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we're all working from home and uh and typically we thought we'd have a lot more time but doesn't seem to be the way i if you guys hear my two-year-old screaming in the background i had to change rooms just to avoid children around so it is what it is welcome to the colbit world that we live in so over the next six weeks next five weeks these are the concepts i will be addressing each week we'll do a 30 minute presentation um followed by a demo uh a demo and some q a so we have you as of presentation by 10 and i'll stick around afterwards for some q a so the agenda for today uh with every meeting i'm going to do a little bit of updates just to give you an update on empire today the focus is the launch of the new ado which i'm extremely excited about so wonderful to get this out to the public um talk about the why the what's the features and some software information then again we'll do some questions at the end um so let me just start off with a quick empire update just so we're all on the same page uh yesterday there was email that came out non-face-to-face is more prevalent than ever we now have a new verification process will allow you to attest to identification and verification of individuals using their video function so if you haven't seen that please have a look that's that's a wonderful feature we have improved our co-browsing speed uh we had some complaints early on about speed we've moved servers i'm no tech guy but simply put it's faster and much much much more improved so if your internet connection is good you will be able to do co-browsing much simpler now um underwriting delays we do have some underwriting delays we're experiencing i think every insurance company is at this point those that are busy anyways and we're working through it we should be get through in the next few weeks but i do we do appreciate your patience if there's anything a priority or urgency jordan i are always available to give a hand wherever possible uh critic illness non-medical limits were increased to 250 000 a few weeks back so 18 to 40 we can do ci250 and for at least until the end of this month um please take advantage if it fits your clients needs the improved fyc so right now you get 10 more for using fast and full and if you also decide to use the ehq and e delivery process combined it now goes up to 15 more fyc so 15 more gross compensation is nothing to sneeze at so take advantage uh wonderful offer by empire life and really the idea here is to help you speed up underwriting for the extra five percent by doing the questions yourself and the email delivery uh versus paper overall speeds up the overall process so that was your quick quick empire update one to make sure we're all on the same page and i touch bases and great items that affect you day to day empire par adio launch uh very very excited to have this out on the marketplace this is something that we've been hoping for for a little bit of time just a quick history lesson uh empire launched the ada sorry the eight pay contract i believe in december uh 2017 and we've had tremendous success on the eight pay the 10 pay done really well on that um the one hole that we've always had or the challenge we've always had is a little more flexibility that the eight pay and 10 pay or 20 pay for that matter did not did not give us so with the recent launch of the additional deposit option it gives us the flexibility and the premium uh in premium that we were looking for so if you combine the strength and the breadth of our 8 pay 10 pay 20 pay contracts um with the ado flexibility i think we have a wonderful story to tell so thank you for those that are here to listen to that story so why empire par will go through some of these quickly and this would only be a slide i would just kind of skim through but the reality is these guarantees more than ever are uber important i know we all have illustration software i can quote pick a company your manager can your equitables pick a company all illustrate well what i love about the empire contract and again now more than ever is the tremendous guarantees if you're selling empire you're selling guarantees uh we project well we illustrate well but the guarantees is the main grabber the premiums cash value second to none life insurance with our enhanced benefit paid up coverages uh wonderful wonderful guarantees you're going to find our contract so if you're looking at empire this is something that you value remember we have two park contracts estate max optimax just quickly estate maxes the life insurance the state value driven contract optimax is the early cash value contract power fund is healthy we are sitting about just under 800 million dollar power fund very conservative which is well positioned in today's market right now 84 is very low risk um so we're seeing we're not having too much pressure on our par fund is performing well the industry will see a bit of a push uh or some downward pressure but empire feels our power is strong and healthy um we actually had a wonderful quarter this is the spring quarter as of the end of march we actually had a 10 rate of return on our equity portion of sort of the par itself that was a bit of an anomaly due to some sell-offs but still nice to see a big number there our dividend scale is currently six percent is our primary scale we are not dropping it down in 2020 uh and we'll see for funny years to come but uh we're comfortable and happy with our power fund at this moment uh flexibility remember we have our eight pay ten pay 20 pay pay to 100 these are benchmarks of empire contracts these contractually guaranteed premium options so why and why people love empire's power is really the customization uh to go along with the guarantees i referred to before um pick a dividend option that meets your needs your paid ambitions is your standard you have your lifetime guarantee enhanced coverage if you're looking to really maximize the early coverage for a client take advantage of the enhanced which has lifetime guarantee cash accumulation which allows you put your dividend into a separate investment account cash payment more to come on this on the month to come this is a brand new concept in our industry altogether where we're just revisiting the ability to move your dividend to cash payment maybe towards retirement or another vehicle but something that we can talk about at a later date and your premium reduction if you need to want to use your dividend towards reducing your overall premium uh from a flex a product structure standpoint term riders second to none we have t10 t20 t100 as a rider critic illness we have our basic ci protect and we also have ci protect plus so not only were the only companies to offer um ci uh ci as a rider onto par we're also the only one that i'm aware of of the major philanthropic companies that offer rop on expiry and death as a rider on ci on a rider on estate max or park i should say so wonderful flexibility to package everything all together and of course the focus of today is our most recent launch which is the additional deposit option uh that just just was released and will be available to you now on our software system so the what in the why of power radio so again we have different levels of experience in this audience so i'm going to start with a little bit of what is ado and we'll go from there so at its simplest form ado is an election you can you can make on top of your standard policy to deposit additional funds so you have your insurance premium for your 250 000 20 pay your ado with additional money that maximizes the mtr limit it gets you to deposit more money that goes directly towards buying more paid up additions intern by giving you more cash value and faster growth on your life insurance so really i like to use the word supercharge the product performs extremely well on its own adding in the ado gives you the ability to have a lot more flexibility on the premium side of things premium offset being a big one i can use the over funding or the additional deposits to pay up something quicker or offset offset meaning the ability to stop paying because the cash value will support the cost insurance also with ado if i am over funding with the additional money i can stop if i need it if needed and restart i'll talk about that more later really maximize your cash value growth your life insurance growth and if you're using the enhanced coverage there's a much much faster crossover period which again i'll address all these things going forward target markets typically successful self-employed professionals it tends to be the most common scenario actively working making above average incomes looking for somewhere else to shelter some monies as well as uh build an estate uh estate plan typically we're looking at a 20 pay life pay with some form of an offset as a product for these clients um second group is your pre-retiree retiree baby boomer where they have surplus income and or surplus savings and they're looking for some form of wealth transfer a state preservation strategy where the product solution typically tends to be a quick pay eight ten pay or 20 pay with an offset life day with an offset are the options in terms of just a basic basic structure every client is different but this is typically what we see so some highlights again a lot of companies have ado i wanted to point out where empire stands out and some highlights that you should be aware of as an advisor so we launched it october it's launched a couple weeks back it is effective any policy sold after october 1st 2019. so if you sold any power with us after october 2019 you can add a deal retrovirus retroactively on the 10 pay 20 pay or life pay there's your minimum minimums at a thousand dollar annual minimum that's very generous the children at 300 annual 25 monthly gives us a lot of flexibility there at a low minimum and it's important to know and i'll get to this a couple times the ado deposit can continue after the contractual premium payment has stopped i.e after 10 or 20 years you can continue on with your additional deposit premium our latest software is 11.8 um so make sure you have the current version um no underwriting is required when you're adding ado uh as we do reserve the right to ask for but there's no expected underwriting requirement additional underwriting if you're adding adl which is a wonderful feature um premium holiday which this was a big demand we can allow you to take an ado holiday up to 36 months and return without full underwriting just some simple paperwork to be completed and if you uh you can add ado up to 24 months after the policy has been applied for and enforced again with a simple form term conversions this is a big question we get it quite often so we will allow term conversions if you want max ado we will convert up to 75 percent of the original depth of benefit including the enhanced coverage so it must be enhanced and it's a maximum 75 i'll give you a couple examples of this going forward as well illustration wise just wanted to make sure that some of the new columns you see make sense you're going to see three different sections on the illustration one is your maximum first year allowable ado deposit second specified will be the level that you specified the deposit which could be maximum or somewhere between minimum and maximum and then the lifetime maximum ado this is what you've been pre-approved for so if my ado is uh 5 000 5000 times thirty year expectation will underwrite you for thirty times five thousand your full amount up front here's an example um where we have the minimum is a thousand we have the specialized deposit level at fifty thousand uh we're doing maximum premium here so we're putting the 71 plus the 50 we're getting close to the end the maximum annualized premium and then the lifetime uh maximum amount is 2.5 million which is a simple calculation of 50 000 times 50 years so they've estimated to put the additional deposit in for 50 years at uh and so total 2.5 of approved ado up front so just these are the new columns you're going to see on the illustrator software again as i said we can add adio to enforce policies within the first 24 months um simple simple form we've just now created a new form on our site ins2741 all these names ado change form all we're really looking on these scenarios is are you um how's your health change smoking status have you been declining for insurance the last 12 months so no full underwriting any of these changes very simplistic term ado highlight again so we will allow you to convert up to 75 of a term policy uh is convertible um and it's important to know that the enhanced coverage must be must be used so we do 75 of base plus enhanced so that would give you if i had a million dollar policy i could do 750 of life insurance uh including the enhanced coverage and the adl maximum would be 10 times the ado so um now of course if you did provide us uh underwriting insurability evidence we could do more but that's what the conversion limit is right now so pretty straight forward to 75 so that was some of the highlights what i really wanted to spend a few minutes on is showing you the features and flexibility what can i do with this thing so um how can this benefit me and my clients so i'll start off with a lot of the guarantees so again with empire the guarantees the quick pays and offsets are what we are uh been known for and what advisors and clients appreciate the most eight to ten to twenty still rock solid contracts uh eight paid still is a rock star 20 pays our most common and popular sale take advantage but now with the use of ado we have uh earlier offsets if the client if you wanted some more flexibility or quicker pace so these are the quickest offset years we can provide you currently if you're using the various type of uh cost insurance options so if i did max ado on a life pay i could have an offset by year five to seven so five pace of the seven years five years up to seven years of annual pay depending on the age is your quickest offset on a 20 page usually seven to eight years for an offset on a 10 pay it can be seven to eight years so even though i'm paying a 10-year cost insurance i can have it fully funded after seven or eight years and these are all at current scale if i did a minus one um it's typically one plus one year whatever the the current scale is right now so again we have the guaranteed quick pace eight ten twenty as mentioned or we can be more flexible using the ado to have enough extra money in the contract to do a quick pay or an offset uh if you will which again these are not guaranteed um to be offset at this point but if it's funded properly and conservatively using your current n minus one scales you have a very good projection out there to support our clients and their varying needs so those are the offset years so i just want to give you an example of you know one one case that i looked at so here's a common case i get pulled into and asked to quote on so here's something that i would put together to help you so i have a joint left to die husband and wife both 60 female 60 male 60 they have a hold co with surplus retained earnings at 250 000 which they would like to pass along whether it's kids grandkids charities spouse they just want to be able to pass along some of the money out of the company efficiently and they're using life insurance as a vehicle to do so so we're going to look at the four different ways we can build this guy to get a quick pay into the contract so if i use a state max life pay the quickest i could pay is in five years so that would be fifty thousand times five which is eighteen thousand dollar base cost plus thirty one thousand of ado initial death benefit 790 cash value year 12 is 135 000 death benefit is 8.42 i could do estate max 20 pay um the it would take seven years at 35 seven fifteen which again is comprised of eighteen base seventeen adult initial death benefits a little bit lower but it does catch up a later catch up in later years ten pay i could do as quick as eight years for these clients it would take eight years at thirty one thousand two fifty with my twenty six thousand of custom cost and forty seven hundred of ado uh and it would grow to eight seventeen you see the cash value is growing with the quicker pace and the good old eight pay which does not have ado on it but if you wanted to straight quick pay on the eight we can do it in eight years at 31 250 uh with initial death benefit four four five guaranteed uh sorry total cash value of 250 at year 12 and the death benefit at 871. this is not to say which is better or worse um these are scenarios where it's quickest payments want to show the side by side if clients want more security and guarantees maybe the 8 to the 10 pay clients want to maybe go beyond year five the life pay may be an option or a 20 pay there's not a right or wrong in this scenario but i'm just giving you illustrations to show that various options we have if i did a five pay with the estate max life paid nothing stops me from doing years six seven eight if i wanted to pre-underwrite the ado afterwards so lots of opportunities here lots of flexibility that we never had before which i want to demonstrate in this um so again the beauty of the quick pace which are guaranteed as well as the offset options at very early years that uh help you get the flexibility you and your clients are looking for that was uh first one second i'm going to talk about is enhanced coverage so a lot of empire 20 paid life pay products even our apa for that matter it uses our enhanced coverage this is the additional term editions on top of your base plan you see my little chart here you see in blue the one year extra term insurance which which increased the total coverage from day one at some point down the road the paid up additions will surpass the one-year term insurance and that'll it'll all be paid up additions so um the enhanced coverage is something we see a lot because we have a very generous advance coverage extender option which allows your clients to get a lot more coverage at the same price that they would just pay for the base so in a very family market normal uh insurance driven case really look at the enhanced with empire so as an example here is the estate max 20 pay for 250 000 for a 40 year old female which would be 165 of base plus enhance of 84 000 the premium would be 3788 now on a regular sale uh just paying straight premium for 20 years it will take 26 years for the paid up edition to surpass 250 000 so once it starts at 165 you're getting your paid up editions yearly it'll take 26 ish years to surpass 84 000 enhanced which is fine the 250 is guaranteed from day one as long as you're paying your premium but the beauty of ado is allows me for a much faster crossover if i have the disposable money so if i did the same client and we added max ado as an example so we're now putting in 7193 so we're taking the base of 37.88 from above plus the max adl which is 3 405. the crossover year is now year 6. so after five in the sixth year our coverage has already gone beyond 250 000 and again it started it started at 165. so from an enhanced option you get all the guarantees the enhanced and a much much faster crossover if you want to max out the ado on that scenario so another uh unique feature with empire um i'm next going to go into the quick pay and keep going so we've always heard about using your premium to offset and to pay up early my five year pay i want to get this in quickly i want to pay it up in a certain number of years um but what i love about this and just to change your thought process a little bit is nothing stopping you from continuing your premiums beyond the the guaranteed pay period so here's a 40 year old male doing an estate max 20 pay the max ado i've sold for for 25 years not 20. i've put in the five years beyond i can do you know 60 more years if i if i want to um but i just use 25 as an example the 25 000 premium in this case includes 11 887 of ado and again i've sold for adl for 25 years and going beyond the 20th year clients who would be interested in something like this again made self-employed high income professionals those requiring the flexibility of ado but don't necessarily want to be restricted by 20 years worth of payment that may want to continue on uh long term so in our software here's a nice print screen of what this would look like if i built it for you you have your under your coverage tab we have a 20 pay with 514 thousand dollars of insurance which equals 13 113 of cost i've ticked off the new box additional deposit option for maximum and here on the right hand box you see 25 000 of annual premium for this client from years 1 to 20 and then from 21 to 25 i just have the ado 11 087 so pretty straightforward software to figure out uh it's not overly complicated um the only challenge will be is figuring out if i have a set premium out i just it's a trial and error with the coverage amount um to figure out how to get the exact number to equal my 25 000 uh which is pretty common a lot of the company software's but again jordan i are always here to help out as needed so this is what the software would look like illustration would look like this for this client we'd have an estate max 20 pay maximum period deposit until 25th year 25 so again we put 25 years even though it's a 20 pay the illustrations offer the specified and the maximum is the same 11 000 11 000 okay i have a lifetime maximum amount of 297 of 80o which is really just simply 11887 times 25 okay to get my lifetime max and the 20 pay premium for the 514 000 is 13113 um so to combine that's my 25 000 in premium now if the client wanted to continue beyond year 20 they have the ability to deposit thousand eight eight seven up front so for this particular client we have 25k going in for 25 years at the 20th year that commitment stops and they but they still have the ability to keep on going with ado 11887 that money goes directly into the contract by more paid up additions and really maxing out the uh paid up editions cash value and estate benefit growth keep in mind the client would only be 60 after 20 years so again still a lot of income years ahead of them where they may not want to stop paying for a 20 pay so having the ado extension beyond the 20th year is a nice feature keeping in mind this is not a mandated amount is never a requirement of the contract is always optional whether it's in the first 20 to 25 years or after the 20th year but it gives you the flexibility you're looking for remember before we talked about the 36 month holiday where the clients can stop paying for up to 36 months of their contract so a lot of flexibility in this guy um that we did not have uh previously with the uh the the uh the lineup that we had um and again just just to be one of the points uh the the same clients uh you know when you're building these samples do i do a 20-page straight or do with the estate max for solving for the full amount or do i use the same premium and use max ado so the same 40-year-old mail that we've been showing in the last couple examples i could do 25 000 of annual premium and solve for the life insurance and with no ado or i can take 25 000 and ado in my contract and what does it look like side by side is the initial the on the left is the no ado on the right is with maxum ado so same 25 000 going into both policies for this 40 year old male uh non-smoker but it's a matter of what the client is concerned with their values um the 25 000 if on the first scenario there is no flexibility in stopping premium you're committed to 25 000. with the um ado option you're only committed to 13 plus thousand a year at the edo is always optional but let's assume we put 25 into both the initial death benefit is much higher on the 20-year pay with no ado total cash value is higher on the max adls by year 20. the guaranteed cash value is higher on the 20 pay no ado again that would be because we've committed to a higher insurance amount initially get more guaranteed cash but again if we look at now estate value 45 years later age 85 you actually have 2.7 versus 2.6 on the death benefit side again all this is based on current scale this is not an example to show you better or worse right or wrong this is just again what is needed what is wanted by the client do they want the security and guarantees of a straight 20 pay do they want the flexibility of the ado option do they want to be able to extend payments stop payments early earlier with an earlier offset whichever they value is how we build the contract but i'm giving you examples right now in order to um give you some ideas and some flexibility that we can have here again if this is new to you or something you just haven't quoted with empire obviously before jordan and i are always here to help out with these particular quotes so that was some of the features uh we're now just about at 10. so i'm going to give you just a wrap up with a few other things compensation always important how much do i get paid you guys don't care about that at all i'm sure um but again empire is a little different how we calculate a comp we base on the entire premium so fyc and eight pay is 25 10 pays 35 20 pay is 50 and team and paid 100 is 50. um but again remember even eight pay 25 is a smaller number but it's multiplied against the entire uh eight paid premium 10 pay same smaller at 35 but multiplied against the entire premium keep in mind we still have our fast and full bonus programs so just for using fast and full for example the 20 pay goes from 50 to 55 and if i decide to do the ehq and e delivery it goes to 55 um sorry that's supposed to be 57.5 sorry for the typo there instead of 55 it's 57.5 so tremendous amounts of money on the table with empire very generous and last cherry on top if you don't know this already from a payment mode standpoint um we one of the few companies that calculate your commission calculation based on the mode so if the monthly it's multi times 12 times fyc versus just the annual premium which could be a difference of 8.3 in your pocket so definitely some extra money on the table for a wonderful contract to get paid more for it is a win-win and renewals fyc on the adl is four percent uh bonusable uh does not apply for the fast and full uh four percent bonus ball and four percent for life as long as the clients are putting on the deposits um sales concepts to go along with this we have a million concepts in our ad calc and that's really what the next five weeks are going to look like because lists of concepts but what i'm going to focus on i talked about at the beginning personal legacy builder next week ensure retirement concept um you're you know using insurance as a part of your retirement thriving in the family market i love this presentation look hopefully you get a lot of attendance on that of course annuity funded life insurance for children tax free savings maximizer tfsa maximizer these are the next particular consecutive five weeks where i will be doing the introduction of the concept and helping it build rate on the software in front of you uh we've got a bunch of new marketing material available to you for with the new ado listed inside it so take advantage of that um that being said i'm at 10 o'clock on the nose um i am going to open up the software just to show you a quick demo and maybe find any questions that i missed as i was bothering on i'm not sure if jordan answered some of the questions but i'm going to do a quick demo just to make sure we all have seen an ado uh created um so those are getting off thank you those are staying on please uh well i'll be with you with questions in a moment so here i have an estate max contract where i have a 20 pay for sorry a 50 year old male non-smoker and we have an estate box 20 pay 250 000 and if i wanted the premium on that is 8512. if i want to put on max ado i could choose anything from minimum of thousand to a maximum of eight thousand one two three for this client which could give me a total deposit of sixteen thousand uh six thirty five if i wanted to know how quickly i can offset this guy simply press my offset button and my earliest is the default so it'll pop here populate in the bottom right hand corner uh it's offset at year eight which means it would take seven payments of the max ado to offset this contract so if i wanted to offset early quick pay the 20 pay with maximum ado using offset it would be again at the end of year seven in the eighth year i would i could stop paying for this contract altogether okay if i chose to and i would also match that by putting in seven years worth of adl to be to be uh make sure that it's it's correct okay so that's how that would look um if i wanted to do a set premium level um this is a little more complicated i just quick demo and again jordan and i are always here to help but if i want to put a set premium amount in my contract take this off for a moment i put if i wanted to get to 25 000 instead of doing solve for premium it's a trial and error scenario so if i put 250 of life insurance here and i have 16 000 of coverage and i want to be able to put max ado i have to do it and get this up to for example 17 000 versus 16635 i really have to do a trial and error scenario here where i'm putting in more coverage um to get me up to the amount i'm looking for oh what happened here okay 25 i'll wake up okay so eighteen thousand oh let's say we get up to twenty thousand three 315. so now we're if i put 315 for example a trial and error i have 20 000 let's say 21 000 of premium going into the contract so if i want a set amount put in per year there is a bit of a manual uh back and forth you do on this uh in order to get the the exact number you're looking for so you use your max ado and play around with a number and this will get you to the the actual projection that you're looking for in terms of just some things you i want to make sure you guys are aware of in terms of reports if you don't know how to do this already i encourage you to know to build your custom reports here so i have some prefabricated ones turn rate of return power idio deposit annual dividend the internal rate of return tends to be the most popular concept if i open that guy up it'll give me my internal rate of return on the insurance contract which will automatically go to the end so just quickly go through this illustration we have again a 50 year old male putting in the max ado plus the coverage here which was just under 21 000 for seven years using my offset okay we see our contract growing and just kind of fast forward to the bottom i always love showing clients the internal rate of return if they were to take that same 21 000 and put into an alternative investment it would have had to return after 35 years and net after tax rate of return of 4.22 order to match what the insurance could have done which again many investments can do better than 4-2-2 over a long period of time but it's a matter of the conservative and the risk-averse nature of the insurance contract relative to what you could do elsewhere so insurance will never replace an investment but it's a great diversification tool so something that i want to make sure you need do you know how to do the internal rate of return that i calculated here with my different calculations so again jordan i are here to help if you need to do that um and uh you're able to see some of the value in the contract um wonderful flexibility wonderful contracts fantastic guarantees uh again i can illustrate to the cast from home all different companies and the industry right now but the guarantees and flexibility and features built into the empire contract is something to really really enjoy and take advantage of when presenting to your clients so thank you for attending the first concept corner uh we will be back next week same time same place as uh for personal legacy personal corporate legacy builder the idea of reallocating surplus income or savings into an insurance contract to maximize your legacy or gift to um children family or charity so without further ado i will uh thank you for your time and uh we're gonna uh we're gonna sign off so have a wonderful day everybody thank you and uh we'll see you next week