A v Protecting your business with holistic retirement advice Name: Title:

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vProtecting your business with holistic retirement advice

Name: Title:

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Source: Investor Economics - Household Balance Sheet, 2013, Statistics Canada

You want them

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Source: Investor Economics - Household Balance Sheet, 2013.

You want them

4 Source: 1. Canadian Boomer and the New Retirement, PMG Intelligence, 2009.Source: 2. Changing the Game, PMG Intelligence, 2011.

You want them

But they might not want you

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Misconceptions about insurance

Agenda

The need for a new approach

Make the Connection program

Myths and misconceptions about insurance

v

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I can’t risk damaging the relationship by bringing others into the fold.

I’m afraid to even mention the word insurance to my clients.

If I don’t understand it, I won’t be telling my clients about it.

My wealthy clients don’t need insurance!

More?

The sales cycle is far too long.

I know what you’re thinking…

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Insurance protection is wealth protection

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The more clients have,the more they have to lose

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The wealthy don’t need insurancebut they sure want it

NEED TERM INSURANCE(protecting human capital)

WANT PERM INSURANCE(protecting financial capital)

Replace income in the event of premature death or disability of a bread-winner or key person

Meet shareholder buy-sell obligations

Fund tax liabilities

Tax-effective transfer of assets from a corporation

Inter-generational wealth transfer

Protect the value of an investment portfolio in the event of an illness

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Insurance protects your business

Improve client loyalty

Protect from

liability

Increase your income

The need for a new approach

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Life is long

Source: Statistics Canada Life Tables, 2012

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Monitoring retirement trends

Expected retirement age down from 69 (2011) to 66 (2014)

Nationally representative sample of Canadians aged 30 to 65

More Canadians understanding the “risks

in retirement”

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ACCORDING TO THE 2014 SUN LIFE CANADIAN UNRETIREMENT™ INDEX:

•38% of investors are taking less risk with their portfolio now, compared to before the 2008 crash

•Just 6% are taking more risk

•97% of respondents say they want some form of guaranteed income in retirement

Source: 2014 Sun Life Canadian Unretirement Index

Trend – clients are still risk averse

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Thinking outside of the triangle

Accumulate ass

ets Withdraw

assets

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Thinking outside of the triangle

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Money for Life

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More affluent means larger legacy opportunity

Money for Life

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Your role as advisor and coach

Source: Primary research conducted by PMG consulting

Make the Connection program

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Make the Connection with a best practice approach

Make it easy for advisors like you to start conversations with your clients about wealth protection solutions.

ONE SIMPLE OBJECTIVE:

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Individual asset transfer

Corporate investment shelter

Insured annuity strategy

Asset protection

Four proven sales strategies

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2

3

4

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Individual asset transfer – using Par as an asset class

• Ages 30-60

• Larger need/want for life

insurance

• Taxable non-registered fixed income assets

• Maximize estate valueMinimize tax burden

• Life insurance without giving up liquidity

Clients reduce their taxable income potentially resulting in greater asset growth.

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Corporate investment shelter

• Age 55+

• Principal shareholder

• Liquid assets in excess of lifetime needs

• Low-risk investments

• High taxes

• Protect estate

Life insurance proceeds create a credit to the capital dividend account, allowing for the payment of tax-free capital dividends.

Coming July 2014

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Insured annuity strategy

• Age 65+

• Risk averse

• Significant non-registered assets

• Increase after-tax income

• Leave an estate for beneficiaries/charity

Annuity minimizes taxation and increases cash flow. The life insurance provides a tax-free benefit to beneficiaries and can bypass estate costs.

Coming November 2014

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Asset protection plan

• Age 50+

• Adequate retirement income

• Cherished investment assets to pass on

• Concerned about capital gains taxes

Effective means to fund estate tax liabilities. Potential for tax-preferred growth, further increasing estate value.

Coming January 2015

27 Available on: sunlife.ca/maketheconnection

Make the Connection program materials

Make the Connection package

28 Available on: sunlife.ca/maketheconnection

It’s easy to Make the Connection

29 Available on: sunlife.ca/maketheconnection

STRATEGY WORKSHEET

1. Determine the right clients

Shows you which clients may benefit from each popular sales strategy.

30Available on: sunlife.ca/maketheconnection

2. Start the conversation

CLIENT EMAIL TEMPLATE

Gives you a jump start in crafting an email to share the whiteboard video and engage your client.

31Available on: sunlife.ca/maketheconnection

CONCEPT OVERVIEW

3. Meet with client and specialist

You and your Insurance Specialist can provide this to your client at the initial meeting to discuss their needs.

32Available on: sunlife.ca/maketheconnection

4. Provide client with proposal

Your Insurance Specialist will use the illustration tool to generate a custom report that shows your client the impact of the strategy on their portfolio.

Individual Asset Transfer

Prepared for: John Client

Prepared by: Insurance Specialist

EOS ILLUSTRATION

33Available on: sunlife.ca/maketheconnection

It’s all online for you!

WWW.SUNLIFE.CA/MAKETHECONNECTION

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In summary

BUST THE MYTH ABOUT INSURANCE• The more you have, the more you have to lose

WHY CHANGE?• Client loyalty, by helping them approach

retirement with confidence

MAKE THE CONNECTION• Easily connect your Insurance Specialist to

clients, adding to your successful business model

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If you’re not talking to your clients about protecting their assets, another advisor will.

*2013 Sun Life Canadian Unretirement Index

The bottom line

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NEXT STEPS

Set up a meeting to discuss how you can implement Make the Connection into your business.

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Thank you