Seeing is believing. By using Sun Life Financial’s new Annuity & GIC income comparison tool on the Money for Life web app, you can help bring your words to life in conversations with your clients.
Your clients want to enjoy the savings they’ve built and get the most from their money. They’ll likely want a retirement portfolio that’s flexible yet secure. Allocating 25 per cent of their retirement portfolio to a guaranteed lifetime income product can provide that security. Although guaranteed investment certificates (GICs) can be an important part of a retirement plan, a life annuity provides clients with guaranteed lifetime income that can be used to cover basic living expenses in retirement.
This client-facing sales tool compares the income your clients receive from a life annuity to withdrawing the same amount of income from a GIC. It shows compelling comparison graphs and tables based on information specific to your client, such as premium amount, premium source and annual income.
- The income comparison graph compares the after-tax income your clients would receive from a life annuity with the same amount of income they would withdraw from a GIC from the age they want to start receiving income until age 105. Your clients can see how a life annuity provides guaranteed lifetime income and ensures they won’t run out of money in retirement.
- The GIC account value graph shows the decrease in value of your clients’ GIC if they were to withdraw the same amount of income they’d receive from an annuity.
The annuity internal rate of return table shows both the annual and the cumulative pre-tax income your clients would receive from an annuity from the age they start receiving income until age 105. It helps you demonstrate the value offered by annuities by showing clients the age they can expect to receive their original premium back in payments.
This table can also lead to a discussion with your clients about choosing a guaranteed period to cover the possibility of dying before breaking even.
This flexible tool can help show clients the value offered by annuities. You can even customize future tax and interest rates for each year of your clients’ retirement. You can email yourself a PDF containing a report of a client’s results.
Sign in to sunlife.ca/advisor and go to the Money for Life web app to access the Annuity & GIC income comparison tool or talk with your Sun Life Sales Director.
Have a complete conversation about retirement income with your clients
The Money for Life web app has other tools available to use when having conversations with clients about planning their income in retirement.
- Longevity risk illustrator tool – shows how long clients may need retirement income and some of the risks associated with living longer.
- Buy now, buy later tool – helps clients between the ages of 65–75 understand the best time to buy a life annuity to meet their retirement goals, as well as the trade-offs associated with delaying a life annuity purchase.
- Sustainable income demo tool – demonstrates how a life annuity can increase clients’ monthly income in retirement, and helps them understand the balance between income and risk in retirement.