What is Life Insurance Month about?

By Finbar Garcia LUTCF, FSS, MFA

Life Insurance Month was created in 2004 by industry education group Life Happens. In September every year, insurance companies across the world celebrate Life Insurance Awareness.

It’s an annual campaign designed to educate the population on the importance of Life Insurance and how it can help provide financial security for families the world over.

In Trinidad and Tobago, this event is celebrated for the entire month of September through the local insurance industry association, in conjunction with insurance companies.

This association is called the Trinidad and Tobago Association of Insurance and Financial Advisors (TTAIFA). It was founded in 1975, back then named Life Underwriters Association of Trinidad and Tobago (LUATT), and is heavily focused on educational programmes, training, and development of all insurance agents in T&T and the wider Caribbean at times.

TTAIFA is a registered educational insitution with the Accreditation Council of Trinidad and Tobago.

During this month, TTAIFA will be hosting a series of free webinars geared towards educating the public about all aspects of insurance, how beneficial insurance has been to families, and what you need to know and do to secure your family’s financial future.

As a longstanding member of TTAIFA and a certified Moderator and Webinar host, I will be conducting one of these sessions on Insurance Awareness, on Wednesday, September 4. You can send an email to infor@ttaifa.com  or WhatsApp us at 718-8243 to register for any or all these free webinars.

Allow me to shift my focus away from my normal advice-giving column to share with you how agents are mandated to equip themselves with educational information, to better serve their clients with proper financial advice.

With the amendment to the Insurance Act, all agents must be compliant with Continuing Professional Development or CPD as its commonly referred to. Completion of these educational programmes and courses will allow agents to give professional advice to the public in areas such as Life Insurance, Critical Illness, Retirement Planning, Estate Planning, Business Insurance, Property and Casualty, along with other services and investments.

Financial planning needs a holistic approach but should be done step by step. This will allow our clients to better understand, plan and prepare for life’s uncertainties.

So, how does this involve agents? As a member of TTAIFA, all agents can further educate themselves through a series of professional development courses and degree programmes. These are internationally approved courses through The American College and supervised by the Caribbean Association of Insurance and Financial Advisors (CARAFIA), headquarters in Jamaica, as well as the Life Insurance Marketing and Research Association (LIMRA), a worldwide research, learning and development organisation based in the USA.

“There are no other products in the world that create money that doesn’t exist…The probability of your Death is 100%, why not plan for it.” –Dr Sanjay Tolani.

Call me for more information on planning your financial future. Send your questions to myfinancialadvisor2020@gmail.com or call 620-1185.

Life insurance myths

As part of Insurance Awareness Month, I would like to share some myths and facts about life insurance.

Myth #1: Life Insurance only provides benefits for death only.

Fact: While the death benefit is the main part of the policy, your coverage can include riders that will maintain your lifestyle in the event of any of life uncertainties like critical illness and loss of income, along with some savings, cash values.

Myth #2: Young persons don’t need life insurance.

Fact: The biggest risk in life i.e. sickness, accident or death can happen to anyone, however statistics shows that there is a 40 per cent chance of a 25-year-old having a disability and will need financial support along with their medical expenses.

Myth #3: Life insurance premiums are expensive.

Fact: The younger you are, the lower the premium. Of course, all things being equal, your health must also be of insurable standards. Based on the type of policy you desire; the premiums can be ‘cents to the dollar’ meaning that you can acquire a larger coverage for a lesser premium. The ‘Cost of Waiting’ is the reason you will pay more.

Myth #4: I will get a better return from other investments than life insurance.

Fact: Let’s face it, some investments will pay a good return, but this will only happen over a long period of time and is exposed to many risks. Life insurance is the only financial investment that pays the highest returns. Because of life uncertainties and your hectic lifestyles along with the demand on your time, life insurance is the only product that will take care of all your expenses and support your family in the event of your untimely passing, or your being diagnosed with a critical illness.

Myth #5: I have a group insurance policy with my employer.

Fact: Your group policy will cover you for a small, fixed amount, which may not be sufficient to take care of your family. While it’s a good benefit, there are many restrictions on how this policy operates in times of need and it may be cancelled if you leave the company or worse, if the company suffers some financial hardship.

So, now that you are clear on the importance of life insurance and the educational support that your agent has, to better assist you in times of need. It’s time to give him/her a call to arrange a financial review or contact me if needed.