Guaranteed Market Indexed Account (GMIA)
- 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 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: Martin is a 50 year old single parent and in good health. He ...
- Needs $500,000 permanent insurance for estate planning purposes
- Has set aside additional money as an inheritance for his daughter
- Would like to get better returns than what he’s currently getting on GICs
Option 1: Make deposits into a UL plan with a GMIA
Option 2: Buy a Term 100 Insurance and Invest the difference in a GIC at 4%
Age |
Annual Deposit |
OPTION 11 |
OPTION 2 |
Total Annual Charges | Face Amount | Tax-Deferred Savings Account | Tax Free
Estate Value
|
Term 100 Premium | Face Amount | After-Tax
Investment Portfolio
| After-Tax
Estate Value
|
51 |
25,000 |
5,789 |
500,000 |
19,740 |
519,740 |
5,471 |
500,000 |
19,982 |
519,982 |
52 |
25,000 |
5,789 |
500,000 |
40,566 |
540,566 |
5,471 |
500,000 |
40,428 |
540,428 |
53 |
25,000 |
5,789 |
500,000 |
62,537 |
562,537 |
5,471 |
500,000 |
61,348 |
561,348 |
54 |
25,000 |
5,789 |
500,000 |
85,717 |
585,717 |
5,471 |
500,000 |
82,754 |
582,754 |
55 |
25,000 |
5,789 |
500,000 |
110,171 |
610,171 |
5,471 |
500,000 |
104,656 |
604,656 |
60 |
5,471 |
5,789 |
500,000 |
141,471 |
641,471 |
5,471 |
500,000 |
117,374 |
617,374 |
65 |
5,471 |
5,789 |
500,000 |
182,379 |
682,379 |
5,471 |
500,000 |
131,637 |
631,637 |
75 |
5,471 |
5,789 |
500,000 |
305,721 |
805,721 |
5,471 |
500,000 |
165,573 |
665,573 |
85 |
5,471 |
5,789 |
500,000 |
516,406 |
1,016,406 |
5,471 |
500,000 |
208,257 |
708,257 |
100 |
5,471 |
5,789 |
500,000 |
1,142,753 |
1,642,753 |
5,471 |
500,000 |
293,773 |
793,773 |
The Results: The GMIA on Life Dimensions projects better values than purchasing an inexpensive T100 Insurance and investing the difference. It provides the growth potential that he's looking for, with no downside risk.
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 still 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 Universal life policy: Life Dimensions (Low Fees) issued on a single life for a MNS50, Level COI, Level + Fund death benefit and a 5.50% rate of return in a GMIA. Marginal tax rate: 42%
MB 212 (2011/08/17)
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