1. From - 01/06/2015 Global Insurance Solutions Inc. March 29, 2006

2. Paul Freedman MBA, CFP paul.freedman@axa-insurance.ca 416-721-4931(cell)

3. Stir the Pot - Cook Up New Sales

4. Agenda  Using Total Needs Analyses Software  Uncover Needs  Prepare for Compliance  Stir the Money Pot – Three Selling Ideas  CI to Protect RRSPs  Quick Pay Mortgage and UL  Guaranteed Pay – Alternative to RRSP  AXA Marketing Initiatives - 2006

5. Why use a needs analysis tool?  Uncover additional needs  Professionalism  Compliance trends  Quebec  Agent disclosure  Conflict disclosure  Increases compensation

6. Common problems with needs analysis tools  Overly complex  Time consuming  Stand alone tool not integrated into quote system  Multiple pages  Changes cost money – print, print, print

7. AXA Needs Analysis  Built into the AXA software  Accurate  Comprehensive  Easy to use  One page snapshot of assets and liabilities  Professional appearance  Launch pad for AXA life quotes

8. Needs Analysis – Discovery  First meeting objective: Determine the amount of coverage required  Assets and liabilities  Existing insurance coverage  Goals and objectives  Don’t forget the “Soft’ questions – feeling & finding

9. Needs Analysis - The report  One page snap shot  Net worth statement  Defines the need

10. Stirring the Pot….  Total Needs Analyses highlights weaknesses in planning  Clients often accept need for insurance – just do not want to pay for it (or feel they can not afford it)  Needs Analyses highlights spending patterns  Stir the Pot – take existing monies and re- allocate to achieve same goals while providing additional flexibility

11. Critical Illness Insurance & RRSPs If a critical illness strikes……  RRSPs designed for retirement use but often client’s only savings  Fully taxable upon withdrawal – not efficient use of savings  Long term financial plans based on compounding of growth i.e. time money is invested  Restoring savings likely to be difficult

12. Critical Illness Insurance & RRSPs Solution: Contribute less to RRSP and purchase CI with ROP benefit  Ensures that RRSP remains intact in event of Critical Illness  More funds available to effectively deal with critical Illness  “Redirecting” savings will have minimal effect on retirement income

13. Critical Illness Insurance & RRSPs Facts  Husband and wife, aged 40 and 38  Family income of $75,000 annually  Husband works full-time; wife part-time  2 children, own home  RRSP total savings currently of $20,000 and plan to contribute $3,000 per year to retire at 65

14. Critical Illness Insurance & RRSPs Alternate Strategy “Re-direct money” into CI to protect savings and provide funds in the event of a critical illness  Buy $25,000 CI with ROP on husband  Cost - $476 annually* * AXA T-75 Enhanced CI plan with FROP

15. Critical Illness Insurance & RRSPs  Continue as is:  By age 69, RRSPs grow to $341,127*  Redirect monies to CI policy:  RRSP grows to $302,210*  ROP of $14,295  Total savings = $316,505  In first year of RRIF, $24,622 difference represents approx. $100 per month, before taxes * 6% annual compounded growth

16. Critical Illness Insurance & RRSPs  If illness strikes and RRSP savings used, RRSP only grows to $226,256 at age 70  Monthly income difference in excess of $358 per month  CI monthly payment results in minimal income drop yet ensures retirement income plan stays in place  If death occurs, CI premiums refunded

17. Critical Illness Insurance & RRSPs  Use proposed RRSP $$$ to buy CI  Client does not have to look for “new” money  Keeps retirement plans in place  Provides more money if critical illness occurs (CI proceeds not taxable) AND reduces stress about future  Minimal affect on retirement income  Have insured client at “no cost”

18. Quick Pay Mortgage and Universal Life General wisdom is to pay home off quickly….  Accelerated weekly payments reduces cash flow  Families often do without financial necessities  Disability income replacement  Emergency funds  Permanent life insurance

19. Quick Pay Mortgage and Universal Life Solution: Make monthly mortgage payments and purchase Universal Life Insurance  Cash build up inside plan provides income in case of need  Mortgage can still be retired at desired date  Financial flexibility if circumstances change (for better or worse)  Increased life insurance protection, including paid up permanent protection

20. Quick Pay Mortgage and Universal Life Facts  Husband age 42; wife age 40  Jointly owned mortgage of $250,000  Pay $416 per week* ($1,805 per month)  Bank mortgage insurance costs $105 per month  May inherit from parents in 20 – 30 years  No savings other than RRSPs * 6.45% 5 yr. term; 25 yr ammort.;

21. Quick Pay Mortgage and Universal Life Alternate Strategy  Purchase $25,000 Universal Life Insurance on wife  Add T-20 riders: $250,000 on him; $225,000 on her  Pay mortgage monthly - $1,667 per month  Fund UL with difference in mortgage and insurance costs  Pay off mortgage fully in 20 years, if desired

22. Quick Pay Mortgage and Universal Life Continue as is….  Mortgage will be paid in full in 21 years (4 years earlier than if paid monthly)  No permanent life insurance  Declining life insurance coverage; no ability to convert; not transportable  No emergency fund  Only savings in RRSP

23. Quick Pay Mortgage and Universal Life  Re-allocate $244 per month (difference in weekly/monthly mtge. costs) to UL*  Flexibility now to withdraw cash in event of disability, job loss, education needs or other unforeseen needs  Enhanced life insurance protection:  Term riders with level, convertible coverage  Permanent coverage *40 FNS,Pact II, T-100, 6%ROI

24. Quick Pay Mortgage and Universal Life  Accelerated payments - mortgage retired at end of year 21  Monthly mortgage schedule - $70,546 owing at end of year 21  UL Fund Value – est. $71,572 at end of year 21  Taxes on Fund – approx. $14,000, if owner still working

25. Quick Pay Mortgage and Universal Life  Mortgage retired on schedule, no increase in monthly family expenses  Couple has minimum of $500,000 of life protection throughout period, all of which can be made permanent if desired  Cash available for emergencies from year 1  Estate planning already in place if circumstances change (Inheritance? New job?)  Works well increasing rate environment

26. Limited Pay Insurance and RRSPs RRSPs great ….  Tax-Deferred Growth  Annual Tax Reductions But can be too much of a good thing.…  Access to money limited – no flexibility  $$$ taken into income – could affect OAS; income tax rate  Taxes have to be paid - at death, estate reduced significantly

27. Limited Pay Insurance and RRSPs Solution: Reduce or stop RRSP contributions and purchase high cash value, limited pay guaranteed life insurance  Retirement income unaffected  Enhanced flexibility in using retirement income  Estate planning solidified

28. Limited Pay Insurance and RRSPs Facts  50 yr. old female – current RRSP valued at $250,000  Contributes $10,000 annually into her RRSP  RRSP to be primary source of retirement income  Would like to leave a legacy

29. Limited Pay Insurance and RRSPs Alternate Strategy Use “usual” RRSP contributions to purchase limited pay life insurance with guaranteed cash values  Stop future contributions to RRSP  Leave existing RRSPs to compound  Purchase $300,000 limited pay Horizon 65 at $6,700 per year

30. Limited Pay Insurance and RRSPs  Continue as is:  Base RRSP grows to $801,784* @ age 70  New contributions add additional $238,998 @ age 65*  Purchase $300,000 Horizon 65 using equivalent of net proceeds of RRSP contributions ($6,700/yr.)  Guaranteed CSV @ age 65 = $150,000  6% return compounded annually

31. Limited Pay Insurance and RRSPs  Access to cash in policy flexible:  Borrow – proceeds tax-free; capitalize costs  Leverage – structure deal with lender; proceeds tax-free  Withdraw – net approx. $137,471* - insurance lapses  Only last option affects income *Assume 30% tax rate, based on ACB

32. Limited Pay Insurance and RRSPs  Access to RRSP monies limited  Monies can only be brought into income at marginal rate  Contributions for 15 years = $238,998  Taken as lump sum at age 65, proceeds would net approx. $131,449*  Loss of OAS *Assume 45% tax rate

33. Limited Pay Insurance and RRSPs  At some point, RRSP represents major tax liability  Guaranteed pay insurance provides flexibility in planning; no loss in retirement income  OAS will not be affected  Bonus - $300,000 of Life Insurance fully paid at age 65  EDB to age 60

34. Summary  Comprehensive, written Needs Analysis provides Professional assessment of client’s position using THEIR numbers  Highlights total current financial situation  Exposes both short term and long term needs 

35. Summary  Insurance products enable client to:  Achieve financial and life-style goals  Provide greater security  Introduce flexibility into family budget  All the above, at no additional “cost” to the client Win – Win

36. From - 01/06/2015 2006 Sales and Marketing Initiatives

37. AXA LAUNCHES IT’S BUSINESS BUILDING PROGRAM FOR BROKERS TO HELP YOU BUILD A MORE PROFITABLE BUSINESS IN 2006 AND BEYOND Sales and Marketing Business Building Program - 2006

38.  BEST Program - Life  BEST Program - Living Benefits  Activity Incentives  Productivity Rewards  Conference 2007  Achieve your goals!!! Sales and Marketing Business Building Program - 2006

39. Sales and Marketing Broker Education Sales Training - LIFE  8 week classroom program; No cost to broker  Sales development - Prospecting, referrals, seminars  Total needs selling - Fact finding, Probing; Wills/PA’s  Closing the sale - Positioning, objections, role playing  Selling concepts – Needs, not products  Product discussions - Whole life, Term, UL  Case study - Family, business, single need  Contact your MGA more information about BEST

40. Sales and Marketing Broker Education Sales Training-LIVING BENEFITS  Industry leading faculty (Munich Re, Dr.’s, consultants etc.)  3 day, 2 night seminar program  The living benefits market and uncovering needs  The role of Wills and Living PA’s  Placing your case: Underwriting living benefits  Product discussions - guaranteed vs non guaranteed premiums  Sales concepts - keyperson, buy/sell, family, single need  By invitation; must have sold an AXA living benefit product

41. Sales and Marketing Activity Program  Incentives for Submitting UL, Term, CI, LifeBeat, A&S and Mortgage applications  $100 upon submitting first 3 applications  $50 for EVERY application there after  Program starts Feb 15 th and closes June 30 th, 2006  Rewards paid at the end of April and end of June; money will be directly deposited to your bank account SUBMITTED APPLICATIONS

42. Sales and Marketing Productivity Program In addition to usual FYC and bonus:  Additional Reward based on net FYC  $5,000 - $500  $10,000 - $1,000  $15,000 - $1,500  $20,000 and over - $2,000  $25,000 – conference qualifier and $2,000  Paid in January 2007, deposited directly to your bank account

43. Sales and Marketing 2007 Sales Conference  $25,000 Net First Year Commissions  10 Applications  Past conference locations  Mexico-March 2006  North Africa-2005  Dominican Republic-2004  Cuba-2003  Settled business from January 1st, 2006 until December 8 th, 2006

44. Sales and Marketing To Help You Achieve Your Goals  50% FYC plus bonus on T-10, T-20 and T-70  Extreme Disability Benefit at no additional cost  T-10 Indexed: option to double face amount included at no Extra cost!  CI $100,000 offer included with issued Preferred T-10  New Investment Options on UL  55% FYC on LifeBeat

45. Thank You Paul Freedman MBA, CFP paul.freedman@axa-insurance.ca 416-721-4931(cell)