- Exposure to equity market performance, with the security of a GIC
- Net rates of return are guaranteed never to be negative
- Interest that’s calculated and credited EVERY YEAR over the Investment Term
- $5,000 minimum lump sum deposit on all new Life Dimensions policies (issued under version 2010/11/18)
- Flexibility to switch to a Fixed Interest Rate Option or other available GMIAs on Interest Crediting Dates without any penalty
The GMIA is ideal for those of your clients who are looking to maximize the tax-deferred growth in a UL policy with an investment option that gives them equity-style returns with a minimum guarantee! Here’s a new planning idea for you to consider.
Case Study: Sid and Martha are both 55 years old and in good health. They:
- need permanent insurance
- have company pension plans
- have a well-funded RRSP for their retirement needs
- have a surplus of non-registered cash sitting in GICs which they have set aside for their kids
- are looking to keep their money safe but wonder if they can inject some growth potential into these funds.
Option 1: Make deposits into a UL plan with a GMIA
Option 2: Invest in GICs at 4%
| Estate Value (after-tax) |
| Age | Deposit | OPTION 11 | OPTION 2 |
| 56 |
25,000 |
546,000 |
25,580 |
| 57 |
25,000 |
546,000 |
51,753 |
| 58 |
25,000 |
575,279 |
78,534 |
| 59 |
25,000 |
607,309 |
105,936 |
| 60 |
25,000 |
630,286 |
133,974 |
| 65 |
0 |
432,558 |
150,253 |
| 85 |
0 |
476,765 |
237,702 |
| 100 |
0 |
1,060,962 |
335,306 |
The Results: The GMIA on Life Dimensions projects better values than keeping their money in GICs. It provides the upside potential they’re looking for, without having to worry about negative swings in the market.
For more information on our current and future GMIA series, please make sure that you visit bmoinvestpro.ca for details and install our Wave 22 software. If you have not yet received your CD, please contact your MGA for a copy or you may download it by logging into bmoinsurance.com/advisor.
1 Life Dimensions (Low Fees) with InvestorMaximizer, YRT COI, $546,000 face issued on a Joint Last to Die for MNS55 and FNS55 and a 5.50% rate of return in a GMIA. Marginal tax rate: 42%. Probate and other estate charges: 2%.
MB 210 (2011/07/18)
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