What are some reasons I may want to buy investments from an insurer?

1. You can buy many or all of the products you need from the same source. Your options include:

• Insurance products, like life insurance and disability insurance
• Guaranteed Interest Annuities (GIAs) that earn interest
• Investment funds like mutual funds and segregated funds
• Registered Education Savings Plans (RESP), Registered Retirement Savings Plans (RRSP) or Registered Retirement Investment Funds (RRIF)
• Annuities.

2. You can buy from an adviser who you already know and like. This person may already know you and understand your goals. Also, you may work with the same adviser for the long term.

3. You can buy products you can’t get anywhere else. You can get segregated funds and life annuities. You can also get special products for small business owners.

4. You can protect your money from creditors. This may be important for small business owners, or investors nearing retirement. No other types of investments held in RRSPs and RRIFs are currently protected from creditors, except in Prince Edward Island and Saskatchewan. 

Tip: This will change if Bill C-55 is passed into law. It will protect RRSPs and RRIFs across the country from being taken on behalf of creditors if you go bankrupt.

What are some reasons I may NOT want to buy investments from an insurer?

 

1. You may have fewer choices. You can’t get every type of investment, such as bank accounts, stocks and bonds. And, some insurance agents are not registered to sell mutual funds.

Tip: Find out what products your insurance adviser knows well and can sell, and compare that with other sources.

2. You may get added sales pressure. Often insurance advisers get a commission when they sell products. They may also get extras, like trips or cash bonuses, based on their sales. Watch out if they pressure you to buy more than you really need.

Remember: Life insurance agents are often advisers for the long term.