By Colin J. Campbell

Perhaps you have seen the YouTube video, ‘The dumbest way to die’; it is a promotion of Empire Life on why we need to own life insurance. Whether or not it motivates people to call an insurance broker and buy life insurance is difficult to say. The problem is that most Canadians do not know a life insurance agent, there are only about 13,000 really good life insurance professionals in the country and unless you got a referral from your parents or just picked up the phone and called at random the chances are that you have not had contact with any one of them.

The ratio of Canadians to professional insurance agents is about 2.5 million to one. That does not mean there are only that many agents with licenses to sell insurance it just means that there are only 13,000 professionals who meet what we consider to be a minimum standard of competence by being members of Advocis and adhering to its Code of Ethics.

Therefore the question is what does the successful life insurance agent say and do that is different than the average?

1. They are not in it for the compensation. If they looked only at what they would earn they will be long gone in no time simply because someone sold insurance will invariably cancel the policy and the agent will get a chargeback. A policy must remain in force for at least 24 months before the agent is fully vested the compensation.. Unless there is a mutual agreement between agent and client that the best solution to the problem is to purchase insurance there is no purpose in proceeding. Successful agents understand that and take the time to define the need and present all the alternative solutions. They understand that having great relations with their clients is far more profitable than just selling policies.

2. Successful agents see life insurance as a safety net that catches families and businesses when a loved one or key person dies prematurely. A safety net that says, the mortgage is paid, the children’s education is paid, there is money in the bank and the family income is assured. Or in the case of a business that the debts are paid, the shareholders survivors are looked after and the business will carry on. That can only be achieved by purchasing the right insurance from a reputable company that will be there when needed thus the professional insurance agents roll is not only to identify the problem that needs insurance but to choose the right company to solve the problem, there is no one size fits all.

3. Successful Life insurance agents have something in common, they like everyone. If they didn’t like everyone they could not sell anyone simple as that. Generally professional life insurance agents are really nice people, they think more about the other person than they do about themselves.

4. Successful life insurance agents do not sell insurance they sell peace of mind, hope and love, for if you don’t love somebody or something there is no point in owning a life insurance policy. No one expects to die prematurely but reality says that some of us will die in accidents or from an incurable disease, as the video says when you are dead you are dead, you can’t fix what you left behind broken. The good news is that you can find a successful life insurance agent who will help you deal the unexpected. If you choose wisely you will gain an advisor who will be with you for life and who will relieve stress and make life far more enjoyable for you and your family.

The next question is, How do you know if the agent is a professional?

1. They will be a member of Advocis, the Canadian Association of Insurance and Investment Advisors. This is[i] the minimum standard, an agent who is not a member of a professional association is more concerned with the cost of membership than the welfare of his clients. Don’t be afraid to ask the question, “Are you a member of Advocis?” if he or she says no, run. I mean it – run. You don’t need to deal with anyone but the best and professionals view membership in this association to be a prerequisite to conducting business.

2. They will have a designation or be studying to complete a designation such as Chartered Life Underwriter (CLU) , Certified Financial Planner (CFP) or Registered Health Underwriter (RHU)

3. They will adhere to the code of ethics of Advocis.

4. They will follow a best practices model that will examine all aspects of a families needs and make recommendations that are appropriate to the situation. They will not use set formulas but spend time to clearly define what the need is and present alternate solutions that are affordable and that will serve the client’s needs for the longer term.

Finally professional life insurance agents are dedicated to continuing education to maintain their professional status, they are aware of the challenges that face families and that face the insurance industry and they will stand up and be counted when needed to defend the rights of all Canadians to have access to professional advice and products at affordable prices.

Access to more information is available at the Advocis website www.advocis.ca . If you don’t have an insurance broker you can find a qualified professional by using the search engine on the Advocis website.

– Colin J. Campbell CFP, CLU is an independent financial advisor and managing partner of Guidance Planning Strategies Ltd, in Cranbrook.  Serving the Kootenays since 1995, Guidance Planning Strategies focuses on helping families and entrepreneurs create wealth and keep it for generations.

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