“I have coverage at work”. This is oftentimes a client’s response when individual disability insurance is mentioned or suggested. There is no question that group Long Term Disability (LTD) is a valuable benefit to have, and certainly better than no coverage at all, but it may not completely solve the critical issue of income replacement or be a sufficient safety net. Unfortunately, people become ill and accidents happen. And when illness or accident does strike, it tends to be unwanted, unexpected and unwelcome. The most unfortunate part being that most people are completely unprepared for the financial setback that a disability can cause, leaving them without the income they need to support themselves and their family. Here are a few things for your client to consider when weighing additional disability coverage: Group coverage typically only covers base salary and not bonuses High income earners may be under-insured as most group LTD plans have built in maximums Group LTD usually does not include benefits for partial disability Most group LTD plans include a two-year regular occupation definition of disability, switching to any occupation thereafter Many people change employers and negotiate for increased salary/bonus but overlook whether insurance coverage is provided and the cost to personally replace that coverage (especially at an older age), may not be attainable Employers review employee benefits quite regularly and make adjustments to contain costs, so at any time, your client’s LTD plan can change LTD coverage isn’t portable, and there’s no guarantee your client’s next job or venture will come with LTD benefits Definitely more than a few things to consider. However, there are solutions to discuss with your client: Executive “Top Up” for an executive client or high-income earner who may be under-insured as a result of group maximums For non-executives, review the maximums under their benefit program, and consider a group top up or integration of benefits with group offset Consider combining LTD and Critical Illness as complementary products, and share with clients the different claim and payout processes Need a little help? Use the Income Replacement applet on PPI’s Toolkit Direct to educate your clients on the importance of income replacement coverage, as well as the gaps that exist within group LTD coverage. Those unwanted, unexpected and unwelcome events will strike – will your clients have the coverage they need? For similar articles, videos and tools on the importance of living benefits, read and share CIDI: Enhancing Your Client’s Benefits Package, Strengthening Your Safety Net with Critical Illness Insurance, Insuring Your Greatest Asset with Disability Insurance and SMART TALK… about living benefits. And if you have any questions or would like more information on insurance solutions for your clients, contact your local PPI Collaboration Centre.

Family traditions can make for great stories, particularly when everyone gathers and recalls the birth of a tradition and the events that have kept it alive. In this installment of ‘Learning from Experience’, what could have been an inconsequential find, became a beloved family heirloom that sparked a decades-long tradition and a treasure trove of fond memories. Proper planning has poised the family tradition to live on for generations to come. Share Rimba’s story with your clients to get them thinking ahead to the distribution of their own family heirlooms and valuables like digital assets, antiques, gems, and artwork. Whether their assets have sentimental value, or great financial value leading to conversations about estate equalization, Rimba’s story may get them thinking beyond the obvious when it comes to planning for the future. For more information on planning for the preservation and transfer of assets, watch our short videos: INFOclip: Protecting Your Estate, SMART Talk… about digital assets, and SMART Talk… about will planning and drafting Questions? Contact your local PPI Collaboration Centre.

We have all been there… after a great conversation with a client, you submit their insurance application only to find out a few weeks later that the application cannot be approved as submitted. Either there’s a rating for additional premium or the client is outright declined. Either way, it can be a tough pill for the client to swallow and accept; especially because they most likely perceive themselves as completely “healthy”, regardless of the medications they may be taking. So, what can you do to avoid these types of disappointments, or to help them out when no one could have seen it coming? You may be able to manage expectations and minimize the likelihood of an underwriting ‘surprise’ by asking some basic field underwriting questions. You don’t have to go through the full medicals to get a complete picture, but here are some questions you can start with: What medication(s) are you taking today and for what reason? When was the last time you were hospitalized and for what reason? When was the last time you had to take time off work due to medical reasons? There are a number of great tools available for Advisors affiliated with PPI to help set expectations when field underwriting reveals medical conditions that may impact the outcome of the application (Advisor login required). Know the Risk includes several rating guides covering a variety of medical conditions, offering you and your client insight into how underwriters may evaluate their condition and the potential impact on their rates or insurability. If you want further assistance setting expectations, complete and submit a Lifestyle and Health Preliminary Evaluation form so PPI’s advanced Underwriting team can provide you with a preliminary risk opinion on how the case may be assessed by the carrier​. And for assistance positioning your cases in the high net-worth market, you can complete a Lifestyle and Health evaluation form and our team will conduct detailed fact-finding and analysis, and package the case for presentation to the insurer. Finally, in PPI’s Toolkit Direct you’ll find a helpful document called “What to Expect When You Apply for Insurance”, that explains to clients the processes and timelines associated with applying for insurance. Now, what if your client has received an unforeseen rating or decline? If you want assistance explaining the decision to your client, turn first to Know the Risk to see if their condition is covered in one of its many rating guides. And if you need support on a particularly difficult case, contact your local PPI Collaboration Center to discuss: Carriers specializing in difficult to ensure clients – there are always options How you can reach out to the carrier underwriter directly to review the case If we can have the case reviewed by an internal PPI underwriter (requires client authorization) PPI has been quite successful in facilitating either immediate or deferred insurance to many clients who would otherwise be without any coverage, so be sure to reach out! So, by asking a few field underwriting questions up front, knowing where to find resources to help manage and explain potential ratings, declines or exclusions and finally knowing that there’s an option available regardless of what comes up, you should be well equipped to help clients attain the insurance coverage they need. For a similar article on clients who are a little more complicated to insure, read and share You Have More Insurance Options Than You Think. At PPI, there is always a solution.

For the majority of families, life insurance needs will change over time. Typically, more coverage is required while your client’s family is still young and building their wealth, with a decreasing amount required as the family finances mature. Most life insurance policies are designed to provide a level amount of coverage for the lifetime of the policy, making it challenging to fund the policy on an ongoing basis. However, if you’re considering the best overall solution for your client, the decision between term versus permanent insurance doesn’t have to be an either/or situation – your client can have both! Oftentimes, the best insurance protection can come from a Term/Perm combination – that is, a small amount of permanent insurance, PLUS a term rider to cover the remaining amount, or two stand along policies. With this Term/Perm blend, you can ensure that your client’s coverage is tailored to their lifestyle over time and fits their initial budget. Your client gets an ample amount of coverage in the initial years of their policy, while knowing they have some amount of coverage for the duration of their life, providing them with maximum flexibility. So, what are some of the benefits of recommending a small base plan of permanent insurance coverage to your client? Coverage that is aligned to their fluctuating needs over time Potential for a lower total cost over time At renewal for the term rider portion or separate policy, the client has options to renew, convert, reduce, drop and/or add other coverages – options are important! Lock in permanent rates TODAY to guarantee the cost of the permanent coverage for life The possibility of some plans to build cash values to support “premium vacations”. The fact is that the earlier in life that a client purchases permanent coverage, the greater the impact it can have as a financial instrument in their overall financial plan. PPI’s here to help. Our Toolkit Direct has two applets that can assist you in this process: Insurance Needs Analysis (INA): identify and explain the difference between Temporary and Permanent Needs Life Insurance Funding Options: offer your client four options – term only, permanent only, some permanent with the remainder as a term rider, or both term and permanent stand alone policies (the Term/Perm blend) Start the conversation with your clients today to set them up for success into the future. For similar content on term versus permanent insurance, share Exploring Your Life Insurance Options, The Ultimate Planning Tool, INFOclip: Understanding Term Insurance and Choosing Insurance That Grows with You. And if you have any questions about the Term/Perm blend of insurance or how to position it to your clients, contact your local PPI Collaboration Centre.

When primitive men and women discovered fire, it changed their very existence. Food and shelters could be heated, not to mention providing illumination and some degree of protection from the animal kingdom predators that roamed the planet. Not quite as dramatic except to those of us in the life insurance industry, the employment of actuarial science in the late 17th century provided kindling to the underwriting fire. This included the production of life tables and application of compound interest to the challenge of calculating the present value of the future liability, the very foundation of life insurance premiums. What does this have to do with gender? In the early days, not very much. It was all an actuary could do to wade through individual birth and death records to calculate premiums based on the still most important risk factor, the age of the life being insured. No distinction between male and female was made and, as a result, unisex pricing was the norm. Around 1880, the rate of male mortality started to rise and astute actuaries the world over eventually began to reflect those differences in the pricing of life insurance rates. (1). The mortality/gender gap is especially pronounced in older lives, where 57% of all those aged 65 are female and by age 85 women make up 67% of the population (2). In Canada, women, on average, live 4 years longer than men, making the actuarial argument that men should pay more for life insurance (3). While Canadian insurance companies take these differences into account when pricing life insurance, it is not always the universal view. Since 2012, the European Union prohibits pricing based on gender for life, health and even auto insurance, raising the age-old question of fairness; should a lower risk group, in this case women, subsidize the higher-risk group, male policyholders (4)? The question of why women outlive men, at least on average, continues to be of interest. The early observations, that smoking and cardiovascular disease are the main culprits remain true today. We also have a deeper understanding of the role of stress, as well as the behavioural and cultural patterns that may predispose men to take more risks, drink more alcohol and seek medical care less often. This latter point is particularly pernicious as although women are often thought to be diagnosed more often with depression, men generally have much higher suicide rates (5). This was highlighted most recently when United States Senator John Fetterman was hospitalized voluntarily for depression, drawing praise for making his struggle with mental health public (6). Contrast this with Thomas Eagleton, also a United States senator in 1972 and Vice-Presidential candidate dropped from the ticket a week after disclosing treatment for depression in his past (7). Today’s discussions on gender run deeper than the traditional female-male divide. New perspectives on gender identity, roles and their impact on health bring new understanding and continue to evolve. Watch this space as we share more on this topic. Crimmins, Eileen et al. Differences Between Men and Women in mortality and the Health Dimensions of the Morbidity Process. Clinical Chemistry. Volume 65, No. 1, 2019, pages 135-145. Shmerling, Robert H., MD. Why men often die earlier than women. Harvard Health Blog, health.harvard.edu. June 22, 2020 Statista.com. Life expectancy at birth in Canada from 2010-2020 by gender. September 2022. Fontinelle, Amy. Gender and Insurance Costs. Investopedia.com. July 25, 2022. Mental Health and Suicide in Canada-Key Takeaways. Mentalhealhcommisison.ca. July 6, 2022. Barry, Ellen and Gay, Sheryl. Fetterman’s Disclosure of Depression Signals New Openness on Mental Health. Nytimes.com. February 17, 2023 Greenfield, Jeff. What John Fetterman Should know About Thomas Eagleton. Politico.com. February 17, 2023.

As an Advisor, you probably get this question all of the time: which is more important, disability or critical illness insurance? But as an Advisor, you also know that both types of insurance can be equally important and most clients should have both in their insurance portfolio. Disability insurance (DI), whether part of a group plan or even as a stand-alone policy, generally will not cover a client’s full income. This is a concern since out-of-pocket expenses typically increase anytime something medically prevents people from working for an extended period of time. Likewise, any additional supplemental costs may only partially be covered by your client’s health insurance – depending on their coverage. Your client could be faced with a shortfall even with full disability coverage; this is where critical illness (CI) can help fill the gap. Medical expenses currently rank as the number three cause of bankruptcy in Canada. Despite this, CI sales continue to get outpaced by life insurance quite dramatically in Canada. In fact, in 2022, only 8% of insurance applications were for critical illness insurance. This gap signifies an opportunity for you, the Advisor. Below are some typical concerns that your client may express and how to address them when discussing the prospect of bundling CI with a DI policy: I already have disability insurance; do I need critical illness too? Your client has existing DI coverage already – that’s great! However, since they are fundamentally different products with different claim triggers, consider the possibility of claim for each. Would the disability pay out if the illness returns them to work before the elimination period? Would the critical illness pay out if they are off work due to an injury? Even if one pays out, will the income be sufficient? If both policies paid out, it wouldn’t be the worst thing that happened, and it would also help to support any increase in monthly expenses, whether caused by inflation or unexpected medical expenses. Remember, despite the overlap, both products cover off very different needs. Critical illness insurance is too expensive! Insurance companies price their products according to risk. If there’s an elevated risk we can expect higher premiums, whether it’s related to age, health status, or in this case the product having a higher claims rate. Regarding how to approach this with a client, discuss how they can fit it into their budget at a price point that they are comfortable with. Sometimes, Advisors jump straight to a T75 with return of premium (ROP) and a $100,000 benefit because somewhere along the way, this became the industry approach. And while longer term products with ROP features may look attractive to some, for many people they are too costly. Looking at term insurance for CI is a very viable option. Likewise, compared to life insurance renewals, the premium renewal jumps are relatively less significant. There have in fact been cases where the first renewal cost is LESS EXPENSIVE than a new attained age quote (so unless premiums go down over the next 10 to 20 years, this can actually lock in a better rate for some). How much CI is enough? There is no right answer to this question but many successful Advisors can, for example, either focus on a multiple of income (like 1 to 2 times annual salary), expenses over a fixed period, or whatever fits the client’s budget. It’s much more difficult to do a needs analysis on CI than life insurance as there are more moving parts such as recovery period, cost of procedures, medication, unpaid leave from work, etc. Regardless of what method used, even some CI coverage is better than leaving your clients completely at risk – even if it’s $10,000, this amount could make a difference, be a  relief, between when their income ends and their DI begins. I will self insure. Using personal savings, family income, or taxable investments such as RRSPs may seem like a good idea but typically it becomes the more costly way of dealing with additional expenses. Simply put, self insuring is generally not the better option. Nothing is going to happen to me! Manulife has a tool called What’s Your Risk, which takes industry statistics and calculates the odds of a life, CI, or DI claim for a specific client based on their situation. It’s a good exercise to go through with your younger clients (or yourself if under 50). In fact, go over your own reporting over the last few years to explore what percentage of sales included some component of critical illness. Once you have these stats, go back to your clients that have not yet acted on this need. Also consider going back and looking at your files to review whether an injury or illness could derail any planning you’ve done for your clients. If you haven’t been talking about CI or DI, now is the time to consider their many benefits and have those valuable client conversations. PPI offers a number of client-friendly tools and calculators that you can share with your clients to help start those important conversations – check them out on The Link Between, then share! Need help running insurance reports or have questions concerning your client’s insurance options? Contact your local PPI Collaboration Centre.

A lot has changed over the past 30 years – the world in which our mothers and grandmothers lived is certainly not the same as the world in which our daughters and granddaughters will continue to live. And although this industry has seen some much-needed changes over these decades, we still have a lot to learn when it comes to our women clients and their financial needs. It seems obvious, but there are things that make a woman client different from a man client. In response to that, your sales style, sales process, assumptions and sales strategies may be different when communicating. The truth is that the future success of your business could depend on understanding that there are indeed differences and acting accordingly. Why are women clients important in the financial realm and the future of your business? Women breadwinners and the $71 trillion transfer of wealth Women are becoming more and more powerful on a professional and financial level and are becoming the decision makers that Advisors now need to recognize. In fact, “today, women are the primary breadwinners in over 31% of households in Canada. By 2024, they are anticipated to control about $2.7 trillion of the country’s total household wealth. Looking further out into the next several decades, they stand to receive 70% of intergenerational wealth transfers totalling $71 trillion (1).” Up to 80% of women find a new Advisor after the death of a spouse Did you know that up to 80% of women find a new Advisor after the death of a spouse? It’s true! “An estimated 80% of women leave their Advisor within 18 months of becoming a widow. Often, this is because they don’t feel the Advisor has taken the time to build a relationship with them (2).” The truth is that women clients aren’t worried about where their Advisor is on the gender spectrum. What they’re seeking is an Advisor who recognizes that they are also an individual, even if they are part of a committed couple. They’re looking for an Advisor who works with them in a supportive, collaborative, and holistic way, as well as one who can notice and adapt to the nuances of working alongside a woman client. Women are really great clients! Once you earn their trust and add solid value, women are more likely than men to seek out the advice of their trusted Advisor for ALL their financial needs, which opens a broad spectrum of opportunity for you. Once they have decided you are a good fit, women clients are less likely to leave you than men clients, with some sources indicating that women clients are even more willing to refer you to their friends and family (3). What can you do to support your women prospects and clients? See, hear and advocate for a woman client It sounds basic, but do you require that both heads of the household attend a planning meeting? Financial decisions impact the futures of both so be sure to advocate for your women clients to ensure they can participate in a meaningful way. Building this relationship will benefit your practice in the future and, for your women clients, if you are their Advisor (and not just their partners’ Advisor) it will ease the financial planning transition caused by a future marital breakdown, the incapacity or death of their spouses. Become their Advisor. Women have a longer life expectancy On average, Canadian women live longer than Canadian men by approximately 3.5 years (84.74 vs 81.15), and many are living past age 90 (4). As you project into the future to determine income needs in retirement, ensure these extra years are covered for your women clients. Also, consider longevity when working with an older client who has requested term insurance. PPI offers this handy Life Expectancy Chart to assist you in conversations about life expectancy and longevity. With increased longevity also comes an increased likelihood of needing additional insurance; a good CI plan that covers cancer and other illnesses could be extremely valuable in later years when retirement funds might be starting to run low. Women, child rearing, and elder care While numbers might be edging upwards for men who become the stay-at-home parent, women are still four times more likely to take on this role (5). Women are also far more likely to reduce work hours, take time off or leave work to care for aging parents. In fact, adult daughters provide twice as many elder-care hours to aging parents as adult sons (6). These breaks in employment have a serious impact on the financial future of a woman. According to one 2018 study, “stay-at-home parents are half as likely to get a job interview than parents who have been laid off. […] And the mothers who do find a job are often penalized for their time away. […] [W]omen who spend three years or more out of the workforce lose 37% of their earning power. [And] study after study has shown that even the women who do successfully re-enter the workforce after a career break never fully catch up to their earnings potential (7).” As an Advisor, it is your responsibility to look through the financial risk mitigation lens of a woman who is a single income earner, who divorces down the line or whose partner dies or becomes unable to earn an income. Speaking to all parties and walking through a thorough needs analysis is imperative – your woman client’s entire future financial security could depend on it. In cases where the partners are the primary breadwinner, women clients may never be able to jump back into a career and regain their earning power, so it’s critical for the breadwinners to have the correct amount of life insurance and disability insurance. Income replacement must be adequate not only for expenses while rearing children, it should also provide enough to save for retirement. If you are meeting with a couple where one member is the stay-at-home parent/caregiver, make sure you ask them to describe the tasks they undertake daily and then help them both come to an understanding of the financial impact of the caregiver’s premature death or disability. There is significant financial value in what both partners do. Single-income households For single income households, financial responsibilities rest on their shoulders alone, hence your advice should look different than for a two-income couple. For a single person, mortgage insurance may or may not be a high priority, whereas DI and/or CI coverage, and a solid retirement plan, may be higher on the list of priorities, because their bills rest squarely on their individual shoulders. Be the change Of course, we’re only just scratching the surface of what you can do as an Advisor to help your women clients with their holistic planning. There is huge potential in the women’s market. Today there is a huge number of women clients looking for an Advisor who understands them – can you be that Advisor? If you’d like to learn more about opportunities within the women’s market, see this Planning Opportunities in the Women’s Market video. And if you have any questions or would like to know more, contact your local PPI Collaboration Centre. Almazora, Leo. Are Canadian women entering an age of financial empowerment?v Wealth Professional. March 8, 2021. Advisor’s Edge. Why it’s important to connect with female clients. Advisor’s Edge. March 8, 2018. The Voice of the Investor. Why Women Use Financial Advisors More Than Men. February 16, 2021. Life Expectancy of the World Population. Worldmeter. March, 2022. Honderich, Holly. Why ‘stay-at-home parent’ is a job title. April 14, 2021. Almazora, Leo. How the gender pay gap adds up over women’s lifetimes. Wealth Professional. May 16, 2018. IBID.

It’s hard to imagine an industry that has a greater positive influence in society than ours. You as an Advisor truly make a difference – you are there to help your clients when they are going through their most difficult moments. In spite of this, there remains a perception that an Advisor’s focus can be to make a commission. However, if you’ve managed a claim on behalf of a client, you know how unfair that idea can be. It is also not reflective of the genuine value Advisors provide to Canadians every single day. At its core, “what” you do is really quite simple: you provide access to insurance planning, as well as potential investment and financial planning, to your prospects and clients. That’s important for sure, but is it emotionally compelling? Most people would say that it’s not. However, the reasons “why” people go through the financial planning process are often rooted in love, compassion and consideration and that is the truly compelling part. Yet, sometimes Advisors focus on the “what”, rather than the “why”. If asked about the role, it can be difficult to articulate the value you bring in an emotionally compelling way – even after years of being successful in the business. One method salespeople have implemented to try to overcome this difficulty is to formulate the dreaded elevator pitch. The idea is that if you only have a few seconds to grab someone’s interest, you have a pitch, a spiel, that can be delivered quickly and repeatedly. But is this genuine or does it come of as contrived and forced? You can do better than a tired sales pitch! Instead, consider your “Why Statement.” This can be used as a brief introduction to someone, but ultimately is designed for something more significant. The advantage is that you develop something that truly resonates with who you are, that speaks to the passion and commitment you have towards your work – you share the emotional undercurrent of your practice. For sure there is a part of the process that touches on “what” you do, that is still important, but the driving sentiment is focused on “WHY” you do “what” you do. The process towards building this involves defining yourself in ways that might be very different from what you are used to. But this endeavor, while challenging and time consuming, is very much worth the effort. This approach helps many Advisors speak with confidence and certainty about the work that they do, as well as the value they bring to their clients and prospects. Once you’ve come up with your “Why Statement”, you of course will need to practice the delivery so that it comes across concisely and with the sincerity that it deserves. From here, your statement can start to form an integral part of your prospecting and referral process. It can be recorded and streamed on your website, offered as a link to new prospects or delivered as the first portion of new client meetings. We all know that clients make decisions based on trust and emotional connection, so doesn’t it make sense for your process to incorporate strategies that are specifically designed to connect on those levels? Articulating your “why” is not only a tremendous way to refocus your purpose, but a constructive way to show your value to clients. It will also allow you to set yourself apart from the masses – and you can use it as a springboard to re-engage with existing clients. Without a doubt, this can be a very challenging industry at times. Doesn’t it make sense to take advantage of new ways to define yourself as the trustworthy and passionate Advisor that you are? If you have any questions or are interested in exploring this idea further, be sure to contact your local PPI Collaboration Centre.

Do you want to help your clients establish an RRSP strategy? Use or share this calculator to compare and contrast contribution amounts, frequencies, and timing to find the best strategy for them.  

Putting some money away for the future is always a sound idea. However, with so many investment opportunities, some of which may require tax payment on income earned, which one is the right fit for your client and their savings goals today? Tax Free Savings Accounts (TFSAs) and Registered Retirement Savings Plans (RRSPs) are both available savings tools and can house many of your client’s investments while helping to defer or reduce their tax obligations. But there are a few things to consider… Share the client-friendly version of this video with your clients, part of our INFOclip series, to help them better understand both of these savings vehicles, including eligibility, contribution limits, tax considerations and more! If you’re interested in sharing more RRSP and TFSA related articles, be sure to check out What is an RRSP and How Does it Work? and TFSA vs RRSP vs Both. What’s Best for Me? And if you have any questions about any investment topics, please do not hesitate to contact your local PPI Collaboration Centre.

As an Advisor, you want to run, grow and elevate your practice in the best ways possible. But where do you start? From business building and how to market yourself to delivering engaging advice and expanding your technical knowledge, Sun Life has compiled a series of Advisor best practices to help you be the best that you can be and excel in your practice on all levels. Read this Sun Life article about Advisor Best Practices and if you have any questions, feel free to contact a Sales Team member in your local PPI Collaboration Centre. Reposted with permission by Sun Life.

Insurance options, estate planning and retirement income… we’re revisiting our top 4 tools! Go ahead and share these with your prospects and clients to help them better understand their insurance options and guide their financial course in the year to come. 1. The Ultimate Planning Tool If your client is considering insurance, this tool will show them the benefits of permanent insurance and how it can be flexible enough to service a lifetime of changing priorities and needs. Be sure to share this client-friendly tool! 2. Exploring Your Client’s Life Insurance Options If you would like your client to have a basic understanding of their life insurance options, here’s the 101. Term, Universal Life, Whole Life – share this tool with your client to help them grasp the fundamentals of temporary versus permanent life insurance. Be sure to share this client-friendly tool! 3. Insuring Your Client’s Greatest Asset with Disability Insurance What’s your client’s greatest asset? Homes, cars are the most common answers, but it is your client’s  earning power that has the biggest impact on their financial well-being. Share this tool to illuminate how disability insurance can protect your client’s earning power during times of uncertainty. Be sure to share this client-friendly tool! 4. Strengthening Your Client’s Safety Net with Critical Illness Insurance Risks are an inevitable part of life, but what is the likelihood of some commonly known risks occurring in your client’s lifetime? Share this quiz with your client to help them find out. Be sure to share this client-friendly tool! If you’re interested in more valuable tools, visit the Tools section of PPI’s Advisor Talk for the full tools library. And if you would like to know more about any of the topics above, feel free to contact your local PPI Collaboration Centre.

Sometimes a story with a not-so-happy ending leaves readers wanting more, as in this installment of ‘Learning From Experience’. Readers will likely want to know how the siblings faired after they settled their issues, or even wish they could turn back time to encourage their parents to better plan for the peaceful transfer of the family legacy. As their Advisor, you play a pivotal role in encouraging your clients to plan ahead wisely and intentionally so they can ease, rather than contribute to, the toll of their passing. And you can never overemphasize the importance of proper estate planning. Read, and share the Carte’s story with your clients to help them understand and remember the wisdom in communicating with their heirs about estate plans and the value of exploring options to cover taxes so their legacy remains intact and can transfer harmoniously to the next generation. For more information on communicating with heirs and planning for the transfer of an estate, watch our short video: INFOclip: Protecting Your Estate. Questions? Contact your local PPI collaboration centre.

The time is now for your client to take a look at their tax liability for 2022! But how exactly are Canadians taxed and are there ways for your client to reduce their tax liability at the end of this year? Individuals who reside in Canada are taxed on the worldwide income they receive in the year. There is a federal layer of tax and a provincial layer of tax. The tax rate your client pays depends on the amount of the taxable income they received in the calendar year and the tax brackets they fall into. The 2022 Federal tax brackets are shown in the table below (which are indexed each year for inflation). Each province also has its own tax brackets and rates. Federal Tax Bracket Rate Up to $50,197 15.00% $50,198 – $100,392 20.50% $100,393 – $155,625 26.00% $155,626 – $221,708 29.00% $221,709 and over 33.00% As you can see, the rate your client pays will be a blended rate depending on their taxable income for the year. They pay Federal tax at 15% on the first $50,197, then the rate increases to 20.50% for income above $50,198 etc. Once their income is over $221,709, then every dollar after that will be at the 33% Federal tax rate. With provincial taxes added on, the top combined income tax rate ranges from 44.50% in Nunuvut to 54.80% in Newfoundland and Labrador. So, how can your client reduce their income tax liability? First, they can be intentional about the types of income they receive. Some types of income are more tax efficient than others. If your client earns capital gains, only 50% of the gain will be included in their taxable income, while their employment and investment income will be fully taxed. Withdrawals from your client’s RRSP or RRIF are also fully taxable. Dividends receive preferential tax treatment through the use of the dividend tax credit. There are two types of dividends: eligible and non-eligible dividends. Non-eligible dividends are taxed at a higher rate than eligible dividends. Usually, dividends your client receives in their investment portfolio would be eligible dividends (dividends from publicly traded securities). Second, there are certain expenditures that they can deduct from their income and tax credits that can reduce your client’s tax liability. The CRA’s website has a page that describes the deductions and tax credits that are available. For employees, there are less deductions than for those who are self-employed. The most common deductions are for RRSP contributions, childcare expenses, capital losses and investment related expenses. The most common credits are for medical expenses, charitable donations and tuition fees. Your client should act now, as the payments related to these deductions and credits must be made before December 31, 2022 to reduce their tax liability (except for RRSP contributions which can be made until March 1, 2023 while still being applied to the 2022 tax year). Of course, there are also ways for your client to save taxes on income in the long-term by investing in a tax-free savings account (TFSA) or registered education savings plan (RESP), for example. While contributions to these types of plans don’t result in a deduction on your client’s tax return, the income earned in the plans are not taxable while in the plan. For TFSA, there is no tax for your client on withdrawal. For RESP, the funds are taxed in the hands of the student. Share this article with your client to give them the 101 on how Canadians are taxed. It includes a calculator for estimating their tax liability for the year as well as these year-end tax checklists to help them minimize their 2022 tax liability: PWC: A planning checklist for individuals and owner-managed businesses. E&Y: Part 1 – News and information on timely tax topics – November 2022. E&Y: Part 2 – News and information on timely tax topics – December 2022. KPMG: 2022 year-end personal tax planning tips (en anglais seulement). NOW is also an opportune time to check in with your clients and review their overall financial and estate plan which would include your client’s wills, power of attorney and representation agreements, life insurance needs as well as critical illness and disability insurance. If you have any tax related questions, be sure to reach out to your local PPI Collaboration Centre for more information – we’re here to help!

Life moves fast and changes to your client’s health, employment, living situation and finances can happen in a heartbeat. We’ve all experienced a great deal of change, especially over the course of the pandemic. In fact, a 2021 Insurance Barometer Study by Life Happens and LIMRA (1) discovered that the heightened awareness and uncertainty during the recent pandemic motivated people to purchase more insurance. From protecting one’s income for the benefit of surviving family members, to having funds to meet hospital bills, the importance of insurance has never been more evident. This industry is built on relationships and client expectations have never been higher. Clients want ongoing, personalized relationships with their Advisors and would prefer that their Advisor reach out to them, rather than initiating that contact themselves. Your clients value consistency and reliability above all else, so it’s prudent to have a post-sale service strategy and process in place. Policy Reviews Whether you call it an annual review, insurance review, progress update or beneficiary audit, sitting down with your client to do a review of their overall financial situation is valuable for both them and you, their Advisor. Regular client reviews will give you ample opportunity to: Ask questions like, “since our last meeting, is there anything that you have been thinking about, planning for, or are there any major changes in your life that you would like to discuss?” Ensure that your client understands the coverage that they currently have in place, as well as if it’s affordable and provides the necessary level of protection. See if their health has changed or a life-changing event, such as job promotion, a new baby in the family, a house or cottage renovation, has occurred. Explore whether client circumstances, needs and goals have changed, making different or additional policy or coverage solutions worth discussing. Discuss any policy benefits that may have been added since their initial policy purchase. Talk about new strategies like retirement funding or charitable giving. Evaluate whether their policy has been performing as intended, and the effectiveness of the overall strategy. Verify policy ownership and beneficiary arrangements based on their current planning objectives. Confirm if they have made any recent changes to their wills or power of attorney, and/or would like to identify a ‘trusted contact’ that you can be in touch with should they become unable to communicate reliably, due to frailty, health, capacity or financial exploitation issues. Remind them of the value you provide and the services you offer. Reintroduce conversations and solutions from previous meetings. Ask for a referral. When is the best time to do a policy review? The good news is that there is no specific time frame or guideline – what matters most is that you do it and continue to do it on a regular basis. Ideally, you should set the stage with your client at the start of your relationship, letting them know that this is part of your service and how such reviews can benefit them. Otherwise, you can always include policy reviews on your meeting agenda or when you provide your client with the Reason Why Letter at policy delivery, positioning it as: “A periodic review of your insurance policy is part of the ongoing service that I provide. This check-in will help ensure that you always have the right solutions in place for your needs.” How can PPI help? The right tools can help with managing client expectations and your PPI Sales Team is here to support you. Here are some of the tools and resources available to help you connect with your clients: Qualifying Advisors have access to the AmpLiFi platform – use this to automatically identify opportunities such as term conversions, re-writes, policy anniversaries and client birthdays within your inforce policies. Then, create and share tailored, compliant client presentations and track engagement. Many carriers allow you to run inforce client listings right from their websites – PPI can help you to identify new opportunities within those lists. Use PPI’s Toolkit Direct to run a current Insurance Needs Analysis and comparisons (Advisor login required). Work with your PPI Sales Team to refine your sales process. Use PPI’s Your Link Between platform to send prospects and clients interesting articles to start the conversation about their insurance needs. You can also use these articles to connect to your clients on social media and recognize any changes in their lives via THEIR posts – be sure to keep social media in mind, it can be a great client service tool! Take advantage of PPI’s Financial Planning Pyramid template to show clients the steps needed to build a financial plan and achieve their goals. (Advisor login required) Use PPI’s Financial Checklist template to help guide the conversation about the products and services you offer – this plants a seed for future discussions. (Advisor login required) PPI’s Reason Why Letter template is a great way to establish and confirm the next review meeting in writing. (Advisor login required) It’s clear… there are many good and important reasons to schedule regular reviews with your clients. The bottom line? Put a system in place that works for you specifically, start simple and create a process. And if you need help, give your PPI Sales Team a call – we’re here for you! 2021 Insurance Barometer Study Reveals Common Misconceptions That Prevent Americans from Getting Life Insurance They Know They Need. Loma.org. April 12, 2021

Your client has worked hard all their life and through some savvy financial planning, has accumulated an impressive portfolio. Perhaps they are also at a time in their life when they are slowing down and now considering financial strategies to help the future generations of their family achieve financial success as well. However, knowing that traditional registered and non-registered investments create tax liabilities, how can your client transfer the maximum amount of wealth to their kids and grandkids while paying the least amount of tax? Well, today may be a good day to let them know about the many tax-saving benefits of purchasing life insurance and using the “cascading insurance” strategy. Share this INFOclip with your clients to help them understand how purchasing life insurance and using the “cascading insurance” strategy can help provide financial protection, while also creating a tax-efficient vehicle to enhance and transfer wealth to future generations.

“The following article references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.” Financial underwriting. These two words put together are sometimes the subject of heated debate and occasionally, more than mild disagreement between Advisors and underwriters. Even usually agreeable underwriters are known to argue strenuously amongst themselves and on differing sides of a financially challenging case. Unlike medical underwriting where guidelines cover a wide and deep array of conditions and risk scenarios, financial guidelines take up much less space in most underwriting manuals, highlighting the art rather the science of decision making in those cases. But in every case, the higher the insurance amount applied for, the more thorough the financial underwriting – with extra attention paid to the financial information provided, including the nature of the applicant’s net worth – right down to the types of investments and currencies they hold. How does cryptocurrency, not brand new but still a relative newcomer in global finance, impact financial underwriting? In this Risk Bit, we’ll touch on the topic to get a sense of whether having a bit of Bitcoin is a friendly addition to the file information or whether an excess of Ethereum turns the underwriter into a file foe. Let’s start with the name. Currency has long been part of our day-to-day lexicon, as we buy, sell, trade using money, skills, goods and services to get by. The crypto part is another matter. Originating from the Greek work to denote something that is hidden, the combination of the two words has all the potential to scare even the most courageous among the group of risk selectors know as underwriters. It is beyond the scope here to detail the creation and structure of this new currency, so we’ll highlight the fact that encryption and decentralization are key tenets as this “new money” is added to a blockchain and computerized distribution ledger, unknown prior to 2009 (1). A throwback to a time of little or no financial regulation, rampant speculation and volatility, the added concern in the early crypto era has been its’ potential appeal as a facilitator or conduit for illegal activity. A definite non-starter for underwriting. More recently, however, the mainstream financial world is learning that cryptocurrency and equity markets rely on a number of common conditions such as supply, demand, monetary policy and geopolitics (2). The roller-coaster volatility of cryptocurrency stocks often leads to financial news stories, but only time will tell if some are consistently able to weather economic storms with a measure of resiliency. The more astute market analysts remind us that long-term bull markets ‘correct” and weed out companies with non-sustainable price/earnings ratios, overvaluation or simple bad management. Think of the dot.com bubble burst of 2001. Then think of companies such as Amazon or eBay that not only survived 2001 but have continued to thrive since then (3). Back to underwriting and the friend or foe approach. Financial underwriting tends to favor established enterprises with overall steady growth and demonstrated leadership, especially if those leaders are being insured. Favor is reflected in more generous valuation for insurance amount approaches, whether it is a higher capitalization of earnings or assets and longer projection periods and return rates in the consideration of long-term insurance needs. Volatility, market speculation, low regulation and highly leveraged applicants looking for a quick payday elicit a more frugal approach, the decision memo often reading ‘prefer not to participate’ or ‘can only offer a reduced sum of insurance’. The horizon? Some insurers are considering modest amounts of cryptocurrency in the client’s asset base if there is a solid, more traditional financial background and no other concerns. The development of government mandated digital banks known more formally as CBDCs (central bank digital currency), a handful already in business and being evaluated here in Canada may help ease concerns (4). Central bank regulation may be able to allay concerns related to legitimacy and even bring a measure of competition to the current crypto market, a very underwriting friendly move. To quote a line in an old Beatles song, ‘and you know that can’t be bad’ (5). Pritchard, Carolyn. Cryptocurrency: The Newest Challenge to Financial Underwriting. RGA Home. April 22, 2022. Sharma, Rakesh. Is There a Cryptocurrency Price Correlation to the Stock Market?com. May 12, 2022. Folger, Jean. 5 Successful Companies That Survived the Dot-Com Bubble. Investopedia.com. August 15, 2021. Canadian Foreign Exchange Committee. Central Bank Digital Currency and Stablecoins. Bank of Canada. June 2021. Lennon, John and McCartney, Paul. She Loves You. The Beatles. 1963.

How many of your clients are dutifully saving for retirement? It’s probably safe to wager that the vast majority of your clients have some semblance of retirement savings in place. Now, how many of those same clients have implemented the added step of protecting their investments in case of a severe illness? While many retirement conversations revolve around RRSPs and their goal of helping clients maximize their returns, another important conversation involves critical illness insurance and the way in which it can benefit your clients by adding another layer of protection. If a client suffers a critical illness and needs to take time off of work, or if they need to pay for additional treatment, that income replacement or funding needs to come from somewhere. Without insurance, clients will first dip into their savings… but there are better solutions including using critical illness insurance as retirement protection. Let’s take a look at a strategy that includes effectively crash testing your clients’ portfolios. The idea is to show your client four scenarios, one of which is guaranteed to happen in their lifetime: They don’t have CI coverage and never suffer an illness They have CI coverage and never suffer an illness They have CI coverage and do suffer an illness They don’t have CI coverage and they do suffer an illness Pick any one of your clients and it’s pretty much guaranteed that one of the above scenarios will apply to them. But which one? This is the impossible part to predict! Most Canadians would like to believe their fate will lead them to option one, but the chance of experiencing a critical illness in their lifetime is 1 in 4 for men and 1 in 5 for women. (1) What if you could help show clients the net effect of their decisions and how each scenario can affect their portfolio? Specifically, what if you could show them the real-world impact to their annual net retirement income in each of the above scenarios? Here’s an example that will help them see the real-world effect on their annual retirement income. The above example assumes: Male Age 40 $200,000 in RRSPs Contributing $10,000 6% interest $100,000 need at age 50 due to a critical illness When you compare the ultimate annual retirement income in the scenarios in light blue and dark blue to the best-case scenario green, your clients will see that the impact of redirecting a portion of their savings dollars to the purchase of critical illness insurance is minimal when compared to the impact of becoming ill without critical illness protection. And, if they have additional cash flow, they can cover the cost of the critical illness insurance with no impact to their retirement income. So, the biggest question is: How can you help to illustrate what this looks like for your clients? To get started, you’ll need your client’s current registered and non-registered investment balances, future contribution amounts and before-tax rates of return. And for the next client meeting, ask if you can help them crash test their portfolio in case of a health emergency and then run a retirement protection concept for them to see which option they would choose. For similar content, read Critical Illness Insurance – Financial Protection for Your Client. Also, be sure to share this Strengthening Your Safety Net quiz with your clients to help them assess the risk in their lives and the likelihood of them occurring. And if you have any questions about how critical illness insurance can protect your clients’ retirement, contact your local PPI Collaboration Centre. * Manulife Financial LifeCheque Retirement Protect illustration for male age 40, assuming $200,000 in existing RRSPs, contributing $10,000 annually, at 6% annual interest, with $100,000 required at age 50 due to critical illness. Illustrated on January 4, 2022.

Who has time for all of those tedious formulas and boring equations! We’re resharing your clients’ top three calculators to help shed some light on their savings and debts. They are easy to use, so be sure to share them with your prospects and clients. 1) Savings to Reach a Goal Calculator When building a financial plan, it’s important to have financial goals in mind. Share this Savings to Reach a Goal Calculator with your clients to help them get started and reach their financial goals sooner! Be sure to share this client-friendly calculator! 2) Savings Growth Calculator Show your clients how they can UP their savings game by putting away a few extra dollars a month, starting today! Be sure to share this client-friendly calculator 3) Debt Consolidation Calculator Help your clients explore options with this Debt Consolidation Calculator to streamline their monthly budget and pave the way to financial freedom. Be sure to share this client-friendly calculator! Interested in more calculators? Visit the Tools section of PPI’s Advisor Talk for the full calculator library. And if you would like to know more about any of the topics above, feel free to contact your local PPI Collaboration Centre.

As an Advisor, your business is important to you, and you would like to promote it on social media. But there are so many things to consider, where do you even start? We have got you covered with a plan to help get you started on social media. From knowing your market to tips on how to set up a social media profile, this 8-step plan will help you and your business get noticed! STEP ONE: Know Your Market Understanding your audience is key! It is important for you to know who your audience is, their fears, interests and any problems that they are experiencing. Why? Well, that is how you provide value, creating engaging content (information that they are looking for, that positions you as a subject-matter expert) so you can stand out amongst your competition. The more you understand about your target market, the better you can connect with them on a deeper level. Simply put, it helps you add value, build trust, as well as create and deepen those important relationships in order to grow your business. STEP TWO: Choose Your Platform The truth is that you do not need to be on every social media platform – you just need to be where your clients are. From a business perspective, if your clients are not on a specific platform, it does not make sense for you to be there either. Once you select your platform, you need to become an expert on that platform. Yes, expert in the sense of your knowledge base and what you can offer to your clients as an Advisor, but also on how the platform works. What are the best ways for you to get in front of your prospects and clients? It is also imperative to consider when your audience is using that particular platform. If they are online at 6PM, then that is when you need to be posting your content. Makes sense, right? STEP THREE: Make a Plan Build a strategic plan and commit time to doing the activities required to put your plan into action. You can book it in your calendar for the next 30, 60 or 90 days, scheduling posts in advance so all you need to do is hit the “post” button on the day of your scheduled message. It is also important to know how much time you want to spend on your social media and where your content will come from – have you checked out PPI’s The Link Between, our client-friendly library of insurance and investment articles (plus tools and calculators!)? Take it one step further with Your Link Between – share all of these client-friendly articles via your own branded website! Be sure to set realistic goals, expectations and objectives for your social media marketing and what you want your Modern Marketing to accomplish. Although you should not expect to have thousands of followers and new clients in the first week, setting realistic goals will allow you to measure your results effectively. And once you master that initial platform, you can join more because you now have a plan, strategy and content that can be repurposed in different ways. Consider consistency which is not just about posting every day or once a week, but more about being consistent in your brand, messaging and even the images you choose. It is also imperative to be there to engage with your audience when they engage with your posts – if you are absent, you are missing a big opportunity to connect and build relationships with your audience. STEP FOUR: Set Up Your Profile Creating a social media profile is not like an Advisor resume. Here, you need to think about what your ideal client seeks and then make it easy for them to understand what makes you unique and how you can deliver exactly what they are looking for. Even your bio should be crafted in a way that puts your audience and their needs first, helping you relate and connect to them easier. Make it easy for clients and prospects to connect with you – add links to your business website and contact details. PPI’s Digital Sales Enablement Team has put together a couple detailed guides on how to set up your Facebook and LinkedIn profiles, as well as a Social Media Profile Checklist (Advisor login required) – check them out and get seen. STEP FIVE: Create and Curate Your Content It is extremely important to consider what content you are putting out. Before you post anything, consider what you would like to achieve with that message – is it going to connect you better to your audience? Whatever you choose to post, your content should always be rich, in depth and packed with value. And although it is not your single goal, you want your content to be both quotable and shareable when possible, because when your audience shares your content, their followers see it too, expanding your marketing reach. New followers and potential clients? Yes, please! You can also use key words, hashtags (#HashtagsAreImportant) and topics that you know people are already searching and following. Then make your content evergreen (relevant into the future) so that even when a client sees your content a year from now, it is still relevant and valuable to them. Don’t forget to be authentic. Yes, share your unique value and story that will attract your “true fans”, clients that become your brand advocates. STEP SIX: Provide Value and Build Relationships Engagement is the key to social media. Social media is social, it is about relationships. But it is critical that when you do engage, you are authentic and not “salesy” – listen, then provide value. Additionally, making your messages a little more personal allows you to connect better and build deeper relationships. Why not create a video or voice message which can easily showcase your expertise and the passion you have for your work? Reward people for their engagement. When a potential customer asks you a question, comment back or ask them a follow up question to continue the conversation. And if you have established a strong connection, why not ask that follower to share your content. For example, “if you liked this post, please share it with anyone you think is going to need insurance protection in the next year.” Do not just rely on algorithms to reach people… take charge and take action! STEP SEVEN: Become Referrable Social media is a place where people ask their networks for recommendations – restaurants, businesses and services, there is nothing more powerful than SOCIAL PROOF. Testimonials are no longer as trusted as they once were, since they can come off as unrealistically positive, potentially biased and paid. Today, people prefer reviews or personal referrals and consider them far more objective and trustworthy. Would you like a referral for your business? Build relationships so your customers are happy and willing to recommend you via social media to their family and contacts. Why not join or engage with groups that your clients already belong to? By being active within these groups, you can engage and add value to the group in hopes of those group members connecting with you on your platform, then joining your sales funnel where you can continue to nurture those relationships and provide value. Warning… DO NOT join a group and try to sell – it appears aggressive and will make you look suspicious. STEP EIGHT: The Next Step The key to this step is that you do not control social media. You do not own Facebook or Instagram and you cannot control algorithms, so your task is to get your audience off social media and into your sales funnel. The questions here are what is the action that you would like your audience to take and where do you want them to go from your social media platform? Do you want them to book a free consultation, opt into your newsletter, register for a seminar, refer a friend, complete a survey? Be sure to consider this in advance – remember step 3! Plan for it and set up a process to move your audience to your sales funnel where you have more control of your relationships. You can then start to track your progress. As business owners you are already tracking progress and production, perhaps even performing reviews throughout the year to ensure you are meeting your goals. Modern marketing is no different – you must pay careful attention, measure and track your progress. However, some metrics are more significant than others. There is no point focusing on metrics such as “likes” since those do not translate into sales. Instead, you want to hone-in on engagement, comments, questions, an increase in followers, shares, opt ins and business growth. And if you see that something is working, then by all means continue. If something is not working, then adapt, experiment and test other things. Have fun with it and do not be afraid! A good reminder is that modern marketing is not a sprint, it is a marathon. It takes time, so start with one platform, give it time, put in effort and energy and you are sure to see results. Want to learn more about modern marketing for your business? Read How to Build Your Online Social Network, Building Connections Through Direct Response Marketing… More Than Just Social Media and Social Media Platforms – What You Need to Know.