Launch Meeting - 2005 1 Global Financial Solutions Inc. October 19, 2005 Paul Freedman MBA, CFP...
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Transcript of Launch Meeting - 2005 1 Global Financial Solutions Inc. October 19, 2005 Paul Freedman MBA, CFP...
Launch Meeting - 2005 1
Global Financial Solutions Inc.
October 19, 2005
Paul Freedman MBA, CFP
416-721-4931
Launch Meeting - 2005 2
Agenda
Ideas for Guaranteed Sales
LifeBeat – Comprehensive Critical Illness PLUS Long Term Care
Critical Illness – Sell Less to Sell More
What else is new at AXA
Questions
Launch Meeting - 2005
AXA’s Horizon Family of
Life Insurance products
Launch Meeting - 2005 4
The Horizon Family of Life InsuranceProducts
Give people real financial security, and provide them with life confidence.
Launch Meeting - 2005 5
Life Insurance plus capital appreciation
Who is taking the insurance risk?
Who is taking the capital appreciation risk?
Read the contracts…..
Launch Meeting - 2005 6
Universal Life
“ The purpose of the illustrations in this proposal is to demonstrate the features of the recommended policy. They are based on assumptions and should be treated as hypothetical. The illustrations should not be considered an estimate or a guarantee of future policy performance.”*
* SLF UL
Launch Meeting - 2005 7
Universal Life
“ This illustration is provided for information purposes to facilitate your understanding of the product. The above data must not be considered as a guarantee of the future results, which could be higher or lower depending on the real returns obtained on your investments.”*
* IAG UL
Launch Meeting - 2005 8
Universal Life
“ It is important to bear in mind that your actual benefits will vary according to the premiums paid, the investment options you chose and the interest rates in effect during the term of the policy. As the insurance costs and administration fees are fully guaranteed, the interest rates for the investment options you have chosen will be the factor that has the biggest impact on returns.”*
* AXA UL
Launch Meeting - 2005 9
Participating Whole Life
“ Actual dividends will vary based on a number of factors, including investment returns, mortality, expenses and taxes. The company may change the basis used to determine its dividend scale and the amount, if any, of allotted dividends. Values and features that depend on dividends will vary accordingly and are not guaranteed.”*
* Canada Life PAR
Launch Meeting - 2005 10
The Horizon Family of Products
“ The premiums and cash values are guaranteed values according to the present illustration.”*
* AXA Horizon
Launch Meeting - 2005 11
Guarantees within AXA’s Horizon products
Guaranteed Premium
Guaranteed Premium Payment Period
Guaranteed Cash Values
Guaranteed Death Benefit
Guaranteed Paid-up insurance
Guaranteed Extreme Disability Benefit
Launch Meeting - 2005 12
Extreme disability benefit (EDB)
Written into the contract
50% of the face amount insured to a maximum of $250K
Tax free benefit
No interest charges
Does not cancel the contract
Available up to age 60
Automatically included in many AXA contracts
Five of seven ADL’s to qualify
Cash for palliative health care when needed the most
Launch Meeting - 2005 13
Build your business with guarantees
People deserve to see a fully guaranteed plan
Successful agents reduce risk for their clients and themselves
Build your practice on a guaranteed foundation
Make more money
Launch Meeting - 2005 14
Horizon 20 – Limited Pay Non Participating Whole Life
Horizon 20 provides the highest cash values in the industry
Clients who like guarantees and have a long term focus will find this product very attractive
Launch Meeting - 2005 15
Guaranteed 20 Pay Comparison
*40 MNS $250K LifeGuide V2005.09
Company Product Premium Cash Value @ age 65
AXA Insurance Horizon 20 $3,357.50 $125,000.00Unity Life Life Option 2 - 20 Pay $4,002.50 $107,427.00
AIG Life 20 Pay Life $3,610.00 $82,790.00Desjardins Fin. Secur 20 Pay Whole Life $2,532.50 $66,850.00L'EXCELLENCE Vie Acquittee 20 Paiements (syndique) $2,337.50 $65,000.00The Empire Life 20 Pay Solution $2,205.00 $64,500.00RBC Insurance Foundational Life - 20 Pay $2,406.45 $63,115.00Western Life @pprove T100 - 20 Pay $2,400.00 $63,015.00The Canada Life Dynaterm - Option 2 $2,320.00 $61,250.00National Life NL Guaranteed UL - 20 Pay (Standard) $2,450.52 $61,225.00The Standard Life SLT-100, 20 Pay $2,325.00 $55,750.00IA Pacific Life Axis L20 (Standard) $2,465.00 $55,375.00Industrial-Alliance Axis L20 (Standard) $2,465.00 $55,375.00RBC Insurance Foundational Life - 20 Pay $2,406.45 $63,115.00Transamerica Life PROTECTORPlus 20-Pay (Non-Smoker) $2,300.00 $51,272.00Manulife Financial LifeWise 20 $2,330.00 $49,000.00Assumption Life Concept 2001 - 20 Pay $2,625.00 $20,500.00
Launch Meeting - 2005 16
Horizon 20 - Target Market
Need for life insurance
Successfully utilizing RRSP’s for retirement
Not willing to take risks
Wants guarantees
Focused on long term
Appreciates simplicity
Financially sound
Age 35 – 55
Launch Meeting - 2005 17
Horizon 20 – Very attractive internal rates of return with no risk
Female age 40
Non Smoker
Premium is $723 annually
Death Benefit is $50,000
Cash Value at age 65 is $25,000
Guaranteed annualized rate of return:4.36%
Launch Meeting - 2005 18
AXA’s Horizon 20 vs. Universal Life with guarantees
UL Guaranteed 20 Pay *
Equal premiums $770
Guaranteed interest bonus 1.20%
Guaranteed interest on funds at 3%
Total Cash Value at age 65 : $22,792
Guaranteed Cash Value at age 65: $12,245
AXA cash value advantage: + $12,755*40 MNS $50K
* IAG UL
Launch Meeting - 2005 19
AXA’s Horizon 65 A limited pay life insurance solution
Minimum 15 years of premium payments
Non Participating
Permanent whole life protection
Best for ages 50 to 65
Fully guaranteed
Simple to understand
Launch Meeting - 2005 20
Estate planning case
Male age 62
Term insurance now…
Wants to spend what he has in RRSP and open money and ensure $500K to grand children
Wants guaranteed payment period
Long Term Care concerns later in life
Has the means to single pay
No risk…. No risk…
Launch Meeting - 2005 21
Limited pay UL – with Life annuity
Limited pay UL*
15 year payment period
Life annuity to fund annual deposits of $20,355
Interest assumption of 3%
Death benefit is face plus fund
End of year 15 $129K Guaranteed Cash Value
$168K Total Cash Value
$539K Death Benefit
* RBC FL UL
Launch Meeting - 2005 22
AXA’s Horizon 65 – The better solution
Limited pay whole life non par product
Guaranteed premiums for 15 years of $20,355
No interest rate assumptions needed
100% guaranteed cash values, death benefit, premium payment
End of year 15 - $310K Guaranteed Cash Value
$500K Death Benefit
Launch Meeting - 2005 23
AXA Horizon 65 – The better solution
Horizon 65 provides $142K more cash value
Fully guaranteed
No risk for the client or you
Simple to understand
Launch Meeting - 2005 24
Build your business with guarantees
Simplicity
No interest rate assumptions
All figures are fully guaranteed
Easy for other professionals to understand (ie. Lawyers & Accountants)
Six page illustration vs. UL and par whole life’s ten to sixteen pages
Competitive compensation
Launch Meeting - 2005 25
AXA’s Horizon family provides competitive agent compensation
45% FYC
Plus Bonus
5% from years 2 to 5, then 2% from year 6 and over
Launch Meeting - 2005 26
Compensation comparison
Limited pay UL
70% FYC on minimum premium
Excess premium 12% FYC
3% renewal for the life of the contract
Horizon family of products
45% FYC
5% renewal until the 5th year
2% for the life of the contract
Launch Meeting - 2005 27
20 Pay UL
Premium $770
FYC $346
Bonus @ 100%
Total = $682
Horizon 20
Premium $770
FYC $347
Bonus @ 100%
Total = $684
MNS Age 40 $250K
AXA’s Horizon Family of products provide competitive compensation
Launch Meeting - 2005 28
AXA’s Horizon Family of products provide competitive compensation
15 Pay UL
Premium $20,355
FYC $8,536
Bonus @ 100%
Total = $17,073
Horizon 65
Premium $20,355
FYC $8,565
Bonus @ 100%
Total = $17,130
MNS Age 62 $500K
Launch Meeting - 2005
AXA’s Horizon Family of
Life Insurance products