desjardins insurance refers to desjardins financial security life assurance company. release...

Desjardins Insurance refers to Desjardins Financial Security Life Assurance Company.

Release February 6th, 2014

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February 6th, 2014 content

News in: • Health Insurance• Life Insurance• Underwriting• Fusion

DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY

Long-term Care Advance

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Traditional Universal LifeLife 20 Precision 20Life at 65 Precision at 65

Foundation (T00)

Commission:

Same as the life insurance coverage to which it is associated.

What you need to know…

1. It is now offered up to the age 59 in Fusion.2. Clients between 56 and 59 individual consideration3. 10-year minimum before to receive the monthly benefit

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You want to know the LTC Advance price?

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You want to know the LTC Advance price?

Look at the tree view!

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And the price of CI Advance?

Same thing!

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Success measure

From the launch up to end of December:

1 out of 2!

A new VIA – Life with LTC Advance in 3 easy steps

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Financing the LTC Advance with the MCD!

With LTC Advance, if a applies

the client keeps it!

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Just an example

Female, age 35

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Recommendation Without MCD With MCDLife 20 – $100,000Term 20 – $400,000 $132.30 $121.95

Savings = $10.35LTC Advance = $12.73

Covered at 80%!

DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY

(Traditional)

• Twin of Precision at 65

• Best guaranteed cash surrender value

• Multi-Coverage Discount available

– Remains when LTC Advance is added

• Rate Reduction Program available

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DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY

Rate Reduction Program

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Examples

ProductsSubstandard

premium reduced by…

If substandard premium of 100%

If substandard premium of 150%

Life 10 and Precision 10 50% + 50% + 75%

Life Start 15 45% + 55% + 82.5%

Life 20 and Precision 20 40% + 60% + 90%

Life at 65 and Precision at 65Issue ages:

0 - 4445 - 4950 - 65

35%40%45%

+ 65%+ 60%+ 55%

+ 97.5%+ 90%

+ 82.5%

Guaranteed Whole Life and Precision 30% + 70% + 105%

MAXLife and Foundation 20% + 80% + 120%

(Traditional) - cont'd

• Commissions

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Male NS, Age 35, $100,000 -

Rank Company Monthly premium

CSV (Age 65)30 years

CSV (Age 80)45 years

1 Desjardins (UL) 88.58 35,880 60,520

2 La Capitale (Trad) 89.67 23,684 50,765

3 La Capitale (UL) 89.80 23,684 50,765

4 Sun Life (UL) 90.75 30,149 45,655

5 Equitable Life (UL) 92.08 20,624 48,355

6 Desjardins (Trad) 95.22 39,000 68,0007 Industrial-Alliance (Trad) 95.40 26,600 62,450

8 UL Mutual (Adj. Trad) 97.47 40,000 57,500

9 Co-Operators Life (Par) 137.43 Div. Div.

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T30 (Trad) and Flex 30 (UL)

• Rate reduction of 7% in average– Regular and Preferred rate – #1 with MCD / between 1-4 without MCD-in Life Guide

• Consistant with T10 and T20 rates

Top 3 in LifeGuide Even more competitive with the Multi-Coverage Discount

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T30 – Competitive analysis

• Male NS, Age 30 for $250,000

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Rank Company Monthly premium

1 SSQ Assurance 30.38

2 Western 31.03

3 Desjardins 31.28

4 Industrial-Alliance 31.50

5 La Capitale 32.71

6 Wawanesa Life 32.85

7 Transamerica Life 35.33

8 BMO Insurance 35.789 Primerica Life 38.95

Business Insurability Option (BI Option)

Markets• Growth business• Businesses currently lacking the financial capacity to cover the

potential business need

Needs• Buy-sell agreement• Capital gains taxes • Business debts

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BI Option – cont'd

• Allows to purchase additional life insurance for the first 10 years of the contract – Based on the growth of the business Fair Market Value

• Issue age: 18 to 65• BI Option amount at issue:

– Min: $100K– Max: the lesser of :

• $3.33M • Insured's share of the Fair Market Value of the Business (at issue)

– Allows to exercise up to 3 time the BI Option amount

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BI Option – cont'd

• At time to exercise the option– No medical evidence– Financial statement for the company's last three fiscal year to justify

the business growth

• Maximum amount to purchase at time of the option– The lesser of

• The increased value of the owner's share in the business• 3 times the option amount (less any amounts previously exercised)

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BI Option – cont'd

• Products available when option is exercised– All products available for conversion– + All term products (except Enhanced T10)

• Offer on all life insurance coverages (Traditional and Pace UL)

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Commissions FYC Years 2 to 5 Years 6 to 10Trad and UL 35% 4%

(incl. deposits at 3% in UL)

2%

BI Option – Case study

Company ABC with 2 owners– Owner A, male NS, 35 years old, owning 50% of shares– Owner B, female NS, 30 years old, owning 50% of shares

• Value of the business: $1.5M– Owner A's value of the share: $750,000 – Owner B's value of the share: $750,000

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BI Option – Case study

• A buys T10 of $750,000 + BI Option for $750,000 (maximum cumulative of $2.25 million) – T10 annual premiums of $440 + BI Option of $157.50

• B buys T10 of $750,000 + BI Option for $750,000 (maximum cumulative of $2.25 million)– T10 annual premiums of $280 + BI Option of $75

2 years from now, FMV = $2.5M ($1.25M each owner)• A exercises $500,000 ($1.25M – 750K) in a new T10• B exercises $500,000 ($1.25M – 750K) in a new T10

New balance of the BI Option on each insured is $1.75M ($2.25M–500K)

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BI Option – Marketing Tools

• Calculator in Fusion and Webi– Help you to calculate the FMV and then the amount

to enter in Fusion– Any other relevant methods are also

accepted by the underwriting

• One-pager (with product description)

• Client brochure with case study

• CRM alert at the policy anniversary

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Multi-Coverage Discount

• Light change in the permanent life insurance • No change in the Term life insurance

Always as competitive, #1 or #2

What is changing?• No longer discount for the 10K rate band for permanent

insurance– When sold with another eligible product, the other products still get a

discount– Low level of sales in the 10K rate band (often for conversion)

• Discount on permanent product is now limited for certain situations

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Preferred Offer

• Available on T10, T20 & T30 (Trad and UL) – $250,000 and $750,000

• When an insured is accepted P1, P2 or R1– Contract issue with an higher face amount, when box is checked

in Fusion

• No additional medical evidence to provide

Very simple in Fusion, let's see…

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Fusion – Preferred Offer

Excellent way to respect the budget and increase the legacy

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Underwriting Requirements

• More relaxed underwriting requirements for:– Life insurance amount higher than $2M (ex.: no Financial

Questionnaire for amount between $2M to $3M)

Then, updated Financial Underwriting Guide– For Life insurance and Critical Illness Insurance:

• More relaxed requirements and increased the maximum amount limit

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Fusion

• New icon for the Investor Profile

• After February 21, 2014, only illustrations produced with the Fusion illustration software version 15.2.0 will be accepted

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Transition Rule

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• Contracts will be issued based on the old conditions, if Head Office receives the application and illustration on or before February 21, 2014 by mail, fax or e-mail.

• A contract issued with the old conditions must be settled within 40 days following the approval date from the underwriting department.

• If you are already submitted an application for T30 or Flex 30, the new lower rates may be applied if the contract has not been issued.

Summary

• New Competitive commissions Best CSV Multi-Coverage Discount LTC Option

• Reduced rates for T30 (Trad) and Flex 30 (UL) Reduced by 7% Top 3 in LifeGuide

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Summary - cont'd

• Business Insurance Option Additional life insurance for the first 10 years, based on

the increased Fair Market Value of the business Very competitive premiums Competitive commissions

• Multi-Coverage DiscountSlight change for Permanent products

• Still very competitive• Still #1 or #2

No change for the Term products

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Summary – cont'd

• Preferred Offer for Term Insurance Increase the amount of insurance when P1, P2 or R1

if box checked in Fusion

• More relaxed underwriting requirements For Life insurance greater than $2M

• No financial questionnaire Updated Financial guide

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Desjardins Insurance refers to Desjardins Financial Security Life Assurance Company.

Questions?

Thanks!

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