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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
v
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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
65
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
v
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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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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