In a conversation with CanadianSME Small Business Magazine, Michael Aziz, Chief Distribution Officer at Canada Protection Plan, a Foresters Financial™ Company, sheds light on the unique financial challenges faced by the Sandwich Generation—those balancing responsibilities for both children and elderly parents. Drawing from over 20 years of experience in financial services, Michael discusses the importance of life insurance products like term life, whole life, and critical illness coverage as essential financial safety nets. He highlights Canada Protection Plan’s accessible, affordable solutions tailored to this demographic and offers valuable advice on securing long-term financial security for those managing multiple financial responsibilities.
Currently Chief Distribution Officer, Canada Protection Plan, a Foresters Financial™ Company, Michael first joined the organization in 2015 as Senior Vice President, Sales. With more than 20 years’ experience in financial services, including investments, life insurance and living benefits, capital markets, client services and operations, he has held progressively responsible positions with CIBC, Cranson Capital and Desjardins Financial Security.
Michael began his career as a Senior Financial Advisor and currently leads and inspires a team of sales, marketing and advisor contracting/licensing professionals.
At Canada Protection Plan, he has overseen exponential year-over-year sales growth and guided major product launches, including the revolutionary, new Critical Illness product introduced in spring 2020. A Chartered Financial Analyst (CFA) and a Certified Financial Planner (CFP), Michael holds a Bachelor of Administrative Studies (Hons.) from York University and a Master of Business Administration from the University of Windsor.
What are the primary financial challenges faced by the Sandwich Generation when balancing the needs of their children and elderly parents?
In already managing the day-to-day as a parent and caregiver to elderly parents, it can be tricky to put aside the time to consider and plan for the future. As immediate costs like childcare, groceries, and medications tend to trump the intangible future planning costs like life insurance, with dependents to consider in every decision, it’s more important than ever to offer a piece of mind for your loved ones. From a volatile labour market to unforeseen health issues, unexpected income losses (job loss or a decline in business for small business owners) can come from any angle of life.
In what ways can life insurance products, such as whole life or term insurance, provide a financial safety net for individuals in the Sandwich Generation?
Financial products like life insurance, disability insurance, and income protection plans can offer essential security nets and provide protection against unexpected events and losses of income. Understanding the different types of insurance and their benefits is essential for making informed decisions about the coverage you need. For example, life insurance is a type of coverage that provides financial protection for your loved ones in the event of your passing. It serves as a safety net, ensuring that your family and beneficiaries are financially secure and able to cover expenses such as funeral costs, outstanding debts, and ongoing living expenses. Because everyone’s financial situation is different, there is no “one size fits all” approach to choosing the right policy for you and your family.
A few options include:
- Term life insurance: One of the most commonly chosen policies, typically ranging from 10 to 30 years. Term life insurance can be a great option to provide affordable coverage and is often suitable to protect financial dependents for a set period of time.
- Whole life or permanent life insurance: Tends to be more expensive than term, but depending on your plan it typically offer lifelong coverage with fixed premiums, a guaranteed death benefit, and a cash value component that grows over time.
- Critical Illness insurance: Critical illness insurance, which protects against certain conditions such as cancer, stroke, heart attack and dementia, can provide a lump sum to cover out-of-pocket expenses that don’t fall under provincial health insurance.
By choosing the right type and amount of life and/or critical illness insurance coverage, you can ensure that your family’s financial future is protected, even in your absence.
How does Canada Protection Plan’s approach to life insurance cater to the unique needs of the Sandwich Generation, particularly regarding ease of access and affordability?
Canada Protection Plan (CPP), a Foresters Financial Company understands the unique challenges faced by the Sandwich Generation. From term to whole life and critical illness insurance, CPP offers life insurance solutions that are both accessible and affordable. Recognizing that time is often limited for those caring for multiple dependents, CPP has simplified the application process, often eliminating the need for medical exams or detailed health histories, allowing for quick approvals.
Could you share more about the Critical Illness product introduced by the Canada Protection Plan in 2020 and how it adds value to families managing multiple financial responsibilities?
The Critical Illness product was designed to offer families vital financial support when faced with a serious illness. Many people believe critical illness won’t happen to them, but the reality is, it can affect anyone, at any time. This product can support out-of-pocket costs not typically covered by provincial healthcare plans, cover lost income, or even pay for extra services like caregiving or household help. Additionally, it’s an affordable option, and when bundled with other insurance products, it can offer even greater value for the long-term.
What would be your top recommendations for individuals in the Sandwich Generation regarding planning for long-term financial security through life insurance?
With the rising cost of living, many Canadians are focused on immediate expenses such as groceries and caregiving fees, with life insurance typically pushed aside to the ‘maybe’ list. This may seem like the right decision at the time, but it can limit their ability to continue to take care of themselves and others, should an unexpected event occur. With a range of options available for Canadians today, there’s a life insurance policy for everyone – even those who may be experiencing financial strain.
Additionally, seeking personalized advice from a certified financial planner can ensure the right balance between insurance, investments, and overall financial planning, tailored to individual needs and life circumstances.
