Completing a Reason Why Letter
What is the Reason Why letter?
The Reason Why letter is an industry-required document, intended to be a brief summary for clients helping them to understand the product recommendation, the transaction being completed and the rationale for why a product was purchased.
Best practices for writing and sending a Reason Why letter
- It can be communicated by letter or email (if the client has expressed a wish to be communicated by email)
- It should be brief (ideally one page) with the information provided in plain, easy-to-understand language
- A copy must be retained in the client file
- It should be provided to the client no later than the point of policy delivery
Why do I need this?
This is an industry and carrier mandatory requirement in all provinces and territories.
When is this due?
This came into effect on January 1, 2018. Any inspection or audit after July 1, 2018 will result in a reprimand and/or a fine.
Here are some Sample Reason Why Letters to help guide you in your writing:
- Financial Horizons Group Sample Letter
- Canada Life Sample Letter
- Manulife Sample Letter
- Ivari Sample Letter
- CLHIA Sample Letter
For Industrial Alliance Advisors
Industrial Alliance has communicated that as of January 1, 2019, failure to implement these client-need-focused business practices will be considered a significant deficiency requiring the implementation of corrective measures.
For Canada Life Advisors
There is an instructional video on RepNet which is very helpful.
For Equitable Life Advisors
Equitable Life has recorded a webinar available on demand and is CE accredited
Please contact your Regional Business Development Manager or Consultant, or email: firstname.lastname@example.org
A helpful Q&A is available to answer your questions about the Reason Why letter.