Segregated Funds & Guaranteed Income for Life

 

Why Buy Segregated Funds, the big picture:

Why Buy Segregated Funds, the big pictur

Protect clients from market jitters

Like a mutual fund, a seg fund is a collection of stocks, bonds and other investments that provide clients with an opportunity to “grow” investment capital

Offered by insurance companies
Can only be sold by advisors who hold a life insurance licence

 

Benefits:

Capital guarantees

At death and maturity

 

Estate planning — by-pass probate

Immediate transfer of wealth to beneficiaries

Save on fees associated with probate —
probate, legal, accounting and executor fees

Confidentiality, privacy

Reduces contestable risk

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Potential creditor protection with proper beneficiary

Risk of personal assets

FEES Associated with Estate Settlements:

Why Buy Segregated Funds, the big pictur

FEES Associated with Estate Settlements:

You have worked hard to build your nest egg, and when you are ready to take your retirement income, you may face financial challenges such as outliving your savings, inflation risk, and market volatility. All of which can erode your nest egg and negatively impact your retirement lifestyle. That’s why Empire Life has designed Class Plus 3.0 – to address these challenges and help you enjoy retirement.

When you invest in Class Plus 3.0, you are guaranteed to receive a predictable monthly income that is guaranteed for as long as you live. It is always protected from market downturns and it will continue even if the value of your investment goes to zero.

CLASS PLUS 3.0 ADDRESSES RETIREMENT PLANNING RISKS

  • Class Plus 3.0 offers enhanced wealth accumulation before retirement and provides predictable, guaranteed retirement income for life.

  • Guaranteed retirement income for life – starting as early as the year you turn age 55 – means you will not outlive your savings regardless of market performance.

  • The annual 4% Income Base Bonus in the first 20 years of the contract can mitigate market risk during the critical years before retirement while building income potential for retirement, which can also counteract inflation.

  • With the unique Annual Automatic Income Reset, Class Plus 3.0 does not limit you to the same payout rate for the rest of your life but increases every year from ages 55 to 80.

  • Automatic resets every three years of your Income Base and Death Benefit Guarantee9 may take advantage of higher market values and protect against inflation.

HOW CLASS PLUS 3.0 WORKS

Lifetime Withdrawal Amount (LWA)

  • The LWA is the maximum amount available for withdrawal from Class Plus 3.0 each year, starting as early as the year you reach age 55. The LWA may increase through Income Base Bonuses and resets, but it will never decrease as long as no Excess Withdrawals are made.

  • Any withdrawals over and above the annual LWA (an Excess Withdrawal) will reduce the Income Base.

Income Base

  • The Income Base is a notional amount that is used to calculate the guaranteed retirement income for life, or the LWA, and is the total of all deposits, less any withdrawals, plus any Income Base Bonuses. It is initially set to equal the amount of the initial deposit to Class Plus 3.0. It may increase through additional deposits or the triennial Income Base Reset.

  • It has no cash value and is not available for withdrawal from Class Plus 3.0.

Bonus Base

  • The Bonus Base is a notional amount used to calculate the Income Base Bonus at the end of the calendar year. It is equal to the initial deposit and may increase through additional deposits. The Bonus Base may decrease with Excess Withdrawals.

Income Base Bonus

  • The 4% Income Base Bonus builds retirement income potential.

  • Applied the first 20 calendar years of the contract, for each year you don’t make withdrawals from your contract.

  • The Income Base Bonus, applied annually, is not pro-rated.

Income Base Reset

  • On every third anniversary of the initial deposit, if the market value of Class Plus 3.0 is greater than the current Income Base, the Income Base will be reset to equal the market value of Class Plus 3.0.

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