Most types of insurance can also be purchased over the phone or Internet or by mail; however, life insurance is usually purchased from a licensed agent. Other types of insurance, such as mortgage default insurance or credit insurance, are usually offered by the lender when you apply for financing.
Where can you get insurance?
You can buy insurance from:
- an insurance agent
- an insurance broker
- an insurance company.
Choosing an insurance agent or broker Before choosing an agent or broker:
- Shop around.
- Ask friends and family if they can recommend someone they have dealt with. Ask the agent or broker to provide references from other clients.
- Ask about the insurance agent’s or broker’s qualifications. Find out what training the agent or broker has received. For example, if you are dealing with a life insurance agent, ask whether he or she has passed the Life Licence Qualification Program (LLQP).
- Find out if the agent or broker belongs to a professional association. For example, does the agent or broker belong to Advocis, the Financial Advisors Association of Canada or the Insurance Brokers Association of Canada?
- Contact the insurance regulator in your province or territory to confirm that your agent or broker is licensed or registered to do business in your province or territory. Dealing with a licensed agent or registered broker will help to ensure that he or she is properly trained and has the resources to provide you the insurance services you may need. A list of provincial and territorial insurance regulators is available on FCAC’s website at fcac.gc.ca.
- Find out how long the agent or broker has been in business and what services the agent or broker provides after selling you the policy.
Choosing an insurance company
Regardless of how you buy insurance, your policy will be issued by an insurance company. Before accepting an insurance company recommended to you by your agent or broker or choosing an insurance company yourself, contact the insurance regulator in your province or territory to confirm that the insurance company is licensed to do business in your province or territory.
Insurance companies will evaluate whether they will issue a policy based on certain criteria, such as:
- your age
- your medical history
- any previous claims you have made
- the amount of coverage you are requesting.