A Package Deal In Action - Empire Life · A PACKAGE DEAL IN ACTION Case Study Male/45/Std NS...
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Young couple A young couple, both healthy 25-year-old non-smokers are eager to start their new family in their new home. Their first concern is to ensure they have financial protection should the unexpected happen. Assumptions • Short-term needs — covering mortgage and bank loans — $300,000 • Long-term needs — covering funeral costs and final expenses — $50,000 • Health needs — covering costs associated with a critical illness — $25,000 • Each client will have their own individual coverage on all selected plans • Budget — $130 per month Recommendation è Solution 20 — $300,000 on each life è Solution 100 — $50,000 on each life è CI Protect Plus 75 — $25,000 on each life è ROP Benefit — Added to each CI Protect Plus 75 coverage è Total Initial Premium = $129.28 per month A PACKAGE DEAL IN ACTION Case Study Male/25/Std NS Female/25/Std NS Monthly Cost Solution 20* - $300,000 $18.63 $13.50 $32.13 Solution 100 - $50,000 $28.94 $26.06 $55.00 CI Protect Plus 75 - $25,000 $14.65 $13.82 $28.47 ROP Benefit $4.30 $4.88 $9.18 Policy Fee - - $4.50 Total Initial Monthly Premium $129.28 * Solution 20 figures reflect the initial monthly premium for the first 20 years only.
Transcript of A Package Deal In Action - Empire Life · A PACKAGE DEAL IN ACTION Case Study Male/45/Std NS...
Young couple A young couple, both healthy 25-year-old non-smokers are eager to start their new family in their new home. Their first concern is to ensure they have financial protection should the unexpected happen.
Assumptions• Short-term needs — covering mortgage and bank loans — $300,000
• Long-term needs — covering funeral costs and final expenses — $50,000
• Health needs — covering costs associated with a critical illness — $25,000
• Each client will have their own individual coverage on all selected plans
• Budget — $130 per month
RecommendationèSolution 20 — $300,000 on each life
èSolution 100 — $50,000 on each life
è CI Protect Plus 75 — $25,000 on each life
èROP Benefit — Added to each CI Protect Plus 75 coverage
èTotal Initial Premium = $129.28 per month
A PACKAGE DEAL
IN ACTIONCase Study
Male/25/Std NS Female/25/Std NS Monthly Cost
Solution 20* - $300,000 $18.63 $13.50 $32.13
Solution 100 - $50,000 $28.94 $26.06 $55.00
CI Protect Plus 75 - $25,000 $14.65 $13.82 $28.47
ROP Benefit $4.30 $4.88 $9.18
Policy Fee - - $4.50
Total Initial Monthly Premium $129.28
* Solution 20 figures reflect the initial monthly premium for the first 20 years only.
INS-1186-EN-12/16
Insurance premiums, cash surrender values, return of premium values and paid-up values are based on available rates as of December 7, 2016 for the age, gender, smoker status and rating of the lives insured and the plans and coverage amounts shown.
The information in this document is for general information purposes only and is not to be construed as providing legal, tax, financial or professional advice. The Empire Life Insurance Company assumes no responsibility for any reliance made on or misuse or omissions of the information contained in this document.
® Registered trademark of The Empire Life Insurance Company. Policies are issued by The Empire Life Insurance Company.
Insurance & Investments – Simple. Fast. Easy.™
www.empire.ca [email protected]
Exit Strategy Option
Reaching retirement, the clients may
no longer need insurance protection
but may need cash. If so, they could
surrender their policy and “cash out”.
Depending on when they surrender,
they can get the projected cash
surrender values (CSV) in their Solution
100 plan and return of premium
(ROP) values in their CI Protect Plus
coverage, assuming no claims.
Continued Needs Option
After 20 years, both clients’ long-term and health needs remain. If their long-term
needs have grown, they can elect to convert any part of their $300,000 of term
coverage to permanent protection before they terminate their term coverage.
Or, they may decide to continue their current Solution 100 and CI Protect Plus
protection and policy premiums will reduce to $97.15 per month.
No More Payment Option
In retirement, if these clients decide
they want to leave a legacy for their
children or grandchildren, but don’t
want to pay any more insurance
premiums, they can convert their
Solution 100 coverages to paid-up
life insurance and surrender their
CI Protect Plus coverages. Assuming
no critical illness claim is made, their
paid-up life insurance coverage
and the return of premium values
will be as shown.
Combined Guaranteed CSV
Combined Guaranteed ROP
At age 65
$44,189 on him
$44,094 on her
$14,455
Guaranteed Paid-Up Coverage
Combined Guaranteed ROP
At age 75
$47,035 on him
$46,960 on her
$22,585
At age 65
Total “Cash Back” $46,457
$32,002 $14,455
At age 75
Total “Cash Back” $71,076
$48,491 $22,585
Growing family A couple, both healthy 35-year-old non-smokers are hoping to put in place some financial protection for their growing family should the unexpected happen.
Assumptions• Short-term needs — covering mortgage and personal loans — $400,000
• Long-term needs — covering funeral costs and estate legacy — $30,000
• Health needs — covering costs associated with a critical illness — $25,000
• Budget — approximately $165 per month
RecommendationèSolution 20 — $400,000 on each life
èSolution 100 — $30,000 on each life
è CI Protect Plus 75 — $25,000 on each life
èROP Benefit — Added to each CI Protect Plus 75 coverage
èTotal Initial Premium = $165.45 per month
A PACKAGE DEAL
IN ACTIONCase Study
Male/35/Std NS Female/35/Std NS Monthly Cost
Solution 20* — $400,000 $29.88 $22.32 $52.20
Solution 100 — $30,000 $23.87 $20.66 $44.53
CI Protect Plus 75 — $25,000 $24.21 $20.97 $45.18
ROP Benefit $8.96 $10.08 $19.04
Policy Fee - - $4.50
Total Initial Monthly Premium $165.45
* Solution 20 figures reflect the initial monthly premium for the first 20 years only.
INS-1187-EN-12/16
Insurance premiums, cash surrender values, return of premium values and paid-up values are based on available rates as of December 7, 2016 for the age, gender, smoker status and rating of the lives insured and the plans and coverage amounts shown.
The information in this document is for general information purposes only and is not to be construed as providing legal, tax, financial or professional advice. The Empire Life Insurance Company assumes no responsibility for any reliance made on or misuse or omissions of the information contained in this document.
® Registered trademark of The Empire Life Insurance Company. Policies are issued by The Empire Life Insurance Company.
Insurance & Investments – Simple. Fast. Easy.™
www.empire.ca [email protected]
Exit Strategy Option
Reaching retirement, the clients may
no longer need insurance protection
but may need cash. If so, they could
surrender their policy and “cash out”.
Depending on when they surrender,
they can get the projected cash
surrender values (CSV) in their Solution
100 plan and return of premium
(ROP) values in their CI Protect Plus
coverage, assuming no claims.
Continued Needs Option
After 20 years, both clients’ long-term and health needs remain. If their long-term
needs have grown, they can elect to convert any part of their $400,000 of term
coverage to permanent protection before they terminate their term coverage.
Or, they may decide to continue their current Solution 100 and CI Protect Plus
protection and policy premiums will reduce to $113.25 per month.
No More Payment Option
In retirement, if these clients decide
they want to leave a legacy for their
children or grandchildren, but don’t
want to pay any more insurance
premiums, they can convert their
Solution 100 coverages to paid-up
life insurance and surrender their
CI Protect Plus coverages. Assuming
no critical illness claim is made, their
paid-up life insurance coverage
and the return of premium values
will be as shown.
Combined Guaranteed CSV
Combined Guaranteed ROP
Guaranteed Paid-Up Coverage
Combined Guaranteed ROP
At age 65
$18,494
$24,130 on him
$23,893 on her
At age 65
$17,413 $18,494
Total “Cash Back” $35,907
At age 75
Total “Cash Back” $58,550
$27,727 $30,823
At age 75
$26,955 on him
$26,785 on her
$30,823
Single working parent A healthy 45-year-old male non-smoker is starting a new life path and would like to financially protect his two dependent children should the unexpected happen to him.
Assumptions• Short-term needs — covering mortgage and income replacement — $350,000
• Long-term needs — covering funeral costs and estate legacy — $50,000
• Health needs — covering costs associated with a critical illness — $25,000
• Budget — Approximately $190 per month
RecommendationèSolution 20 — $350,000
èEstateMax 100** — $50,000 (Enhanced Coverage dividend Option)
è CI Protect Plus 75 — $25,000 (CI coverage)
èROP Benefit — Added to his CI Protect Plus 75 coverage
èTotal Initial Premium = $187.48 per month
A PACKAGE DEAL
IN ACTIONCase Study
Male/45/Std NS Monthly Cost
Solution 20* — $350,000 $63.95
EstateMax 100** — $50,000 (total coverage) $60.17
CI Protect Plus 75 — $25,000 $36.70
ROP Benefit $22.16
Policy Fee $4.50
Total Initial Monthly Premium $187.48
* Solution 20 figure reflects the initial monthly premium for the first 20 years only. ** EstateMax 100 (or Life Pay) figure assumes maximum coverage using the Enhanced Coverage dividend option.
INS-1188-EN-12/16
Insurance premiums, guaranteed cash surrender values, return of premium values and paid-up values are based on available rates as of December 7, 2016 for the age, gender, smoker status and rating of the lives insured and the plans and coverage amounts shown. All values assume premiums are paid when due, no loans or claims are made and the current dividend scale is used to declare dividends every year up to the time of conversion. Projected paid-up values may be higher or lower depending on the actual dividends received, which are not guaranteed.
The information in this document is for general information purposes only and is not to be construed as providing legal, tax, financial or professional advice. The Empire Life Insurance Company assumes no responsibility for any reliance made on or misuse or omissions of the information contained in this document.
® Registered trademark of The Empire Life Insurance Company. Policies are issued by The Empire Life Insurance Company.
Insurance & Investments – Simple. Fast. Easy.™
www.empire.ca [email protected]
Exit Strategy Option
Reaching retirement, the client may
no longer need insurance protection
but may need cash. If so, he could
surrender his policy and “cash out”.
Depending on when he surrenders,
he can get the cash surrender values
(CSV) in his EstateMax 100 plan, which
will not be less than the guaranteed
CSV, and the return of premium (ROP)
values in his CI Protect Plus coverage.
Continued Needs Option
After 20 years, the client’s long-term and health needs remain. If his long-term
needs have grown, he can elect to convert any part of his $350,000 of Solution 20
coverage to permanent protection before he terminates his term coverage.
Or, he may decide to continue his current EstateMax 100 and CI Protect Plus
protection and policy premiums will reduce to $123.53 per month.
No More Payment Option
In retirement, if the client decides
he wants to leave a legacy for his
children or grandchildren, but doesn’t
want to pay any more insurance
premiums, he can convert his
EstateMax 100 coverage to paid-
up life insurance and surrender his
CI Protect Plus coverage and receive
the ROP value.
Guaranteed CSV
Guaranteed ROP
Projected Paid-Up Coverage
Guaranteed ROP
At age 65
$11,777 $11,301
Total “Cash Back” $23,078
At age 75
Total “Cash Back” $41,258
$20,069 $21,189
At age 65
$11,301
$29,045
At age 75
$21,189
$51,089
