As RRSP season approaches, we have curated a few articles and tools to help guide conversations with your clients to help them make informed financial decisions. The client article, “Navigating the RRSP Season: Your Essential Resources,” highlights three key resources: an RRSP calculator to maximize contributions, a video comparing RRSPs and TFSAs, and another video discussing segregated funds as a secure investment option. These resources can help your clients understand how to boost their savings and make strategic decisions for their financial future. Empower your clients with the knowledge they need to succeed this RRSP season! Would you like to share this client article via your own branded website? Sign up for Your Link Between today and start sharing your branded content via email and social media.

The insurance landscape is constantly evolving, presenting advisors with a unique set of challenges. From understanding the tax implications of different policies to staying abreast of provincial wills and estates law, the need for reliable and up-to-date information is critical. Add to that the complexities of underwriting, product knowledge, and ever-changing regulations, and it’s clear that advisors need a trusted resource to help them navigate these complexities. INTRODUCING ADVISOR TALK Advisor Talk is a free, one-stop collection of digital resources designed to empower insurance advisors with the knowledge and tools they need to succeed. Advisor Talk is backed by PPI, a leading name in advanced insurance planning since 1978. With nearly five decades of experience, PPI has a proven track record of providing expert guidance and support to independent advisors across Canada. EMPOWERING INSURANCE ADVISORS Advisor Talk recognizes the unique challenges faced by insurance advisors in today’s market. Our platform provides insurance-focused advisors with free access to a wealth of information on a wide range of topics, including: Insights from top insurance advisors in the industry Planning tips from our advanced planners, tax planners, and underwriters Tax regulations and implications Provincial wills and estates law Underwriting guidelines and best practices Client-friendly insurance focused calculators COMING IN 2025 In 2025 we’ll be launching a variety of new resources for insurance-focused advisors including: The Advisor Talk Podcast, Advisor Talk TV by PPI, and a one-of-a-kind Insurance App designed exclusively for advisors. Join our Advisor Talk mailing list to get notified as soon as each resource becomes available to independent Canadian advisors: GET NOTIFIED  

Client Relationship Management (CRM) systems are invaluable for enhancing client interactions and streamlining operations. By centralizing client information, CRM systems provide a unified view of each client, which is crucial for delivering consistent and personalized service. This centralization allows you to track client interactions and preferences, enabling you to tailor your advice and improve client satisfaction. Moreover, CRM systems enhance communication within your practice by providing a platform where client data is shared, allowing different team members to collaborate more effectively. Marketing efforts can benefit from insights gathered by you and your team, creating targeted campaigns, while your client service team can access a client’s history to resolve issues more efficiently. Additionally, CRM systems can automate routine tasks, saving time and reducing the risk of human error, allowing you to focus on more strategic activities. CRM systems also play a crucial role in ensuring compliance. They centralize client information, automate documentation, and provide detailed audit trails, which are essential for compliance audits and reporting. By analyzing client data, these systems can identify trends, measure the effectiveness of strategies, and make data-driven decisions. This not only helps in managing potential compliance risks but also fosters stronger client relationships by understanding their preferences and behaviors, ultimately leading to improved client satisfaction and loyalty. Exciting News! PPI has identified three CRM vendors willing to offer PPI Advisors exclusive discounts. This is a fantastic opportunity to consider adopting a CRM system and elevating your practice to the next level. Visit PPI’s Advisor website to learn more about these vendors and their discounts.

Financial wellness is the ability to manage money effectively, meet financial goals and cope with unexpected expenses. Financial wellness comes from understanding how budgeting, saving, investing, risk and debt management work. These pillars support good financial habits and build a strong foundation for a stable future. As an insurance Advisor, you have a unique opportunity to help your clients improve their financial well-being and protect their future. By doing so, you will not only help your clients achieve better financial wellness, but also build trust, loyalty and confidence in your expertise. Share the client-friendly version of this article, explaining the concepts and benefits of financial wellness. Use it as a conversation starter, a follow-up tool or simply marketing material to generate leads and referrals. And if you have any questions, be sure to reach out to your local PPI Collaboration Centre – we’re here to help!

Your client’s family farming business has been carried on for generations. But what happens when the current generation of farmers is starting to consider retirement? There are some tax efficient strategies to pass the farm on to the next generation but a key question for your client to ask early on is: “Does the next generation intend to work on the farm?” What if only some family members want to remain involved in the farm? How do they plan to transfer their estate to accommodate those active in the farm and those who are not? Is equal always fair? The latter is often an important question in farming situations, especially when a family farming business is asset rich and cash poor. Can estate equalization be achieved without jeopardizing the farming operation? Farmers, like all business owners, need to have a succession plan that achieves their estate planning and retirement goals. Insurance can play a meaningful role in this plan. It can be used to fund the deferred tax liability that may have been growing significantly over multiple generations, and to equalize their estate if the farm is being passed to some children and not others. Do you have clients who own farms? Be sure to share the article below to help them understand their tax and estate planning options. Reach out to your local PPI Collaboration Centre today to discuss the planning alternatives available for farmers.

In this space, we recently posited whether any amount of alcohol use promotes health. The current thinking says no. But what about caffeinated beverages? Coffee alone is so popular that up to 40% of the world’s population consumes it daily, providing about 3.2 billion of us with a cup of delight to start (or finish) the day (1). This number pales when we add caffeinated tea, and currently 90% of us drink one or the other daily. For the mathematically inclined, that is about 5 million servings of caffeine every minute of every day. From the Math to the Magic The magic behind this delicious elixir is caffeine, the naturally occurring chemical that serves to stimulate the heart, nervous system, muscular activity and oftentimes, good conversation. Like alcohol, caffeine use begs the question of how much is too much? For adults, it is estimated that up to 400 milligrams (mg) is a safe limit. But what does this mean for coffee lovers in the real world? This amount could equate to 2-4 regular brewed cups or just one 16 ounce cup of Starbucks’ Blonde roast drip coffee – this particular blend packing a heavyweight 360 mg caffeine punch (2). Caffeine metabolism may be the key in understanding its’ effect. The caffeine kick begins with rapid absorption in the gastrointestinal tract, processed by the liver, stimulating central and peripheral nervous systems responses. In simpler terms, this helps us get going in the morning and adds a spring to our step. Health, Healing and Happiness The discovery of coffee remains a mystery, some believing an Ethiopian goat herder named Kaldi observed his flock particularly energetic, even unable to sleep after ingesting the berries of a certain tree. Made into a drink, these berries were known to promote alertness, wakefulness and even longevity (3). More recent scientific studies aim to answer the age-old question, “but is it good for me?”. The answer is that it might be. Emerging data states caffeine can help treat everything from simple headaches, to promoting insulin sensitivity, an important function in maintaining normal blood sugar levels (4). Unlike alcohol, a well-known liver toxin, in one meta-analysis comparing non-drinkers and coffee drinkers, caffeine aficionados were less likely to develop cirrhosis (5). From an underwriting perspective, the ultimate caffeine benefit is reduction of all-cause mortality, at least for those consuming no more than four cups daily (6). Caffeine may benefit certain cancers, nervous disorders and may even have a small protective effect against Alzheimer’s Disease. It is early but worth keeping an eye on this. The Less is More Lesson Moderation may really be the secret to enjoying a cup or two of your favourite brew. As we are learning more about how caffeine can promote health, caffeine has emerged as a powerful stimulant and even a little excess can result in palpitations, tremors and agitation. Very high doses can result in cardiac arrhythmias, neurological seizures and death. Much like the worst cases of alcohol excess can result in acute alcohol poisoning, acute caffeine poisoning is indeed possible and is a serious medical emergency. So go ahead and enjoy your coffee in moderation, the way you like it! If you’re really adventurous, you might try an affogato, hot espresso that serves to drown a scoop of gelato. While the health benefits of this particular blend are debatable, the taste and flavor will definitely leave you wanting a second cup. Coffee Ranks. World Coffee Consumption Statistics. Coffee Ranks. October 30, 2022. Caffeine Informer. Caffeine Calculator. N.A. National Coffee Association. The History of Coffee. NCAUSA.org. N.A. Feskens, Edith J M and Van Dam, Rob M. Coffee Consumption and Risk of Type 2 Diabetes Mellitus. PubMed. November 9, 2002. Chen, Ling et al. Coffee Consumption Decreases Risk for Hepatic Fibrosis and Cirrhosis: A Meta-Analysis. PubMed. November 10, 2015. Blair, Steven N et al. Association of Coffee Consumption with All-Cause and Cardiovascular Disease Mortality. PubMed. August 15, 2013.

As an insurance Advisor, you know how challenging it can be to balance profitability and client satisfaction. You want to grow your business, but you also want to keep your existing clients happy and loyal. How can you achieve both goals without compromising on quality or efficiency? In previous article “Growing Your Business with Client Segmentation” we discussed the concept of client segmentation, a technique involving grouping clients and prospects into different categories based on their characteristics, needs, preferences and potential opportunities. In this article, we are featuring a unique take on client segmentation from seasoned Practice Management Consultant Sam Chahda. Chahda uses a simple, yet effective approach called “client clustering”, dividing clients and prospects into three “client clusters” based on their growth cycle: Develop, Preserve and Adjust. Each cluster represents a different stage of the client’s journey, from acquisition to retention to optimization. The objective behind each cluster is to provide the most appropriate and efficient service level and marketing strategy for each client segment, based on their current and future opportunity potential. According to Chahda, “maximizing profitability with client clustering is not just about numbers; it’s about understanding the unique needs and preferences of each client segment. By categorizing clients and prospects into distinct clusters based on their growth cycle over the next 12 – 24 months, Advisors can tailor their service strategy and marketing efforts to drive profitability and enhance client satisfaction.” Chahda’s perspective focuses on cultivating growth opportunities within the client base. He emphasizes the importance of identifying high-potential clients and prospects, and tailoring strategies to accelerate their growth trajectory. “By prioritizing personalized investment strategies and targeted marketing campaigns, Advisors that are focused on the Develop cluster can capitalize on these opportunities and drive profitability more cost effectively.” Moreover, Chahda underscores the significance of safeguarding client loyalty and satisfaction, a cornerstone of client clustering. “Investing in client retention efforts and hosting client appreciation events,” he notes, “strengthens relationships within the Preserve cluster and ensures long-term revenue stability.” In optimizing profitability, Chahda sees a strategic approach reflected in the Adjust cluster. Chahda advises that “by regularly reviewing client profitability metrics and adjusting service models when necessary, Advisors can streamline operations and maximize profitability across all client segments.” Certainly, Chahda’s examination of the transformative effects that client clustering strategies can have, along with his practical examples, show the significant influence that these tactics can exert on an Advisor’s  profitability and their client contentment. In today’s complex market, Chahda’s insights highlight the value of using client clustering techniques. Advisors that adopt Develop, Preserve, and Adjust principles can discover new profit opportunities, build customer-focused connections and maintain growth in the ever-changing financial world. If you have questions or want more information on how you can incorporate the client clustering strategy into your practice, contact your local PPI Collaboration Centre.

Do you want to grow your Advisor practice in a more strategic way? Then you should consider client segmentation, a technique that involves grouping your clients and prospects into different categories based on their characteristics, needs, preferences and potential opportunities. This way, you can segment your market and customize your service offerings and communication strategies for each group. By doing so, you can increase your efficiency, effectiveness and client satisfaction. Client Segmentation Categories Here are some typical client segment categories you might consider: Demographic segment: These are based on factors such as age, gender, income, education, occupation, family size and marital status. For example, you may have different segments for young professionals, retirees, single parents or high-net-worth individuals. These segments can help you to understand the life stages, financial situations and insurance needs of your clients and prospects. Behavioral segment: These are based on factors such as client loyalty, satisfaction, referral potential, risk tolerance, investment goals and service preferences. As an example, you may have different segments for loyal clients, referral sources, conservative investors, aggressive investors and self-directed clients. These segments can help you to assess the behaviors, attitudes and expectations of your clients and prospects. Psychographic segment: These are based on factors such as personality, values, attitudes, interests and lifestyles. For example, you may have different segments for environmentally conscious clients, socially responsible clients, adventurous clients or conservative clients. These segments can help you to connect with the emotions, motivations and aspirations of your clients and prospects. Advantages of Client Segmentation Client segmentation can help you to optimize your time and resources, focus on the most profitable and loyal clients and identify new opportunities for growth and referrals within each segment. Some advantages of client segmentation that you can take advantage of include: It allows you to tailor your service levels and communication methods to match the expectations and preferences of each segment. For example, you may offer more frequent and personalized contact to certain clients, while using automated or online tools to communicate with other clients. This enables you to make your clients feel appreciated and esteemed, fostering more robust connections. It enables you to create more relevant and targeted marketing campaigns and product recommendations for each segment. For example, you may promote different insurance products or solutions to different segments based on their needs, goals and risk profiles. This way, you can increase business opportunities, and provide more value and satisfaction to your clients. It helps you to improve your client retention and loyalty by delivering more value and satisfaction to each segment. For example, you may reward loyal clients while addressing the concerns or complaints of dissatisfied clients. By doing this, you’ll decrease client turnover and boost their satisfaction and loyalty. It enables you to identify and pursue new business opportunities and referrals within each segment. For example, you may leverage the existing relationships and trust with loyal clients to ask for referrals or identify complimentary services for existing clients. This way, you can expand your client base, and grow your revenue. Client segmentation is a powerful technique that can help you to manage your practice and grow your business in a smart way. And if you are looking for more on client segmentation, stay tuned! We’ll soon be sharing an exciting and novel approach called “client clustering” recommended by seasoned Practice Management Consultant, Sam Chahda. If you have questions or want more information on how you can incorporate the client segmentation strategy into your practice, contact your local PPI Collaboration Centre.

Do your clients have children? Have they discussed financial responsibility with them? Teaching kids about budgeting, saving and goal setting, needs versus wants, the value of hard work, as well as the value of insurance is crucial for good money management and instilling lifelong fiscal literacy and accountability. Share the client-friendly version of this article with your parent-clients to guide them and their kids along the right path to a lifetime of financial literacy. For similar articles, read and share the client-friendly versions of Do Younger Canadians Need Insurance, Juvenile Insurance – Why You’re Never Too Young to Secure Your Future and Helping Your Clients Maximize Their RESP. Have questions? Contact your local PPI Collaboration Centre – we’re here for YOU!

As an insurance Advisor, you can help your clients achieve their financial goals and protect their loved ones from unexpected risks. But to do that effectively, you need to conduct regular insurance reviews with your clients. Insurance reviews allow you to assess your client’s current situation and needs, identify any gaps or opportunities in their insurance portfolio, and suggest solutions that can enhance their coverage and value. They also help you maintain and strengthen your relationship with your clients by demonstrating your care, expertise, and professionalism. September is National Life Insurance Awareness Month, which means it’s a great time to schedule insurance reviews with your clients. Whether they are new or existing clients, young or old, single or married, they can benefit from a comprehensive insurance review. By doing so, you can help them secure their financial future and peace of mind, while also growing your business and reputation. If you’re looking for similar content to share with your clients, read/watch then share Insurance Solutions for Today and Tomorrow, Holistic Planning – 10 Reasons to Add Insurance to a Wealth Practice, as well as the INFOclip: Building Lifetime Protection video. We also have this great Exploring Your Life Insurance Options tool to help your client understand the varying types of insurance and which one may be best for them. Questions? Be sure to contact your local PPI Collaboration Centre today and let us provide you with the tools and resources you need to conduct successful insurance reviews.

When your clients are considering an RRSP withdrawal, it’s important that they know their financial institution withholds taxes for all cash withdrawals from RRSPs, and that any remaining income tax will be payable at the end of the tax year. The RRSP Withholding Taxes Calculator will help estimate both of these amounts based on where your clients live, their taxable income, and the amount withdrawn, and to request the right cash withdrawal amount to achieve their financial goals.

As PPI President and CEO, what is Cathy Hiscott’s vision for the future of PPI? Below, read the latest C-Suite interview in the July edition of Insurance Journal (you can also see the PDF HERE) where Cathy discusses strategic growth, what an MGA requires to be successful and what it means for PPI to be “indispensable” to Advisors. Be sure to follow PPI on LinkedIn to explore a series of posts related to the goal of becoming indispensable and contact your local PPI Collaboration Centre if you have any questions. Cathy Hiscott became President and CEO of PPI in March 2024. This announcement followed Jim Virtue’s retirement from the CEO role in December 2023. Hiscott had been President of PPI since February 2023. After joining the MGA in January 2021 as Executive Vice President, Innovation & Strategy, Hiscott saw her position expanded to include Finance in July 2022. She has 33 years’ experience in the insurance and investment industry. Prior to PPI, she was Senior Vice President of Executive Distribution at Financial Horizons and President of Excel Private Management, which belonged to Financial Horizons before being merged with Quadrus Investment Services on January 1, 2022. From the moment she joined PPI, Hiscott played an active role in the organization’s strategic review. “We called that strategic review ‘Blue Ocean’, based on the book Blue Ocean Strategy (1). We had 60 employees from across the whole company and we asked them the question: ‘If we were building a brand-new MGA today, what would we do?’ We looked to all our business areas, whether it was the mid-market or high net-worth market, investments, operations, IT,” she recalls. PPI created small working groups of four to six people each. “Over 12 weeks, we asked them: What do we do well? What do we need to do differently for the future? We came up with our 6 strategic imperatives and our vision. We based them all on drivers of change that are happening within our industry.” PPI, itself owned by iA Financial Group, looked at manufacturers owning distribution. “We looked at how carriers are now owning MGAs. We looked at how carriers have gotten out of recruitment, training, and development of new advisors. We looked at the impact of technology and what the advisors need to serve their clients.” Hiscott explains that getting input from the people “who do the job” is how PPI developed its vision of becoming indispensable to its advisors. “Being indispensable means to us that advisors just can’t imagine working with any other MGA”, says Hiscott. In her appointment announcement, PPI said that understanding advisors is critical to its success. “Over the past year, we have engaged a number of you across Canada to deepen our understanding of your needs and have aligned our core business areas and service offerings to reflect our goal of being indispensable,” says the announcement. Crucial skills Hiscott stresses the importance of having people in every community to support advisors. She applauds the evolution of digital technologies. They now make it possible to recruit and attract the best talent without those individuals having to sit in the same office, she points out. “At the same time, we’re preserving the regional teams. We make sure that we have business development teams locally,” she adds. Why would an advisor deal with PPI rather than another MGA? She says the MGA believes in providing “really knowledgeable people to the advisors”. As an example, she mentions the large case market aimed at high-net-worth Canadians, which is the niche occupied by PPI Advisory’s side of the MGA. “We’ve invested in tax and estate planning experts, in our advanced underwriting and advanced case specialists that can help advisors when they get into more complex insurance requirements.” Among PPI’s recent hires, Jim Brownlee has, like Hiscott, worked for Canada Life in the past. When Hiscott was appointed President and CEO of PPI in March 2024, Brownlee was named Executive Vice President, Distribution. Brownlee joined PPI in January 2023 as leader of strategic growth initiatives. “Jim is responsible for the development and execution of strategic plans across all sales areas to ensure growth, working closely with PPI sales leaders to coordinate efforts, leverage PPI’s collective expertise and meet the needs of you, our independent Advisors,” Hiscott posted on LinkedIn, at the time of Brownlee appointment. Declining number of policies Figures from 2023 provided to the Insurance Journal by LIMRA reveal that the number of policies sold in Canada has been on a downward trend since 2010, while premium amounts and the average premium per policy have been steadily increasing (see the feature on term insurance in this issue, pages 10 to 21). Hiscott is aware of this trend, and that many advisors have moved into the high-net-worth market. “We refer to our high-net-worth large case insurance market as the wants’ market. They want to leave a legacy; they want tax efficiency; they want their assets to transfer as smoothly as possible.” “Then we have our needs market, which is the middle market,” she continues. They need protection to pay off debts like mortgages, replace income during working years, and protect dependents. Hiscott reveals that the company’s large case business grew significantly in 2023. “We have a lot of advisors doing an amazing amount of work in the high net-worth insurance market,” she says. Of the 5,300 advisors active with PPI, Hiscott estimates that the top 500 are more focused on insurance solutions for high net-worth and ultra-high-net-worth clients. To be considered part of this segment at PPI, an insurance case must represent at least $75,000 in annual premiums or $5 million in death benefit coverage. Most PPI advisors, however, serve the family midmarket, she adds. “It’s more like $2,000 in annual premiums. It’s still a lot of money for the average Canadian family. We’re seeing that the number of Canadians in the family market buying life insurance is not going up,” she underlines. Hiscott recalls that in 2023, 31% of Canadians told LIMRA in its 2024 Insurance Barometer Study that they had no insurance or were underinsured. “Part of the challenge is making it easy for them to buy insurance and making it easy for the advisor to offer them insurance”. Supporting prospecting At the time of the interview, PPI had just held its annual symposium. The event brings together growth-focused advisors together to talk about concepts and opportunities in different markets. “We also introduced AmpLiFi,” she says. AmpLiFi is a policy management system that helps advisors identify sales opportunities within their existing policies, such as term policy conversions, rewrites and switches, as well as policy anniversaries and client birthdays. PPI launched this proprietary tool in November 2022, in partnership with Life Design Analysis, a software developer headed by Charlie Conron. “Advisors that qualify have all their opportunities within this platform,” says Hiscott. She explains they can market to their clients, who can then click a button to say they want to buy. “As an example, we can help advisors set up their marketing to a client that has a term insurance policy that’s going to renew in the next 12 months, way before the term renews. Maybe the client wants to convert it, re-write it or change it. Hiscott says that the advisor thus avoids reacting at the last minute, and can give the customer time to think and respond to a new needs analysis. The process works by sending the customer communications via AmpLiFi’s secure messaging, including an updated needs analysis “that even the client play around with…We know that the more involved the prospect or client is in the process, the more they take ownership about doing something,” notes Hiscott. “It’s a beautiful way of prospecting because, as we saw in the LIMRA research, 21% of Canadians don’t have insurance and 10% want more. Part of it is for advisors to go back to their existing clients and market to them. They can reach out to their clients to say: ‘Hey, maybe it’s time to do a check-up!’” Isn’t that the very essence of the profession? “It is, but it can become tedious,” observes Hiscott. “We’re all busy,” she points out. She says PPI has been looking at how to make it easier for advisors with, say, 500 or more customers to call back. No fees Hiscott says of AmpLiFi that active insurance advisors with PPI are eligible. “They need to do a certain amount of new life insurance premiums first-year commissions per year,” says Hiscott, who declines to disclose the exact level. “It’s a realistic amount. Somebody active in the life industry will qualify for it.” However, an advisor focused on investment business with no more than 100 insurance policies in force could also qualify. “We would look to their overall business with us. We take a holistic approach. They might still want it because it would help them to manage their in-force policies.” Eligible advisors get the full platform at no cost to them, including the lead generation tool for their website, adds Hiscott. “We provide training and support from our team of digital enablement specialists. “That’s why we have a minimum amount of production.” She says that data feeds flow freely in AmpLiFi between most insurers and advisors. “There’s only two or three very small companies that don’t pop the feeds into AmpLiFi, but all the major insurance companies in Canada do.” Life Design Analysis can take insurer data and allow the advisor to see that the customer has insurance with iA Financial Group, Canada Life, Manulife and Sun Life, for example. Another way to grow With a strong presence in the insurance market, PPI also has a few investment-focused advisors. “They do a lot more of the segregated fund and annuity business. They are not as much into insurance actual planning,” explains Hiscott. She believes they can fuel PPI’s growth. Hiscott says that mutual fund and securities broker reps don’t generally focus on insurance. To reverse this trend, PPI has created a team that works with investment advisors to help them integrate insurance solutions into their practices. PPI has a number of brokers “that do their insurance business through us, because we match them up with an independent PPI insurance advisor,” says Hiscott. iA Private Wealth Management is one of them. “The investment advisor enters into an agreement with the insurance advisor. They are partnering so that they can holistically take care of the client. Protection gap and new markets PPI says it has acquisition opportunities that would enable it to enter some new markets. “We need to pay more attention to new markets in Canada that we may not be in today,” she says. To demonstrate this, she cites one of Statistics Canada’s demographic projections for Canada from 2021 to 2068. Among the figures published in August 2022, Hiscott mentions that Canada’s population is expected to reach nearly 48 million by 2043. This is one of the medium growth scenarios projected by Statistics Canada. Much of this growth will be fuelled by immigration, if the trend continues. On January 1, 2024, Canada’s population reached 40.8 million, an increase of 1,271,872 compared to January 1, 2023. This increase was reported by Statistics Canada in its March 27 edition of The Daily. It represents an annual population growth rate of 3.2%, the highest since 1957. According to Statistics Canada, temporary immigration in 2023 accounts for most of this growth. “We’re expected to be 48 million Canadians by 2043. If we apply that same 31% protection gap, there will be close to 15 million Canadians needing life insurance.” Hiscott says PPI’s working on “new innovative approaches so that we might be able to have a new marketplace for mid and mass-market Canadians.” She would not elaborate, but says she expects PPI to work on it behind the scenes for a period of time. “We are hoping it can help close that gap. In this book published in 2005, authors W. Chan Kim and Renée Mauborgne suggest that a company will achieve lasting success by creating new, untapped market spaces ripe for growth (blue oceans), rather than by fighting competitors.

At a recent major underwriting conference, the agenda included discussion of the increased trend in mortality associated with heat waves. This topic began to get attention in the early 21st century when more than 20,000 deaths in Europe were attributed to the record-breaking heatwave in August 2003 (1). Since then and almost every year since, news reports bear the sad news of clusters of deaths during short, intense periods of heat. Closer to home, we remember the ‘Heat Dome’ that settled over much of British Columbia between June 25th and July 1st of 2021. Breaking 103 all-time heat records including a 49.6 Celsius one-day high in Lytton, resulting in a wildfire that destroyed the town the next day. In that period, 650 heat-related deaths were confirmed in B.C. (2). Back in Europe, summers regularly include death counts, like the 2023 heatwave death toll in France of 5,167 people, the majority affecting those over the age of 75 (3). Climate change is the most often cited cause for the catastrophic and now almost inevitable loss of life due to extreme temperatures. This article is focused on the health and mortality impact related to climate change. About climate change itself, there are two points to consider: the first is that surface temperatures in Canada have risen 1.7 degrees Celsius in the last 75 years and are projected to rise by more than 5 degrees within the next 75 years with higher greenhouse emission scenarios (4). The second point is that we can’t ignore the first point. Who are the most vulnerable to suffering the worst effects of excess heat? In a way, we all are. Everyone is susceptible to heat illness and exertional heat illness (EHI). EHI claims the life of young athletes, firefighters, military personnel and labourers working or performing in extreme heat. Susceptibility will vary and is influenced by factors such as dehydration, poor physical fitness and external load such as the clothing and equipment necessary for firefighters during an incendiary event. Even certain types of medications can impair sweating or reduce cardiac output, putting the patient at risk for heat-related morbidity. Back to the question of who is most vulnerable? We already noted most of the heat-related deaths in France in 2023 were at the older ages. Given the higher prevalence of cardiovascular and respiratory disease among those aged 65 or older, this remains the highest at-risk population. In the higher greenhouse emission scenarios, this group will continue to be disproportionately affected (5). This will mean more cases of heat exhaustion, the inability to maintain adequate cardiac output due to exertion or environmental (heat) stress. As a result, the chance of more serious illness, like heat stroke, also rises. This means having a very high body core temperature leading to central nervous dysfunction. The risk of death is high, no matter at what age when heat stroke occurs. Prevention by attention to hydration, fitness and heeding public health precautions to avoid excess heat by seeking cool air and shelter remain the stalwart guidelines. The phenomena of once in a lifetime heat wave has transformed into an annual cycle. Paying attention is the first step to staying safe in the summer. Met Office. The Heatwave of 2003. metoffice.gov.uk. N.D. Government of Canada. Surviving the Heat: The Impacts of the 2021 Western Heat Dome in Canada. science.gc.ca. June 26, 2022. Le Monde. France Recorded Over 5,000 Deaths Due to Summer 2023 Heat. lemonade.fr. February 8, 2024. Government of Canada. Future Temperature-Related Excess Mortality Under Climate Change and Population Aging Scenarios in Canada. Hebbern et al. March 21, 2023. IBID

Values form the bedrock of a compelling marketing plan. By amplifying your values, you attract clients seeking advice from someone who shares their principles and beliefs. When clients see themselves reflected in your values, they are more likely to entrust you with their financial well-being. Prioritizing your values allows you to foster deeper connections and form long-lasting partnerships. In a world where financial decisions can have profound implications, strategies rooted in values are not only ethical but also sustainable. Values serve as reference points, guiding our decisions and ensuring that our actions align with what we hold dear. When our strategies respect our values, they gain meaning and relevance, fostering trust and loyalty among clients and team members alike. But how do you know if you’ve uncovered your core values? A Step-by-Step Process to Uncover Core Values Step 1: Reflect on Your Happiest Moments. Think back to times in your career and personal life when you felt genuinely happy and fulfilled. What were you doing? Who were you with? What factors contributed to your happiness? Note your thoughts and observations. Step 2: Recognize Moments of Fulfillment. Consider instances when you felt most fulfilled and satisfied, both professionally and personally. What needs or desires were fulfilled during these experiences? How did they contribute to your sense of meaning and purpose? Record your reflections. Step 3: Acknowledge Challenges. Reflect on times when you faced adversity or felt at your lowest. What made these moments challenging? What did you learn from overcoming these obstacles? Note your insights and lessons learned. Step 4: Determine Your Top Values. Based on the notes and reflections from Steps 1-3, select words and phrases that resonate with you and reflect your deepest values. Aim to identify 10-12 values that align with your vision for your practice. Step 5: Prioritize Your Top Five Values. From the list of 10-12 values, prioritize the top five that you believe are the most essential to your practice’s ethos. This step is probably the most difficult because you’ll have to look deep inside yourself. It’s also the most important step, because these are the rules the business will live by – what the business holds in high regard and what it expects. Step 6: Reaffirm Your Values. Regularly revisit and reaffirm your core values to ensure they remain aligned with your vision and goals. Consider how living these values consistently can impact your business, your clients, and your team members. By anchoring your practice in these values, you create a firm foundation upon which to navigate the complexities of the financial advising landscape with confidence and purpose. In the family market, acting on values isn’t just a business strategy – it’s a moral imperative. As financial Advisors catering to the needs of families, your responsibilities extend far beyond managing finances. You are entrusted with safeguarding dreams, securing futures, and fostering trust that transcends generations. In this pivotal role, your values serve as the cornerstone of your practice, guiding every decision you make and shaping the relationships you build with your clients and team members. Values are not just lofty ideals; they are the bedrock upon which sustainable and successful strategies are built. They serve as the compass that steers your practice towards ethical and meaningful outcomes. By aligning your actions with your core values, you create a practice that is not only successful but also meaningful and enduring. As an Advisor, you can embark on this journey with integrity, guided by the values that define you and the families you serve. For more information, please contact your local PPI Collaboration Centre.

With the increase in the capital gains inclusion rate from 1/2 to 2/3 effective June 25, 2024, passive investment income could be higher in your client’s corporation. Now is the time to revisit the potential reduction to your client’s small business deduction. What are the Changes? The new rules set a threshold for how much passive income a Canadian-controlled private corporations (CCPC), as well as the corporations associated with it, can earn without the passive investment income reducing the corporation’s small business deduction. Basically, a CCPC can earn up to $50,000 per year and maintain the full $500,000 Small Business Deduction (SBD). Every dollar of passive income above the $50,000 per year threshold will reduce the corporation’s SBD by $5 completely eliminating it once passive income is over $150,000*. A simple example: A business with a $1 million portfolio that generates $50,000 of passive investment income, is onside and within the threshold. On the other hand, a business with a $2 million portfolio generating $100,000, would have its SBD reduced by $250,000. Share and Learn More To learn more about how this will affect your client’s small business, be sure to share the client-friendly version of this article, as well as the Passive Investment Income Calculator. For more information on the increase in the capital gains inclusion rate, read After June 25, 2024, Your Client’s Tax Liability on Death May Have Increased! Time to Revisit How to Fund the Tax Liability and if you have any questions, be sure to contact your local PPI Collaboration Centre. *The provinces also have an SBD and mirror the federal SBD reductions for passive income. However, Ontario and New Brunswick do not mirror the federal rules with respect to the reduction to the SBD so for these provinces, there is only the federal reduction and no corresponding reduction to the provincial SBD.

An article by PPI’s Planning Services team, a group of lawyers, accountants and actuaries who provide tax and estate planning support to Advisors affiliated with PPI. Effective June 25, 2024, the 2024 Federal Budget in Canada proposed to increase the capital gains inclusion rate to 2/3 from 1/2 for corporations and most trusts* and for individuals for capital gains over $250,000**. This means for individuals and certain trusts, the first $250,000 is at a 1/2 inclusion rate and above $250,000, the inclusion rate is now 2/3. In B.C., the tax rate on capital gains is 26.75% on the first $250,000 but 35.67% over $250,000. This is an 8.92% increase (the other provinces differences range from an increase of 7.92% to 9.13%). The Budget stated that the $250,000 threshold was introduced so that only the wealthy would be affected. Well, this is not the case when someone passes away – the middle class will have their tax liability on their death increase by 33 1/3% for capital gains over $250,000. On death, a taxpayer is deemed to have disposed of their capital assets at fair market value. This will result in a capital gain where the deemed proceeds exceed the adjusted cost base of the asset. Many clients will have investment portfolios with unrealized gains, rental properties, a family cottage or shares in a private company. Now the gain on these assets is taxed at the 2/3 inclusion rate for capital gains over $250,000. If clients have assets in an alter-ego, spousal/common-law partner or joint spousal/common-law partner trust, there is also a disposition of assets at fair market value on the death of the relevant beneficiary. For the capital gains that arise in these trusts the inclusion rate is 2/3 since these trusts do not get the 1/2 inclusion rate on the first $250,000. Case Study Let’s assume that Jane passes away with a cottage that she purchased for $50,000 and that is now worth $1.5 million. She had public securities with a fair market value of $500,000 and a cost base of $150,000. The capital gain on her death would be $1.8 million ($2 million -$200,000). Using B.C.’s highest marginal tax rate, there would be additional tax of $138,260*** to pay on the capital gain as a result of the increased inclusion rate. Now what if Jane had her own company? The company is an active business and was valued at $5 million on her death. The cost base of her shares is nominal so there is a significant capital gain on her death (Jane is not married so she can’t defer the tax on death by rolling the shares to her spouse on a tax deferred basis). Since the 1/2 inclusion rate on the first $250,000 of capital gains would already be used with her other assets, the full $5 million capital gain would be at the 2/3 inclusion rate resulting in tax of $1,783,500 which is an increase of $446,000! Budget 2024 proposed to increase the lifetime capital gains exemption for qualified small business corporations to $1,250,000 which would reduce the tax liability to $1,337,500 if her company qualified. Consider Life Insurance Life insurance is a tax efficient method to fund the tax liability on death and with these budget changes, the use of insurance should be reviewed with your clients to determine if existing insurance coverage needs to be increased or for those that do not have insurance, purchase new insurance. The postmortem planning that should be completed to avoid double tax on death when a taxpayer owns shares of a private company must also be reviewed for Jane. The use of corporate owned life insurance to eliminate double tax has become even more tax efficient with the increase in the capital gains rates since the gap between the tax rates on capital gains and dividends is narrowing. For more information on the postmortem planning alternatives, please read PPI’s Tax Bulletin, Postmortem Planning Alternatives. Impact on a Corporation We have discussed the effect that the increase to the capital gains inclusion rate will have on the assets Jane holds on her death but attention also needs to be drawn to the taxation of capital gains inside her company while she is still alive. As mentioned earlier, corporations do not receive the 1/2 inclusion rate for the first $250,000 of capital gains. This makes earning capital gains in a corporation more costly than if the capital gains were earned personally. Usually, there should not be a difference if an individual earns income directly or through a corporation (that pays a dividend to the individual) – a concept called integration. It is not perfect but is generally achieved. However, with corporations having the 2/3 inclusion for the entire capital gain, the effective tax rate is 12.66% (using B.C. rates) higher for capital gains under $250,000 if earned in a corporation rather than if earned personally. The other concern is that since Jane’s corporation likely uses the small business deduction, which taxes the active business income in the corporation at favorable rates, the increase in the capital gains inclusion rate will result in the passive income in her corporation growing faster. When there is passive income in a corporation, the amount of income to which the small business deduction may be applied is ground down $5 for every $1 of passive income over $50,000 and completely eliminated for passive income over $150,000 (use the Passive Investment Calculator to determine the impact of the passive investment income inside your corporation). In addition to the benefit of funding the tax liability on death and eliminating double taxation on death, investment income earned inside a corporate owned life insurance policy is not included in determining passive income that grinds the amount of income to which the small business deduction may be applied.  This may be another benefit of corporate owned insurance. With the increased capital inclusion rate, it is a good time to revisit your client’s estate plan and their insurance needs to ensure that they have sufficient coverage to fund the increased tax liability. Contact your local PPI Collaboration Centre. * The Notice of Ways and Means Motion tabled on June 10, 2024, proposes that, similar to individuals, the 1/2 inclusion rate will continue to apply to the first $250,000 of capital gains in a year for graduated rate estates and qualified disability trusts. ** The capital gain is net of capital losses, capital losses carried forward, the lifetime capital gains exemption, the new Canadian Entrepreneurs Incentive exemption (also announced in the Federal Budget) and the temporary $10 million exemption for transfers of businesses to an Employee Ownership Trust. *** The tax under the old 1/2inclusion rate would have been $481,500 ($1,800,000*26.75%). The tax under the new 2/3 inclusion rate would be $619,760 (($250,000* 26.75%) + ($1,550,000*35.67%)) for an increase in tax of $138,260 (28.7% increase). This document is for general information purposes and Advisor use. The information contained in this document must not be taken or relied upon by the reader as legal, accounting, taxation, financial, actuarial or other advice made to them, or to any other person or firm, by PPI or any of its affiliates. Please refer to insurance company illustrations, policy contracts and information folders regarding any insurance matters referred to in this document. Readers must seek independent professional advice with regard to the verification and use of the information contained in this document. Copying or reproduction of this document is not allowed without the express prior written consent of PPI.

Whether your clients are planning a retirement that takes them to top destinations around the world, or like most of us, allows them to continue enjoying their current lifestyle with peace of mind, planning ahead is the best way to know where they’re going and how to get there. With the Retirement Calculator, your clients can set their retirement income based on their retirement lifestyle goals and see quickly if they’re on track, then explore several options for reaching or expanding their retirement goals, including adjusting pre-retirement annual investments, rates of return, and retirement age and income. The Retirement Calculator is designed to help your clients get wherever it is they’re headed, on time.

Do your clients understand their group disability benefits? Do they know that benefits are paid as a percentage of regular income, and that depending on their plan, they may only be covered for a couple of years—especially if they’re qualified to do any kind of work at that time? This easy-to-use calculator can be a great way to start important disability insurance conversations. Your clients can quickly see how much income they’d require in the event of a disability when they include their household income and expenses. They can even include things like planned savings and debt repayment to make sure they stay on-track no matter what. Once they know their income needs, you can review any coverage they have in place and discuss whether they’d be able to meet their financial obligations and goals in the event of a disability and offer insurance solutions that may strengthen their safety net.

What kinds of financial burdens would your client need to carry in the event of a serious illness? Fortunately, as Canadians, we have access to government healthcare coverage and potential group or personal disability coverage to cushion what might otherwise be grave financial burdens during hard circumstances. But, what about those other expenses these plans don’t cover? This calculator will help you and your clients to consider many of the financial consequences of serious illness that aren’t covered by their medical and disability plans. Help fill any critical illness insurance gaps in your compliant insurance sales practice by sharing this calculator with your clients to start important conversations about the short and long-term financial impacts of serious illness. Talk to them about how critical illness insurance may strengthen their insurance safety net and help secure their financial future.

In the 1830’s, the English novelist Charles Dickens published a series of stories called “The Pickwick Papers”. One character, the larger-than life Joe, was known for his prodigious appetite and large build with an ability to fall asleep quickly and often during the day. In 1956, an astute medical researcher named Burwell and his colleagues published an article in the American Journal of Medicine titled, “Extreme obesity associated with alveolar hypoventilation-a Pickwickian syndrome”. This was the first modern day presentation of a sleep-related breathing disorder now known as obstructive sleep apnea (1). What is obstructive sleep apnea, also known as OSA? Apnea means to stop breathing, and in the context of OSA this happens while asleep. That sound you hear is the often loud snoring that accompanies these episodes of breathlessness. The obstructive part is in the upper airway system caused by the inadequate function of the tongue muscles or surrounding muscles that keep the airways open (2). Before we consider how serious OSA might be, we know that this is the most common sleep-related breathing disorder, affecting an estimated and staggering 936 million people and by far, mostly men, worldwide (3). However, it is estimated that only 1 in 5 cases are diagnosed (4). Think about it. Is a supposed disorder associated with snoring and maybe gasping for air at night a problem? Maybe the client is a little tired during the day, even falling asleep often and quickly just like Joe? Think again. Most cases of OSA, diagnosed or not, occur in ages 50 and higher and particularly among the overweight/obese, smokers, and those who may be genetically predisposition to this condition. Untreated OSA can increase the risk of developing everything from Type 2 diabetes to kidney disease and heart failure (5). We have left the best for last as we answer how OSA is diagnosed and treated. Polysomnography is a sleep study that can be done in a clinic or at home and will measure a number of things, but most important, the number of times the patient stops breathing (apneas) or reduces breathing (hypopneas) over the course of an hour. If the result is 5-15  apneas/hypopneas per hour (AHI), mild OSA is present. An AHI of 30 or more is severe disease. The risk of complications is that much higher with severe OSA. The good news is that OSA has a number of treatment options that can include weight loss, alcohol reduction or even simply sleeping on your side more often than on your back. For most cases of OSA, the only effective treatment is to keep the airways open by applying continued positive airway pressure (CPAP). Current generation CPAP appliances not only keep the airways clear but provide usage data confirming AHI, oxygen saturation and other metrics that confirm the efficacy of the treatment. These usage data reports can make even severe OSA cases fall into the most favorable underwriting decision categories. For those with suspected OSA, get tested. For those with confirmed OSA, use CPAP, if prescribed. This makes clients, you as an Advisor, and underwriters sleep well and breathe easy. For more information on this Risk Bit and the underwriting process, contact your local PPI Collaboration Centre. Ferriss, J. Barry. Obstructive sleep apnea syndrome: the first picture? Journal of the Royal society of Medicine. 102(5) 201-202. May 1, 2009. Park, John G. Updates on Definition, Consequences, and Management of Obstructive Sleep Apnea. Mayo Clinic Proceedings. 86(6): 549-555. June 2011. Ling, Vanessa. Sleep Apnea Statistics and Facts You Should Know. National Council on Aging Adviser. October 4, 2023. Benjafield et al. Estimation of the prevalence and burden of obstructive sleep apnea: a literature-based analysis. Lancet Respir Med. 7(8): 687-698. July 9, 2019. Ling, Vanessa. Sleep Apnea Statistics and Facts You Should Know. National Council on Aging Adviser. October 4, 2023.