I’m writing this email, just before I’m scheduled to go on vacation. The Blue Jays are on a run (I’m hopeful), the weather is nice, the air is finally clear, the kids are off, what a time to be alive.

But alas, let’s make this one simple and valuable for you.

I know you read these emails so that you can add a few more dollars to your insurance business or find new opportunities. Like I said last week, case studies in my opinion are the best and easiest ways to understand.

So here are some good ones to add some new business to your pipeline.
 

#1 Grandparents/Retired Folks

This won’t apply to every single person, but I think it should apply to a large chunk of people.

Let’s say we have a couple who are both 65 and are collecting CPP at 70%. This gives them a monthly take of $1,829 as per my calculation.

Let’s also say they have 6 grandchildren from their extended family. If they don’t need that $1,829 each and every single month to live, why don’t they split it into 6 children policies and pay it up over 10 years.

This works out to be about $300/month for each child for an insurance policy. And, what does that do exactly for their grandkids.

I don’t want to complicate things here, but if they bought such a policy on their 5 year old grand daughter, they’d have:

$42,000 of cash value at age 25 growing to $900,000 by age 85.

And, if we multiply that by 6 grandkids, their $1,829 monthly deposit to insurance plans would yield, are you ready for it:

$6,665,280 tax-free benefits over the lives of their grandkids. All from an $1,829 monthly payment that they didn’t even need.

What are the chances your grandkids and great-grandkids remember your name?
 

#2 Young Professional

Again, this won’t apply to everyone, but if you have some young professionals that are growing their net worth. Why in the world would they want to buy some permanent insurance today?

The answer is asset diversification.

Let me walk you through a story you can use.

The time was the 90s, really the best time to be alive, right? I mean it was the start of malls and Pepsi competition, pop tarts, trading cards and low-rise jeans.

Can you really think of a better time?

And, it just so happened to be the biggest real estate crash that Canada had as far as I can remember.

And, the world was on sale…if you had money.

But, the banks weren’t lending, so where were you to get money?

Well, if you have a lovely little Par policy with cash value that can never decline and the insurance company is ready to lend you money at any time, you had money.

That’s exactly what happened for a business owner I know. He had a few hundred thousand of cash value at that time. He tapped into it and bought a building that was normally selling for about $1.5M, but crashed down to $300,000. He snapped it up in the down market.

That building today is worth more than $10M. This is how wealth is created.

Diversification is about buying a portfolio that zigs while the rest zags. But, I don’t know if you saw the equity and bond returns for 2022…they all went zag.

Real diversification is buying assets that are truly different. Par Life Insurance is one of those assets. The returns are good, but it’s even better when you can use the cash value as leverage to take advantage of the market, when as Warren Buffett has said:

“Mr. Market gets depressed.”

It’s up to the client to pull the trigger. But, with a Par policy you have that option.

I’ll put it to you simply:

A Par policy gives you corporate bond like returns, with the tax-efficiency of a TFSA with liquidity of a money market fund.

There are no alternatives. None.

I made a video about this you can see here:

https://share.vidyard.com/watch/roQnedUdA7qKeRNnLfY9tX?autoplay=1

And with that I’m off on vacation. Use these examples to ramp up your business.

And if you need help, let me know.

Andrew