Writing guide | Cover letters
Why attach a cover letter?
A well-written cover letter is a strategic tool that explains the context and purpose of the insurance application. It helps us understand the client’s needs and make an informed decision.
It also serves to:
- Introduce the client and provide essential information that isn’t included in the application
- Speed up processing by minimizing the need for added communications between us, the client and you
- Facilitate a more comprehensive assessment by highlighting key facts
Important: Refer to the Protect your clients’ personal information section.
Attach a cover letter whenever:
- Insurance needs are high (more than $10 million in life insurance) or unusual
- Annual premiums payable are $10,000 or more
- You’ve used a sales concept (for example, Generational Legacy Plan or Wealth Escalator Plan) or a specific strategy
- There are special considerations for the client’s situation
- You need to explain a specific financial, family or professional situation
Guidelines
- Be clear and concise. Stick to the essential information needed to analyze the insurance application.
- Mention the key points in the application.
- Don’t include any medical details. All medical information is covered in the application.
- Refer to the Financial underwriting requirements on your secure site for our guidelines.
- Be clear and concise. Stick to the essential information needed to analyze the insurance application.
- Mention the key points in the application.
- Don’t include any medical details. All medical information is covered in the application.
- Refer to the Financial underwriting requirements for our guidelines.
Refer to the letter template provided. It shows the key aspects for writing a cover letter depending on the context.
Key elements for an effective letter
- Identification
- Relationship with the advisor (existing or new client)
- Client profile: Career, professional designations, involvements, upcoming projects
- Insurance needs and purpose
- Purpose of insurance: Family coverage, estate planning, business needs, etc.
- Details of sales concept or strategy (for example, share buyback, tax payments, insurability protection)
- Justification of the amount applied for: Calculation method, financial data
- Financial or personal situation
- Income, assets, debts, family situation
- Specific factors influencing the application
- Application details
- How the application was started
- Involvement of professional advisors (lawyers, tax specialists, etc.)
- Other related applications (for example, for family members or business partners) with details (amounts, insurers, policies placed or not)
- Insurance history
- Extra premiums, any coverage declined, recent changes
- Details about beneficiaries
Depending on the context, you may add certain sections to your cover letter. Only use those that are essential for the application.
- Personal insurance (large or complex cases
- Provide details on income earned and sources, assets, liabilities, net worth of client, etc.
- Explain how the premium will be funded (for example, employment income, dividends, bonuses)
- Charitable donations
- Introduce the organization chosen by the client
- Describe the tax objectives
- List the personal and business insurance in force
- Buy-sell agreement
- Describe the organizational structure (attach an organizational chart if necessary)
- Indicate the type and percentage of shares held by each shareholder
- Explain how the value of the shares was determined (attach evaluation if available)
- Provide details on existing insurance coverage for each shareholder
- Insurance for key employee
- Explain why this person is essential to the business
- Provide the loan details (lender, reason, balance, term, conditions)
- Describe the financial impact of this person’s absence
- Commercial loan coverage
- Provide the loan details (lender, reason, balance, term, conditions)
- List the shareholders’ insurance (amounts, differences in coverage)
- If the amount applied for is higher than the loan amount, explain why
Even if your cover letter seems complete, we may ask for more information or documents to properly assess the insurance application and make a decision.
Information to include:
Policyowner = The child’s grandparent
- Net worth of grandparent
- Net worth of the child’s parents
- Details of life insurance in force on the grandparent’s life
- How the premium will be funded (for example, employment income, dividends, bonuses)
- Details of existing and proposed life insurance held by the grandparent on the lives of all their grandchildren, including siblings of the child to be insured: Insurer, type of insurance, coverage amount, premiums
- If there are differences in coverage, explain why
- Details of existing and proposed life insurance held by the child’s parents
Important: The grandparent’s information is available in your financial needs analysis, since they are the policyowner. Information about the parents is required to adequately justify the need for insurance.
Policyowner = The child’s parent
- Net worth of the child’s parents
- Details of life insurance in force on the parents’ lives
- How the premium will be funded (for example, employment income, dividends, bonuses)
- Details of existing and proposed life insurance held by the parents on the lives of all their children, including siblings of the child to be insured: Insurer, type of insurance, coverage amount, premiums
- If there are differences in coverage, explain why
Depending on the nature of the application, additional details or documents may be required.
Protect your clients’ personal information
To comply with security and personal information protection rules:
- Only provide the information that’s necessary to assess the application.
- You don’t need to list everything in this guide. Provide only what’s essential.
- Make sure that sharing and retaining this information complies with personal information protection and information security requirements.