Transcript Welcome to Canada Life!!

What’s New at
Canada Life 2005
Canada Life Products
One Company Provides it All!!
About Canada Life
• First Canadian Life Insurance Company,
founded in 1847
• Total Assets in excess of 62 billion
• Operates in Canada, United States, Ireland,
U.K., Brazil, Germany, Hong Kong and the
Caribbean
• Shares traded on the Toronto and New York
Stock Exchanges
Strength & Stability
• A.M. Best
A+ (Superior)
• Moody’s
Aa3 (Excellent)
• Standard & Poor’s
AA (Very strong)
About Toronto City Regional
Marketing Centre
Canada Life’s #1 Marketing Centre
Jeanette McPherson, CFP, CLU, CHFC, TEP
Adriana Mauro, RHU
• Your Marketing Consultants provide:
– Product knowledge on Life Insurance,
Disability & Critical Illness Insurance,
Investment Products
– Dedicated Marketing & Sales Support
– Sales Strategies Support
About Toronto City Regional
Marketing Centre
Canada Life’s #1 Marketing Centre
• Investment Consultant Ian Kerr provides:
– Product knowledge on segregated funds
and annuities
– Market sensitive information to you as well
as sales ideas
About Toronto City Regional
Marketing Centre
Canada Life’s #1 Marketing Centre
• Living Benefits Consultant Dwight Donald
provides:
– Product knowledge on Living Benefits
– Market sensitive information to you as well
as sales ideas
Simply Preferred Term 10
Effective August 29th, 2005 term 10 enhancements include:
• Increased term 10 maximum issue age nearest from 70 to 75
• Extended term 10 conversion age from age 65 to 70
• Extending the following benefits on term 10 joint first-to-die
policies:
– New survivor benefit
– New exchange option upon partnership dissolution
• When a joint Millennium UL policy is purchased and a term rider
is requested, a separate term policy will be issued for the term
rider and the term policy fee is waived.
2005 Enhancements
Simply Preferred Term 20
Effective May 30, 2005 term 20 enhancements include:
• Rate reductions for most ages
• Two new benefits
– Survivor benefit
– Exchange option feature
• Waiving of policy fee on multiple policies with
common billing
• Waiving of policy fee on term riders when issued on
joint policies
2005 Enhancements
Simply Preferred Term 20
Rate Improvements
Male, n/s Age 30
$250,000
Annual Premium
$500,000
Annual Premium
Company A
$265
Company A
$480
Canada Life
$278
Company E
$490
Company C
$280
Canada Life
$505
Company E
$283
Company C
$505
Company F
$305
Company D
$530
Company D
$310
Company B
$530
Company B
$310
Company F
$530
Company G
$318
Company G
$565
Simply Preferred Term 20
Rate Improvements
Male, n/s Age 40
$250,000
Annual Premium
$500,000
Annual Premium
Company A
$420
Company A
$785
Canada Life
$435
Company C
$800
Company C
$435
Canada Life
$815
Company F
$458
Company D
$840
Company E
$460
Company B
$840
Company D
$470
Company F
$840
Company B
$470
Company E
$845
Company G
$478
Company G
$876
Life Insurance
Millennium Universal Life
• Competitive YRT and LCOI Rates
• Well-rounded insurance coverage, investment
options and additional benefits
• Sophisticated tax sheltering capability
• Enhanced bonuses
Millennium Universal Life
Enhancements
Effective May 30, 2005 Millennium enhancements include:
• Reduced annually increasing (AI) minimum premium
• More choice for Millennium Accumulator options
These enhancements complement the March improvements
to Millennium:
• Level cost of insurance (COI) reductions by as much as 20 per cent
• AI COI reductions by as much as 10 per cent
• Removal of partial surrender charge on requested face amount
decreases
Effective August 29, 2005, increased renewal compensation for years
two to 10.
2005 Enhancements
Life Insurance
Millennium Universal Life
Level COI - $500,000 face amount – Coverage Plus
Age
Canada
Life Zoom
8.0
40
$3,306 (9)
45
Canada
Life Zoom
8.3
Competitor
4
1
2
3
5
6
$2,755 (3)
$2,750
$2,607
$2,776
$2,886
$2,918
$3,148
4,041 (4)
3,796 (2)
3,811
3,750
3,867
3,921
4,133
4,518
50
5,571 (5)
5,510 (3)
5,531
5,439
5,480
5,566
5,673
6,483
55
7,898 (4)
7,714 (1)
7,806
7,770
7,837
7,921
7,995
9,503
60
10,898 (1)
10,837 (1)
10,921
11,209
10,980
11,031
10,990
12,558
65
15,367 (2)
15,367 (2)
15,580
15,929
15,612
15,321
15,684
18,268
70
21,429 (2)
21,429 (2)
21,917
22,607
22,048
21,641
21,378
26,693
The numbers in parenthesis reflect Canada Life’s LifeGuide ranking with respect to the particular age group.
The information provided is accurate as of February 2005. Competitors’ minimum annual premium is based on LifeGuide Release 2005.02.
Companies included in the comparison are AIG, ManuLife, National Life, RBC, Standard Life and Transamerica.
The province used in calculating the annual minimum premium was Ontario.
Time Saving Services
•
•
•
•
•
•
•
Jet Underwriting
Enhanced ASTRA Program
Attainable Health Requirements
Case Coordinator
RepNet
FasatWeb
User-friendly illustration software
Enhanced ASTRA
Working with you to grow your
business
History of ASTRA
ASTRA
• Automatic Substandard Table Reduction Agreement
Canada Life developed ASTRA in 1996 to:
– Reduce underwriting time and administration costs
– Volume of facultative business to be decreased
– An edge for distribution channel
• The assumption by many was the program had little or no
cost
Why enhance ASTRA?
 To impact a greater range of brokers and clients
 To efficiently spread pricing reduction to moderate
and severely rated clientele
 To offer a more competitive priced Term 10,
Term 20 and Universal Life products
Who Benefits?
• Competitive rates for term and universal life products
• Future enhancements on Term 10 and Nonparticipating whole life plans
• Enhanced ASTRA appeals to broader audience than
the original program
How will enhanced ASTRA work?
• Underwriters will assess each individual who applies for insurance
• Once a decision has been determined, if an individual is rated the
ASTRA program will be applied
Canada Life will reduce rating by:
– 2 tables for all ages
1 table = 25 per cent mortality
• Available on Dynaterm, Universal Life, and Participating products at
issue
• Available on all inforce, new issues term policies, and Enhanced
Coverage Option (ECO) at time of conversion
It is critical to understand the ASTRA program is only applied after
the underwriting decision ( we make our best offer upfront!)
How enhanced ASTRA works with
Canada Life plans?
Plan Type
Millennium universal
life
Participating whole life
Non-participating
whole life
Term 10
Term 20
Available Available at
at Issue? Conversion?
Yes
N/A
Yes
Yes
N/A
N/A
No
Yes*
No
Yes*
*All inforce, new issue term policies, and Enhanced Coverage Option (ECO) are eligible to qualify
for ASTRA at time of conversion.
What is our competition doing?
Sun Life
• Recently removed program (late 2004)
Manu Life
• Offer standard on all cases that would be rated at 137 per cent or
below (very close to cases commonly issued standard in most
underwriting shops)
• Available only on Manu Universal Life
Industrial Alliance
• Offer standard on all cases that would otherwise be rated at 174 per
cent or below (not available on 175 per cent and above)
• Available on Life products
How ASTRA works
Let’s look at how ASTRA works with:
• Simply preferred term insurance
• Single life coverage
• Joint first-to-die coverage
Simply Preferred Term Insurance
• Term policies and term riders are not eligible for
ASTRA at issue
• Inforce term policies, new term sales, term riders,
and Enhanced Coverage Option (ECO) are eligible
for ASTRA at time of conversion
• Permanent plans that qualify for ASTRA with a term
rider will have term policy issued separately and the
term policy fee will be waived
Single life coverage all permanent products
ASTRA is available on permanent plans on single life coverage
Male 45 NS Rated 250% $1,000,000 of coverage
Coverage Plus, Level COI
Before enhanced ASTRA
Male NS 45 Rated 250%
Minimum Premium: $18, 184
Savings of $3,613
After enhanced ASTRA
per year
Male NS 45 Rated 200%
Minimum Premium: $14,571
Joint first-to-die
Non-participating products
Male NS 35 Rated 300% and Female NS 35 Standard
$1,000,000, Coverage Plus, Level COI
Before enhanced ASTRA
Male NS 35 – table rating converted to flat extra ($7.44 per $1,000
of coverage) prior to illustrating
Minimum Premium: $13,959 based on JEA of MNS 43
After enhanced ASTRA
Male NS 35 – table rating reduced by two tables to 250%
reduced table rating converted to Flat extra ($5.52 per $1,000 of
coverage)
Minimum Premium: $12,000 based on JEA of MNS 43
Attainable Health Requirements
• Highest Non-med limits:
– $249,999 up to age 50
• No APS required if a medical has
recently been completed by Physician
(up to $1,000,000)
RepNet
•
•
•
•
•
•
New Business Tracking
Inforce Summary
Address Changes
Bank Information Changes
Downloads
Up-to-date Product Information
Spring into
business with
LifeAdvance
One of Canada’s leading
products now reflecting
market adjustments
Delivering Value
•
•
•
•
Leading product features
Company strength and stability
Flexible plan designs
Competitive rates
LifeAdvance
Critical Illness Insurance
• Premium and coverage options:
–
–
–
–
permanent level premium, paid up at 100
10-year renewable term to 75, convertible to 65
level premium term to 75, paid up at 65
level premium term to 75
• Features:
–
–
–
–
24 critical illness insured conditions
Illness assist benefit
Surgery advance benefit
Services provided by Best Doctors
Second Event Rider
Cancer
Heart Disease
In their lifetime
In their lifetime
1 in 2.3 men
1 in 2.6 women
1 in 1.2 men
1 in 1.3 women
Stroke
50,000 Canadians
suffer a stroke
each year
.
Sources: Heart and Stroke Foundation, 2004
National Cancer Institute of Canada Canadian Cancer Statistics 2004
Second Event Rider
If the insured received a critical illness benefit before his or her 65th
birthday for:
Heart Attack or Stroke
Life-Threatening Cancer
Life-Threatening Cancer
Heart Attack
The second event coverage will be the lesser of 50% of the benefit
amount selected for the basic policy and $50,000.
Second Event Rider
Example
1st Event
2nd Event
Life-Threatening
Cancer
Heart Attack
$250,000
30 days
Policy becomes
fully paid up
$50,000
Exclusion Period
12 months
Leading Product Features
Customize Premium Paybacks (PPB) to
your client’s needs
• Affluent
• Middle-Income
• Up-and-Coming
Permanent T100 Plan
Premium Payback Options
A
50%
100%
B
75%
C
50%
Timeline
10
15
100%
100%
20
25
Permanent T100 Plan
Affluent
A
100%
Middle-Income
100%
B
Up & Coming
100%
C
Timeline
10
15
20
25
Premium Payback Rider
Markets
• Option A
Affluent
A
– Need for earlier PPB option date
– Limited insurance coverage needs
50%
100%
60% 70% 80% 90%
Timeline
10
15
20
25
Premium Payback Rider
Markets
• Option B
Middle-Income
– Need for balance between PPB option
dates and insurance coverage needs
75%
B
100%
80% 85% 90% 95%
Timeline
10
15
20
25
Up and Coming Market
Up & Coming
• Option C
– Need for extended PPB option dates
– Need for extended insurance coverage
50%
C
55%
Timeline
10
15
100%
60% 65%
70%
75%
20
80%
85%
90%
95%
25
Built-in Features
Reduced Paid-up
– Pay-up all future premiums
by reducing coverage
– Once PPB reaches 100%
– every 5 year interval
– Rate card will be available
Partial Withdrawals
– Receive eligible
premiums when
surrendering a portion of
coverage
– Remaining coverage
stays inforce with premium
payback
Improved Illness Assist Benefit
Example $250,000 lump-sum benefit
Improvements with LifeAdvance
Company
Company B
Illness
AssistA–
$250,000
$250,000
• Waiting period has been removed
• Does
not $15,000
reduce premium
benefit
10%
to max
25%payback
to max $50,000
Canada Life
$275,000
10% to max $25,000
$25,000 Illness Assist
$250,000
CI Lump-sum
$250,000
CI Lump-sum
$25,000 Illness Assist
$50,000 Illness Assist
$250,000
CI Lump-sum
New Surgery Advance
Example $250,000 lump-sum benefit
Company A
Company B
Canada Life
Not Applicable
10% to max $10,000
10% to max $15,000
Illness Assist
CI Lump-sum
CI Lump-sum
CI Lump-sum
Advance Benefit
Illness Assist
Illness Assist
Surgery Advance
LifeAdvance in Action
Insured:
Plan:
Insured Amount
Optional Benefits:
Male 45 yrs Non smoker
Term to Age 100
$250,000
Option A Premium Payback Rider, Second Event Coverage
Eg. Diagnosed with early prostate cancer stage T1A
•
Illness Assist Benefit (lesser of 10% or)
$25,000
Eg. Require surgery on diagnosis and before the 30 days
•
Surgery advance Benefit (lesser of 10% or)
$15,000
Eg. Diagnosed with colon cancer
•
Base insured amount
$235,000 ($250,000-$15,000)
13 months later suffers a heart attack
•
Second Event Coverage: (the lesser of 50% or)
$50,000
Total Benefits available
$325,000
This is for illustration purposed only.
Company Strength & Stability
• Over 60 years Living Benefits
experience
– LB Underwriting & Claims
– Life Underwriting & Claims
The Business of Claims
Breakdown of Claims
H e a rt
A ttack
17 %
S t ro k e
4%
C a nc e r
63%
O t he r
16 %
Munich Re CI Survey 2004
Breakdown of Claims
Female Non-Smoker 41%
Average face amount
$99,613
Average claim
$78,495
Male Average age at claim
Smoker
Females
7%
Males
Female
Smoker
5%
44.7
47.5
Total paid in 2003
$22,000,000
Male Non-Smoker 47%
Munich Re CI Survey 2004
Disability Insurance
Personal Products
Lifestyle Protection Plan
• Target Market:
– Professionals & Executives
Independence Plus Plan
• Target Market:
– Business Owners & Employees
Independence Plan
• Target Market:
– Home-Based & Part-Time Workers
Disability Insurance
Business Products
Overhead Expense Plan
• Purpose
– To pay for specific expenses that the policyholder
continues to be responsible for in the event of a
disability
Disability Insurance
Business Products
Keyperson Plan
• Purpose
– Provides benefits in the event of a key employee’s
Total Disability
Disability Insurance
Business Products
Buy/Sell Plan
• Purpose
– Provides the funds necessary to enable one or
more business owners to purchase the shares of a
disabled partner or shareholder
Investment Products
• Generations
– More than 50 segregated funds
– 12 Fund Management Companies
• Significant product enhancements due to be
launched this fall!
• Annuities, RRIF’s & LIF’s
– Complete lineup!!
Working with Canada Life’s
NEAT Consultants
Tom Pilkington
Frank Abate
CA,CLU,CH.F.C,CFP,TEP
CA,CFP
Tom Pilkington CA,CLU,CH.F.C,CFP,TEP
•
Tom is a Chartered Accountant
with extensive experience in the
life insurance industry.
•
Tom’s expertise includes:
-personal and corporate tax planning
-insurance planning and taxation
-business succession planning
-estate planning
•
Tom is a member of:
-Ontario Institute of Chartered Accountants
-Canadian Tax Foundation
-Society of Trust and Estates Practitioners
-Advocis
-Associate member of CALU
Frank Abate CA,CFP
• Frank began his career as a tax
practitioner with a national accounting
firm, and then moved to a mid-sized firm
where he practiced tax until he joined
Canada Life.
• Frank’s experience includes:
-Personal and Corporate tax planning
and compliance
• Frank is a member of:
-Institute of Chartered Accountants of
Ontario
-Financial Planners Standards Council
-Canadian Tax Foundation
Working in the current
environment ...
• The changing marketplace
– New products
– Consolidation
– Changes to tax rules
– Litigation
– Competition
– Government rules
– Consumer awareness
Working in the current
environment ...
The bottom line …
With every change comes more
opportunity
(perhaps a little more complexity, too!)
What you have to offer ...
• The ability to create and preserve wealth
–
–
–
–
–
Life insurance products
Savings and investment products
Disability income products
Critical illness insurance
Retirement income products
• Knowledge and experience
• Relationships
What we have to offer ...
• A professional team with tax, business
and estate planning EXPERTISE and
EXPERIENCE
What we focus on...
•
•
•
•
Large insurance cases
Post-factfinding support
Canada Life products
Complement to our other product and
marketing resources
Examples of what we do …
• Case consultation
– Review and analysis of facts, develop
innovative and useful solutions
– Client meetings/client advisor meetings
• Seminars and conferences
• Assist in developing centres of influence
Thank You for your time and we will
continue with product
improvements
throughout 2005 to maintain our
competitive position