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Global Financial Solutions Inc. October 19, 2005 Paul Freedman MBA, CFP

Global Financial Solutions Inc. October 19, 2005 Paul Freedman MBA, CFP p aul.freedman@axa-insurance .ca 416-721-4931. Agenda. Ideas for Guaranteed Sales Life Beat – Comprehensive Critical Illness PLUS Long Term Care Critical Illness – Sell Less to Sell More What else is new at AXA

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Global Financial Solutions Inc. October 19, 2005 Paul Freedman MBA, CFP

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  1. Global Financial Solutions Inc. October 19, 2005 Paul Freedman MBA, CFP paul.freedman@axa-insurance.ca 416-721-4931

  2. Agenda • Ideas for Guaranteed Sales • LifeBeat – Comprehensive Critical Illness PLUS Long Term Care • Critical Illness – Sell Less to Sell More • What else is new at AXA • Questions

  3. AXA’s Horizon Family of Life Insurance products

  4. The Horizon Family of Life InsuranceProducts Give people real financial security, and provide them with life confidence.

  5. Life Insurance pluscapital appreciation • Who is taking the insurance risk? • Who is taking the capital appreciation risk? • Read the contracts…..

  6. Universal Life “ The purpose of the illustrations in this proposal is to demonstrate the features of the recommended policy. They are based on assumptions and should be treated as hypothetical. The illustrations should not be considered an estimate or a guarantee of future policy performance.”* * SLF UL

  7. Universal Life “ This illustration is provided for information purposes to facilitate your understanding of the product. The above data must not be considered as a guarantee of the future results, which could be higher or lower depending on the real returns obtained on your investments.”* * IAG UL

  8. Universal Life “ It is important to bear in mind that your actual benefits will vary according to the premiums paid, the investment options you chose and the interest rates in effect during the term of the policy. As the insurance costs and administration fees are fully guaranteed, the interest rates for the investment options you have chosen will be the factor that has the biggest impact on returns.”* * AXA UL

  9. Participating Whole Life “ Actual dividends will vary based on a number of factors, including investment returns, mortality, expenses and taxes. The company may change the basis used to determine its dividend scale and the amount, if any, of allotted dividends. Values and features that depend on dividends will vary accordingly and are not guaranteed.”* * Canada Life PAR

  10. The Horizon Family of Products “ The premiums and cash values are guaranteed values according to the present illustration.”* * AXA Horizon

  11. Guarantees within AXA’s Horizon products • Guaranteed Premium • Guaranteed Premium Payment Period • Guaranteed Cash Values • Guaranteed Death Benefit • Guaranteed Paid-up insurance • Guaranteed Extreme Disability Benefit

  12. Extreme disability benefit (EDB) • Written into the contract • 50% of the face amount insured to a maximum of $250K • Tax free benefit • No interest charges • Does not cancel the contract • Available up to age 60 • Automatically included in many AXA contracts • Five of seven ADL’s to qualify • Cash for palliative health care when needed the most

  13. Build your business with guarantees • People deserve to see a fully guaranteed plan • Successful agents reduce risk for their clients and themselves • Build your practice on a guaranteed foundation • Make more money

  14. Horizon 20 – Limited Pay Non Participating Whole Life • Horizon 20 provides the highest cash values in the industry • Clients who like guarantees and have a long term focus will find this product very attractive

  15. Company Product Premium Cash Value @ age 65 AXA Insurance Horizon 20 $3,357.50 $125,000.00 Unity Life Life Option 2 - 20 Pay $4,002.50 $107,427.00 AIG Life 20 Pay Life $3,610.00 $82,790.00 Desjardins Fin. Secur 20 Pay Whole Life $2,532.50 $66,850.00 L'EXCELLENCE Vie Acquittee 20 Paiements (syndique) $2,337.50 $65,000.00 The Empire Life 20 Pay Solution $2,205.00 $64,500.00 RBC Insurance Foundational Life - 20 Pay $2,406.45 $63,115.00 Western Life @pprove T100 - 20 Pay $2,400.00 $63,015.00 The Canada Life Dynaterm - Option 2 $2,320.00 $61,250.00 National Life NL Guaranteed UL - 20 Pay (Standard) $2,450.52 $61,225.00 The Standard Life SLT-100, 20 Pay $2,325.00 $55,750.00 IA Pacific Life Axis L20 (Standard) $2,465.00 $55,375.00 Industrial-Alliance Axis L20 (Standard) $2,465.00 $55,375.00 RBC Insurance Foundational Life - 20 Pay $2,406.45 $63,115.00 Transamerica Life PROTECTORPlus 20-Pay (Non-Smoker) $2,300.00 $51,272.00 Manulife Financial LifeWise 20 $2,330.00 $49,000.00 Assumption Life Concept 2001 - 20 Pay $2,625.00 $20,500.00 Guaranteed 20 Pay Comparison *40 MNS $250K LifeGuide V2005.09

  16. Horizon 20 - Target Market • Need for life insurance • Successfully utilizing RRSP’s for retirement • Not willing to take risks • Wants guarantees • Focused on long term • Appreciates simplicity • Financially sound • Age 35 – 55

  17. Horizon 20 – Very attractive internal rates of return with no risk • Female age 40 • Non Smoker • Premium is $723 annually • Death Benefit is $50,000 • Cash Value at age 65 is $25,000 Guaranteed annualized rate of return: 4.36%

  18. AXA’s Horizon 20 vs. Universal Life with guarantees • UL Guaranteed 20 Pay * • Equal premiums $770 • Guaranteed interest bonus 1.20% • Guaranteed interest on funds at 3% • Total Cash Value at age 65 : $22,792 • Guaranteed Cash Value at age 65: $12,245 AXA cash value advantage: + $12,755 * IAG UL *40 MNS $50K

  19. AXA’s Horizon 65 A limited pay life insurance solution • Minimum 15 years of premium payments • Non Participating • Permanent whole life protection • Best for ages 50 to 65 • Fully guaranteed • Simple to understand

  20. Estate planning case • Male age 62 • Term insurance now… • Wants to spend what he has in RRSP and open money and ensure $500K to grand children • Wants guaranteed payment period • Long Term Care concerns later in life • Has the means to single pay • No risk…. No risk…

  21. Limited pay UL – with Life annuity • Limited pay UL* • 15 year payment period • Life annuity to fund annual deposits of $20,355 • Interest assumption of 3% • Death benefit is face plus fund • End of year 15 $129K Guaranteed Cash Value $168K Total Cash Value $539K Death Benefit * RBC FL UL

  22. AXA’s Horizon 65 – The better solution • Limited pay whole life non par product • Guaranteed premiums for 15 years of $20,355 • No interest rate assumptions needed • 100% guaranteed cash values, death benefit, premium payment • End of year 15 - $310K Guaranteed Cash Value $500K Death Benefit

  23. AXA Horizon 65 – The better solution • Horizon 65 provides $142K more cash value • Fully guaranteed • No risk for the client or you • Simple to understand

  24. Build your business with guarantees • Simplicity • No interest rate assumptions • All figures are fully guaranteed • Easy for other professionals to understand (ie. Lawyers & Accountants) • Six page illustration vs. UL and par whole life’s ten to sixteen pages • Competitive compensation

  25. AXA’s Horizon family provides competitive agent compensation • 45% FYC • Plus Bonus • 5% from years 2 to 5, then 2% from year 6 and over

  26. Limited pay UL 70% FYC on minimum premium Excess premium 12% FYC 3% renewal for the life of the contract Horizon family of products 45% FYC 5% renewal until the 5th year 2% for the life of the contract Compensation comparison

  27. 20 Pay UL Premium $770 FYC $346 Bonus @ 100% Total = $682 Horizon 20 Premium $770 FYC $347 Bonus @ 100% Total = $684 AXA’s Horizon Family of products provide competitive compensation MNS Age 40 $250K

  28. 15 Pay UL Premium $20,355 FYC $8,536 Bonus @ 100% Total = $17,073 Horizon 65 Premium $20,355 FYC $8,565 Bonus @ 100% Total = $17,130 AXA’s Horizon Family of products provide competitive compensation MNS Age 62 $500K

  29. AXA’s Horizon Family of Life Insurance products

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