In this article, Dean Chambers discusses enhancements to permanent life insurance that will help advisors meet the needs of even more clients.
DID YOU KNOW:
- Over 6-million Canadian households believe they need more life insurance?1
- 2 in 3 Canadian households would have difficulty meeting everyday living expenses within a few months, if the primary wage earner were to die?2
- One-third (33%) of high-net-worth Canadians don’t own personal life insurance? Most say they have enough money to cover their families’ financial needs, without the benefits of life insurance.3
Generally speaking, Canadians’ misconceptions about life insurance create an opportunity for you: shift their thinking from questioning the need for life insurance to understanding the benefits of a holistic planning perspective, including estate and financial planning. You can expand and strengthen relationships by introducing clients to a product category that adds significant value.
Ultimately, Canadians want life insurance and need its basic benefits. For many clients, life insurance continues to be the most tax-effective planning strategy for estate maximization.
At Sun Life Financial, we’ve not only responded to the new tax rules affecting life insurance in 2017, but we’ve also been listening to your suggestions about how we could enhance our life insurance products4 to meet the needs of even more Canadians.
Power in participating life insurance
Participating (Par) life insurance continues to offer lifetime protection, with guaranteed premiums, guaranteed cash values and a guaranteed death benefit that has the potential to increase over time through policy owner dividends.
Par can be a great solution for affluent clients interested in asset diversification or a vehicle to provide an efficient method of wealth transfer. But more clients are looking for even shorter premium payment periods. We answered with Sun Par Accelerator. With a guaranteed payment period of only 8 years — the fastest guaranteed payment period available on any product offered by Sun Life Financial — it offers cash values in the early years, and the opportunity for long-term growth.
When clients are looking for solutions for intergenerational wealth transfer, or want to establish a financial foundation for children or grandchildren, Par can also answer these needs. We’ve added guaranteed 10-pay options to Sun Par Protector II and Sun Par Accumulator II, making these great solutions for child coverage. And when clients want to take advantage of the tax-preferred cash value growth available, we’ve increased the maximum Plus premium benefit amount available on both products’ life-pay and 20-pay plans. Our reduced face amount on Sun Par Protector II — $25,000 for juveniles, ages 0-17 — puts Par coverage within reach for even more Canadians.
All of our Par products can be tailored with our leading-edge suite of optional benefits, giving clients competitive options to enhance the protection and value their policy already offers.
Take another look at universal life
Universal life insurance continues to offer clients the utmost in flexibility, with features and cost structures that can be tailored to meet any client’s needs. With SunUniversalLife II, lower COI charges in early policy years make yearly renewable term (YRT) to age 70 and YRT to age 85 ideal for clients who want to benefit from tax-preferred growth. When clients don’t want lifetime payment commitments, we’ve incorporated limited pay for 10, 15 or 20 years.
Two new death benefit options help you meet the needs of even more clients:
- Level insurance amount plus return of payments (ROP) – for clients who want their beneficiaries to receive the initial level death benefit plus all payments made to the policy, including payments for any optional benefits.
- Level insurance amount plus adjusted cost basis (ACB) – for business owners who want to optimize the capital dividend account credit for their corporation. This death benefit option helps business owners maximize shareholder value and meet their long-term business needs.
An all-new, focused lineup of investment account options helps clients build a diversified UL investment portfolio and includes the Sun Life Diversified Account — an option that provides smoothed returns for high-net-worth clients looking to manage volatility within their UL portfolio.
Making it easier to do business with us
At Sun Life, we believe the best client journey is simple and straightforward. That’s why we’ve made it easier for clients to obtain life insurance by asking for fewer underwriting requirements. Sun Life no longer routinely requires a urine, HIV, ECG, stress ECG, medical exam, and motor vehicle report. This means the process of getting insurance is now more convenient for both clients and advisors.
We continuously monitor global medical advances to translate scientific knowledge into outcomes that matter. For example, Sun Life offers life insurance coverage of up to $3 million or more to people living with HIV.
Our goal is to improve clients’ experiences and make our relationship with them better. Making it easier for clients to apply for life insurance is an important part of the journey to help you grow your business.
Our new, industry-leading illustration tool makes it easier for you to show clients the key features of the insurance policy they buy. Sun Life Financial is the first insurance company to launch its illustration system on both the Web and desktop. Wherever you are, you’ll always be using the most up-to-date version. You can create a case on your iPad; save it on the Web; and sync the new case on your desktop — interconnectivity at its best.
With Sun Life Illustrations, we’re introducing many new features: the ability to include a combination of specified and solved payments with our universal life products, and the ability to illustrate a changing dividend scale for our participating products.
A new illustration system, new underwriting rules and new life insurance benefits. Open the door for your clients and show them the next generation of life insurance. It’s now easier for you to demonstrate how life insurance provides the protection, tax efficiencies and guarantees that are so important to their financial well-being.
Resources for discussing life insurance
- Next generation of life insurance web page
- Sun Life Illustrations tool
- Next generation of life insurance video
Contact a member of your Sun Life insurance sales support team.
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1 Canadian Billion Dollar Baby Revisited: Sales potential of the underinsured life insurance market, LIMRA report, 2014.
2 Canadian Billion Dollar Baby Revisited, LIMRA report, 2014.
3 From study of high net worth Canadians, conducted by Ipsos for Sun Life Financial, May 2016.
4 These life insurance products are issued by the Sun Life Assurance Company of Canada, a member of the Sun Life Financial group of companies.
Dean Chambers, Vice-President, Individual Insurance, Sun Life Financial Canada, has over 23 years of experience in the insurance and wealth industry where he’s held various roles in financial management, group national accounts and individual life marketing. His experience includes senior-level positions in individual life pricing and individual wealth product development.
Dean joined Sun Life Financial in 2011 as Vice-President, Individual Insurance. He is responsible for product development and pricing for the individual life and health business. Most recently, he led the re-launch of Sun Life’s Term insurance portfolio and is in the process of updating Individual life products for 2017.
For more than 10 years, Dean has been a member of the Society of Actuary’s Education Committee, participating in and chairing several committees. He is a frequent speaker at forums across Canada, including meetings of the Canadian Life and Health Insurance Association (CLHIA), the Canadian Institute of Actuaries and the Canadian Institute of Underwriters.
A native of London, Ontario, Dean earned a Bachelor of Science in Actuarial Science from the University of Western Ontario in 1992. In 1998, he qualified as a Fellow in the Canadian Institute of Actuaries (F.C.I.A.) and Society of Actuaries (F.S.A.).