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

2 Source: Investor Economics - Household Balance Sheet, 2013, Statistics Canada You want them

3 Source: Investor Economics - Household Balance Sheet, You want them

4 Source: 1. Canadian Boomer and the New Retirement, PMG Intelligence, Source: 2. Changing the Game, PMG Intelligence, You want them But they might not want you

5 Misconceptions about insurance Agenda The need for a new approach Make the Connection program

Myths and misconceptions about insurance v

7 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…

8 Insurance protection is wealth protection

9 The more clients have, the more they have to lose

10 The wealthy don’t need insurance but 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

11 Insurance protects your business Improve client loyalty Protect from liability Increase your income

The need for a new approach v

13 Life is long Source: Statistics Canada Life Tables, 2012

14 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”

15 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

16 Thinking outside of the triangle Accumulate assets Withdraw assets 65 Thinking outside of the triangle

17 Money for Life

18 More affluent means larger legacy opportunity Money for Life

19 Your role as advisor and coach Source: Primary research conducted by PMG consulting

Make the Connection program v

21 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:

22 Individual asset transfer Corporate investment shelter Insured annuity strategy Asset protection Four proven sales strategies

23 Individual asset transfer – using Par as an asset class Ages Larger need/want for life insurance Taxable non-registered fixed income assets Maximize estate value Minimize tax burden Life insurance without giving up liquidity Clients reduce their taxable income potentially resulting in greater asset growth.

24 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

25 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

26 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 Make the Connection websites Whiteboard video Client EOS Illustrations White Paper

28 Available on: sunlife.ca/maketheconnection It’s easy to Make the Connection Client EOS Illustrations White Paper

29 Available on: sunlife.ca/maketheconnection STRATEGY WORKSHEET 1. Determine the right clients Shows you which clients may benefit from each popular sales strategy.

30 Available on: sunlife.ca/maketheconnection 2. Start the conversation CLIENT TEMPLATE Gives you a jump start in crafting an to share the whiteboard video and engage your client.

31 Available 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.

32 Available 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

33 Available on: sunlife.ca/maketheconnection It’s all online for you!

34 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

35 If you’re not talking to your clients about protecting their assets, another advisor will. *2013 Sun Life Canadian Unretirement Index The bottom line

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

37 Thank you