With most Canadians eschewing critical illness, advisors might be able to gain traction with consumers by reminding them that something is better than nothing.
“[It’s] the best thing a broker will do, even if you buy a $25,000 or 50,000 critical illness policy… It doesn’t have to be a big policy,” said Steve Carter, senior vice president for product management and development at BMO Insurance.
“It has to be enough to cover off some of those unexpected expenses. Whereas from a life insurance policy there needs to be enough there to cover debts, perhaps mortgage, future income stream for family, kids’ education, it’s got to be a more significant amount.”
Carter says this offers brokers a significant opportunity.
“…By and large [Canadians] are underinsured,” he said. “Not enough of them have life insurance, not enough have disability insurance and clearly not enough have critical illness coverage. The question is how do you reach the Canadian consumer and engage them to have a conversation around insurance. That’s the challenge.”
Canadians’ lack of education about insurance offers advisors a chance to educate and boost their bottom line.