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Please visit our client login area to view Dr. Wexler’s article “A Decade of Change in the Insurance World for Dentists: The Good and the Bad” and the full version of this milestone issue.

We will communicate with you by phone, email or fax in situations where we would have normally mailed you documents.

To ensure that your insurance policy remains active and up to date, all regularly scheduled premium payments must continue to be paid throughout the duration of the Canada Post strike. If you typically mail in your payments, please ensure that you make alternate arrangements during the strike period to submit your payment on time. Options for you to consider include making payments using your financial institutions online banking or telephone banking services (if available) or setting up a pre-authorized debit.

If you have questions about your insurance during the postal strike, please contact our office directly at 416 391 3764

Life insurance rates are going up across the industry! If you are hearing this for the first time, I would be very concerned, as you may already have missed significant deadlines and opportunities for making changes to your life insurance portfolio that will now cost you significantly higher premiums in the future.
When did this start?
The first shot was fired by Manulife Financial in October 2010, when they gave two months notice regarding their plan to raise certain permanent life insurance rates as of December 4, 2010 by an average of 10 per cent. Since beginning this article in mid-December, several other companies have indicated that they are raising their rates for similar life insurance plans for the same reasons. They are Industrial Alliance (IA), Empire Life, and Sun Life. IA indicated that their premium increases would take effect January 17, 2011, for Sun Life January 29^th, while Empire indicated that their premiums will be increasing in the first quarter of 2011.

Since all four of these company’s moves to increase life insurance premiums, it is widely agreed within the life insurance industry, that it is just a matter of time before the rest of the major life insurers follow suit. Michel Fortin, vice-president for retail markets at Standard Life, says “industry data has shown for years that premiums for permanent life insurance products were not reflecting the reality of the market, especially in the context of low interest rates.”

In the past, insurance companies customarily gave brokers at least a month’s advance warning of pending rate increases; however, those days are long gone. Recent events have seen companies shorten their notice time to one month at best, or even to give no notice or warning at all.

Are all life insurance plans affected by these increases?

As of the writing of this article, the primary life insurance plans affected are permanent life plans with built-in premium guarantees. Permanent plans include:

• Term to 100
• Universal Life including level pay and quick pay plans
• Non-participating Whole Life

It may be hard to believe, but Canada is really the only market where these long term guaranteed products still exist. Many in the life insurance industry believe that guaranteed permanent products, such a Term 100, will continue to experience dramatic rate increases. Some even hold that in the not too distant future, guaranteed “plain vanilla” permanent plans will no longer be available for either a term conversion or a new purchase. This will leave anyone waiting to convert with fewer and significantly costlier permanent life insurance options such as whole life.

Why is this happening?

Manulife has indicated that “insurance companies price their level cost of insurance rates using a number of assumptions, including interest rates, mortality and expenses. As you know, interest rates are at historically low levels and the current level cost of insurance rates are no longer sustainable at these low interest rates. “

How will this affect your current and future life insurance planning?
If you currently hold term insurance, your rates are guaranteed unless your plan is through the Canadian Dentists’ Insurance Program (CDIP) which is distributed through CDSPI. Most private individual term plans are convertible to some form of a company’s permanent insurance products (without medical proof). This option is not available with the CDIP term plans.
Many individuals choose “term” life coverage as a way of economizing on premiums in the short time, with intention of “converting some or all of their coverage to permanent insurance down the road.”
Term life insurance generally helps individuals with “short term” needs including:

• debt repayment
• childcare and education costs

With term coverage, there is no cash value, and premiums increase dramatically at the end of the term (usually 10 or 20 years). If you continue to renew your term coverage, the cost becomes astronomical in later years and the plan eventually ceases at age 85. Essentially, you may have paid significant dollars having “rented” this coverage, with NO payout for your family at the end.
Permanent life insurance is coverage that NEVER expires as long as premiums, which are fixed and guaranteed, are paid. It is far less costly over the long term compared to term coverage and is chosen by most of our clients for some or all of their life insurance needs for the following reasons:

• Spousal and family income
• Estate taxes (e.g., cottage and other assets)
• Help your children (and grandchildren) start their adult lives and careers
• Compensate for the “unknown” future value and sale of your practice/business
• Help look after elderly parents
• As part of an excellent retirement income planning strategy referred to as an Insured Annuity which can provide a pre tax guaranteed yield of approximately 7 to 10 per cent on your retirement assets.

What are your best options for moving forward?

1. Meet with an “independent” life insurance specialist who will review your current coverage, analyse your specific family and practice life insurance needs, and make the appropriate recommendations to suit your budget ASAP.
2. Consider purchasing guaranteed permanent life insurance or converting your current term life plan now…before premiums increase any further!
3. If your current advisor has not contacted you about these important issues, it may be time to consider choosing another advisor!

Dr. Ian Wexler is a leading authority on insurance issues for dentists. He is the founder and President of Protect Insurance Agencies Inc. in Toronto which has provided specialized expertise in life, disability, critical illness, long term care, and other insurance products and services to professionals, executives, and business owners across Ontario for over 16 years. He can be reached for questions or other enquiries at (416) 391-3764 or drwex@protect-ins.com

Over recent years, the issue of where you plan on traveling to, as well as where you have recently traveled has taken an increasing role in determining your insurability for life, and all forms of disability insurance including long term disability and critical illness protection. This article will serve as a guide in understanding how this issue may impact both new applications and any existing coverage you have.

General discussion

Some years ago, after 9-11, all major insurance companies in Canada started to look more closely at insurance applicants’ travel histories and travel plans. Companies have determined that if an applicant has specific “plans” to travel to a particular country (or even a specific area or part of a country) in the future and/or returned from a trip within the previous one to two year time frame, that this will impact how the plan will be issued.

Which countries are on “the list”?

Each insurance company has a “black box” of countries around the world that will impact their underwriting decisions. Underwriting, as I have mentioned in previous articles, is the comprehensive process of determining your insurability. No company, in my experience as an independent advisor, will divulge their entire list. What adds additional layers of complexity to this, is that “the list” changes over time. Countries I have seen include most Middle Eastern countries such as Syria, Lebanon, Israel, Iraq, Iran, and Afghanistan, as well as countries such as China, Brazil, and other countries in Southeast Asia.

The impact on new insurance applications

In my experience over the years in having submitted thousands of life and all types of disability applications, the insurance companies will offer coverage in one of three ways based upon the travel information provided.

1. Standard acceptance

   • This includes no restrictions whatsoever on your plan

2. Decline

   • No plan will be offered to you at this time. Companies however will often offer “reconsideration” in the future once you:

     1. Complete your travels and have not travelled to the restricted countries in the last two years

     2. Show no plans to travel again to the particular country in the foreseeable future

3. Travel Exclusion

   • This means that the insurance company will approve you for the plan you have applied for, but that it will contain one of several benefit related restrictions. It has been my experience that insurance companies will often reconsider these exclusions for removal over time, and that most applicants, once learning how these exclusions actually work, are quite willing to accept them. The most recent ones that I have seen include:

     1. You will not be insured if you travel to a specific country (life and disability)

     2. You will not be insured if you travel abroad in general (life and disability)

     3. You will continue to be insured if you travel abroad (or a to a particular country) but benefits will not commence until you return to either Canada or the United States (disability)

     4. Same as iii, except the “elimination period” as noted in your contract, will not commence until you return to either Canada or the United States (disability)

The impact on existing coverage

1. Guaranteed non-cancellable coverage

• If you have an individual life or disability plan that has been purchased through an insurance advisor, chances are the plan cannot be changed or impacted by your travel plans. Review your policy contract for the actual wording.

1. Association (CDSPI) coverage

• If you have this type of coverage, as it is not guaranteed and the benefits (as well as premiums) are changeable, there is a risk that your travel plans could impact your plan and potential benefits at some point in the future.

How do the insurance companies differ?

Insurance companies differ in the following ways:

• Countries that are on their particular list will influence their underwriting decisions;

• How travel to these particular countries will impact an applicant;

• How they phrase travel questions on their applications. For example, some companies inquire as to your travel history over the past year as well as travel plans over the next 12 months, while one particular company only asks about future travel plans.

What should I do?

1. Avoid advisors who utilize scare tactics as a sales tool in getting you to purchase coverage. For example, advisors who tell applicants not to travel abroad until they purchase coverage.
2. If you would like feedback and/or are concerned about how your travel history or future travel plans may impact your insurance planning, request that your insurance advisor “anonymously” submit to a number of companies to see how each would view an application from you.
3. Consult with an insurance advisor who is independent and represents all major insurance companies.
4. Ensure that your advisor is familiar with the differences in insurance applications and travel exclusions in general.

(810 Words)

Dr. Ian Wexler is a leading authority on insurance issues for dentists. He is the founder and President of Protect Insurance Agencies Inc. in Toronto which has provided specialized expertise in life, disability, critical illness, long term care, and other insurance products and services to professionals, executives, and business owners across Ontario for over 16 years. He can be reached for questions or other enquiries at (416) 391-3764 or drwex@protect-ins.com

]]> http://protect-ins.com/articles/a-guide-on-how-traveling-will-impact-your-insurance-planning/feed/ 0 http://protect-ins.com/articles/can-you-afford-the-wrong-insurance-advisor/ http://protect-ins.com/articles/can-you-afford-the-wrong-insurance-advisor/#comments Tue, 15 Feb 2011 22:46:53 +0000 admin http://dangallo.net/projects/protect/?p=213 DR. IAN WEXLER

Perhaps the single most important variable in obtaining the right insurance protection for you, your family, and your practice is choosing the right insurance advisor. The reality is that irrespective of the coverage you purchase, whom you choose to assist you, whether it is an independent advisor or a representative of The Canadian Dentists’ Insurance Program, can mean the difference between financial security or financial devastation in the event of a disability claim.

The following is a list of specific reasons to both choose and avoid certain insurance advisors. Once you have reviewed all issues listed, you will better understand whether your advisor fits the bill or whether it’s time to make a change.

What to look for

1. Specializes in the dental profession. Understanding the variables pertaining to you and your practice can have a significant impact on the type, amount, and structure you have, as well as a claim. Ideally your advisor should understand differences among:
   1. New grads
   2. General practitioner versus specialist
   3. A new versus established practice
   4. A solo practice versus partnership
   5. Associate versus owner
   6. The impact of hygiene, associates and partners
   7. Practice type, size, and location
   8. Goodwill issues and sale-ability
   9. Retirement and transition issues
2. Treats you with respect and professionalism
3. Represents insurance products that are “guaranteed and non-cancellable”
4. Is not “new” to either the insurance business or working with (many) dentists
5. Has handled “many” successful claims AND has an entire claim protocol that includes:
   1. Overseeing the entire claim with you and /or family members
   2. Interviewing you with respect to your “limitations from practicing”
   3. Reviewing all claim forms before submission
   4. Interacting as needed with claim adjudicators
   5. Ensuring all important timelines are met
   6. Assisting you with submission of all financial, medical, and other documentation
6. Someone with whom you develop a high level of trust
7. Understands and compares ALL products
8. Provides a high level of specialization in insurance products versus being a “jack of all trades.” Insurance products are extremely complicated. You may wish to deal with an advisor who either specializes in a particular area of insurance, e.g., life insurance/estate planning or living benefits, or has specialists in each particular area
9. Is 100 per cent independent and represents ALL major insurance companies
10. Provides exceptional service including regular communications and reviews
11. Is accessible
12. Has preferred status by insurance companies (underwriting, claims, etc.)
13. Reviews and assists with partnership, cost-sharing, shareholder agreements in areas pertaining to insurance
14. Provides strong problem solving capabilities…i.e., helping difficult to insure clients
15. Provides a range of value added services
16. Has the capacity to expand their business
17. Has a strong professional network that includes accountants, lawyers, financial planners, practice management consultants, bankers, etc.
18. Has a “Succession Plan” to look after your needs down the road
19. Has a “support team” that is available to assist you, and offers a superior level of service (most advisors either work alone or with one support staff)
20. Enjoys a stellar reputation

What to avoid

1. Little or no dentist and practice understanding
2. Pressure, guilt, and scare tactics
3. This is one of the most important reasons not to choose a particular advisor. Unfortunately many are subjected to this while in dental school.
4. False promises of the best deal and cost available. Warning: generally, no advisor can get you a better deal and lower cost than another
5. Poor communications, e.g., failure to contact you for reviews
6. Do not choose an advisor simply because they are a patient or family member
7. Advisors who portray themselves as a “fighter or leg biter” at claim time. Claims are best dealt by amicably assisting the claimant and the claim adjudicator to assemble the most complete claim possible
8. NOT independent and NOT allowed to represent all major insurance companies
9. Sells primarily one company’s plans
10. Leaves “diagnosing your own insurance needs up to you”
11. Few years in the business
12. Focuses on permanent life insurance without paying attention to living benefits
13. Little or no claims experience, and poor claim assistance, e.g., only sends you the claim forms You should ask your advisor about their claim experience and EXACTLY how they handle them.

If you decide to make a change

Switching insurance advisors can range from being fairly easy to “uncomfortable.” While certain advisors will respect your new decision and make the switch easy for you, others will try to guilt and harass you into staying with them. Issues to be aware of include:

1. How your new and old advisor are compensated for “taking over” existing plans
2. How you wish to notify your old advisor of your decision to make a change. This should always be done in a professional fashion via a courtesy phone call, letter, or email
3. Submission of necessary paperwork to secure a smooth transition for taking over as “agent of record” on existing plans

Dr. Ian Wexler is a leading authority on insurance issues for dentists. He is the President of Protect Insurance Agencies Inc. in Toronto which provides insurance and estate planning products and services to over 800 dentists across Ontario. He can be reached for questions or other enquiries at (416) 391-3764 or drwex@protect-ins.com

Princess Margaret Hospital for Cancer Research for

$8,254

At the Beginning of 2010, we committed to donating one half of all our first year commissions from the sale of disability insurance to new graduates from The University of Toronto Faculty of Dentistry Class of 2010

For the Class of 2011, we have committed, once again, to donate funds to:

Neurologic Research at Toronto General Hospital