Market-linked term investments (MLTI) sales have been growing about 15% a year since 2008 in Canada, and reached $30.2 million in the second quarter of 2011. *
A coincidence? Not really! Market volatility and very low interest rates are among the key factors contributing to their sustained growth. Representatives in the habit of adding fixed-rate term investments to their clients’ portfolios quickly figured out that, in return for a lower guaranteed return, Guarantee Advantage offers significantly higher growth potential if the market posts good results, in addition to 100% principal protection.
Since banks dominate this market, very few insurers have included MLTIs in their offer and, of these, only Desjardins Financial Security has come up with new campaigns in recent years. This means the coast is clear to promote some advantages that banks cannot offer with this type of product, such as beneficiary designations, quick payment of the principal at death and potential creditor protection.**
Looking for turnkey sales tips to add to your arsenal? Consider the deferred tax treatment offered by Guarantee Advantage as well as its potential to outperform a fixed-rate term investment. I encourage you to consult with your Regional Sales Team to describe these advantages.
If you haven’t already added Guarantee Advantage to your offer, do it now and ride the MLTI wave!
* Source: Investor Economics, Deposit and Fixed Income Advisory Service, Fall 2011.
** Exemption from seizure rules can be complex and vary from one province to another. Interested parties should consult a legal advisor (lawyer or notary) for an assessment of their specific situation.