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Life Insurance Made Easy

Learn about simplified issue life insurance, a simple and fast way to get coverage without medical exams or lengthy underwriting processes. Protect your loved ones and cover funeral expenses, probate fees, and more. Find out if simplified issue life insurance is right for you.

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Life Insurance Made Easy

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  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 • Differences between a level death benefit and an increasing death benefit

  3. 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

  4. Many Options Term Insurance Mortgage Insurance How do simplified issue products fit in the picture? Participating Insurance 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.

  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.

  9. Height and weight restrictions Diabetes DUI / Driving record Drug or alcohol abuse Depression / Anxiety MS / Parkinsons High blood pressure High cholesterol Family health history Underwriting Issues 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.

  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!

  11. Cost ExampleAnnual premium for $25,000 face amount for 60 year-old male non-smoker *Lowest premium in LifeGuide Sept. 2012 edition for the WL/Guaranteed Life Pay category.

  12. Cost ExampleAnnual premium for $25,000 face amount for 60 year-old male non-smoker *5th lowest premium in LifeGuide Sept. 2012 edition for the WL/Guaranteed Life Pay category.

  13. Cost ExampleAnnual premium for $25,000 face amount for 60 year-old female non-smoker *Lowest premium in LifeGuide Sept. 2012 edition for the WL/Guaranteed Life Pay category.

  14. Cost ExampleAnnual premium for $25,000 face amount for 60 year-old female non-smoker * 5th lowest premium in LifeGuide Sept. 2012 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.

  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.

  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 Source: Financial Advisor’s Pocket Reference 2011-2012, CCH

  19. Probate Fees in Canada Source: Financial Advisor’s Pocket Reference 2011-2012, CCH

  20. Probate Fees in Canada Source: Financial Advisor’s Pocket Reference 2011-2012, CCH

  21. Probate Fees in Canada Source: Financial Advisor’s Pocket Reference 2011-2012, CCH

  22. 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). Income Tax Surprises Canada Revenue Agency Final tax return $XXXX

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

  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.

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

  27. Simplifiedlife insurance solution for clients who want peace of mind andNO 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.

  30. 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 24-48 hrs FYC 45%

  31. 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

  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. 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 24-48 hrs

  35. 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 Comparative illustration: Sum insured Male non smoker, 60 years old. $10,000 face amount.

  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. 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. Comparative illustration Male non smoker, 60 years old. $10,000 face amount.

  38. Grow your business. Save time. Keep it simple.

  39. Easy for you Easy for your client Easy money

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