Advisor Marketing Guide MANULIFE INVESTMENTS GIC

Transcription

1 Advisor Marketing Guide MANULIFE INVESTMENTS GIC

2 More than your typical GIC More choice and flexibility for your clients 2 Manulife Investments

3 Innovative features that out-perform competitors The Manulife Investments Guaranteed Interest Contract (GIC) offers your clients: A unique selection of GIC investments Tax and estate planning benefits, as well as potential creditor protection Competitive interest rates The financial strength of Manulife Financial Manulife Financial is a member of Assuris* * Visit for more details. GIC Advisor Marketing Guide 3

4 The Guaranteed Interest Contract A Guaranteed Interest Contract (GIC) from Manulife Investments offers many important benefits for you and your clients. Many of these benefits are available only from insurance companies, and several are offered only by Manulife Investments. These unique benefits form the foundation of your client s GICs a summary of these features and benefits are shown on the Manulife Investments GIC Advantage page. Select from six different GIC investments! With the Manulife Investments GIC, you have the choice of up to six different investment options for your clients, including: A Basic GIC Account A Basic Non-Cashable GIC Account A Laddered GIC Account An Escalating Rate GIC Account A Market Growth GIC Account A Daily Interest Account Clients can purchase any number of these GIC investment options, all within one Guaranteed Interest Contract, and all combined on one client statement per registration type. More information about each of these GIC investment options is shown on the following pages. 4 Manulife Investments

5 Here are four key reasons to do your GIC business with Manulife Investments: 1. You ll provide your clients with more choice and flexibility A basic GIC available in cashable or non-cashable form Specialty GIC investment options including laddered, escalating rate and market growth options, plus a daily interest account Competitive interest rates 2. You ll meet client needs with features that CAN out-perform competitors Half-year rate bonus enables your clients to earn higher rates simply by adding six months to a standard term for the Basic (cashable) GIC Account Rate guarantees on new deposits rates can be guaranteed up to 30 days prior to the investment Better of rate guarantees for reinvestments rates can be guaranteed up to 30 days before renewing existing investments with Manulife Investments Tax and estate planning benefits, as well as potential creditor protection 3. You ll find it easy to do business with Manulife Investments Superior service easy to use forms, fast processing and responsive customer service Easy to understand client statements and confirmations Numerous types of client reporting rate guarantee reports, reinvestment listings and contract maturity reports Advisor empowerment submit investment instructions on behalf of your clients to Manulife Investments 4. You ll build your business faster A full suite of products with effective marketing tools to help you attract and retain GIC business Highly competitive compensation Advisor rate discretion flexibility to trade off commission for higher rates if you choose Large Case Rate Program special rates for contract balances of $500,000 or more GIC Advisor Marketing Guide 5

6 ADVANTAGES Greater choice and flexibility Advisor rate discretion Higher rates over $500, day rate guarantees on new investments 30-day better-of rate guarantees on renewals FEATURES A minimum contract investment of $2,500 Up to 6 different GIC investment options within one contract (3 options for retirement income products) Terms from 6 months to 10 years (up to 30 years for retirement income products) Advisors can increase the posted term rate with a corresponding reduction in commissions, if needed (not available for terms exceeding 10 years, for the Market Growth GIC Account, or the Daily Interest Account) Obtain higher rates for clients with contract balances of $500,000 or more Can apply to new, supplementary and reinvestment amounts where the value of all GIC Accounts is $500,000 or more Other situations considered, including husband and wife combinations Lock-in a rate up to 30 days before a new or supplementary deposit Guards against falling interest rates Obtain a better-of rate guarantee on any Manulife Investments GIC Account renewal up to 30 days in advance The renewal rate will be the higher of the guaranteed rate or the rate in effect on the reinvestment day Estate planning advantages Potential creditor protection Tax advantages for non-registered GICs Backed by financial strength and security Upon death of the annuitant, GIC proceeds (including interest) pass directly and privately* to a named beneficiary without charges Avoid probate and estate fees using a named beneficiary other than the estate Clients may receive creditor protection benefits that aren t available through banks, trust companies and mutual fund organizations Manulife Investments GIC interest qualifies for the annual Pension Income Tax Credit for those 65 and over. (This credit is up to $300 at the federal level, plus the provincial tax credits) Accrued interest from a Manulife Investments GIC is an eligible source of pension income for purposes of income splitting for clients age 65 or older Policy year tax reporting defers tax on interest earned for up to one year These tax advantages are generally not available with bank, trust company and mutual fund investments Manulife Financial is one of the largest and strongest Canadian financial services companies, with high ratings for financial strength and claims-paying ability In addition, Manulife Financial is a member of Assuris** * Not applicable in Saskatchewan. ** Visit for more details. 6 Manulife Investments

7 ADVISOR BENEFITS You can offer distinctive, highly competitive GIC solutions, all from one GIC provider INVESTOR BENEFITS Clients can receive customized GIC investment solutions that fit their unique needs You can trade rate-for-commissions to attract or retain investments No head office approval required Attract higher net worth clients using large case rates Can be used in conjunction with advisor rate discretion to offer even higher rates to your client Clients can receive even higher rates than those posted Clients can receive enhanced GIC rates when the total amount invested in Manulife Investments GIC Accounts is $500,000 or more You will be confident the interest rate is locked-in and will not change if rates fall Protects clients against falling rates when waiting for money to transfer to Manulife You can guarantee a minimum rate for your client s reinvestments You have better control by not having to process reinvestment instructions on specific days Clients can make decisions sooner without risking a drop in rates or missing out on a rate increase You can plan for a more orderly, cost-efficient and faster transfer of your client s assets Help protect professional and small business client s personal investments, and offset their business risk Reduce and defer the amount of tax clients pay on investment earnings by placing their non-registered GICs with Manulife Investments A great door opener that can lead to other tax reduction concepts Designated beneficiaries save money and can receive proceeds sooner - the funds bypass the estate and are not delayed through the probate process Client s personal assets may be protected from creditors in certain circumstances Clients 65 and older can reduce the amount of the tax paid through pension income splitting and the pension income tax credit Clients can defer tax on their GIC interest for up to one year Allows you to sell terms over five years and still provide your clients the comfort of additional deposit protection (Bank GICs are only protected on terms of five years or less) Clients have confidence knowing their money is guaranteed by a financially strong company Manulife Financial is a member of Assuris** GIC Advisor Marketing Guide 7

8 Basic GIC Account A cashable GIC investment that offers clients the security of guaranteed interest rates but also the flexibility to cash in if the need arises Key Features Terms from 6 months to 10 years (up to 30 years for registered retirement income GICs) Pick any maturity date desired Available half-year rate bonus add six months to a standard length full-year term and get the next year s rate (i.e. a 2 1/2 year term would receive the standard 3 year rate) Cashable in whole or in part at any time* RRSP, LIRA, locked-in RRSP, RLSP, RRIF, LIF, LRIF, PRIF, RLIF, TFSA and non-registered options available Interest can compound to maturity or, for a non-registered GIC, be credited monthly, quarterly, semi-annually or annually to the Daily Interest Account $1,000 minimum per term Maximum annuitant age of 100 for non-registered contracts and TFSA No maximum annuitant age for RRIF/LRIF/PRIF/RLIF For LIF, maximum annuitant age up to December 31 of the year the client turns age 80 under some pension jurisdictions I n v e s t o r B e n e f i t s Half-year rate bonus allows clients to earn higher rates by simply adding six months to a standard length full-year term Clients can plan their maturity dates to line-up with their future investment plans, expenditures or lifestyle changes Funds are available to clients at any time* Advisor Benefits Half-year rate bonus allows you to offer rates that are usually higher than standard terms from other institutions Flexible maturity dates enable you to better plan reinvestments you can smooth out administration and cycle maturity dates outside the RRSP peak season Early cashing privileges allow your clients access to their money in the event of an emergency or for other investment opportunities* Commission is 0.4% of initial deposit for each year of term, to a term maximum of 4%** * Surrender charges may apply if withdrawals are made prior to the Maturity Date. Withdrawals may be subject to legislative or contractual restrictions. ** Commissions are paid up-front for the term duration to a maximum of 10 years, and will be proportionately reduced by Advisor Rate Discretion. Clawbacks may occur on the death of the annuitant. 8 Manulife Investments

9 Basic Non-Cashable GIC Account A non-cashable GIC investment designed to enhance your client s guaranteed rate of return Key Features Terms from 6 months to 10 years Higher interest rates than the Basic Cashable GIC Account (half-year rate bonus does not apply) Pick any maturity date desired Non-cashable during the term (except on death) RRSP, LIRA, RLSP, locked-in RRSP, and non-registered options available (not available for TFSA, RRIF, LIF, LRIF, RLIF and PRIF) Interest can compound to maturity or, for a non-registered GIC account, be credited monthly, quarterly, semi-annually or annually to the Daily Interest Account $1,000 minimum per term Maximum annuitant age of 100 for non-registered contracts I n v e s t o r B e n e f i t s Clients can earn a higher rate compared to a standard term in the Basic GIC Account Clients can plan their maturity dates to line-up with their future investment plans, expenditures or lifestyle changes Advisor Benefits Provide clients with rates that compete with the highest rates in the industry Flexible maturity dates enable you to better plan reinvestments you can then smooth out administration and cycle maturity dates outside the RRSP peak season Maximum annuitant age for RRSP, LIRA, Locked-in RRSP and RLSP contracts is December 31st of the year the annuitant turns age 71 Commission is 0.2% of initial deposit for each year of term, to a term maximum of 2%* * Commissions are paid up-front for the term duration to a maximum of 10 years, and will be proportionately reduced by Advisor Rate Discretion. Clawbacks may occur on the death of the annuitant. GIC Advisor Marketing Guide 9

10 Laddered GIC Account A convenient way to automatically diversify your client s GIC portfolios, by ensuring that a portion matures each year and is reinvested at attractive long-term rates Key Features Laddered term options of 1 to 5 years, or 1 to 10 years Automatic distribution of the client s investment across multiple term lengths (i.e. into 1, 2, 3, 4 and 5-year terms) One blended rate is given to all terms (a different rate will apply to the 5 and 10-year options) A portion of the investment matures each year and is automatically reinvested into 5 or 10-year terms (alternate reinvestment or withdrawal instructions can also be submitted) Cashable in whole or in part at any time* RRSP, LIRA, RLSP, locked-in RRSP, TFSA, RRIF, LIF, LRIF, PRIF, RLIF and non-registered options available Interest can compound to maturity or, for a non-registered GIC, be credited monthly, quarterly, semi-annually or annually to the Daily Interest Account $5,000 minimum for the 5-year option, $10,000 minimum for the 10-year option Maximum annuitant age of 100 for non-registered contracts and TFSA No maximum annuitant age for RRIF/LRIF/PRIF/RLIF For LIF, maximum annuitant age up to December 31 of the year the client turns age 80 under some pension jurisdictions Initial commission is 1.2% of premium for 5-year ladder, 2.2% of premium for 10-year ladder (0.4% of initial deposit for each year of each term)** I n v e s t o r B e n e f i t s Clients have greater protection against fluctuating interest rates in the future Clients GIC investments can renew automatically into attractive long-term rates, with minimal involvement on their part Funds are available to clients at any time* Advisor Benefits Easy to manage your clients reinvestments maturing money is automatically reinvested into 5 or 10-year terms A unique product to offer your clients positions you as offering greater choice and flexibility * Surrender charges may apply if withdrawals are made prior to the Maturity Date. Withdrawals may be subject to legislative or contractual restrictions. ** Commissions are paid up-front for the term duration to a maximum of 10 years, and will be proportionately reduced by Advisor Rate Discretion. Clawbacks may occur on the death of the annuitant. 10 Manulife Investments

11 Escalating Rate GIC Account For GIC clients who desire increasing interest rates each year Key Features Terms of 3 or 5 years Increasing rates for each year of the term Very attractive posted rate for the final years of the term Cashable in whole or in part at any time* RRSP, LIRA, RLSP, TFSA and locked-in RRSP options available (not available for RRIF, LIF, LRIF, PRIF, RLIF and non-registered) Interest will compound to maturity $5,000 minimum per term Maximum annuitant age of 100 for TFSA Maximum annuitant age for RRSP, LIRA, Locked-in RRSP and RLSP contracts is December 31st of the year the annuitant turns age 71 I n v e s t o r B e n e f i t s The client s interest rate is guaranteed to increase each year of the term Clients can lock-in now for attractive interest rates in later years Funds are available to clients at any time* Advisor Benefits Provides an appealing GIC investment option for rate-sensitive investors Helps you to attract clients to your door and away from competitors Commission is 0.4% of initial deposit for each year of term** * Surrender charges may apply if withdrawals are made prior to the Maturity Date. Withdrawals may be subject to legislative or contractual restrictions. ** Commissions are paid up-front for the term duration to a maximum of 10 years, and will be proportionately reduced by Advisor Rate Discretion. Clawbacks may occur on the death of the annuitant. GIC Advisor Marketing Guide 11

12 Market Growth GIC Account For GIC clients looking to participate in the growth potential of market-based investments, while also seeking to guarantee their principal Key Features Offered by Manulife Investments during limited time periods additional information will be available during offering periods Links returns to market-based investments selected by Manulife Investments Investment growth during the term is credited as interest on the maturity date* Client s principal is 100% guaranteed at maturity Non-cashable during the term RRSP, LIRA and locked-in RRSP options available (not available for RRIF, LIF, LRIF, PRIF and non-registered) $5,000 minimum per term Maximum annuitant age for RRSP, LIRA, Locked-in RRSP and RLSP contracts is December 31st of the year the annuitant turns age 71 I n v e s t o r B e n e f i t s Clients can participate in the growth potential of market-based investments and their principal is 100% guaranteed Enables clients to diversify their GIC portfolios and benefit from a unique investment type, while guaranteeing their principal at maturity Advisor Benefits Provides a GIC investment for your clients who want to participate in the upside potential of the market, while also guaranteeing their principal investment Provides your clients a unique GIC option that will diversify their investments Commission is 0.5% of initial deposit for each year of term** * Interest is based on the performance of a market-based investment, and is credited on the maturity date. At any date prior to the maturity date, the interest is zero and the value of the investment is the principal amount. ** Commissions are paid up-front for the term duration. Clawbacks may occur on the death of the annuitant. 12 Manulife Investments

13 Daily Interest Account A cashable account for clients who require easy access to their investments Key Features A short-term holding account to wait out market fluctuations or interest rate downturns Money available anytime without fees RRSP, LIRA, RLSP, locked-in RRSP, RRIF, LIF, LRIF, PRIF, RLIF, TFSA and non-registered options available Interest is compounded daily and credited monthly Maximum annuitant age of 100 for non-registered contracts and TFSA Maximum annuitant age for RRSP, LIRA, Locked-in RRSP and RLSP contracts is December 31st of the year the annuitant turns age 71 I n v e s t o r B e n e f i t s A convenient place to park money while clients take time to make longer-term investment decisions Access to money at any time without fees allows clients to meet short-term liquidity needs Advisor Benefits Helps you assist clients in effectively managing their short-term liquidity needs Allows you to consolidate client s money for future investment purchases No maximum annuitant age for RRIF/LRIF/PRIF/RLIF For LIF, maximum annuitant age up to December 31 of the year the client turns age 80 under some pension jurisdictions 0.2% annual commission calculated daily and paid monthly GIC Advisor Marketing Guide 13

14 Retirement Income Features Retired clients will enjoy additional income benefits with the Manulife Investments GIC Key Features RRIF, LIF, LRIF, RLIF and PRIF options available Choose from Basic (Cashable), Laddered or Daily Interest Account GIC investment types If your clients already have a registered Manulife Investments GIC, the assets can be converted to a retirement income GIC at any time without charge, with the same interest rate(s) and maturity date(s) select from several payment frequency options monthly, quarterly, semi-annual or annual Scheduled payment amount options - choose RRIF minimum, level, indexed payments or maximum (available for LIF, LRIF and RLIF plans) Withdrawal order options clients can choose to have proportional payments drawn from all GIC investments in their contract, or can use the interest first from the GIC investments with the lowest rates Flexible withholding tax options clients can choose their tax rate, subject to government prescribed minimums Free annual cash withdrawal option in addition to scheduled payments, clients can withdraw up to 10% of the total value of all terms once per year, to a maximum of $10,000, without charge I n v e s t o r B e n e f i t s Provides a wide range of flexible options for payment frequency, payment amounts, withdrawal order and withholding tax Clients have the ability to change their payout options as their needs change Charge free withdrawal option gives your clients access to funds in the event of an emergency or for other investment opportunities Automatic payments are conveniently deposited to your client s bank account Advisor Benefits Positions you as offering greater choice and flexibility with clients through a wide range of options for payment frequency, payment amounts, withdrawal order and withholding tax Charge free withdrawal option means you can give your clients access to funds in the event of an emergency or for other investment opportunities Payments deposited directly to your client s bank account 14 Manulife Investments

15 Marketing Support ON-LINE INFORMATION Manulife s advisor-only Web site, Repsource, includes up-to-date information about all Manulife products and services, as well as the latest industry news. You can visit Repsource today at: manulifeinvestments.ca GIC MATERIALS AND RATES Client brochures and mailers Current rates and rate surveys Ad mats PowerPoint presentations Product guides Administration forms Automated rate line LARGE CASE PROGRAM* Manulife will consider enhancing the posted interest rates on any amount, where the contract balance is $500,000 or more. Special rates apply to reinvestments as well as new money. In addition, large case rates can apply in situations where the total of two or more Manulife Investments GIC policies is $500,000 or greater. B U S I N E S S D E V E L O P M E N T Our experienced regional Wholesalers and Inside Sales Representatives provide you with a full range of product and industry information, as well as support to help you develop your business. ADVISOR CALL CENTRE Manulife s dedicated team of customer service representatives is available from 8:00 a.m. to 8:00 p.m. EST daily (8:30 a.m. to 5 p.m. EST in Quebec) to answer any inquiries about the administration or servicing of your business. Manulife Investments and Manulife Securities advisor support is available at: for all of Canada except Quebec, and for Quebec or for service in French For Managing General Agents, support is available at: for all of Canada except Quebec, and for Quebec or for service in French For National Accounts, support is available at for all of Canada except Quebec, and for Quebec or for service in French WEALTH MANAGEMENT TAX AND R e t i r e m e n t S E R V I C E S (T R S) G R O U P With extensive experience in retirement planning and wealth accumulation strategies, our team of accountants, lawyers and other specialists are skilled in proactively identifying opportunities for clients, based on changing regulatory environments and market conditions. * Only applicable to full term periods GIC Advisor Marketing Guide 15

16 For more information, please contact your Manulife Investments Sales Team or visit manulifeinvestments.ca The Manufacturers Life Insurance Company is the issuer of the Manulife Investments Guaranteed Interest Contract (GIC). Manulife Investments is the brand name identifying the personal wealth management lines of business offered by Manulife Financial and its subsidiaries in Canada. Manulife, Manulife Investments, the Manulife Investments For Your Future logo and the Block Design are trademarks of The Manufacturers Life Insurance Company and are used by it, and by its affiliates under license. MK1486E 10/10 TMK998E 16 STRONG Manulife RELIABLE Investments TRUSTWORTHY FORWARD-THINKING