1. Juvenile Insurance…still an untapped market
We work in a business where we routinely have to bring up topics that most people would rather not discuss at all - illness and death. Beginning a conversation with a client about insuring their children can be even more daunting. The last thing parents want to think about is the remote possibility that something could happen to “their” child. However, there are approaches you can take to broach this topic.
Wayne Linke Regional Sales Director, Desjardins Insurance

2. Agenda Why insure children?
Life and Health Insurance Solutions to choose from
Intergenerational Transfer
The purpose of this presentation is to show you a few ideas on how to position yourself to offer life and/or critical illness insurance for children. 2

3. Why Insure a child(ren)?
Provides children with protection that will carry into their adulthood
A limited-pay insurance policy will provide protection when their needs are high but their discretionary income may not be available
Lock in rates today. Protecting future insurability
Later in life getting coverage could become an issue due to lifestyle, occupations and geographical location
These are the type of points you want to highlight to your clients.
Did your parents purchase a life insurance policy when you were young? Was it a cash value policy? Did you access that cash in your lifetime for whatever reason. If your parents did not purchase that type of policy wouldn't be nice to access that cash value in the policy to help supplement your education or provide funds to purchase first home?
A limited pay plan will benefit the child in their adult years when expenses and debts are high. Perhaps they have purchased their first home, got married, or are having children. There expenses are really high during that period so a limited pay policy works.
Insurance rates are going up. Now is the time to lock in the rate and protect insurability. Add a rider that guarantees their right to purchase, without evidence of insurability, additional coverage.

4. Why Insure a child(ren)?
Insurance proceeds can be used to establish a scholarship fund
Provides access to Capital and Equity
Be your own Banker
Insurance proceeds can be used to establish a scholarship fund at a local school, college or university, or even a community association.
The next part I am going to show you is few stats that you can share with your clients on the importance of insuring their children.

5. Why insure a child(ren)?
Then
Insure the husband or breadwinner only
Now
61% of households in Canada are dual-income
Insure both spouses
What about the children?
The debate now is that the child is not the breadwinner and therefore insurance is used to protect the income of the breadwinner.
Years ago advisors would insure the husband only. The consequences were if the husband died the family received the insurance proceeds to cover funeral expenses and other expenses. If wife died, the husband would have to borrow from the families savings to cover funeral expenses and would have to return to work immediately along with the added expense of childcare and home support.
Now according to Statistics Canada, 61% of homes in Canada are dual-income households. It more common to provide insurance protection to both spouses to replace income, cover final expense, education, debts, taxes or bequest to a charity
But what about the children?

6. The Meliton Family George, age 35, Jen, age 30 Amy age 3, John age 4
The Melition which consist of George, Jen and their two kids Amy, age 3 and John, age 4. Both George and Jen purchased life insurance on both of their lives but none their children. What would happen if either Amy or John die prematurely? The loss would be so devastating for both George and Jen that they would not be unable to focus on anything else. Do you think they will want to go back to work? If either one of them can takes a leave of absence from their job, wouldn't that result in a loss of income?
Would it help if they could receive 6 to 12 months of income to grieve, deal with the loss as a family and bring normalcy back to their life?
In addition, what if either Amy or John become critical illness.
Typically, we insure the breadwinner who are the parents. Although the child is not a breadwinner, what about the emotional stress of losing a child affects the breadwinner's ability to earn an income.
What type of life and critical illness solutions can we offer both Amy and John?

7. Four Whole Life solutions to choose from…
Life Start 15- Issue Age Max $100,000

8. Four solutions to choose from!
John, age 4
Amy, age 3
Life 10
Life 15
Life 20
Guaranteed Whole Life
Face Amount
$50,000
each
Show you can way that your client's can purchase this policy free.
Depending upon the parent's budget they have four solutions to choose from

9. Four solutions to choose from!
John, age 4
Amy, age 3
Life 10
Life 15
Life 20
Guaranteed Whole Life
Face Amount
$50,000
each
Guaranteed Insurability Rider
$100,000
GIB Rider- to protect future insurability should they come critical ill and require more insurance.

10. Four solutions to choose from!
John, age 4
Amy, age 3
Life 10
Life 15
Life 20
Guaranteed Whole Life
Face Amount
$50,000
each
Guaranteed Insurability Rider
$100,000
Accidental Fracture Rider
Included
Kids break bones.

11. Accidental Fracture
It's income so they can take time away from work to care for the child, pay for medication if needed, and any other medical equipment required such as for a broken leg.

12. Four solutions to choose from!
John, age 4
Amy, age 3
Life 10
Life 15
Life 20
Guaranteed Whole Life
Face Amount
$50,000
each
Guaranteed Insurability Rider
$100,000
Accidental Fracture Rider
Included
Premium
$92.41
$67.69
$68.81
$58.60
Depending upon the parent's budget they have four solutions to choose from.
Use the UCC benefit to pay for these policies

13. Four solutions to choose from!
John, age 4
Amy, age 3
Life 10
Life 15
Life 20
Guaranteed Whole Life
Face Amount
$50,000
each
Guaranteed Insurability Rider
$100,000
Accidental Fracture Rider
Included
Premium
$92.41
$67.69
$68.81
$58.60
Guaranteed Cash Age 20
$7,320
$4,339
$5,000
$1,387
Reduced Age 10
$30,645
$10,000
$1,863
FYC: Life %, Life Start %, Life %, GWL 60%

14. Some thoughts…
What if Amy and John become diagnosed with a critical illness:
Would their parents want to take time off work?
Would they need additional income to pay for expenses related to that illness or condition
Receive help in seeking the best diagnosis and medical treatment right away

16. Harmony New Generation will pay a lump-sum benefit…
Should the child be diagnosed with a critical Illness
Should the child pass away prematurely
Should grow up healthy..which is most likely to happen
So that you can stay at the child's beside to comfort them
To give the parent time to get through that difficult period
To help the parent make the child's dreams comes through 16

17. Harmony New Generation
Individual Critical Illness Insurance coverage for children
28 Illnesses
childhood illnesses
31 Illnesses
childhood illnesses
Autism
Rett Syndrome
Cystic Fibrosis
This is one of Desjardins most popular products and is purchased by a lot of grandparents. ROP is available on the Life pay. It starts at 5% at year 5 with 100% at year 20.
Type 1 Diabetes Mellitus
Cerebral Palsy
Muscular Dystrophy 17

18. Harmony New Generation
Term 100 plan
Level and guaranteed premiums
20 pay or life pay (20 pay is most popular)
ROP on surrender available from the 5th year. 100% in 20th year 18

19. Harmony New Generation
Life insurance option (up to 100% of the sum insured)
Issue Age: 31 days old to age 17
Face Amount: $25,000- $500,000
No critical illness insurance is required for parents with face amounts under $100,000
No policy fee 19

20. Harmony New Generation
John, age 4
Amy, age 3
Harmony New Generation
Harmony New Generation 20 Pay
Face Amount
$50,000
Illnesses 31
Death Benefit
100%
Premium
$58.42
$70.71
ROP upon Age 20
$12,980
$15,710
Depending upon the parent's budget they have four solutions to choose from.
Use the UCC tax benefit to pay for these plans.

21. Distinctive advantages for DFS…
Age at issue: as of 31 days old
Term 100 plan
2 childhood illness options (28 or 31)
Serious Complications caused by 4 Infectious diseases
3 premium refund options at death (25%, 50%, 100%)
Premium refunds available as of the 5th anniversary, 100% as of the 20th year
Can be combined with several types of life insurance
No Policy Fee

22. Inter-Generational Wealth Transfer
A sales concept for grandparents (or parents) who wish to:
Transfer assets to children or grandchildren without giving up control of those assets
Reducing taxes on current and future investments
Lowering taxes due on current income
Retaining control of estate assets
Minimizing probate fees
We often see parents and grandparents retain some sort of control of the assets they plan on transferring to them in the future due to the fear of the child spending it all.

23. Use of Cash Value to fund education while leaving a legacy
Sam purchased the following solution on the lives of Amy and John:
PACE UL/ Precision 10:
$100,000 face amount each
$100,000 GIB option each
Accidental Fracture each
$4,000 deposit annually for 10 years
At age 18, policy is transferred to Amy or John. They withdraw money from the insurance plan to help pay for the their education
Let's say that we have a grandparent who would like to set up and RESP plan for their grandchild. However, their parents had already set up an RESP for the child. In addition, the grandparent is thinking about leaving an inheritance to the grandchildren. What if we can show the grandparent a solution that will allow them to leave an inheritance to their grandchildren while having the ability to access cash to help fund the grandchildren's education- All this tax-free.
Sam wants to leave Amy and John a legacy while helping him with their future education. Sam purchases a DFS Precision 10 Universal Life insurance plan with a face amount of $100,000 each. Sam will deposit $4,000 per year to the plan for 10 years. At the end of the 16th year when Amy and John turns 18 and goes to university or college Sam can either transfer the life insurance policy or give the child the investment, depending on the initial investment choice. Over the next 5 years, the Amy and John withdraws a total $6 000 annually from the savings portion of the life insurance policy to cover tuition expenses.

24. The Solution
The solution is a 10 pay whole life inside a UL. The premiums are guaranteed and paid up in 10 years. CSV, GSV. Depositing $4,000 over 10 years earning rate of return of 4%.

25. The Solution
$5,000 is withdrawn at age 18 to supplement education. There will be a taxable disposition but because the kids are in a lower tax bracket the amount will be nil.
FYC – 32.5%

26. How does it work?
The Transfer plan works by placing a universal life insurance policy on the life of the child/grandchild, or on the lives of the child/grandchild
The parent or grandparent is the owner of the plan and deposits funds into the plan
The policy ownership can be transferred to the child at any time after his or her 18th birthday, with no tax payable on the transfer
Recap

27. How does it work?
When the child withdraws funds from the savings portion of the policy, it will be taxable in the child’s hands, in most cases at a lower rate
The funds withdrawn from the plan can be used for any purpose - education, a house purchase, a trip abroad
The parent or grandparent may use the policy as collateral for a loan which can provide tax-free income
The parent or grandparent can retain also ownership of the plan for as long as wished, and if desired can withdraw funds from the investment portion for their own use - for example for retirement income if the need arises.

28. Marketing tips for promoting Juvenile Insurance
Don't use direct mail or pre-approach letters to introduce juvenile insurance
Don't raise the topic until the parents commit to life and critical illness insurance for themselves

29. Marketing tips for promoting Juvenile Insurance
Explain how the entire family is affected- both financially and emotionally
Host a client seminar and invite a guest speaker who has experienced illness or a loss of child to share their story

31. Thank You!