1. Life Insurance Made Easy
Simplified Issue Products

2. 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

3. Canadians Underinsured
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 !!!
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 .
Source: Billion Dollar Baby: The Sales Potential of the Underinsured Life Market in Canada (2007), LIMRA
For those who think the life insurance market is mature and opportunities for sales are limited, think again. Studies show that many Canadians are underinsured.
Source: LIMRA

4. Many Options How do simplified issue products fit in the picture?
Term Insurance
Mortgage Insurance
How do simplified issue products fit in the picture?
Participating Insurance
Of course, today, there are many options to fill insurance needs for clients: term, whole life, mortgage insurance, UL and participating insurance.
Since our topic today is simplified issue insurance, we’ll look at how this type of insurance can meet client needs as well as your business needs as an advisor.
Whole Life Insurance
Universal Life Insurance

5. 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.

6. 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.
When you take a few minutes to think about it, you surely know people that fall in one or more of these categories.

7. 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

8. 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.
The waiting game is one source of frustration for clients with the life insurance process, especially when the result is a refusal or premium rating.
Another way to save time is that you can determine if your prospect qualifies for the insurance before hitting the road to meet them. For those of you who travel to meet potential clients, this will save you much time and frustration.

9. Underwriting Issues
Some of the elements that make it hard for people to get insurance:
Depression / Anxiety
MS / Parkinsons
High blood pressure
High cholesterol
Family health history
Height and weight restrictions
Diabetes
DUI / Driving record
Drug or alcohol abuse
It seems we see these issues pop-up more and more, especially with middle-aged people. Regardless of the reason, (earlier diagnosis, greater awareness of symptoms) these are all issues that can have an impact on the underwriting process of a traditional life insurance – more time to evaluate application, premium ratings, etc.
With a simplified issue product, many of these issues don’t come into play in qualifying a potential client. It’s a huge time saver! The client either qualifies for insurance coverage, or they don’t. No wainting, no guessing.
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.

10. 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!
Some people tend to disregard simplified issue life insurance by saying it’s too expensive. Price is relative and you have to be careful of comparaing apples and oranges.
In general, if your client is in perfect health and has no bad health history in the immediate family, the majority will go for a fully underwritten life insurance at a lower cost. But for your clients with health issues that will probably result in a premium rating on a fully underwritten insurance, you will see that in many cases, the cost of a simplified issue insurance like Golden Protection is less.
That being said, we have seen in the past a few individuals that preferred paying more even if they were in great health to avoid needles. To them, because of their fear of needles, it was worth the extra money.

11. Cost Example Annual premium for $25,000 face amount for 60 year-old male non-smoker
Traditional WL is BMO Insurance’s Term 100 Plus with a $75 policy fee.
As you can see here, even the least expensive traditional whole life policy costs more if it’s rated at 200% than Golden Protection. Don’t forget all the time saved with the simplified issue product.
*Lowest premium in LifeGuide Sept edition for the WL/Guaranteed Life Pay category.

12. Cost Example Annual premium for $25,000 face amount for 60 year-old male non-smoker
Traditional WL is Empire Life’s Solution 100 with a $60 policy fee.
*5th lowest premium in LifeGuide Sept edition for the WL/Guaranteed Life Pay category.

13. Cost Example Annual premium for $25,000 face amount for 60 year-old female non-smoker
Traditional WL is BMO Insurance’s Term 100 Plus with a $75 policy fee.
The same is true for a female.
*Lowest premium in LifeGuide Sept edition for the WL/Guaranteed Life Pay category.

14. Cost Example Annual premium for $25,000 face amount for 60 year-old female non-smoker
Traditional WL is L’Excellence’s Whole Life with a $60 policy fee.
As you can see, when it comes to cost, people with certain issues that could result in premium ratings will find value with a simplified issue product. Some clients will also appreciate the value associated with the time they saved and the fact they didn’t have to provide fluid samples and “meet the needle” for a blood test.
Don’t assume people will find this type of product expensive. Show them what they get for the cost.
* 5th lowest premium in LifeGuide Sept edition for the WL/Guaranteed Life Pay category.

15. 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.
Permanent insurance will typically be limited to 50k and term insurance can go as high as 250k in some cases.
Funeral costs and other final expenses are a reality for everybody. This is the principal need that is met with permanent simplified issue insurance, although some people take it for other purposes.

16. 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.
At the end of the day, funeral costs will vary greatly from one individual to another depending on the different elements and services they include in their funeral plans.
The average amounts can serve as a benchmark for people who have absolutely no idea how much their funeral will cost.

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

18. Probate Fees in Canada Value of Estates Probate 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 amount
0.7% of estate value
Manitoba
$10,001 or more
$70
$ % of value in excess of $10,000
Probate fees vary greatly from one province to another. Some charge a negligible amount (flat fee) whereas in other provinces, the fees can be substantial (percentage of the estate value), especially for larger estates.
Financial institutions usually require that a will be probated before recognizing the authority of the will’s executor.
Source: Financial Advisor’s Pocket Reference , CCH

19. Probate Fees in Canada Value of Estates Probate Fees Ontario
$0 to $50,000
$50,001 or more
0.5% of estate value
$ % of value in excess of $50,000
Québec
Any amount
N/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
$100
0.5% 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

20. Probate Fees in Canada Value of Estates Probate 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
$77.00
$193.61
$322.31
$902.03
$ % of value in excess of $100,000
Source: Financial Advisor’s Pocket Reference , CCH

21. Probate Fees in Canada Value of Estates Probate 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
Yukon
$0 to $25,000
$25,001 or more $0
$140
Source: Financial Advisor’s Pocket Reference , CCH

22. 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).
In addition to tax on income earned in the year of death, the deem disposition rule applied at death can result in some additional, unforeseen, taxable revenue.
If there’s an amount of tax owed to CRA, it will come from the deceased’s estate, thus lowering the amount left to loved-ones. It could also result in the sale of certain assets to cover the tax bill.
Because of the deadline to pay taxes, it is important to have the insurance benefit paid-out quickly to take care of the taxes ASAP.
Canada Revenue Agency
Final tax return
$XXXX

23. Funeral Cost Life Insurance Benefit Final Expenses
Canada Revenue Agency
$XXXX
Final tax return
By planning for final expenses and tax issues and putting life insurance in place to provide money to pay those expenses, the client’s estate value will be preserved for his loved-ones.
Final
Expenses

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

25. 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.
From a business perspective, simplified issue products is an easy way to grow your income in a time efficient manner. If you consider the little time it takes for a simplified issue policy to be issued compared with other insurance products, you will find it worth your while.

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

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

28. 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

29. 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
40 to 85
Policy Face Amount
$1,000 to $50,000
Guaranteed cash value and guaranteed reduced paid-up option after 3 years.
Public Transportation Vehicle = boat, commercial aircraft, taxi, tramway, train, subway, bus, including the platform, steps
and stairs of such common carriers.
Minimum annual premium = $150

30. Transportation benefit
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%
Living benefit and Transportation benefit not payable before 2nd anniversary of policy.

31. DEFERRED 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%

32. 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!*
*until the initial sum insured doubles or the insured’s attained age 100 on the coverage’s anniversary.

33. 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%

34. Transportation benefits
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

35. Comparative illustration: Sum insured
Male non smoker, 60 years old.
$10,000 face amount.
1st anniversary - $10,000
5th anniversary - $10,000
10th anniversary - $10,000
20th anniversary - $10,000
1st anniversary - $10,300
5th anniversary - $11,500
10th anniversary - $13,000
20th anniversary - $16,000

36. Comparative illustration: Premiums
Male non smoker, 60 years old.
$10,000 face amount.
Monthly: $44.13
Annually: $490.30
Monthly: $58.01
Annually: $644.60

37. Comparative illustration
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 12th policy anniversary… the client would end up with more coverage with Golden Protection Plus, since the $10,000 would then be $13,600.

38. Getting started with Assumption Life!
1 - Obtain a broker code: Complete the Broker Registration Form and send to your MGA.
2 - You will receive an from Assumption Life indicating your username, password as well as your broker code.

39. lia.assumption.ca

49. *Does not work on Lynux OS. Is not designed for smartphones.
Lia Benefits
Reduces acquisition costs
Speeds up process and commission payment
Increases efficiency for everyone (broker, MGA and carrier)
Is a straight-through process – data enters directly into our administration system
runs on almost any device*
Is leading edge in the industry
*Does not work on Lynux OS. Is not designed for smartphones.

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52. PERSONALIZED MARKETING SUPPORT

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