Critical Illness & Canadian Life Insurance Landscape

Changes to the Canadian Life Insurance Landscape

Canadians are nice, eh?

According to an international insurance group, life insurance in Canada is TOO nice.

Sometime within the next 2 years major changes are coming to Canadian life insurance.

The push worldwide is for a level playing field in the insurance market. Canada is the nail sticking out when it comes to pricing, benefits and guarantees and we are about to get hit.

After the 2008 mortgage crisis, the insurance industry worldwide got scared: “What if it was us?” They have been working on an international life insurance treaty.

They want to protect themselves from having their own version of the mortgage crisis.

The current model of Canadian insurance needs to change. We have rising healthcare costs and incidence of cancer, also a long-term, low interest rate environment.

What’s going to change?

I first heard about this at a meeting from the CEO of a major life insurance company. His message was clear. “Tell all your clients NOW it would be a good time to lock down guaranteed policies.”

In particular: Critical illness protection with 100% return of premium. Also, whole life policies with guaranteed cash values.

Canada is the last country in the world still offering both of these. (Note: Plans set up before the changes will be grandfathered.)

Critical illness is the real life insurance, in my mind, since it fights to keep you alive.

The payout is based on the definitions. Only a few companies are working with the earlier definitions, and this could change any day.

If you’d like info/options please call/text me: 902-233-5267 or ctouchie@cluettinsurance.ca

Please share with your family,  friends & co-workers. It could be a life saver.