Teachers Life

1. Teachers Life Research Highlights Fall 2013

2. Background • Research conducted in preparation for the launch of our new On Line initiative • 3 Focus Groups • Members • Non-Members • On-line focus group of non-Members • Education workers – primarily teachers

3. Background – cont’d • Union environment • Benefits a part of employment contract • Research conducted by Head Research

5. Findings – surprise, surprise… • Everyone was aware that they have life insurance through their employer….however, they know little else • In most cases, they have not reviewed their needs since first being hired – Life insurance for the most part is a ‘one and done’ – their assumption is that they have it • Group Life - “the union is looking after me” • Life insurance obtained outside of their board is typically mortgage insurance

6. Findings, cont’d • Little or no understanding of insurance at all i.e. term vs. whole life • A few purchased additional insurance through a trusted financial advisor/broker because they happened to have a good relationship with one of these individuals • Most viewed life insurance as a ‘necessary evil’ • Insurance companies are not positively – regarded by most Teachers

7. More findings…. • Second hand horror stories – denial of benefits, policies are viewed as incomprehensible and mired in fine print • Insurance advisors are viewed as being commissioned based salespeople who do not have the clients’ best interest at heart • Insured person will never directly benefit from the policy • They want to be able to trust their insurance provider • They have no time to unravel the intricacies of their coverage – they want their board or insurance provider to make it easy for them to understand

8. No surprises…cont’d • Greatest source of information for those in the study – family and friends • Banks are also a source • Insurance Advisors were not often cited as sources of information or influence; they are generally mistrusted • Unclear as to what Critical Illness Insurance was – once explained there was greater interest – the potential of combining CI with Term Life appealed to them

9. Conclusions • For the most part, teachers are just as ill-informed and uninterested in life insurance as members of the general public • Most aware that coverage is provided by employer, but unaware of the details • Insurance payments appear on every pay cheque, but insurance couldn’t be further from their minds • Confusion between mortgage and life insurance • To some degree LTD is understood, but there is confusion between health care and CI (why would CI be needed)

10. Conclusions… • Ideally would like to get something back instead of paying life premiums. • Most view Whole Life as a good investment and most distrust insurance salespersons who work on commission • Purchasing additional insurance is not a priority • More likely to favour an affiliated group than one that is not affiliated • Banks are seen as convenient ‘one-stop’ full service offerings • Without being exposed to an easy-to-use online platform, they are not naturally inclined to purchase online. However, they favour any method that is easy and fast – including answering a quick set of questions to determine needs and establish options