Educating consumers on where to invest their money would open doors for brokers looking to broaden client coverage, argues one broker who still sees people not taking advantage of whole life insurance.
“Whole life has returns of four per cent since Lloyds started insuring in the 1700s,” commented Philippe M. Martin, on an article that appeared in this week’s Canadian Life newsletter, “and still people bank money and lose control of cash assets – but consumers will not understand the principal involvement.”
The article took a look at where Canadians are buying the biggest life policies, revealing that although two out of three do hold life policies, the level of coverage varies dramatically from province to province – with Albertans leading the way with an average of $270,300 per policyholder.
Click here to see the original story, ‘Where Canadians buy the biggest life policies.’
But for Martin, it remains a mystery why Canadians eagerly embrace doubling up on paying mortgage payments or rush to buy and RRSP when whole life would provide a greater return.
“They pay twice the mortgage payments and think that they are saving,” says Martin. “They buy RRSPs to defer taxes,” when brokers could take the time to create a fully diversified life policy for the client.
