The clock is ticking and the countdown is on. By now you’ve heard about the tax changes to life insurance coming into effect on January 1, 2017.
Here’s an overview of the impact to clients and prospects leading up to the implementation of the new tax rules and some guidelines to help you make the transition.
Connect with clients and prospects now
If you haven’t already finalized applications and plan changes for clients, now’s the time. Their need for life insurance hasn’t changed but the savings component of their policy may be affected if they wait too long to make changes or submit applications. Review their goals, objectives and future plans and act now to help protect their grandfathered status.
As a best practice, be sure to submit applications as follows:
- New life applications, policy changes and conversions with underwriting – before the third week of October
- Policy changes and conversions with no underwriting – by November 1
It’s recommended that you submit special quotes and very large cases earlier. Any submissions containing plan changes or requests for alternate policies will affect timelines, may not be possible in December, and won’t be possible in 2017 for clients who want the 2016 tax rules to apply.
Regardless of the rule changes, the need for life insurance protection remains the same. These new rules give you an opportunity to connect with your clients, review their plans, and discuss their insurance needs and the potential benefits they can get by buying now.
Visit the 2017 life insurance tax changes webpage to learn more about what the changes mean to you and your clients. For questions, call your Sun Life Sales Director or your regional Sun Life sales team.
Good today – good tomorrow
It’s simple. What’s good about insurance today will still be good in 2017 – and beyond.
What’s not changing? Canadians want life insurance and need the basic benefits it provides:
- Over 6 million Canadian households believe they need more life insurance.*
- 2 in 3 Canadian households would have difficulty meeting everyday living expenses within a few months if the primary wage earner were to die.*
Want to know what’s coming in 2017? Join us as we launch a new and enhanced suite of life insurance products at our national roadshow. 18 cities. 15 days. November 21-December 9, 2016.
* Canadian Billion Dollar Baby Revisited: Sales potential of the underinsured life insurance market, LIMRA report, 2014.
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