Helping grieving clients

Did you know that the Canada Labour Code and therefore Federal jurisdictions provide only for up to 3 paid days bereavement leave?

And that is only if:

1. An employee has been employed for 3 consecutive months, and 2. That the 3 days fall during the work week.

In other words, if death occurs on a Friday, only the following Monday is a paid bereavement day as Saturday and Sunday make up the other 2 of the 3 bereavement days. Also, if death occurs during a vacation period, bereavement leave does not apply.

And that’s the good news! Most other jurisdictions provide for 3 – 5 days of unpaid bereavement leave for the death of an immediate family member if various qualifications are met.

When talking to your clients and prospects about life insurance needs and specifically income replacement, talk to them about the realities of Canada’s Labour Code Bereavement Policy or the realities of the bereavement policy of your jurisdiction too.

Ask them if it would make sense in their situation to consider the idea of income replacement for both incomes simultaneously. Why?

Until we have gone through it, none of us know how we’ll handle the death of an immediate family member. Some will be ready to go back to work on Day 4 because work will be a welcome distraction. Others will be completely incapacitated by emotional breakdowns and still others, while physically on the job will not be able to focus and may start producing third rate work and run the risk of being fired.

The need for income replacement has never been greater! The Life Insurance Management Research Association’s (LIMRA) most recent Canadian study found:

• 1. 30% of Canadian families with dependent children admit they will have immediate trouble meeting everyday living expenses.
• 2. 27% can cover expenses for only a few months if a primary wage earner dies.
• 3. 50% of Canadian parents believe their current life insurance coverage is inadequate.
• 4. 15% of Canadian parents with children under age 18 have no life insurance.
• 5. 1/4 of husbands and 1/3 of wives have no life insurance at all .

Life is about choices, and we have more choices when we have money. Choices that could include taking an unpaid extended leave of absence or to quit working to be a full-time Mr. Mom, or full time Mom (and Dad) or to work only part-time.

Next, let’s consider how you as the advisor provide support to your bereaved clients. Many advisors find themselves in an awkward situation when clients are touched by a death in the family. They simply don’t know what to say or do – so they often do the exact wrong thing.

Julian Wise, also an advisor, gives some practical and excellent advice based on his experience of losing his wife and father. He said, “Instead of avoiding or delaying difficult conversations, advisors should hone their skills in dealing with families in mourning and take advantage of the opportunity to deepen the client relationship and bond with other family members.”

What to say?

“I really don’t know what to say.” Wise suggests 7 words that will give great comfort: “I am so sorry for your loss.” He then suggests you stop and listen and if you had any familiarity with the person who died, recalling an anecdote or favourite memory about the deceased can lend comfort.

What to do?

Spread the news. It can prevent awkward moments created in social situations, when someone encounters the bereaved and, not knowing about the death, makes a regrettable comment.

Offer to help the bereaved with everyday necessities like walking the dog, running an errand or going grocery shopping for essentials, or bringing over cooked or easy-to-serve food.

Wise says, “Remember they are in a bubble of sorrow, in which it’s difficult to put one foot in front of the other, let alone remember necessities, make a decision or pull themselves together for a trip to the grocery store.”

When dealing with a bereaved person, Wise says, “The most important thing to remember is that it’s not about your fears; it’s about their loss, and it’s the best time to bring out your listening skills.”

After all, life isn’t just about selling investments and life insurance! It’s about the people who have bought those contracts from you. And when death occurs no one asks “Did they have Term, Universal Life or Participating Insurance?” They ask “Is there life insurance and is there enough?” With your help the answers can be “yes” and “yes”.

Helena Smeenk Pritchard has over 36 years of experience in the insurance industry and is the Principal of Helena Smeenk Pritchard & Associates, a leader in “Insurance Know-How” training. Helena publishes a weekly free ‘Did You Know’ newsletter on her site.