It’s time to re-think UL! A large segment of your clients — including affluent and emerging affluent, young professionals, business owners and pre-retirees — can benefit from the unique features of UL.
Who’s looking for UL?
- Clients who need permanent, flexible protection that can maximize tax-preferred growth opportunities
- Clients building their savings that complement their RRSPs and TFSAs; an opportunity to supplement retirement income
- Investors wanting protection with asset diversification and a “hands-on” approach to allocating the investments in their policy
- Business owners seeking a tax-efficient way to protect the value of their business with permanent protection and cash flow flexibility
- Parents and grandparents creating a financial foundation and enhancing their estates for children and grandchildren
UL policies are designed to help clients respond to changing personal and market conditions more quickly, because they control the amount of payments and the investment mix.
Illustrations can help
You can help clients tailor their UL policies to fit their unique needs, emphasizing the product’s flexibility and choice. You can also promote UL by demonstrating how diversifying the investment options within the policy can help manage volatility and offers opportunities for tax preferred growth.
A sophisticated illustration tool can show the benefits of overfunding UL policies, and demonstrate to clients how they can access their policy fund value to supplement retirement income, including:
- Taking a policy loan,
- Withdrawing money, or
- Taking a collateral loan, using the cash value of the policy as security for the loan. The advantage in this situation is that clients pay no tax on the collateral loan.
Flexibility and choice give control
- UL policies give consumers flexibility in the payments they make to their policy, an ideal solution for clients with a variable cash flow. Subject to certain limits, they can change the amount and frequency of payments at any time, so they have the option to overfund if they choose. If clients need money for other reasons, they have the flexibility to lower their payment and then adjust it later.
- With a UL policy, clients can design a portfolio of investment account options they are comfortable with and that aligns with their risk tolerance.
- Clients can select the death benefit option that will best meet their needs; whether it’s for pure protection, protection with access to growth in cash values, or for business clients who want to maximize their business value, universal life offers the options clients are looking for.
- With a variety of cost of insurance (COI) options, clients can meet their needs today, knowing they can change their COI option in the future if needed. Limited pay COI periods can give clients comfort in retirement, knowing they can have a fully paid up basic insurance amount once the limited pay period has ended.
Manage volatility within the portfolio
- UL offers a selection of investment account options to help clients diversify and manage volatility within their UL portfolio.
- Clients can select investment account options that meet their needs, goals, performance expectations, time horizon and the level of risk they’re prepared to take.
- Whether clients are looking for capital preservation, or looking for some growth or to outpace inflation, UL can offer a selection of investment options to help them achieve their goals.
- As a client’s needs change, their investment mix can change with them.
Death and taxes – the UL answer
A UL policy can provide:
- Tax-preferred growth – the opportunity for tax-preferred growth is one of the primary reasons clients look to a universal life policy. Clients select a mix of investment account options, and any interest credited grows on a tax-preferred basis, up to specific limits.
- Tax-free death benefit – at death, an amount can be paid tax free to a named beneficiary according to the death benefit option the client selects.
Take another look at UL
Clients are looking for options to meet their financial needs and goals. With the proper tools, you can show clients the benefits of UL insurance — flexibility, choice and an all-in-one protection solution that can also build savings. Clients can choose a guaranteed death benefit to be paid to their beneficiaries, and the payments they make above the cost of insurance can grow tax-preferred and may be used to increase the amount of their death benefit. In short, UL’s distinctive combination gives permanent life insurance protection for lifelong peace of mind, with a broad range of investment account options for tax-preferred savings growth.
Want to know more?
- Use Sun Life Financial’s new illustration system to show clients the benefits of UL.
- Learn about our new SunUniversalLife II.
- Check out this overview video for other permanent life insurance options from Sun Life.
- Contact a member of your Sun Life insurance sales support team.
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