 73 percent had addressed the topic of whose health insurance to keep.
- 62 percent of engaged or newly married couples ages 25-34 rated designating a beneficiary as important or extremely important to discuss pre-wedding, but only 42 percent even broached the subject of whether or not they will have enough life insurance before tying the knot.
The data suggests older newlyweds are just as likely to put off important conversations:
- 85 percent of engaged or newly married couples ages 55+ said a pre-marital discussion about insurance beneficiaries was important, yet only 40 percent exchanged thoughts on life insurance coverage amounts before exchanging vows. In fact, 33 percent of recently married couples ages 55+ had yet to discuss life insurance as long as one year after the wedding.
- Before tying the knot, recently married couples ages 55+ were more likely to have discussed their entertainment budget than their life insurance coverage (50 percent vs. 40 percent, respectively).
To avoid misunderstandings, the NAIC advises couples to schedule a pre-wedding sit-down to directly address auto, home, health and life insurance. Key questions to consider:
- How’s your driving history? Finding out your spouse has a lead foot after saying “I do” can be a shock to your psyche and your auto insurance premiums. If your partner has a less-than-ideal driving record, consider a named-driver exclusion clause, or you may want to think twice about combining coverage.
- Can we afford to renovate our home? As couples merge households, consider what that starter home offers now and will offer in the future. A renovation investment of $5,000 or more can change a home’s replacement value and the house insurance coverage needed.
- Which health plan should we keep? The lowest premium isn’t the only consideration when deciding among health insurance options. To avoid a short-term decision that results in long-term increases in out-of-pocket expenses, review provisions related to cost sharing (deductibles, co-pays and coinsurance) and consider what is not covered by the plan.
- How much life insurance is enough? Now that “I” actually means “we,” couples should insurance needs revisit life insurance coverage. To arrive at a new amount, consider future income potential, the cost of raising children and any outstanding mortgage payments.
Are you prepared to guide your clients through these changes? ILScorp offers specialized continuing education for Life & A/S insurance agents as well as on line insurance training for general insurance agents.
Nov 8, 2013 | News
Alberta’s provincial government is proposing changes to province’s auto insurance system, to better protect consumers from rising premiums, while still giving individual companies more opportunity to make their case for increased pricing.
“Albertans have told us they want increased oversight in their auto insurance rates and we’ve listened. These reforms will set insurance rates that are fair for Albertans and make our already strong auto insurance system even better,” said Doug Horner, Alberta minister of finance and president of the Treasury Board.
The “Enhancing Consumer Protection in Auto Insurance Act” (Bill 39) would allow both mandatory and optional auto insurance premiums to be regulated by the independent Automobile Insurance Rate Board.
Alberta already has legislation regulating mandatory insurance premiums — like third party liability — these proposed changes would ensure optional premiums would also be regulated.
Heather Mack, director of Alberta government relations for the Insurance Bureau of Canada, said consumers should be pleased with increased regulations, which she said could keep premiums down.
“This is definitely good for consumers. But at the industry level, we want less regulation. We want more flexibility, more competition.”
Another proposed change could somewhat appease the industry, Mack said. A file and approve system is being proposed, where each insurer could apply for premium adjustments on an as-needed basis instead of an annual, industry-wide rate adjustment.
“Whereas IBC was the one to present before, just once a year, now companies can present individually at any time. That will increase competition, so that’s a good balance,” Mack told the Calgary Herald newspaper.
But Derek Fildebrandt, Alberta director for the Canadian Taxpayers Federation, told the Herald it could be dangerous to artificially reduce certain premiums through increased regulation.
“When the government tries to keep prices down artificially in one area, premiums might go up in another area. One group of drivers will have to pay eventually, and we don’t know which demographic that will be.
Other changes proposed for the auto insurance system would involve moves to ensure Albertans get improved access to health care after a collision. As well, the Insurance Act could be strengthened in the area of solvency requirements for insurance companies to improve general market conduct. Changes are not being proposed for other components of Alberta’s automobile insurance system, such as the definition of minor injury and the related cap on payouts for minor injuries.
Excerpted from the Calgary Herald
Are you an Alberta Insurance Agent? Have you registered with ILScorp for your online continuing education, insurance training and licensing? See what we offer today!
Nov 7, 2013 | News
November is Financial Literacy Month in Canada, and Canadians are keen to learn more about how insurance affects their finances, according to a recent Pollara survey commissioned by the Insurance Bureau of Canada (IBC). Half of Canadians want to better understand home and car insurance and how it fits into their financial plans and almost 90% think children should learn about home and car insurance at school, according to the survey.
Financial Literacy Month aims to empower Canadians with the knowledge, skills and confidence to make responsible financial decisions in their lives. BMO Financial Group recently released its third annual BMO Financial Literacy Report Card which gauges the personal finance knowledge and understanding of Canadians. The majority of Canadians (91 per cent) give themselves a passing grade for their level of financial literacy. That’s down slightly from 2012 (93 per cent), and up from 2011 (89 per cent). However, according to the report, many Canadians may have a false sense of confidence in their level of financial knowledge. As part of the report card, Canadians were quizzed on three questions related to common financial concepts. The report revealed:
- Nearly one-third (31 per cent) of those who give themselves an “A” were not able to answer more than half of the questions correctly.
- Moreover, while Canadians say they are most familiar with RRSPs, 66 per cent correctly answered that you only pay taxes on RRSP investments when they are withdrawn – down from 80 per cent in 2012.
- Younger Canadians have more trouble with these questions, with only 39 per cent of those under 35 passing the test.
“Understanding how insurance works and how it helps families manage risk is a very important part of financial literacy,” said Bill Adams, IBC Vice-President, Western & Pacific. “After disaster strikes is the worst time for people to learn what coverage their insurance provides. Financial Literacy Month in November is the perfect time for Canadians to increase their knowledge about insurance.”
The Insurance Bureau is urging Canadians to take the time during Financial Literacy Month to find out about their policies. Insurance agents: are you ready to answer these questions for your clients?
Home Insurance
- What does my policy cover and how much insurance do I need?
- Is there a specific kind of insurance for the type of home I live in (e.g., house, condo or apartment)?
- Are there risks I can’t buy insurance for?
- What optional coverage is available?
- Should I make a claim for every loss?
Car Insurance
- If I get into a collision tomorrow, what kind of coverage can I expect under my policy?
- What coverage is mandatory and what is optional?
- Should I purchase collision insurance on an older car?
- What kind of deductible is recommended?
- What factors affect my insurance (e.g. distance driven)?
Business Insurance
- What kind of insurance do I need?
- Are there risks I can’t buy insurance for?
- If my business is home-based, do I need special coverages?
- What does errors and omissions or malpractice insurance cover?
- How is my premium calculated?
Make sure your knowledge is up to date with online continuing education, insurance training and insurance licensing courses from ILScorp.com
Nov 1, 2013 | News
Canada’s snowbirds are starting to head south for the winter, but many of them don’t have the proper insurance coverage for their time away. According to a recent survey by TD Insurance, only half of Canadians aged 50 and over checked their travel insurance policy before leaving for vacation, and only 16% called their insurance provider to determine if they needed to update their policy.
“Snowbirds have a unique set of insurance needs, different from most Canadian travellers,” says Dave Minor a vice president at TD Insurance. “Not only do they need to understand exactly what their travel insurance policy covers, but they may have to review auto, recreational vehicle, and home insurance policies – for both their property down south and back home – before they travel.”
Canadian snowbirds heading south for the winter need to consider:
Travel insurance
“Snowbirds should review the details of their travel medical insurance policy including whether or not there is a time limit for out of country coverage and what they need to know about pre-existing conditions and limitations,” Minor said. “If a snowbird has visited a hospital or switched medications in the past 12 months, this information needs to be disclosed to their insurance provider, as a failure to do so may impact insurance coverage should they need to make a claim.”
If you are unsure about your policy coverage, check with your insurance broker.
Auto insurance
According to the survey, 46% of Canadian snowbirds believe that if they are driving outside of Canada, their auto insurance policy will cover them, but this isn’t always the case.
“Snowbirds need to call their insurance provider if they are taking their vehicle outside of Canada or the United States, or if they plan to rent a vehicle for more than 30 days,” says Minor. “They should also consider increasing their liability limit given that claims in the United States can be expensive, and discuss that with either their provider or insurance agent.”
For snowbirds travelling down south by motorhome or RV, keep in mind that although insurance protection on recreational vehicles is similar to regular auto insurance, because this vehicle also serves as a home, it requires a unique policy.
“If RV owners are increasing the amount of time they are living in their vehicle – for example living in the unit full time versus an occasional weekend getaway – then their policy may need to be revised,” says Minor. “Check with your insurance provider to find out what your needs are, so you’re not left uncovered.”
Insurance providers: become an Ontario Auto Expert with ILScorp.
Home insurance
Only 12% of Canadian snowbirds say they checked their home insurance policy to ensure their primary residence would be covered while on vacation. Making sure you take the necessary steps to protect your home before you travel will make the process easier should you need to make a claim.
“Often insurance policies have specific ‘away’ requirements, which, if not fulfilled, could void coverage if your home is left unoccupied and unattended for an extended period of time,” says Minor. “Contact your insurance provider to make sure you know what steps to take to keep your current policy valid.”
ILScorp offers homeowners policy courses for insurance agents, to ensure you can provide proper coverage for your clients.
TD Insurance commissioned Environics Research Group to conduct an online custom survey of 2,748 Canadians aged 18 and older, including 1,362 Canadians 50 years of age or older (referred to as snowbirds). Responses were collected from February 7 to 18, 2013. More information and tips about your insurance needs are available at www.tdinsurance.com.
Do you review insurance needs with your snowbird clients before they head south?
Oct 29, 2013 | News
Nov. 1 is the deadline to register your CAIB 1 or CAIB 2 exam on Dec. 4. Register with your provincial brokers association to write the exam, and register with ILS to attend live immersion classes for ILScorp’s CAIB 1 & CAIB 2 exam prep in Vancouver this November.
West Coast Training hosts the ILScorp CAIB level 1 exam prep live immersion course on Nov. 20-22 in Vancouver. Level 2 CAIB exam prep runs Nov. 25-29. You must register with your provincial brokers association by Nov. 1, 2013 in order to write your Canadian Accredited Insurance Broker exam.
Attend classroom sessions at the downtown Vancouver BCIT campus with instructor Todd Hochban, and be ready to write your CAIB exam in just a few short days.
If you are just starting your insurance career, then the Canadian Accredited Insurance Broker Level 1 Exam prep course is for you. Learn the fundamentals of working in the insurance industry, and prepare to write your CAIB 1 licensing exam.
If you can’t be in Vancouver, you can prep for any level of CAIB exam with the ILS CAIB Virtual Classroom program starting on Nov. 4 and receive a study schedule, daily emails and quizzes and more. You’ll be ready to write any level of CAIB exam in just four short weeks. Register today to save $100 on your Virtual Classroom registration.
Instructor Todd Hochban highly recommends using the CAIB textbook in conjunction with the ILScorp CAIB Programs to thoroughly learn the material. CAIB textbooks can be purchased through your provincial brokers association. Contact the association directly for more information.
And remember when it comes to CAIB, ILS wrote the book! Our founder and past president Steve Hawrishok developed and wrote the CAIB course.
Call 1-800-404-2211 or visit ilscorp.com today for more information.
