1. ® Registered trademark of The Empire Life Insurance Company. Policies are issued by The Empire Life Insurance Company. Rick Forchuk, MBA, CFP, CLU, CH.F.C. Special Advisor, Distribution Practices Empire Life IS THE INTERNET REPLACING ADVISOR ADVICE? YES! AND NO!

2. 2 2 2 Canadian Individual Life Insurance Ownership Timeline* Year % who own % who do not own 1982 59% 41% 1999 54% 46% 2013 43% 57% *LIMRA’s 2013 Life Ownership Study Maybe they are relying on Group?

3. 3 3 3 Canadian Group Life Insurance Coverage Timeline* Year % covered % not covered 1982 56% 44% 1999 52% 48% 2013 50% *LIMRA’s 2013 Life Ownership Study

4. 4 4 4 Which age group is most likely to secure the services of an advisor? 60s? 40s? 20s?

5. 5 5 5 Which age group is most likely to secure the services of an advisor? 60s – 70% use advisor 40s – 70% use advisor 20s – 80% use advisor

6. 6 6 6 Buying on the internet … Canadian consumer study by the numbers: 75%: The number who purchased life insurance face-to-face 25%: The number who purchased non-face-to-face (bank, mail, telephone, internet) 2%: The number who purchased on the internet 57%: The number of Americans who purchased face-to-face 43%: The number of Americans who purchased non-face-to-face (bank, mail, phone)

7. 7 7 7 -Gen Y is the most likely group to research people and business on the internet -Gen Y is the most likely group to doubt what it reads on the internet -All groups, to one extent or another, read reviews online for: Hotels Restaurants Travel Auto Dealerships Service Businesses (plumbers, electricians, etc.) Cynicism should not be restricted to the internet!

8. 8 8 8 Fee-Only Financial Planning Advice in Canada, by the numbers: - 18,000: The number of CFPs in Canada - 25,000: the number who call themselves “financial planners) - 90,000: The number who call themselves “financial advisors” - 150: The number of fee-only independent financial advisors (1/6 th of 1%) - $200/hr: The average fee charged by fee-only advisors - 13 hours: The time to produce an average financial plan ($2,600) - 40%: The percentage of Canadians who say they would use fee-only planners - $180/yr: The amount surveyed Canadians said they expected to pay for fees “There is not the drive from the Canadian population to demand impartial financial advice.” - Cary List, CEO of CFPSC as quoted in the Insurance & Investment Journal

9. 9 9 9 Independent Advice “I want to talk it over with my accountant.” Accountant – or fake? - Is it a “real” accountant? CA, CMA, CGA? - Or is it a “bookkeeper? Or worse? Allied Business Services: the principal here, viewed by all as “the accountant” offered life insurance advice … buy term only, or none at all. What if the accountant is wrong?

10. 10 It’s not a “life” insurance policy … it’s a “love” insurance policy, because it is only bought by a person who loves someone or something more than anything else

11. 11 This presentation reflects the views of Empire Life as of the dated presented. The information in this presentation is for general information purposes only and is not to be construed as providing legal, tax, financial or professional advice. The Empire Life Insurance Company assumes no responsibility for any reliance made on or misuse or omissions of the information contained in this presentation. Please seek professional advice before making any decision. ® Registered trademark of The Empire Life Insurance Company. Policies are issued by The Empire Life Insurance Company. Thank you