7 February, 2018 07:00
Gilles Chevalier | Photo : Réjean Meloche
Conference for Advanced Life Underwriting (CALU) has been working on a solution that would allow insurers to better meet the needs of insured persons whose life expectancy is reduced and which is considering the assignment of police to a third party.
Chairman of the board and CEO ofEngel Chevalier wealth Protection, Gilles Chevalier explained the process of CALU, in interview to the Newspaper of insurance. «You need to understand that the policyholders want a solution. The industry needs to listen and come up with a win-win solution. «
Mr. Knight reiterated that the purchase by a third party does not extend to all the world, that people are looking for the fonts of insured persons in health, who have for a long time a policy of insurance for a set amount interesting, and without redeeming value. «The third parties who carry out buy-backs of fonts called «agreements viatiques» are very selective in the profile of insured persons they are looking for. For example, it is the insured’s age 75, which has a policy of whole life insurance amount of $ 250,000, which he purchased at the age of 45. This is the case of a few people. But what of the other insured ? We wanted to develop a solution for all, not just those that correspond to the focus of the agreements viatiques. «
Currently, several insurers offer to a client whose life expectancy is less than two years to reach 25 % to 50 % of the value of the amount of the insurance, of its living. The chairman of the board of CALU and its peers have developed a solution that offers the insurers to extend the period of life according to which the benefits of compassion can be paid.
CALU is currently waiting for a ruling (opinion for tax purposes) on his or her approach, theCanada revenue Agency. The collection will soon be an agreement with an insurer to announce, revealed Gilles Chevalier.
«The insurance companies that we met with have shown interest. This is to facilitate access to capital to insurance to people who have health problems, and to extend this period, for example up to five years, » he explains.
It also reminds us that a certain rate of abandonment is integrated in the price of insurance policies. He feared that if only the acquisition by a third party is needed in the industry, that could push the prices of the products increase.
«Our solution presents the advantage of not changing the structure of the pricing of the products. In addition, it is accessible to all the insured holders of such policy, regardless of the amount of insurance that they have undertaken «, said Mr. Knight.