Fall 2011

No cost, no headache virtual retirement content

Redefining retirement

Insurance GICs vs Bank GICs

Good-bye snow, hello sunshine!

Redefining retirement

No cost, no headache virtual retirement contentpage 8

Good-bye snow, hello sunshine! page 10

Redefining retirement page 4

Insurance GICs vs Bank GICs: six things you need to know page 7

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In this edition:

Message from Kari HoldsworthIt’s fall 2011 and I’m back to school! As the new Vice President, Individual Wealth I am embracing opportunities to learn and enjoying it immensely. For many years I have enjoyed business leadership and actuarial roles in Sun Life’s insurance business, and am thrilled to be extending my experience to the wealth business. I have a lot to learn, but am embracing the opportunity. I think a learning mind-set is healthy for any business leader.

Exciting opportunities lie ahead for Sun Life to capitalize on our leading positions across Canada, and I see the Individual Wealth business as a significant strategic component of that growth. I am accountable for managing the wealth manufacturing business through product design, price, risk management and product positioning, to bring valued product offerings to your business for your clients. The partnerships among business management, operations, distribution and marketing teams, and our mutual fund manufacturer, Sun Life Global Investments, will leverage our collective expertise to move business ahead. We have a foundation of consistency, collaboration and success in execution and I’m confident we will deliver products, tools and promotions that combine our thought leadership about issues affecting Canadians and insight from you about your businesses.

Our national ad campaign, “Money for Life,”™ targets clients at the point of retirement and reinforces that Sun Life offers product solutions to provide guaranteed income within a full financial plan. This is a powerful message that should resonate with Canadians at any stage of life as they think ahead to retirement. Our product shelf including the insurance products within investment and protection suites, is a distinct advantage as it extends beyond those available through banks or mutual fund companies, providing solutions to the financial risks Canadians face.

As current clients and potential customers consolidate financial planning and contemplate a shift at retirement to income solutions, you should take advantage of the content in this season’s publication:

I. Functionality and new features available on My retirement café

II. Guide to helping clients redefine retirement

III. Six things you need to know about Insurance GICs versus Bank GICs

Sun Life Global Investments continues to add funds to your mutual fund product suite. They remain committed to providing greater access to some of the world’s best managers with more choice of innovative and unique products, tailored to the Canadian investor. With their one year anniversary approaching, Sun Life Global Investments now offers 18 mutual funds, many of which are also available on Group Retirement Services and in SunWise Essentials. Have a look at these funds at www.sunlifeglobalinvestments.com.

Sun Life is pleased to be your partner of choice in bringing solutions to Canadians on a foundation of comprehensive product suite, tools and service. Thank you for building your business with us.

Kari Holdsworth

Vice-President Individual Wealth

Kari Holdsworth Vice-President, Individual Wealth

3Fall 2011 – Message from Kari Holdsworth

Redefining retirement

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They’ve lived by their rules, and they’ll retire by them too. The boomer generation was part of a cultural shift. Personal identity is important to them—they set the stage with their own music, their own fashion and their own language. According to an article in Psychology Today by Nancy K. Schlossberg, Ed.D, “There is no single path (to retirement) that fits all sizes, paths can be combined, and paths can and will change over time…boomers are creative as they chart new paths for themselves.”1 Their retirement will look different from their parents’ retirement and they’ll want to do what keeps them happy.

A payout annuity from Sun Life’s Money for life™ retirement products can provide clients with a guaranteed income stream that will help take care of their day-to-day living expenses, allowing them to enjoy life with one less worry.

Longer income deferral periods

We’ve added more flexibility with longer deferral periods. Registered plans have moved from a three-year deferral period to a ten-year deferral period, and non-registered plan deferral periods have increased from one year to ten years. This enhancement will help you offer a leading payout annuity product.

Essential Care Annuity - did you know?

If a serious illness strikes your client, an Essential Care Annuity from Sun Life Financial could provide them with higher income than a regular annuity to help them meet any additional day-to-day expenses. It’s ideal for

clients with a serious health condition and is a simple, management-free solution. It can help your clients worry less about their income and focus on the more important things in life.

With Sun Life’s Essential Care Annuity (previously known as an impaired annuity), your clients get the freedom and peace of mind from a guaranteed income – regardless of their situation. You also receive 1% higher up-front commission on Essential Care Annuities than on regular payout annuities.

Different types of payout annuities

Clients will probably have different retirement plans from one another. We offer choices to you to help them create a plan that suits their income needs:

The following types of payout annuities are Money for LifeTM solutions:

• Life annuity – guaranteed payments for life.

• Joint life annuity – guaranteed payments for the lives of the client and their joint annuitant.

We also offer term certain annuities:

• Term certain annuity – guaranteed payments for a specified period.

They can purchase the annuity with any combination of the following registered or non-registered investments:

Registered funds

• Registered retirement savings plan (RRSP)

• Registered pension plan (RPP)

Redefining retirement – Fall 2011

• Registered retirement income fund (RRIF)

• Life income fund (LIF)

• Locked-in retirement income fund (LRIF)

• Deferred profit share plan (DPSP)

• Locked-in RRSP/ Locked-in retirement account (LIRA)

Non-registered funds

• Savings

• Investments

Legislation may affect the type of payout annuity clients can buy, depending on the source of the money they use to purchase it.

What is the guaranteed period feature?

A guaranteed period for a life annuity ensures the beneficiary receives a death benefit if the client dies (or in the case of a joint annuity, the client and their joint annuitant both die) during the guaranteed period.

Depending on the annuity selected and the source of the funds used to purchase the policy, the death benefit may be a continuation of income payments or a lump sum. If the client lives beyond the end of the guaranteed period, we’ll make payments for the rest of their life. They choose the length of the guaranteed period when they buy the policy.

For term certain annuities, payments are guaranteed for the chosen term. If they die during the guaranteed term, we’ll pay the beneficiary a death benefit.

Part of a holistic plan

Payout annuities provide clients with freedom from investment decisions. It is guaranteed income that supports a well-rounded portfolio.

These tools feature the new face of payout annuities

The following tools will promote payout annuities and help you advise clients how they can work towards creating a smart financial plan.

Advisor guide and Product at a glance (PAAG) – this material will provide details around payout annuities and how the product works.

Client brochure – the client brochure will help build awareness of payout annuities and educate clients about how a payout annuity can complement their overall retirement income strategy.

Essential Care Annuity brochure – this brochure will help you start a conversation with clients and create awareness for a unique product that serves a unique need.

SunLife.ca content – the content on www.sunlife.ca will position payout annuities as a strong, competitive product.

With a broader range of material to choose from, there’s an opportunity to expand your knowledge through revised documentation and increase your ability to offer a holistic approach to retirement income solutions.

The advisor guide is a great reference tool to keep you up-to-date about payout annuities and help you answer questions clients may have.

Contact wealth solutions for more information about payout annuities from Sun Life.

1 Nancy K. Schlossberg, Ed.D, Psychology Today, “Boomers Get a Life After Retirement”, Feb 2 2011

5Fall 2011 – Redefining retirement

a surprise-free plan

Money foR Life

TM

Money for LifeTM products from Sun Life Financial guarantee clients a regular cheque in retirement, no matter how long they live or how markets perform.

To find out more, talk to your Sales Director today.

Life’s brighter under the sun

HELP CLIENTS APPRoACH RETIREMENT WITH CoNfIDENCE

© Sun Life Assurance Company of Canada, 2011.

INSuRaNCe GICs vs BaNk GICs: SIx thINGS you Need to kNow

a surprise-free plan

Life’s brighter under the sun

© Sun Life Assurance Company of Canada, 2011.

Insurance GICs (accumulation annuities issued by a life insurance company) offer principal protection and guaranteed interest, plus more!

1. Beneficiary designations • Insurance GICs allow you to name a beneficiary on both registered and non-registered assets.

• Bank GICs only allow you to name a beneficiary on registered investments.

• In Quebec, an insurance GIC allows a beneficiary to be named on all registration types.

2. assuris versus CdIC –the aa and GIC complement • Your bank GICs are likely covered by the CDIC, while insurance GICs are backed by Assuris. You can learn more about CDIC and Assuris at www.cdic.ca and www.assuris.ca.

3. Potential creditor protection – don’t lose your assets to bankruptcy • Annuity contracts for both registered and non-registered investments could be exempt from creditors. Federal bankruptcy legislation continues this protection in case of bankruptcy. However, protection is not guaranteed. There is no protection available for non-registered investments that do not qualify as life insurance or annuity contracts.

4. Payout annuity option available – creating a reliable income stream • At maturity, an insurance GIC is easily convertible into an annuity income stream for both registered and non-registered investments.

5. Redeemable – just in case • Unlike most bank GICs, insurance GICs are fully redeemable. You have access to all or some of your money if you need it unexpectedly, though it may be subject to a market value adjustment.

6. Pension tax credit – you deserve a break • Insurance GICs are eligible for the pension tax credit; those 65 and older can apply.

No moRe SuRPRISeS!

✔ avoid the costs of probate

Probate fees can be costly. By naming a beneficiary on your investments you ensure your beneficiaries will receive the full amount you intended to leave.

✔ avoid the delays of probate

The process of releasing your assets to those in your will can take months and possibly years, depending on the complexity of your Estate. Named beneficiaries on your investments avoid this delay as the beneficiary can be paid quickly outside of the Estate.

✔ keeping it private

Assets that flow through your Estate become a matter of public record. This can lead to disputes between family members over the division of assets. When a beneficiary is named, you can help avoid these disputes as payments are made outside the estate.

Probate is the legal process of administering one’s estate under a valid will.

Sun Life Financial accumulation annuities (AA) are issued by Sun Life Assurance Company of Canada, a member of the Sun Life Financial group of companies.

Fall 2011 – Insurance GICs vs Bank GICs: six things you need to know 7

Money foR Life

TM

HELP CLIENTS APPRoACH RETIREMENT WITH CoNfIDENCE

no cost, no headache virtual retirement content

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Want to be associated with some of the best retirement planning solutions out there? Three new My retirement café changes help you build your book, create value and become the go-to advisor for all of your clients’ retirement planning solutions

1. The ‘find an Advisor link’ has been removed from My retirement café

This means you don’t have to worry that your clients will be directed to contact another advisor. Simply send your clients the following URL (http://www.MyRetirementCafe.ca/get.informed).

Voila! You have a retirement information site to share with consumers. The best part is you don’t have the costs or headaches associated with maintaining the site or keeping any of the fabulous content up to date.

2. Clients can now save PDfs of tools and calculators

One of the most frequently asked questions is, “Can I afford to eat whatever I want when I retire?” My retirement café includes a number of easy-to-use calculators to determine typical retirement expenses and income. The income, expense, CPP calculators and Retirement Life questionnaire have all been upgraded with advanced functionality to allow clients to save their results as PDFs. They can then email these to you or bring them when you meet. You can (over coffee, perhaps?), discuss the PDFs, explore your client’s specific wants and needs and start to put a retirement plan in place.

3. New sales concepts bundles

The advisor version of My retirement café is designed to provide you with great retirement information about products, concepts and tax tips to help you work with your retirement clients. We’ve also added a new ‘sales concepts bundle’ to help you show clients how they can make the most of government benefits. These concepts provide solutions for bridging income while waiting for CPP benefits and for ways to minimize the Old Age Security (OAS) clawback, using payout annuities and other Money for Life™ products. The bundle also provides you with target client descriptions and a host of client-facing material.

Help clients help themselves

The tools and resources on My retirement café are an engaging and entertaining way to illustrate needs or address common client questions. Why not use the Retirement Life game to demonstrate some of the challenges (e.g. how a health crisis can impact a retirement plan)? The retirement lifestyle questionnaire is a good place to send clients who aren’t sure where to get started. And, the calculators can answer FAQs like, “How much CPP can I expect?” Empowering clients with appropriate research material gives them more confidence to discuss their retirement goals and needs – and firmly positions you as the go-to advisor for retirement planning solutions.

No cost, no headache virtual retirement content – Fall 2011

My retirement cafe

Sit back, relax, and be preparedExplore our interactive retirement resource centre

for information about retirement products,regulations & sales concepts.

My retirement cafe

Sit back, relax, and be preparedExplore our interactive retirement resource centre

for information about retirement products,regulations & sales concepts.

10 Good-bye snow, hello sunshine! – Fall 2011

With another blustery Canadian winter on the way, you or some of your clients may be heading south for an extended escape. If so, it’s time to start thinking about banking, insurance and other important things to ensure a well-planned, worry-free getaway. Use this handy ‘Before you go’ checklist as your guide or share it with your clients – and enjoy your time in the sun!

Passports and Visas• Make sure your passport is current. If it’s within a few months

of expiring, renew it before you leave.

• Check immigration rules for the countries you will visit and get the visas you need.

Money mattersAt your bank or financial institution:

• Set up online banking.

• Set up automatic bill payments to cover routine expenses such as utilities.

Good-bye snow, hello sunshine! Things to do before heading to the sunny south

Fall 2011 – Good-bye snow, hello sunshine! 11

• Ensure your ATM card works across the border or overseas.

• Maintain a Canadian address with your financial institution(s). Otherwise, they’ll have to withhold a non-resident tax on any income you receive while you’re away.

Health matters• Bring enough of your medications to last

while you’re away.

• If you have a pre-existing medical condition, get a MedicAlert bracelet, recognized by medical practitioners worldwide.

RRSP remindersCanadian securities regulations require you to be physically present in Canada when making lump sum RRSP contributions or before you make investment direction changes. Before leaving the country:

• Contribute to your RRSP or to your spousal RRSP.

Taxes, insurance and wills• Arrange for income tax receipts to be sent

directly to your accountant (if you have one) or forwarded directly to you if you’ll still be away on the filing deadline.

• Purchase travel insurance to cover out-of-country emergency medical situations.

• Make sure you have enough life and health insurance to cover your needs.

• Review and update your will.

• If you own property outside Canada, talk to a lawyer in that country and prepare a separate will for that property.

• Discuss with a lawyer the option of giving limited power of attorney to

someone you trust so they can handle your financial affairs while you’re away.

At home• Ask your phone service provider about

putting your home phone on hold.

• Put mail, newspapers, magazine subscriptions and other home deliveries on hold or have them forwarded to you.

• Ask someone you trust to keep an eye on your home and property.

Last but not leastCross-border estate planning can be quite complex. You may want to consult the appropriate Canadian Revenue Agency and Internal Revenue Service publications to make sure you’re prepared. For Canadians who spend less than six months each year in the U.S., their taxable estate for U.S. tax purposes includes U.S. real estate, shares in U.S. corporations, furnishings, cars, boats, RVs, jewelry and artwork if they are normally located in the U.S., regardless of where they were purchased.

Did you know?

Canadians get an estate tax credit that

varies depending on the proportion that

their U.S. situs of assets bear to their

worldwide assets. If the Canadian’s total

estate was $5 million or less, $1 million

exemption would shelter the U.S. situs

of assets from estate tax. You may want

to talk with your lawyer and a tax advisor

specializing in cross-border taxation.

© Sun Life Assurance Company of Canada, 2011.

J11-0136-3RDPARTY-E-09-11

For questions or comments on the content included

in this edition of the Individual Wealth Management

newsletter, please contact Wealth Business

Development at wealth.solutions@sunlife.com.