Health issues, extreme sports, bankruptcy, new to the country … There are many reasons why you may be considered “Hard to Insure”.
The hard-to-insure market can often cover an array of things. When you consider that a health condition is just one of the main reasons why insurance may be refused, the dilemma for those that are hard to insure becomes all the more real.
“It is necessary for traditional carriers to be stricter on individuals who suffer with diabetes, heart attack, stroke, depression, schizophrenia, bipolar, histories of cancers, rheumatoid arthritis and lupus,” says Michael Aziz, SVP of Sales at Canada Protection Plan.
“We’ve developed policies that allow us to provide insurance for all of those conditions. Our application works with ‘yes’ or ‘no’ questions. If you have suffered with a certain condition within a period of time you answer ‘yes’, if you don’t have it then you answer ‘no’ and move on.”
Canadians suffering with these types of conditions already have enough uncertainty in their lives. Waiting on medical test results and prognoses from doctors is as bad as it should get – these people shouldn’t have to wait days to hear that they’ve been refused for an insurance product they really need.
Aziz, like many advisors, is frustrated by the reluctance in the insurance industry to service the needs of every single Canadian.
“Canadians deserve insurance coverage, and products that provide those people with options are a game changer,” he says.
Consumer needs are changing, and the demands and expectations today compared with 20 years ago are vastly different.
“First of all, we have an aging population – and when you get older it can be difficult to get insurance through a traditional carrier. In many cases, those older clients either can’t get coverage or have to pay highly rated premiums to get it.”
“When the advisor walks away from the application, their client should know exactly what type of coverage they qualify for,” Aziz says.
“They should have a clear and quick picture about the maximum coverage and the premium. Nothing should be left to the imagination, the client deserves to know right away.”
It’s not just those with health issues who are being neglected by traditional carriers. Those at the other end, the millennials who enjoy ‘high risk’ sports and activities, are also finding it increasingly difficult to secure coverage.
“Millennials are into quality of life and going out and having a good time, whether that involves extreme skiing or bungee jumping,” Aziz says.
“Many traditional carriers will have exclusions on those activities.”
Also, the consumer of today may not have the time or the inclination to meet with a nurse or wait for a doctor’s report; they need their coverage quickly and they want it conveniently. Consumers may not want to go through the process of medical exams to qualify for life insurance. The lengthy and tiresome medical appointments that some traditional insurers require are creating serious issues for both advisors and clients.
If you’re a Canadian citizen in perfect health and with a strong financial history, securing comprehensive life insurance isn’t going to be a problem. But what about everyone else; those whose lives haven’t gone to plan at every step of the way? In many cases, the people who are unlucky enough to fit into these categories are penalized or even refused when it comes to purchasing insurance products.
“If, for example, a client has filed for bankruptcy, many life insurance carriers will either rate them heavily or decline,” says Aziz.
“We don’t believe that’s fair. On our No Medical product, we don’t have a bankruptcy question.”
Newcomers to Canada are another group that often get the short straw when it comes to life insurance. Not having access to a family doctor means that these newcomers face significant hurdles when trying to obtain insurance policies.
“Also, in some parts of the world, certain health conditions are more prevalent, whether it’s diet based or hereditary, which makes it even harder for people to get coverage,” Aziz adds.
“Newcomers 18-80 years can apply for our plans, and all that is required is a valid work permit.”
Having access to these sorts of policies enables advisors to deliver coverage to the sort of hard-to-insure people who need it most.
“Traditionally, these clients would not be able to get coverage at a reasonable rate, but now they can – and they can get it quickly,” says Aziz.
“Traditional carriers offer insurance to a large portion of the population, but there’s also a substantial number of people who can’t get that coverage. That’s where we come in.”
Advisors and consumers need to be aware that there are options available when it comes to life insurance.
To find out what plans are the best fit for your needs, contact Canada Protection Plan or one of the more than 25,000 Insurance Advisors today.
