Manulife Bank Creditor Insurance Name, DESIGNATION Job title, Company Name.
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Transcript of Manulife Bank Creditor Insurance Name, DESIGNATION Job title, Company Name.
Manulife Bank Creditor Insurance
Name, DESIGNATIONJob title, Company Name
Agenda
Why mortgage protection
Creditor vs. personal insurance
Manulife One creditor insurance
Application process
Administration
Questions
Why mortgage protection?
If your clients didn’t have an income, would they still have a home?
Manulife One is a cornerstone of financial planningMany customers are underinsured = unprotectedDiscussing creditor insurance gets clients and advisors thinking about their needsSimple, easy opportunity to put protection in place – to keep the account working even when your client can’t
Creditor vs. Personal insurance
Some advisors may believe that “personal” insurance is always better – but this isn’t always true.
Advantages of Personal insurance:
Client can select their beneficiary
Individual underwriting makes the premium more applicable to the individual and potentially more affordable
Coverage is portable
Coverage may be a level or decreasing amount
Creditor vs. Personal insurance
Advantages of Creditor insurance:
Provides coverage where it was intended to be
Easier application process -- typically three medical questions
May not require any detailed underwriting1
Blended rates, may be cheaper than personal insurance for some clients
Can be applied for as part of the mortgage process
May include benefits not available elsewhere, such as job loss coverage
Can provide an inexpensive start to a full insurance program – some insurance is better than no insurance
1 If the borrowing limit is >$250,000, detailed underwriting will be required.
Unique features that only Manulife One creditor insurance offers
Covers all the debt in the account, up to the prescribed borrowing limit
Clients only pay for the coverage they need
Coverage does not terminate when the Manulife One account is in a positive balance
Option of adding job loss and disability coverage
30 days to cancel insurance and receive a refund
What does Manulife One Creditor Insurance cover?
Reduces/pays off debts in the Manulife One account if insured dies
Pays the interest costs in the Manulife One account if insured becomes disabled or unemployed through no fault of their own
Available to all new and existing Manulife One account holders
Life Insurance
Eligibility – account holders between 18 and 64, if approved continues to age 70
Single or Joint coverage
Benefits – lesser of:
average 12-month balance, and
outstanding balance at death
Minimum benefit at issue is $50,000 and the maximum benefit is $500,000
Note: This product is also available for Manulife Bank Select, but is not available for Preferred Rate Mortgages
Disability and job loss rider
Eligibility – account holders between 18 and 64, if approved continues to age 65
Single or Joint coverage
Benefits – covers monthly interest up to $3,500/month 24 months for Disability
6 months for job Loss
Elimination Period
Note: Disability and job loss rider must be applied for at the same time as the life product.
Life Insurance Premiums
Monthly Rates per $1,000 Outstanding Balance
Attained Age Blended Rate
18-25 $0.08
26-30 $0.09
31-35 $0.11
36-40 $0.18
41-45 $0.27
46-50 $0.39
51-55 $0.49
56-60 $0.70
61-65 $1.04
66-69 $1.60
Monthly premiums are based on:
Clients attained age Clients rate will
automatically adjust with age bands
Outstanding balance at month end
Joint premiums are 1.4 times the posted rate
Job loss and disability rider premiums
Monthly Rates per $1,000 Outstanding Balance
Attained Age Blended Rate
18-25 $0.14
26-30 $0.14
31-35 $0.15
36-40 $0.17
41-45 $0.19
46-50 $0.22
51-55 $0.28
56-60 $0.38
61-65 $0.62
Monthly premiums are based on:
Clients attained age Clients rate will
automatically adjust with age bands
Outstanding balance at month end
Joint premiums are 1.9 times the posted rate
Competitive comparison
Based on $100,000 of Joint Life Coverage
Age RBC Scotia TD BMO National Bank
Manulife Bank
33 $22.00 $20.80 $21.00 $22.00 $23.87 $15.40
43 $49.00 $46.40 $45.00 $48.00 $53.24 $37.80
53 $88.00 $88.00 $81.00 $90.00 $100.98 $68.60
Rates current as of November 2014
Competitive comparisons
Based on $100,000 of Joint Life Coverage
Age Non-Smoker Blended Smoker
T-10 T-20 Manulife Bank
T-10 T-20
25 152.76 189.24 $134.40 214.68 270.60
35 174.60 229.80 $184.80 263.76 430.32
45 279.60 425.64 $453.60 589.08 1,024.32
55 585.84 1,129.56 $823.20 1,439.64 2,372.04
Rates current as of November 2014
Important Notes to Advisors
Banking Consultant is required to advise the client that Manulife Bank offers creditor insurance
Banking Consultant does all the work and you get compensated
Gets clients thinking about all their insurance needs
Insurance can be cancelled at anytime
Application process Completed by the Banking Consultant
Waiver of insurance
3 Medical Questions
Additional underwriting is required if: Client answers ‘yes’ to any question
Borrowing limit is >$250,000
Application Process
Submitting an application
Fax completed application to Affinity Markets, then mail original
Underwriting occurs after the application is submitted – clients cannot be pre-approved
Applications should only be submitted to Affinity Markets once the client has been approved for a Manulife One account
Application Process
Once the application has been received:
If no additional underwriting is required you will be notified of the status of the application by email
If additional underwriting is required you will receive status updates via email
—Upon initial underwriting
—When requirements arrive (e.g. laboratory analysis)
— If client is contacted for additional requirements (e.g. Doctor’s report has been requested)
—When a final decision has been made on the file
Common Questions
When does the clients coverage start? Coverage begins the first day of the month following approval and
the first premium being paid
What happens to the clients policy if they apply for an increase or switch on their Manulife One account? If credit limit remains < $250,000 no action is required by the client
If the credit limit is > $250,000 the client will need to re-apply for coverage as the policy will require full underwriting
If the client fails to re-apply they will only have coverage up to $250,000
Can clients apply for a specific amount of coverage? No, coverage is based on the clients borrowing limit.
Compensation
Life Insurance Job loss & disability
Advisor 5% of monthly premium 5% of monthly premium
Paid on active cases Compensation is paid approximately 2 months after the policy
becomes active
Note: Compensation is subject to change without notice.
Administration
It’s important to remember that this coverage is provided by Manulife Financial (life and disability) First North American Insurance Company (job loss)
and NOT Manulife Bank Bank client information cannot be shared with the insurance
company – except as required on the app (e.g. account #)
Clients are covered under a Group Policy that Manulife Bank has with The Manufacturers Life Insurance Company (Manulife Financial) and they are issued certificates that specify the terms, conditions and details of their coverage
All Manulife One clients/applicants must be given the Creditor Insurance brochure and must acknowledge receipt in the Manulife One Operating Agreement if they decline the coverage
Questions
If you have questions regarding the Manulife One Creditor Insurance product please contact Affinity Markets
phone: 1-866-388-7095email: [email protected]
Manulife One Creditor Insurance is administered and underwritten by The Manufacturers Life Insurance Company (life and disability insurance) and First North American Insurance Company (job loss).
Manulife One is offered through Manulife Bank of Canada.
Manulife One, Manulife, Manulife Bank, and the Manulife Bank For Your Future logo and the block design are trademarks of The Manufacturers Life Insurance Company, and are used by it, and by its affiliates, including Manulife Bank under license.
Important Notes
Thank you