The topic of “disclosure” has been front-and-centre in the industry for a while now. Here’s a summary of the recommendations for advisor and product disclosure that you might find helpful.

When a consumer is considering the purchase of a life or health insurance product, it is important that they have clear information about:

  • the product and how it meets their current/identified needs
  • the company offering the product
  • you (the advisor) and your business relationship with the company.

The intent of the Product Disclosure Guideline is to provide clients the information they need to make informed and confident purchase decisions.

This includes but is not limited to disclosure of:

  • the main benefit offered by the product and its principal features and benefits
  • which features and benefits are guaranteed and which are not
  • the nature, frequency and structure of payments required
  • any exclusions, reductions or limitations that may apply.

Advisors are the important link between the insurance manufacturer and the client - and the conduit for ensuring that product information is passed on. You need to ensure your clients have reasonable access to the required product disclosure material prior to signing an application.

Product information is available to the public in the Explore products section of sunlife.ca, or in hard copy form by request through the toll-free customer service line.

According to the CLHIA, advisor disclosure should be given to the client, in writing, prior to the sales transaction. For meaningful disclosure, generally accepted industry practices include disclosing information about:

  • the company/companies you represent
  • the nature of your relationship with the company/companies
  • how you are compensated
  • additional compensation you may receive (e.g. cash bonuses or non-monetary compensation such as travel incentives for volume of business during a sales campaign)
  • any conflicts of interest that may influence the advice you give to the client
  • the consumer’s right to ask for more information
  • any industry-related license(s) you hold.

As a best practice, you should obtain the client’s signature and sign a written acknowledgement that you've disclosed the information.

The PDF linked below explains the details of the CLHIA voluntary initiative and advisor disclosure. It also contains a few sample disclosure statements.

CLHIA reference document - Advisor disclosure