1. Planning for health expenses
Comparing the Options
Alternate option aligned with template

2. Longevity couples age 45 to 65
This visual is taken from the Longevity Risk Calculator in the Money for Life web app.
We have run the tool using a 60 year old couple but similar calculation can be done for individuals of couples age 45 and up.
This states:
50% of couples age 60 will see at least one member live to age 93
25% will see at least one member live to 96
5% will see at least one member live to over 100
Source: 2008 Canadian Critical Illness (CANCI) tables published by the Canadian Institute of Actuaries,
July 2012 trended to 2014

3. realities of aging
90%
chance one will suffer a significant illness by 93
57%
If we believe in longevity and planning for your client’s money to last until they are well over age 90 then we also have to understand what their health might look like at an advanced age. The Longevity Risk Calculator goes one step further and helps to demonstrate the risk of significant health events.
With a 90% chance at least one of them will suffer a significant illness by 93.
57% chance it will be Alzheimer’s, dementia or other condition requiring constant supervision
chance of cognitive impairment
requiring constant supervision
Source: 2008 Canadian Critical Illness (CANCI) tables published by the Canadian Institute of Actuaries,
July 2012 trended to 2014

4. AGENDA Health events and planning A confident conversation
The product options
Let’s begin

5. What’s the Risk Where’s the risk When’s the risk

6. Protecting against “IF” Planning for “WHEN”
“If I get sick.”
“When I need care.”
Protecting against the unexpected
Planning for a high likelihood
At any age
In old age
Retirement planning interrupted
Disrupted retirement income plan
Asset withdrawal
Market timing
Tangible asset disposal
Early retirement/delayed retirement
Mental capacity
Key person/succession planning/financial protection
Estate preservation
CII solutions
LTCI solutions maintaining CII helpful
Does anyone in the room want to offer their answer to this question?
Do you have an opinion on the role government programs will play?
If government programs are not the complete answer, have you thought about your personal expenses
Have you considered where you will receive care, what that care will look like and who will deliver that care?

7. The life time line 35 50 85 Debt Protection Asset Protection
Does anyone in the room want to offer their answer to this question?
Do you have an opinion on the role government programs will play?
If government programs are not the complete answer, have you thought about your personal expenses
Have you considered where you will receive care, what that care will look like and who will deliver that care?
Asset Protection
Retirement Income Protection
Estate Protection

8. health Conversation
Start the

9. 1 2 3 health conversation Ask a critical question
Start the
health conversation 1
STEP 2
STEP
Ask a critical question 3
STEP
Introduce three financial strategies
The Health conversations begins with a critical question
Any idea what that question might be?
Make the decision

10. 1
STEP
Understand your client’s
Wishes and beliefs
Do you expect to be financially responsible for your care as you age?
What do you believe will be the biggest barrier to retiring as you’ve planned?
Does anyone in the room want to offer their answer to this question?
Do you have an opinion on the role government programs will play?
If government programs are not the complete answer, have you thought about your personal expenses
Have you considered where you will receive care, what that care will look like and who will deliver that care?

11. 1 Barriers to Growth Eliminating debt/reducing expenses
STEP
What do the
Barriers to Growth
look like?
Eliminating debt/reducing expenses
Changes in employment
These are annual costs. The need for care typically emerges over time. Costs might be lower in the beginning but increase with time. On average individuals who require substantial assistance with at least two activities of daily living will need this help for 3 years. Those with severe dementia requiring supervision can live for a decade or more.
For couples the need for care will almost certainly emerge at different times and not always align. And, in almost every case, couples wish to remain together.
This will mean a retirement residence and additional care or remaining in the home with added care and support.
As Stephanie/Roxanne said in the video the caregiver requires support to help them remain physically and emotionally healthy as well.
Poor market performance
Source: Taking Care Inc., 2013

12. 1 Care look like The ‘Default’ Choice The ‘Considered’ Choice
STEP
What does
Care look like
There is no wrong choice
The ‘Default’ Choice
Long-term care facility or nursing home
Your cost $25,000 annually
The ‘Considered’ Choice
Retirement residence or assisted living
Your cost $72,000 annually + $36,000 annually
These are annual costs. The need for care typically emerges over time. Costs might be lower in the beginning but increase with time. On average individuals who require substantial assistance with at least two activities of daily living will need this help for 3 years. Those with severe dementia requiring supervision can live for a decade or more.
For couples the need for care will almost certainly emerge at different times and not always align. And, in almost every case, couples wish to remain together.
This will mean a retirement residence and additional care or remaining in the home with added care and support.
As Stephanie/Roxanne said in the video the caregiver requires support to help them remain physically and emotionally healthy as well.
The ‘Preferred’ Choice
Care at home
Your cost $72,000 annually
Source: Taking Care Inc., 2013

13. Marketing support Provincial Cost of Care Reports on Sunlife.ca
The custom proposal
Marketing support
Provincial Cost of Care Reports on Sunlife.ca

14. 1 2 3 health conversation Ask a critical question
Start the
health conversation 1
STEP 2
STEP
Ask a critical question 3
STEP
Introduce three financial strategies
Now we have an understanding of the options available when care is needed and the potential costs the next step in the conversation is to talk about the financial strategies that can be deployed to plan for this future need.
Make the decision

15. 2 Three strategies Self-fund the risk Share the risk
STEP
Three strategies
for health funding:
Self-fund the risk
Share the risk
The three strategies are…
Fully transfer the risk

16. 1 2 3 health conversation Ask a critical question
Start the
health conversation 1
STEP 2
STEP
Ask a critical question 3
STEP
Introduce three financial strategies
How then does one decide which strategy is the right strategy?
The good news is that there is no wrong answer. You can confidently have this conversation knowing each strategy is available.
Let’s review
Make the decision

17. The product options

18. 3 Aligning Product Using critical illness insurance:
STEP
Aligning Product
Using critical illness insurance:
Self-fund the risk
No insurance purchase
Review investments risk profile
Assess current plan for vulnerability
Share the risk
CII coverage to age 75 during accumulation
Self – insure later years
Include ROPC to help self-fund later years
The three strategies are…
Fully transfer the risk
Lifetime CII coverage
ROPD but no ROPC

19. 3 Aligning Product Using long term care insurance: Self-fund the risk
STEP
Aligning Product
Using long term care insurance:
Self-fund the risk
No insurance purchase
Establish a health fund
Review investments risk profile
Share the risk
Self – fund emerging and initial care
Use Sun Retirement Health Assist for catastrophic need Or
Use limited benefit period Sun LTCI for initial need and self-fund unexpected significant lasting need
The three strategies are…
Fully transfer the risk
Lifetime, unlimited Sun LTCI coverage
ROPD guarantees what’s paid into the plan is received in some form of benefit.

20. ASK ME ANYTHING Visit Sunlife.ca/advisor - Health IHPD@sunlife.com
About Sun LTCI, Sun RHA, and Holistic Planning
Visit Sunlife.ca/advisor - Health
Advanced case managers and SST
option 6, 3, 1

21. In summary
Explain and identify the risk – the unexpected “if”; the expected “when”.
Have the conversation – self-fund, share or transfer the risk.
Chose the product solution to fit the outcome of the conversation.
Let’s begin

22. Thank you

23. disclaimer
This information is presented with the understanding that it is intended for information purposes only.
Neither Sun Life Assurance Company of Canada nor the presenter has been engaged for the purpose of providing legal, accounting, taxation, or other professional advice.
No one should act on the examples/information without a thorough examination of the legal/tax situation with their own professional advisors after the facts of the specific case are considered.