One advisor is claiming a broker failed the client by cancelling his life insurance policy.
Sun life is taking a lot of flak for cancelling a man with Alzheimer's life insurance policy, but the broker deserves to share in the blame, says one advisor.
“I believe so,” said Kevin Cahill, president and founder of Canadian Legacy Builder. “We need to hold ourselves in the same regard as other professionals in the marketplace. It comes down to fiduciary responsibility and what is in the best interest of the client. Sometimes it’s OK for an advisor to say no. But all too often it’s the tail wagging the dog, not the dog wagging the tail.”
Last week, Sun Life reinstated a life insurance policy cancelled by a man suffering from Alzheimer’s and vascular dementia.
Related: Did broker act hastily in cancelling life insurance policy
Bruce Gabriel, a lawyer and former insurance agent, was grappling with the disease in 2010, when with his wife away at work, he called his insurance agent to cancel his two life insurance policies.
Over the previous 17 years he had paid more than $17,000 in premiums, but cashed in for less than $2,000 on policies that would have paid out $140,000 upon his death.
Sun Life’s move to reinstate the policy didn't come until they were contacted by Go Public, a CBC investigative news segment.
This situation could have been avoided if the family had been involved. “I’d like to think if the discussion happened with the whole family then the policies never would have been cancelled,” said Cahill.
In fact, consulting with the family is one of the ways Cahill already takes steps to avoid situations like this.
“It’s funny, it just happened this morning,” Cahill said of a 10-year client of his, an 84 year old woman. “I made it very clear to her that everything we do is going to be cleared by her two children. It’s that family financial planning concept where we’re stronger together.”
With people living longer than ever before, this will continue to be a scenario that advisors will have to be mindful of going forward.
“Now there are more centurions alive than there ever has been cumulative,” said Cahill. “I think awareness is starting to come because the average age of a financial planner is probably mid-50s so now they’re in that stage of looking after their own parents so I think it comes with awareness."
“I believe so,” said Kevin Cahill, president and founder of Canadian Legacy Builder. “We need to hold ourselves in the same regard as other professionals in the marketplace. It comes down to fiduciary responsibility and what is in the best interest of the client. Sometimes it’s OK for an advisor to say no. But all too often it’s the tail wagging the dog, not the dog wagging the tail.”
Last week, Sun Life reinstated a life insurance policy cancelled by a man suffering from Alzheimer’s and vascular dementia.
Related: Did broker act hastily in cancelling life insurance policy
Bruce Gabriel, a lawyer and former insurance agent, was grappling with the disease in 2010, when with his wife away at work, he called his insurance agent to cancel his two life insurance policies.
Over the previous 17 years he had paid more than $17,000 in premiums, but cashed in for less than $2,000 on policies that would have paid out $140,000 upon his death.
Sun Life’s move to reinstate the policy didn't come until they were contacted by Go Public, a CBC investigative news segment.
This situation could have been avoided if the family had been involved. “I’d like to think if the discussion happened with the whole family then the policies never would have been cancelled,” said Cahill.
In fact, consulting with the family is one of the ways Cahill already takes steps to avoid situations like this.
“It’s funny, it just happened this morning,” Cahill said of a 10-year client of his, an 84 year old woman. “I made it very clear to her that everything we do is going to be cleared by her two children. It’s that family financial planning concept where we’re stronger together.”
With people living longer than ever before, this will continue to be a scenario that advisors will have to be mindful of going forward.
“Now there are more centurions alive than there ever has been cumulative,” said Cahill. “I think awareness is starting to come because the average age of a financial planner is probably mid-50s so now they’re in that stage of looking after their own parents so I think it comes with awareness."
