Connection. BIG picture. ...and see the MAKE THE. with. with CONNECTING INVESTMENT ADVICE INVESTMENT ADVICE WEALTH PROTECTION REAL SOLUTIONS

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1 MAKE THE Connection INVESTMENT ADVICE WEALTH PROTECTION REAL SOLUTIONS...and see the BIG picture with with Money Money for Life for Life CONNECTING INVESTMENT ADVICE with wealth protection solutions

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3 WHAT S INCLUDED Overview: Make the Connection 4 Why make the connection? 5 Resources to make it easier 6 Sales strategies 7

4 INVESTMENT ADVICE. WEALTH PROTECTION. REAL SOLUTIONS FOR LIFE. As an investment advisor, you re invaluable in helping clients build their investment portfolios. And while accumulating wealth is an important part of the plan, protecting the assets clients have worked hard to accumulate is also a priority. Money for Life Sun Life Financial s customized approach to retirement planning makes it easy to start conversations with your clients about how their needs will change over time. This can help you show them how the right mix of protection and wealth solutions can work together to build their portfolios today, protect their lifestyle and maximize their legacy plans. Make the Connection is a program specifically designed for successful Investment Advisors like you with clients who can benefit from incorporating insurance solutions to protect and maximize their wealth. We ve included proven sales strategies and marketing resources to help you connect your clients with solutions that protect their wealth and help them plan a tax-efficient legacy or income stream. Differentiate yourself by busting the myth that the wealthy don t need insurance. LIFE INSURANCE IS WEALTH PROTECTION TOTAL WEALTH = Human Capital + Financial Capital HUMAN CAPITAL is the value of one s future income earning potential FINANCIAL CAPITAL is the value of one s net worth DOLLARS ($) HUMAN CAPITAL TOTAL WEALTH FINANCIAL CAPITAL Building for the future Getting ready for retirement At retirement INSURANCE PROTECTS BOTH HUMAN CAPITAL AND FINANCIAL CAPITAL The need to protect human capital typically declines as individuals approach the end of their income-earning years. But, insurance protection may still have an important role to play for wealthy individuals with some earning years left and a lifestyle they want to maintain. As people age, their human capital contributes to them building their financial capital their assets including real estate, any businesses and their investments. Insurance can have an important role to play in protecting their financial capital by providing a tax-efficient income stream or legacy plan. 4

5 WHY MAKE THE CONNECTION? 1. Increase the assets you manage The wealth protection planning exercise offers information about assets you re not currently managing. A holistic interest in your client s financial security and goals may provide the additional comfort they need to ask you to manage all of their assets. 2. Protect yourself from liability Clients trust their advisor to educate them on every aspect of their finances. As an advisor licensed to sell life insurance, if you don t discuss the advantages of an insurance portfolio with your clients, legal repercussions are possible. 3. Increase your income The income you can generate from effective wealth protection can be significant. If you aren t talking with your client about insurance as part of their plan, another advisor will. If you re not talking to your clients about protecting their assets, another advisor will. IT STARTS WITH A CONVERSATION The objective of Make the Connection is to equip advisors like you to start conversations with your clients about wealth protection solutions. 74% 91% of Canadians receive advice from more than one financial advice provider. 1 of Canadians plan on having an advisor help them when they reach retirement, 2 but it may not be the same advisor they worked with during accumulation years. 3 Money for Life resonates with clients and helps them understand the concept of holistic planning. According to the study completed by PMG on our Money for Life changing needs graph, 85% of respondents believe they can accurately point out where they are personally on the graph as it relates to their retirement situation. 4 Basic living - money for food, clothing, shelter and anything that's non-negotiable for you Protection - money for insurance solutions to protect your income and family Protection Building for the future Money for Life your changing needs Saving - money that you set aside regularly for your future needs Lifestyle - money for the things you want to do and cover personal or household expenses Saving Getting ready for retirement Lifestyle Health - money to cover health expenses that typically emerge as you age Legacy - money to leave behind for the next generation or a charity Basic living In retirement Health Legacy Sun Life Canadian Unretirement Index. 2 Canadian Boomer and the New Retirement, PMG Intelligence, Changing the Game, PMG Intelligence, Money for Life Consumer Research, PMG, August 2013.

6 RESOURCES TO MAKE THE CONNECTION EASIER Take advantage of the Make the Connection program resources for each of the sales strategies: Strategy worksheet step-by-step instructions to introduce a sales strategy to the right target clients, including a space to note which clients fit the profile. Client * send prior to meeting with a target client to help start the conversation about the strategy that suits their situation. Concept overview easy-to-understand case studies demonstrate how each strategy works. Eos illustrations proposal software, designed to illustrate how each strategy can work for each client, based on their specific information. STEP 1 DETERMINE THE RIGHT CLIENTS TO TALK TO ABOUT THE STRATEGY. STEP 2 SEND YOUR CLIENTS AN * WITH A LINK TO THE WHITEBOARD VIDEO TO START THE CONVERSATION. STEP 3 BOOK AN APPOINTMENT FOR YOUR CLIENT TO MEET WITH YOUR INSURANCE SPECIALIST. THE CONCEPT OVERVIEW CAN BE USED DURING THE MEETING TO SHOW CLIENTS HOW THE STRATEGY COULD WORK FOR THEM. STEP 4 YOUR INSURANCE SPECIALIST WILL USE THE EOS ILLUSTRATIONS TO MAKE A PROPOSAL SPECIFIC FOR YOUR CLIENT. FIND ADDITIONAL RESOURCES AND ALL OF THE MAKE THE CONNECTION PROGRAM MATERIAL AT SUNLIFE.CA/MAKETHECONNECTION 6 * Ensure to comply with Canada s Anti-Spam Legislation (CASL) when sending commercial electronic messages.

7 SALES STRATEGIES Popular sales strategies that help connect investment advice with wealth protection solutions. STRATEGY CLIENT PROFILE WHAT IS IT? INDIVIDUAL ASSET TRANSFER Ages Has a larger permanent life insurance need Has significant taxable non-registered fixed income assets Wants to maximize estate value for their beneficiaries Wants to minimize tax burden associated with their taxable investments Wants to satisfy their life insurance need without giving up liquidity within their existing investment portfolio Clients purchase a participating whole life policy and pay premiums by transferring assets from their non-registered fixed income portfolio. The cash value and death benefit accumulate on a tax-preferred basis. By transferring funds from their taxable non-registered investments they can reduce their taxable income, potentially resulting in greater asset growth. CORPORATE INVESTMENT SHELTER Age 55+ Principal shareholder of a private corporation or holding company Has liquid assets in excess of lifetime needs Prefers low-risk investments Tired of paying high taxes on investment earnings Wants to protect their estate from erosion by taxes, leaving more for beneficiaries The tax-preferred environment of a permanent life insurance policy may provide greater value when compared to taxable corporate investments, along with creating a larger estate for beneficiaries. Life insurance proceeds received by the corporation may create a credit to the capital dividend account, allowing for the payment of tax-free capital dividends. INSURED ANNUITY STRATEGY Age 55+ Risk averse Has significant non-registered assets Looking to increase after-tax income for retirement Wants to leave an estate for beneficiaries and/or charity Use a combination of permanent life insurance and a payout annuity. The prescribed status of the annuity minimizes the taxation and increases the cash flow. The life insurance replenishes the estate value, provides a tax-free benefit to beneficiaries and can bypass estate costs. ASSET PROTECTION PLAN Age 50+ Has adequate retirement income Has cherished investment assets to pass on to their beneficiaries Is concerned about capital gains taxes payable at death Use permanent life insurance as the most effective means to fund estate tax liabilities. It also offers the potential for tax-preferred growth, which could further increase estate value. 7

8 WE RE HERE TO HELP For support with the Make the Connection program, contact your Insurance Specialist. Find the Make the Connection program material at sunlife.ca/maketheconnection SLF