Simplified Issue Products Life Insurance Made Easy.

Slides:



Advertisements
Similar presentations
Chapter 12: Life Insurance Planning
Advertisements

Do not put content on the brand signature area ©2014 Voya Services Company. All rights reserved. CN The Irrevocable Life Insurance Trust:
Insured Annuity Increase your after- tax Retirement Income Insurance Concepts.
The Insured Annuity Concept
Easy Term Agent Use Only: Not for public distribution.
Lincoln Financial MoneyGuard Reserve
There is a story to the candy!. “We need to address the taxes on your annuities!”
The 3 P’s Mike Wernli VP of Sales Tribute Direct.
Solution Series Solution Series Agent Use Only: Not for public distribution.
(03/08)© AmericoFor agent use only. Not for public use.Policy Series 281/282/283/284.
(10/05) For Agent Use Only Ultra Protector Americo Financial Life and Annuity Insurance Company Product Training.
Life Insurance Made Easy
Simplified life insurance solution for clients who want peace of mind and NO MEDICAL EXAM.
Is Single Premium Life Right For You? Availability may vary by state. Forms #3UBJ05 & 3EBJ05. Products issued by and all policy benefits are the responsibility.
Taxes at Death Insurance Concepts. Tax on What you Own at Death When a taxpayer dies, they are subjected to paragraph 70(5) of the Income Tax Act which.
Life and Health Insurance
Introduction to Life Insurance Presented by: INSERT NAME Financial Education Program on Insurance Nationwide and the Nationwide Frame are federally registered.
Life Insurance in Estate Planning
Chapter 10 Life Insurance
©2007 Lincoln National Corporation For agent or broker use only. Not for use with the public. LCN (FAX ) 8/07 Lincoln Living Income.
Do not put content on the brand signature area ©2014 Voya Services Company. All rights reserved. CN Building family wealth while retaining.
Launch Meeting Global Financial Solutions Inc. October 19, 2005 Paul Freedman MBA, CFP
Participating Whole Life VS Universal Life
Life Insurance for Life The Power of Living Benefits.
Name, DESIGNATION Title, Company Name Date. Protection for all life’s stages.
Simplified Advantage Simplified Life Insurance Solution for clients who want Peace of Mind and NO MEDICAL EXAM.
National Insurance Agency Ken Smith Director Of Critical Illness and Disability Income
Simplified Life Insurance Solutions For Clients Who Want Peace Of Mind.
Chapter 16 Life Insurance. Copyright ©2014 Pearson Education, Inc. All rights reserved.11-2 Agenda Premature Death Types of Life Insurance Variations.
Unit 6 Insurance: Protecting What You Have Part IV Life Insurance Resources: NEFE High School Financial Planning Program
Life Insurance 101 Financial Independence Group Life Department Financial Independence Group, Inc.Life Insurance 101.
Achieving More Together Insured inheritance strategy.
Parents Cash Flow and Savings Debt Management Retirement Planning Estate Planning Tax Planning Investment Management Kids Education Future Financial Security.
Americo Financial Life and Annuity Insurance Company Agent Training Guide Why Americo? Life Insurance Overview Product Summary Questions? Comments? A friendly.
15.5. Helps replace lost income for a family who is financially dependent upon another person. Protects against financial loss. Policy states:  name.
Life Insurance Basics.
THE COMBO APPROACH A Simple Way to Insure the Whole Family.
Life Insurance Why are we talking about this?. Life Insurance When should I buy?
Are You Totally Protected?. Who is USA Benefits Group? About the Company  USA Benefits Group is a nationwide network of health and life insurance professionals.
$1.51 trillion Total amount of household debt in Canada in the first quarter of 2011: Source: “A Driving Force No More: Have Canadian Consumers Reached.
BridgeForce PD Days April 2014 Stronger products … More income. AGENDA Quick facts Premium Matchmaker Non Par Whole Life Bundled policies Underwriting.
LIVING LEGACY ® III Introducing S HENANDOAH L IFE I NSURANCE C OMPANY Presentation Form #5409A – 3/07 Universal Life Insurance Policy Form L /06.
Using life insurance for charitable donation Give more, pay less!
Protecting your estate Allow your legacy to live on.
INSURANCE Personal Finance. Insurance Protects individuals against unexpected financial loss.  Many types of insurance, each with a specific purpose.
Life Insurance. Insurance is an important component of both financial and estate planning. Care must be taken to ensure that insurance products achieve.
Westland Financial Services The Financial Professional’s Best Insurance Source Since 1976.
Whole Life Insurance with Guaranteed Death Benefit ® Presentation Form # /06 ( Product Form # L /05 & L /05*) * State suffixes to.
Americo Financial Life and Annuity Insurance Company Agent Training Guide Why Americo? Life Insurance Overview Product Summary Questions? Comments? A friendly.
Americo Financial Life and Annuity Insurance Company Agent Training Guide Why Americo? Life Insurance Overview Product Summary Questions? Comments? A friendly.
We have two primary financial problems: DYING TOO SOON… DYING TOO SOON… OR LIVING TOO LONG… OR LIVING TOO LONG…………..FINANCIALLY.
1 LTC Planning Options… -Three ways you can fund your LTC plan 1. Use your own personal or family’s savings & investments - Self Insure - Self Insure 2.
Life Insurance. Today’s Learning Objective How does life insurance work? Life Insurance Basics Calculating Life Insurance Needs Term Life Policies Whole.
All plans are not created equal What YOU need to know.
Life Insurance in the “New” Market. OVERVIEW  Immigration in Canada Statistics Challenges Tapping into the “New Market” Who can apply?  Underwriting.
Non-Medical Term Life from one of the leading simplified product providers in Canada.
Americo Financial Life and Annuity Insurance Company Agent Training Guide Why Americo? Life Insurance Overview Product Summary Questions? Comments? A friendly.
Single Pay & Flexible Pay Longevity Annuities Refreshing NEW look at Longevity Annuities.
A QUICK LOOK AT THE UNDERINSURED LIFE INSURANCE MARKET.
Life Insurance. Objectives Students will define keys terms related to life insurance Students will identify key features of various types of life insurance.
Desjardins Insurance refers to Desjardins Financial Security Life Assurance Company. KEEPING IT "ALL IN THE FAMILY“ Estate Preservation.
GOLDEN EDGE Pride and i ndependence …i t’s never too late.
Chapter 15 (not 15.8) Selected Chapter questions: 1,5,6 1.
Life Insurance Made Easy
Chapter 12: Life Insurance Planning
Trustmark Life Insurance Company of New York
Using life insurance for charitable donation
Keep business running with critical illness insurance
Keep business running with critical illness insurance
Presentation transcript:

Simplified Issue Products Life Insurance Made Easy

Agenda Canadian Life Insurance Market Simplified Issue Products – What is it and for whom? – Underwriting – Purpose Insurance Needs Covered – Funeral and final expenses – Probate fees – Income tax surprises Your Business Golden Protection Golden Protection Plus Differences between a level death benefit and an increasing death benefit

Canadians Underinsured About 2 in 10 households have NO life insurance at all. Of those that have coverage over 30% believe they need additional coverage. Only 23 percent of all households had an opportunity to buy through a personal meeting with a life agent. Almost HALF of Canadian households (6 million) admit they would have immediate trouble meeting expenses if a wage earner died. Not only are they underinsured … They Know It !!! Source: LIMRA

Many Options Term InsuranceMortgage Insurance Whole Life Insurance Participating Insurance Universal Life Insurance How do simplified issue products fit in the picture?

What is it? Does not require a medical exam, blood test, fluid samples or doctor’s report. Easier to qualify for this type of life insurance than for traditional insurance. One of the fastest ways to get life insurance because of the simplified issue process.

Who is it for? People… – with certain issues that may cause a premium to be rated or a refusal on a traditional life insurance; or – who genuinely dislike needles or any type of medical exam; or – looking for a simple and fast process to get life insurance; or – who don’t want the value of their estate diminished by funeral costs and other final expenses; or – who want the tax-free death benefit to be paid quickly.

Addressing Procrastination Many Canadians put off buying insurance because they anticipate a difficult process, thinking it’s complex and confusing. 1 Simplified issue products are: – easy to understand; – easy to apply for. 1. Source: Billion Dollar Baby - The Sales Potential of the Underinsured Life Market in Canada (2007), LIMRA

Underwriting With simplified issue products like Golden Protection, the questionnaire on the application represents the underwriting process. If all the answers to the questions are “no”, the client is insurable. Clients don’t have to wait for weeks before finding out whether they’re insured or not. No premium rating.

Underwriting Issues Height and weight restrictions Diabetes DUI / Driving record Drug or alcohol abuse Depression / Anxiety MS / Parkinsons High blood pressure High cholesterol Family health history Some of the elements that make it hard for people to get insurance: Who do you know are affected by one or more of these issues? A simplified issue life insurance like Golden Protection could be the solution for them.

What about cost? Premiums for a simplified issue life insurance are higher than those of a traditional whole life policy issued at the regular rate. This is due to the higher risk taken by the insurance company on this type of product. However, premiums for a simplified issue product may be lower than you think!

Cost Example Annual premium for $25,000 face amount for 60 year- old male non-smoker *Lowest premium in LifeGuide Sept edition for the WL/Guaranteed Life Pay category.

Cost Example Annual premium for $25,000 face amount for 60 year- old male non-smoker *5 th lowest premium in LifeGuide Sept edition for the WL/Guaranteed Life Pay category.

Cost Example Annual premium for $25,000 face amount for 60 year- old female non-smoker *Lowest premium in LifeGuide Sept edition for the WL/Guaranteed Life Pay category.

Cost Example Annual premium for $25,000 face amount for 60 year- old female non-smoker * 5 th lowest premium in LifeGuide Sept edition for the WL/Guaranteed Life Pay category.

What is it for? Due to the simple underwriting process, face amounts available are lower than traditional products. Mostly used to cover funeral costs and other final expenses. They can also be used to: – Cover small debts; – Grow the estate to be passed on to loved-ones; – Give to a charitable organization.

Funeral Cost  According to the Board of Funeral Services, the average cost of a funeral is around $5,500.  If you add up the flowers, reception, and casket that cost goes up to $9,000-$10,000 on average.  The government pays a maximum lump sum death benefit of $2,500. In some cases, it will be less.

Final Expenses Can include: – Probate fees (based on estate value, varies by province and territory) – Other legal fees – Accounting fees – Executor compensation – Income taxes

Probate Fees in Canada Value of EstatesProbate Fees British Columbia $0 to $25,000 $25,001 to $50,000 $50,001 or more $0 $ % of value in excess of $25,000 $ % of value in excess of $50,000 Alberta$0 to $10,000 $10,001 to $25,000 $25,001 to $125,000 $125,001 to $250,000 $250,001 or more $25 $100 $200 $300 $400 Maximum Saskatchewan Any amount0.7% of estate value Manitoba$0 to $10,000 $10,001 or more $70 $ % of value in excess of $10,000 Source: Financial Advisor’s Pocket Reference , CCH

Probate Fees in Canada Value of EstatesProbate Fees Ontario$0 to $50,000 $50,001 or more 0.5% of estate value $ % of value in excess of $50,000 QuébecAny amountN/A (court verification fee only for non-notarial will) New Brunswick $0 to $5,000 $5,001 to $10,000 $10,001 to $15,000 $15,001 to $20,000 $20,001 or more $25 $50 $75 $ % of the estate value Newfoundland & Labrador $0 to $1,000 $1,001 or more $85 $ % of value in excess of $1,000 Source: Financial Advisor’s Pocket Reference , CCH

Probate Fees in Canada Value of EstatesProbate Fees Prince Edward Island $0 to $10,000 $10,001 to $25,000 $25,001 to $50,000 $50,001 to $100,000 $100,001 or more $50 $100 $200 $400 $ % of value in excess of $100,000 Nova Scotia$0 to $10,000 $10,001 to $25,000 $25,001 to $50,000 $50,001 to $100,000 $100,001 or more $77.00 $ $ $ $ % of value in excess of $100,000 Source: Financial Advisor’s Pocket Reference , CCH

Probate Fees in Canada Value of EstatesProbate Fees Nunavut$0 to $10,000 $10,001 to $25,000 $25,001 to $125,000 $125,001 to $250,000 $250,001 or more $25 $100 $200 $300 $400 Northwest Territories $0 to $10,000 $10,001 to $25,000 $25,001 to $125,000 $125,001 to $250,000 $250,001 or more $25 $100 $200 $300 $400 Yukon$0 to $25,000 $25,001 or more $0 $140 Source: Financial Advisor’s Pocket Reference , CCH

Income Tax Surprises Deemed disposition rule at death. Money in registered accounts is fully taxable. Half of capital gains on assets are taxable. No tax consequence if assets are transferred to spouse or spousal trust. Final return due April 30 of following year or 6 months after date of death (later of the two). Canada Revenue Agency $XXXX Final tax return

Canada Revenue Agency $XXXX Final tax return Life Insurance Benefit Final Expenses Funeral Cost

Preserve your client’s estate value for their loved-ones.

How does simplified issue products fit in your business? Need is there. Easy to understand. Time efficient application process, issued quickly. Good way to generate steady cash flow.

Generate more business in less time with Assumption Life simplified issue products!

Simplified life insurance solution for clients who want peace of mind and NO MEDICAL EXAM

Permanent life insurance guaranteed level premium No medical exam, no APS, no fluids or needles Guaranteed cash values and excellent paid up value Available for smokers and non-smokers Available as a policy or rider (spouse) Issued with limited proof of insurability

Insurance amount doubles in case of accidental death In case of accidental death in a public transportation vehicle, beneficiaries receive 5 times the original insurance amount. Issue ages to 85 Policy Face Amount $50,000 $1,000 to $50,000 Guaranteed cash value and guaranteed reduced paid-up option after 3 years. Guaranteed cash value and guaranteed reduced paid-up option after 3 years.

Living benefit – 50% of the sum insured in the event of a first-time occurrence of a terminal illness Transportation benefit – $2,000 payable when death occurs at a site over 200 km away from primary residence Annual fee – policy$60.00 – rider (spouse)$30.00 Insurance coverage is immediate On-line application approved in hrs FYC 45%

Deferred Option If your client has been declined for insurance within the past 2 years, they may still qualify for Golden Protection at the same rates. Two-year waiting period for the death benefit for non- accidental death. Accidental death benefit is immediate. FYC 35% DEFERRED

Same great features as Golden Protection + Simplified life insurance that allows participants to increase their original coverage amount by 3% annually – without increasing their premiums!* annually – without increasing their premiums!* * until the initial sum insured doubles or the insured’s attained age 100 on the coverage’s anniversary.

Permanent life insurance for clients aged 40 to 80 No medical exam, No Needles or Fluids, No APS Premiums and coverage that will never change Guaranteed cash value and paid up values Coverage amount from $1,000 to $30,000 Same Great Compensation of FYC 45%

Living benefits – 50% of the sum insured in the event of a first-time occurrence of a terminal illness Transportation benefits – $2,000 payable when death occurs at a site over 200 km away from primary residence Annual fee – policy$60,00 – rider (spouse)$30,00 Guaranteed cash values and guaranteed paid-up insurance Insurance coverage is immediate On-line application approved in hrs

1 st anniversary - $10,000 5 th anniversary - $10, th anniversary - $10, th anniversary - $10,000 1 st anniversary - $10,300 5 th anniversary - $11, th anniversary - $13, th anniversary - $16,000 Comparative illustration: Sum insured Male non smoker, 60 years old. $10,000 face amount.

Monthly: $44.13 Annually: $ Monthly: $58.01 Annually: $ Comparative illustration: Premiums Male non smoker, 60 years old. $10,000 face amount.

If we take the same $58.01 in monthly premiums that the Golden Protection Plus client was paying for his initial $10,000 in coverage, and use it to purchase a Golden Protection policy… this would give the client $13,586 in coverage. However, with Golden Protection Plus, after the 12 th policy anniversary… the client would end up with more coverage with Golden Protection Plus, since the $10,000 would then be $13,600. Comparative illustration Male non smoker, 60 years old. $10,000 face amount.

Grow your business. Save time. Keep it simple.

Easy for youEasy for your clientEasy money Easy for youEasy for your clientEasy money