The Role of Life Insurance in Product Allocation

An important aspect of retirement planning is the ability to leave a financial legacy. Recent market downturns have demonstrated how volatility can deplete a planned inheritance as individuals realize they’ll need to use all their savings to fund their retirement. Life insurance can provide a degree of certainty for those who want to achieve their estate goals and leave a legacy.

The Product Allocation strategy can demonstrate that life insurance is an efficient way to help leave a legacy for the next generation.

Manulife’s Product Allocation tool incorporates life insurance premiums when determining your client’s Retirement Sustainability Quotient – the term that refers to the likelihood that a client’s retirement income will be sustainable. The tool allows you to input a desired premium and it then calculates the corresponding face amount range based on age, sex, smoking status, and assumes very good health. Alternately, it allows you to input both the premium and corresponding face amount if you already know those amounts.

When a client’s Retirement Sustainability Quotient is at 90% or greater, the Product Allocation Tool makes it easy to determine if your client can take additional retirement income and use it to purchase life insurance. When your client dies, the insurance’s death benefit helps contribute to their financial legacy.

To see how life insurance can fit into your client’s product allocation please click here.