THE EQUITABLE LIFE INSURANCE COMPANY OF CANADA For Financial Advisors use only Participating Whole...

THE EQUITABLE LIFE INSURANCE COMPANY OF CANADAFor Financial Advisors use only

Participating Whole Life VS Universal Life

The differences and the similarities!


Agenda Product Similarities Differences Case Study 1 Case Study 2 Case Study 3


Overview Participating Whole Life insurance has been around

since 1762 Universal Life… the new kid on the block was

developed in the late 1970’s as a solution to the ”Buy Term and Invest the Difference” concept


The Key Similarities Low cost permanent life insurance protection Flexibility

• Premium Holidays• Riders and Benefits• Death Benefit Configurations

Tax-deferred Cash Accumulation Access to Cash

• Withdrawals• Policy Loans


The Key Differences Traditional Participating

Whole Life The company manages the

cash accumulation Dividend Scales can

increase/decrease, but can never be “negative”

Premium is “Bundled”• Premium• Policy Fee

Guaranteed Cash Values

Universal Life

The client/producer manages the cash accumulation

Account values can earn negative and positive interest

Premium is “Unbundled”• COI• Administration Charges• Premium Tax• Investment Portion

Higher Premium deposits available


Case Studies

VS


Case Study 1 Client:

• Male, age 43, nonsmoker, residing in Ontario• On the risk scale… leans to the more risk averse

Need:• $750,000 Permanent Insurance • Premiums Payable for a maximum 20 years• Cash available as a safety net for enhancing retirement

income 65 and 69• Currently maxed out RRSP • Looking to spend $15,000/year


Product Configurations

Equimax®

• Equimax 20 Pay• Dividend Option –

Enhanced Protection with Lifetime guarantee

• Excelerator Deposit Option added to increase premium to $15,000

Equation Generation III®

• Premiums payable for 20 years

• Level Protector as Death Benefit Option

• YRT as COI type• Portfolio Interest Option

elected earning 5.5% interest

• Increase Death Benefit by 8% for exempt handling purposes


ComparisonEquimax Equation Generation IIII

Premium $15,000 $15,000

Death Benefit $750,000 $750,000

Guar. CV Age 65 $237,977 -

Age 85 $335,821 -

Total CSV Age 65 $526,094 $379,218

Age 70 $722,421 $510,059

Age 85 $1,675,184 $1,290,373

Total DB Age 65

$1,019,795 $750,000

Age 70 $1,248,277 $750,000

Age 85 $2,182,651 $1,290,373Notes: Earliest Offset is NOT Guaranteed.

Values illustrated assume premiums have been paid for life of the plan.



• Male, age 52, nonsmoker, residing in Ontario• A risk taker, investments include stocks

Need:• $500,000 Permanent Insurance today with an increasing

death benefit• Looking for a Tax Deferred investment to supplement

retirement income• Premium $$$ no maximum



Equimax• Equimax 20 Pay• All Basic Permanent

Protection• Dividend Option– Paid Up

Additions• Specified Offset 8 years• Maximum Excelerator

Deposit Option

Equation Generation III• Account Value Protector as

Death Benefit Option• Level as COI type• Portfolio Interest Option


• Matched Equimax Maximum

• Premiums payable for 8 Years



ComparisonEquimax Equation Generation III

Matched Premium 1at Yr Max Exempt

Premium $28,305 $28,305 $32,558

Total Cumulative Premium $226,440 $226,440 $258,163

Death Benefit $500,000 $500,000 $500,000

Total CSV Age 65 $226,688 $283,046 $335,409

Age 70 $341,860 $368,375 $436,206

Age 85 $804,039 $1,082,908 $1,280,937

Total DB Age 65

$625,335 $783,046 $933,098

Age 70 $565,338 $868,375 $1,033,895

Age 85 $1,206,761 $1,438,993 $1,707,950Notes: Earliest Offset is NOT Guaranteed. Values illustrated assume premiums have been paid for life of the plan.



• Female Age 31, Non Smoker, Residing in Ontario• Purchasing life insurance to protect her mortgage,• Doesn’t like paying with nothing in return… likes the idea of

cash values• Likes to take some chances in life… but doesn’t consider

herself a big gambler Need:

• $250,000 of Life insurance • Cash Values… • Looking to spend no more that $100 per month



Equimax• Equimax Life Pay• Dividend Option –

Enhanced Protection with 10 Year Guarantee

Equation Generation III• Level Protector as Death

Benefit Option• YRT as COI type• Portfolio Interest Option




ComparisonEquimax Equation Generation III

Premium $1,018 $1,018

Death Benefit $250,000 $250,000

Earliest “Offset” Age 59 Age 54

Guar. Cash Value Age 55 $21,330 -

Age 65 $32,327 -

Total CSV Age 55 $37,079 $ 39,057

Age 65 $74,545 $ 80,874

Age 75 $137,437 $154,305

Total DB Age 75 $250,000 $250,000

Age 85 $337,909 $300,400Notes: Earliest Offset is NOT Guaranteed.

Values illustrated assume premiums have been paid for life of the plan.


Which One… No Quick Answer Both products are important to keep in your product

portfolio Both products meet different “risk tolerance” Both products require different levels of participation in

the management of this asset by you and your client In the end… both provide you with a product to meet

your clients protection and cash accumulation needs!


Thank You

1. Equitable Life® has made every effort to ensure the accuracy of this presentation. However, if the information presented here differs from that contained in any Equitable Life policy contract, the policy contract prevails in all cases. This presentation is intended for informational purposes only and is provided with the understanding that it does not render legal, accounting or other professional advice.

2. Equitable Life, Equitable Life of Canada ,Equation Generation, Equimax, Equitable Sales Illustrations and design, and the lighthouse design are all trademarks of The Equitable Life Insurance Company of Canada. Reproduction or redistribution of this presentation, in whole or in part, without permission from Equitable Life is forbidden.

3. © 2005 The Equitable Life Insurance Company of Canada. All rights reserved.

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