BridgeForce PD Days April 2014Stronger products … More income.

• AGENDA

• Quick facts• Premium Matchmaker• Non Par Whole Life• Bundled policies• Underwriting

Quick Facts

Quick Facts

Quick Facts

Premium Matchmaker

Non Par WholeLife

Let’s look at Lisa’s case

• Lisa is a young 8 year old girl;

• Her father wishes to provide her with a whole

life policy with an insured amount of $30,000;

• He would like that the premium for this policy

be paid up in 10 years;

• An additional amount of insurance may be

required in the future.

BMO Insurance suggestion...

Does BMO Insurance have a Whole Life 10 Pay product?

What could BMO Insurance offer for under $26 per month?

BMO Insurance 20 Pay Life

$ 30 000 death benefit

Monthly Death premium Benefit

$ 24.62 $ 60 000

Lisa – after 10 years

After 10 years, namely at 18 years of age, it is guaranteed that $30,000 is paid up thanks to the reduced paid-up feature.

The owner can, however, choose to continue paying premiums

for an 11th year.• The death benefit will remain at $60,000;• The reduced paid up insurance will go up to $33,000 (5%).

Years 11 to 19

Monthly Reduced Death

premium Paid-up benefit

Insurance

Year 11 $ 24.62 $ 33 000 $ 60 000

Year 12 $ 24.62 $ 36 000 $ 60 000

...

Year 19 $ 24.62 $ 57 000 $ 60 000

After 20 years, the total $60,000 is paid up.

The policy still benefits from cash values which increases every policy anniversary.

After 20 years

Lisa now has a $60,000 policy which is completely paid up.

The premium was lower than the 10 pay policy;

The cash value increases and reaches $60,000 at age 100.

Term or Perm?

The age-old question…

People want economy and they will pay any price to get it.

Lee IacoccaFormer CEO of Chrysler Corp.

Case Study

• Male 45 NS

• Has an insurance need for the next 20 years;

• There is a possibility that the need may become permanent;

• The client has strong cash flows and he loves getting a deal!

Term 20 or T100 Platinum?

T20 T100 Platinum

• Annual Premium $625 $3,628

• CSV before tax - $97,000 (after 20 years; i.e.beginning of year 21)

• Tax (CSV - ACB ) $22,918

• After tax CSV $74,082

Male 45 NS, Sum Insured: $250,000

Term 20 or T100 Platinum?

T20 T100 Platinum

• Annual Premium $625 $3,628 • Total premiums after 20 yrs* $12 500 $76,188• After tax CSV after 20 years $0 $74,082

• Net Cost after 20 years $12 500 $ 795

A positive difference of $11,705

* In the case of the T100 Platinum 21 premiums were paid

Male 45 NS, Sum Insured: $250,000

Options available in 20 years

1. Continue paying premiums in order to keep the policy in force- The cash values in the Platinum T100 will continue to grow by $4,375/yr

on average while the premium remains at $3,628;

- Convert the T20: Premium is $8,630/yr (T100 Plus)

2. Reduce the sum insured to the $25,000 floor– The annual premium goes down to 430.25;

– A proportional cash value will be paid out of $66,674 after tax

3. Reduced paid-up: $166,250

4. Reduced paid-up to the $25,000 floor– No additional premiums required;

– A proportional cash value will be paid out of $62,942 after tax

Permanent products currently available at age 65

Return

• The client will have $3,003/yr of forced savings (T100 premium of

$3,628 – T20 premium of $625 );– The net return is 1.58% (assuming a marginal tax rate of 48.22)

– The equivalent annual rate of return is 3.05%

Bundled policies

Bundled policies

• Why Bundle?

Bundled policies

• Why Bundle?

• Policy fee savings $8-15 per policy• Bundle perm term and CI..BIG savings• We are priced Top 3 and reguarly Number one when you

bundle Perm, Term and CI.• Financial planning vs selling a policy• My Dad• DOB vs DOD

Bundled policies

• Female 43 ns 500k

• T20 $54.90pm

• Para Blood Urine

• Comp $800

Bundled policies

• Female 43 ns 500k

• LifeProvider 25k, plus 475k rider T20 $82.67pm

• Urine only

• Comp $1320

Bundled policies

• Female 43 ns 500k

• LifeProvider 25k, plus 475k rider T20 Plus T10 CI $50,000• Premium $112.65pm

• Urine only

• Comp $1705

Bundled policies

• Why Bundle?

• Policy fee savings $8-15 per policy• Bundle perm term and CI..BIG savings• We are priced Number one when you bundle Perm, Term

and CI.• Financial planning vs selling a policy• My Dad• DOB vs DOD

Bundled policies

• Why Bundle?

• How many term policies per month?• 6?• Present a bundled product option each time• IF 1 out of 6 proceeds with Base cover plus term and CI

riders• An extra $900 per month comp. • What if you averaged 2 per month? • Give yourself a $21,000 pay rise!!

Bundled policies

• Give yourself a $21,000 pay rise!!

• PLUS

• Your client gets easier UW• Better coverage• A Financial Plan for their insurance rather than a policy.

Underwriting

Just wanted to give you some good news, my clients policy has been approved standard and we are just awaiting her husbands application to be approved

and I am confident that he will approved standard as he has regular check up and at age 73 takes no meds and is in good health.

I would like to convey this case was approved very quickly and will likely give me the upper hand competing against my competition in the race to place

these two policies. 

Thanks a million!

Received Feb 18 2014

Underwriting

Great, competitive product, quickly Underwritten and out the door, back to You and your clients ASAP.

Sales ideas that put more money in your pocket, quicker.

We want your business.

Thanks for your support to date.

Underwriting

1-800-608-7303

Martin.lydon@bmo.com

Mimi.cheng@bmo.com

1-800-608-7303

We’re here to help. Give us a call!

Thank You

• This presentation is prepared as a general source of information and is not intended to provide legal, financial, accounting or tax advice, and should not be relied upon in that regard. If legal, financial or tax advice or other professional assistance is needed, the services of a competent professional should be obtained.

• Any information contained in this presentation does not constitute advice, an offer to sell/purchase, or as an invitation or solicitation to do so for any entity. The content of this presentation is based on sources believed to be reliable, but its accuracy cannot be guaranteed. No one should act upon these examples or information without a thorough examination of the tax and legal situation with their own professional advisors, after the facts of the specific case are considered.

• Information contained in this document is for illustrative purposes and is subject to change without notice.

• Insurer:  BMO Life Assurance Company.• ® Registered trade-mark of Bank of Montreal, used under licence.