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Juvenile Insurance…still an untapped market

Discover the benefits of insuring children with life and health insurance solutions that provide protection into adulthood and preserve future insurability. Explore intergenerational wealth transfer options and the Harmony New Generation insurance plans. Maximize opportunities to protect your family's financial future.

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Juvenile Insurance…still an untapped market

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  1. Juvenile Insurance…still an untapped market • Wayne Linke • Regional Sales Director, • Desjardins Insurance

  2. Agenda Why insure children? Life and Health Insurance Solutions to choose from Intergenerational Transfer

  3. Why Insure a child(ren)? • Provides children with protection that will carry into their adulthood • A limited-pay insurance policy will provide protection when their needs are high but their discretionary income may not be available • Lock in rates today. Protecting future insurability • Later in life getting coverage could become an issue due to lifestyle, occupations and geographical location

  4. Why Insure a child(ren)? • Insurance proceeds can be used to establish a scholarship fund • Provides access to Capital and Equity • Be your own Banker

  5. Why insure a child(ren)? Then • Insure the husband or breadwinner only Now • 61% of households in Canada are dual-income • Insure both spouses • What about the children?

  6. The Meliton Family • George, age 35, Jen, age 30 • Amy age 3, John age 4

  7. Four Whole Life solutions to choose from…

  8. Four solutions to choose from!

  9. Four solutions to choose from!

  10. Four solutions to choose from!

  11. Accidental Fracture

  12. Four solutions to choose from!

  13. Four solutions to choose from!

  14. Some thoughts… • What if Amy and John become diagnosed with a critical illness: • Would their parents want to take time off work? • Would they need additional income to pay for expenses related to that illness or condition • Receive help in seeking the best diagnosis and medical treatment right away

  15. Harmony New Generationwillpay a lump-sumbenefit… Should the childbediagnosedwith a criticalIllness Should the childpassawayprematurely Shouldgrow up healthy..whichismostlikely to happen

  16. Harmony New Generation IndividualCriticalIllnessInsurancecoverage for children 28 Illnesses 25 + 3 childhood illnesses 31 Illnesses 25 + 6 childhood illnesses Autism Rett Syndrome Cystic Fibrosis Type 1 Diabetes Mellitus Cerebral Palsy Muscular Dystrophy

  17. Harmony New Generation Term 100 plan Level and guaranteed premiums 20 pay or life pay (20 pay is most popular) ROP on surrender available from the 5th year. 100% in 20th year

  18. Harmony New Generation Life insurance option (up to 100% of the sum insured) Issue Age: 31 days old to age 17 Face Amount: $25,000- $500,000 No critical illness insurance is required for parents with face amounts under $100,000 No policy fee

  19. Harmony New Generation

  20. Distinctive advantages for DFS… • Age at issue: as of 31 days old • Term 100 plan • 2 childhood illness options (28 or 31) • Serious Complications caused by 4 Infectious diseases • 3 premium refund options at death (25%, 50%, 100%) • Premium refunds available as of the 5th anniversary, 100% as of the 20th year • Can be combined with several types of life insurance • No Policy Fee

  21. Inter-Generational Wealth Transfer • A sales concept for grandparents (or parents) whowish to: • Transfer assets to children or grandchildrenwithoutgiving up control of thoseassets • Reducing taxes on current and future investments • Lowering taxes due on current income • Retaining control of estate assets • Minimizing probate fees

  22. Use of Cash Value to fund education while leaving a legacy • Sam purchased the following solution on the lives of Amy and John: • PACE UL/ Precision 10: • $100,000 face amount each • $100,000 GIB option each • Accidental Fracture each • $4,000 deposit annually for 10 years • At age 18, policy is transferred to Amy or John. They withdraw money from the insurance plan to help pay for the their education

  23. The Solution

  24. The Solution

  25. How does it work? • The Transfer plan works by placing a universal life insurance policy on the life of the child/grandchild, or on the lives of the child/grandchild • The parent or grandparent is the owner of the plan and deposits funds into the plan • The policy ownership can be transferred to the child at any time after his or her 18th birthday, with no tax payable on the transfer

  26. How does it work? • When the child withdraws funds from the savings portion of the policy, it will be taxable in the child’s hands, in most cases at a lower rate • The funds withdrawn from the plan can be used for any purpose - education, a house purchase, a trip abroad • The parent or grandparent may use the policy as collateral for a loan which can provide tax-free income

  27. Marketing tips for promoting Juvenile Insurance • Don't use direct mail or pre-approach letters to introduce juvenile insurance • Don't raise the topic until the parents commit to life and critical illness insurance for themselves

  28. Marketing tips for promoting Juvenile Insurance • Explain how the entire family is affected- both financially and emotionally • Host a client seminar and invite a guest speaker who has experienced illness or a loss of child to share their story

  29. Thank You!

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