Simplified market offers huge opportunity for growth

By Susan Yellin | December 20 2016 07:00AM

There aren’t many players in the simplified life insurance space, but the head of sales for leading player, Canada Protection Plan, says future opportunities are immense.

“There are a lot of new markets out there,” says Michael Aziz, senior vice president of sales with Canada Protection Plan.           

With simplified life insurance there is no requirement for a doctor’s visit or a medical report for most plans. Nor does Canada Protection Plan ask if the client has ever been declined or rated for life insurance. The application can be filled in online and a quick approval process means coverage is available in just a few days for its wide audience of 18-80.

Here are some of the biggest opportunities, according to Aziz.

Advisor understanding: An increasing number of advisors are starting to take simplified more seriously. “I think 10 years ago, even five years ago, there wasn’t much of a presence.” This understanding has been helped by increasing face value maximums on the insurance policies. Where once people could only get $150,000 of insurance, Canada Protection Plan jumped first to $300,000 and at the end of October announced it was launching a $500,000 no-medical limit. “Advisors are now saying: ‘Hey, I can actually offer meaningful coverage to my client at a reasonable price.’ So as more of the general public and advisors become educated they are starting to look at us.”

Immigration: Canada is home to many different cultures, many of whom have never thought about life insurance as a form of protection for their families. On top of that are an increasing number of advisors coming from diverse backgrounds who are being schooled here and who naturally target potential clients from their own ethnic group.

An aging population: Seniors represent one of the fastest-growing demographics in Canada. But as they get older they are also harder to insure – the perfect clients for the simplified market, says Aziz.

Millennials: This demographic wants to buy online with no fuss. With this simplified insurance, they can do a non face-to-face sale application with an e-application, issued in three days.

Meaningful protection: Many clients have traditionally bought life insurance to cover the mortgage on their homes should they die prematurely. Now with housing prices skyrocketing in many big cities, the increased $500,000 coverage can make a big difference, says Aziz.

Business partners: There are many business partnerships forged with buy-sell agreements, but because one or both partners may be older and/or have health issues they may have a difficult time getting the insurance coverage required to fulfil the buy-sell.

Aziz says Canada Protection Plan’s biggest challenge is to educate advisors on the viability and reasonable price point of simplified life insurance. To do so, it has increased the size of its sales team and airs about 20,000 television commercials a year.

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