™ Trademark of The Empire Life Insurance Company. Policies are issued by The Empire Life Insurance Company.

Ageless Investing – The case for insurance based

solutions

Presented by: Giuliano Savini

Regional Account Manager - GTA

Key Discussion Points

• Controlling Assets• Investment choice• Flexibility• Successor annuitant

• Passing on assets• Successor owner• Beneficiary

• Why insurance-based assets• Probate free transfer• Pass assets outside the

estate• Guarantees, resets

This material is presented for informational purposes only, and is not a legal, tax or investment opinion. The provision of the information contained herein and any oral or written communication regarding the same should not nor is intended to be construed as such. Interested persons should seek retained independent professional advice before acting or foregoing action in relation to any of the matters mentioned herein.

Controlling Assets

• Wide choice of funds and portfolios

• Align investments with risk tolerance

• Freedom to move from investment to investment• With no administrative/handling/

switching charges*• *watch excessive trading• general minimum of $250 for

transfers

Ageless Investing

• For the age 70+ crowd• Interested in ongoing deposits after age

80

• For the age 80+ crowd• New contracts

• For the age 50- crowd• Early pension

• Combine investment and estate planning

• Earmark monies for next generation• Heir as annuitant

– Heir as successor annuitant• Heir as successor owner

– Heir as beneficiary

Ageless Investing

• Interested in asset growth including capital gains

• Desire to defer capital gains as long as possible

• Wants ongoing control and use of monies

Overriding Concern:1. Optimize tax deferral

or2. Death and down

market

Ageless Investing – optimize tax deferral

Implementation• Set up client as owner and beneficiary• Use “child” as annuitant (primary) • Name successor annuitant in event of premature

death of primary annuitant (child)

Outcome• Maintain current maturity guarantee and tax deferral

on unrealized growth (75 or 100% of net deposits)• No deemed disposition on death of annuitant• Maintain current surrender fee schedule• Capital gains tax/losses triggered on death of owner

Ageless Investing – death and downmarket

Implementation• Name client as owner and beneficiary• Name “child” as annuitant and successor owner

Outcome • What happens when…

• Child dies first?• Parent/client dies first?

Ageless Investing – death and downmarket

Outcome

• On premature death of child before client / parent• Death benefit guarantee assures return of capital• 100% of net deposits to funds, regardless of age

• Monies can be reinvested using another “child” as annuitant and successor owner

Ageless Investing – death and downmarket

Outcome

• On death of client, child can become successor owner• Maintain current maturity and death benefit

guarantees• Maintain surrender charge schedule, no acquisition

fees• Get step-up in adjusted cost base of policy (=FMV)

• Only taxed on future growth

™ Trademark of The Empire Life Insurance Company. Policies are issued by The Empire Life Insurance Company.

AGELESS INVESTING: CLASS PLUS 2

• Non-registered policies permit the owner to name another person as Successor Annuitant • Resets, Income Base and Bonus Base continue to be

reset for the new Annuitant• • The last reset of the Death Benefit Guarantee value is

on the Annuitant’s 80th birthday

• Maximum age for issue and additional deposits is December 31st of the year the Annuitant turns 80

11

Ageless Investing: Class Plus

Simplicity, Flexibility, Peace of mind, Predictability

• In complicated times, people value simple solutions to complicated problems

• There’s more to an investment fund than a good return

• True value is added with powerful guarantees, locking-in growth, freedom from probate and simple estate planning structures

43800

2 people X 3 meals X 365 days X 20 years

$438,000

Investor Needs and Challenges

Why your clients need income

• The peak of the baby boom is age 50

• With the annual 5% Income Base Bonus, a one-time investment would increase by 75% in 15 years.

• $250,286 deposit is increased to $438,000 for the purpose of guaranteeing income for life.

As you age, income is generally preferred relative to growth. Use Empire Class Plus 2 for all your income needs

IMPORTANT INFORMATION

Past performance is no guarantee of future performance.

This presentation reflects the views of Empire Life as of the dated presented. The information in this presentation 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 presentation. Please seek professional advice before making any decision.

A description of the key features of the individual variable insurance contract is contained in the Information Folder for the product being considered. Subject to any applicable Death and Maturity Benefit Guarantee, any part of the premium/deposit or other amount that is allocated to a Segregated Fund is invested at the risk of the Plan/Contract Owner and may increase or decrease in value according to the fluctuations in the market value of the assets of the Segregated Fund.

™ Trademark of The Empire Life Insurance Company. Policies are issued by The Empire Life Insurance Company.