Ideas with Empire Life Seg Contracts
I hope you are enjoying the summer so far. I'd like to share some highlights around our seg fund features as we've had some changes recently.
GIF Highlights:
You can open a GIF 75/100 account with a minimum of $1,000 and if opened in the calendar year in which the client turns 80, you can add funds up to age 90 and maintain the 100% death benefit guarantee. This is a good strategy to talk to clients about "hedging" the 100% death benefit guarantee before they turn 80 years old. Even if the client turned 80 in January 2022, you have until the end of 2022 to open and fund the account with $1000. Then you can continue to add funds with 100% death benefit to the age of 90.
- GIF offers automatic annual death benefit resets until age 80, but where we are unique is that in the final year of available resets we will try to reset the account two times: once on policy anniversary and the last one on the client's 80th birthday.
- RRIF contracts are also eligible for automatic annual death benefit resets until age 80 while some companies charge extra for this feature.
- We are the only insurance company offering death benefit resets on a 75/75 contract, fees are lower and comparable to mutual fund fees. A good option to offer seg fund guarantees as part of assets in a mutual fund portfolio, particularly when clients are getting older and even better if they qualify for preferred pricing!
- Preferred pricing with annual management fee credits automatically applied from the first dollar:
0.25% for $500,000 -$999,999.99
0.50% for $1,000,000+
At the end of each month, a credit is automatically applied to buy additional fund units.
Householding of family members (at the same address) and corporate assets available.
- F class is available in a nominee platform.
- A GIF seg fund contract can also be Corporately owned - strategy link below.
- A GIF non-reg seg fund can be owned jointly, with right of survivorship, very similar to a jointly owned life policy...another good strategy in estate planning.
- As well as successor annuitant and successor owner options. The biggest risk to an advisor's book/AUM is the aging client. To mitigate this risk you would set up the seg fund contract with a parent as the owner (can be any age) and a child as the annuitant. The parent controls the contract while alive and when they pass the child/annuitant now becomes the owner of the contract. Empire hasn't paid out a death benefit and the contract becomes perpetual... meaning an intergenerational wealth transfer has taken place (bypasses the will). The contract is still in place and the advisor has a new client and the funds remain in their AUM.
An FYI with this strategy is the child/annuitant has to sign the application with the parent. If there is more than one child, then you could split the assets among separate contracts - strategy link below.
Lastly, we are still offering a sales Commission "Bonus" on deposits - link below.
If you would like to discuss anything further or need assistance on a case, we would be happy to help!
