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Find new ways to build your business with BMO Insurance. Here are some of the new reasons why Life Dimensions makes sense for your next UL sale:
- The new MaximizerSelect: A tax-efficient and cost effective way of providing an all-in-one permanent insurance and tax-deferred investment solution to your clients including a higher first year commission.
- The Cumulative Fund Bonus: A new incentive to reward policyholders who choose to tax-defer deposits in the UL.
- More premium flexibility and better protection when things change.
- Reduced surrender charges on Life Dimensions.
- Six new ETF Managed Portfolio Indexed Accounts added to the best-in-class UL Portfolio.
Case Study
- Jim and Jane are both 50-year old non-smokers
- They already have permanent protection that needs to be topped-up for estate preservation needs
- The also have a sizeable non-registered investment portfolio which will be transferred to their children AND
- $150,000 that they would like to invest in a tax efficient and cost effective vehicle over the next three years.
The Options
Invest their money in a traditional taxable investment portfolio OR in a tax-deferred UL policy.
The Results
Life Dimensions (Low Fees) with MaximizerSelect (and YRT COI) from BMO Insurance provides Jim and Jane with superior long-term values and the estate protection they are looking for.
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1 Standalone Portfolio @ 6% |
1 Buy JLTD Insurance on Jim and Jane @ 5% |
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Taxable Account |
Estate
Value
|
Cash Value |
Tax-Free Estate Value |
| Year 1 |
51,965 |
50,924 |
20,264 |
737,000 |
| Year 5 |
175,144 |
171,625 |
90,015 |
678,040 |
| Year 10 |
212,638 |
208,346 |
200,320 |
598,613 |
| Year 20 |
314,181 |
307,792 |
348,556 |
520,785 |
| Year 30 |
465,299 |
455,791 |
569,152 |
665,395 |
| Age 85 |
566,609 |
555,010 |
729,512 |
729,512 |
| Age 100 |
1,024,903 |
1,003,844 |
1,569,694 |
1,569,694 |
For more details on this case study, please click here.
You should have already received your copy of the new software. If not, please contact your MGA for a copy or download it by logging into www.bmoinsurance.com/advisorsupport.
1 Based on deposits of $50,000 per year for three years. Alternative Investment Portfolio: 50% Interest/30% Dividends/10% Realized Capital Gains/10% Deferred Capital Gains. Marginal Tax rate: 42%; Dividend Tax Rate: 31%; Probate Fees: 2%.
MB183 (2010/11/119)
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