Insurance Advisory Service April 2016

Retirement presents a new phase for many Canadians as they transition from the wealth accumulation stage to the de-accumulation stage of their lives. For product managers and developers, it is yet another opportunity to create solutions to better serve clients in efficiently transferring remaining assets and wealth to family members and/or charitable organizations. April’s issue of the Insurance Advisory Service examines how insurance products are utilized in the estate-planning process. The story quantifies the financial wealth expected to change hands over the next decade and sheds light on today’s retiree. With a focus on the estate-planning portion of a financial plan, we highlight the various considerations advisors must navigate with clients and explain how life insurance and traditional segregated fund products can be leveraged by advisors to enhance their value proposition. While 2015 was a strong year for insurance carriers in terms of life insurance and segregated fund product sales, headwinds are approaching. We examine changes to the Income Tax Act; the possibility of additional disclosure requirements for segregated funds; and the continued low-interest environment to present the opportunities and challenges facing the industry. The feature will be of importance to product manufacturers, managers and distributors looking to participate in this important aspect of financial services.