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Why you should sell Manulife’s FutureStep™
Small businesses are a big contributor to the Canadian
economy.1 There are thousands of small businesses that
don’t offer their employees benefits. Yet each must find
ways to attract and retain talent to successfully compete
with larger firms.
If you’re an advisor who mostly sells
individual business…
FutureStep business is an excellent source of individual leads.
Think of each plan member as a potential individual client
for other products. Once the group business is set up, you
can cross-sell life insurance or critical illness insurance to
each household. Their referrals may then lead to new
business, with their spouse, children or parents.
Manulife’s FutureStep was designed not only to meet the
needs of small businesses, but also to offer features and
services typically only available to larger companies. For
advisors like you – FutureStep is a tremendous business
opportunity!
Wondering how to start? Look through your existing
individual clients to see who’s a small business owner.
These are your best FutureStep prospects.
Receptive, untapped market – 84 per cent of business
owners say saving for retirement is an important personal
goal.2 Yet the majority don’t offer a group retirement savings
plan because they feel it’s not affordable, or that it’s too
complicated to run.3
If you’re an advisor who mostly sells
group benefits…
Easy to sell in high volumes – which makes efficient
business sense for you and your practice.
Selling your group clients a group retirement savings plan –
so that they offer a full suite of employee benefits – makes
complete sense for them. Not only that, but it makes the
value you bring to the table that much stronger, and
deepens your relationships by increasing the service and
support you offer.
Compensation for the life of the plan – FutureStep
offers two commission options that transition into a steady
stream of income as the plan matures.
Wondering how to start? Your existing group benefits
customers are your best FutureStep prospects.
Want more tips on selling Manulife’s FutureStep?
Go to the Group Retirement section on the
Chamber website.
1 Statistics Canada, Survey of Employment, April 2012
2 Proprietary research conducted by Manulife, February 2009
3 CFIB May 2010
10 Ways FutureStep Serves Small Businesses
1. It’s a high-value benefit that can attract and
retain key employees
6. Tangible way to express interest in employees’
life after work
2. Easy to set up and launch
7. Employer contributions are tax deductible
3. Quick and easy to manage
8. Low investment management fees (IMFs)
for members
4. No cost to employers (unless they choose
to contribute)
5. Flexible eligibility, contribution formula and
withdrawal rules
9. Contributions made by employees reduce their
taxable income
10. Employees’ savings grow tax free until withdrawn
(ideally at retirement)
Compensation for FutureStep
You can choose from two commission options once the online application has been submitted. Here’s how you can be
compensated for sales of Manulife’s FutureStep.
Compensation Structure
Cash flow commission
Asset-based commission
Option 1
Option 2
Year 1
3%
1.5%
Year 2
2%
1.0%
Year 3
1%
0.75%
0.30%
0.30%
0.50%
0.30%
0.30%
Year 4 and beyond
Option 1
Option 2
Transfer commission
(for bulk or individual transfer of plan assets)
Option 1
Option 2
2%
1.5%
2%
1.5%
2%
1.5%
2%
1.5%
Small Sales Add Up
If you continue to sell small business group plans each year – and the cash flow on previous years’ sales remains consistent
(or better, increases) – you can build an attractive flow of income for your practice. FutureStep sales also qualify for Manulife’s
Advisor Recognition Program.
Helping plan members transfer their existing savings to the FutureStep group plan can really pay off too, because the transfer
commission is available throughout the life of the plan.
Here are a few examples of typical small businesses and the compensation you can receive by making them FutureStep
group plan customers. Option one rewards your initial work while option two rewards consistent cash flow.
Plan A
Three members
$0.00 assets
$15,000 annual cash flow
Year 1
Year 2
Year 3
Year 4
Year 5
Total
Compensation
Option 1 Option 2
$450
$225
$300
$150
$285
$248
$180
$255
$225
$300
$1,440
$1,178
Plan C
Eight members
$250,000 assets
$50,000 cash flow
Plan B
Five members
$75,000 assets
$25,000 cash flow
Year 1
Year 2
Year 3
Year 4
Year 5
Total
Compensation
Option 1 Option 2
$ 2,250
$1,500
$500
$250
$700
$638
$525
$650
$600
$725
$4,575
$3,763
Year 1
Year 2
Year 3
Year 4
Year 5
Total
Compensation
Option 1 Option 2
$6,500
$4,500
$1,000
$500
$1,700
$1,575
$1,350
$1,600
$1,500
$1,750
$12,050
$9,925
Examples are for illustrative purposes only and do not assume withdrawal of assets or asset growth, and assume contributions are made at the beginning of the year.
FutureStep Features and Services At-A-Glance
6. CAP governance sponsor support centre
7. Online enrolment and investment education material
8. Award-winning member enrolment material
9. Top-rated member statements
10. Steps Retirement Program® available to plan members
Manulife, Manulife Financial, the Manulife Financial For Your Future logo, the Block Design, the Four Cubes Design, and Strong Reliable Trustworthy Forward-thinking are trademarks of The Manufacturers Life Insurance Company and are used by it, and by its affiliates under license.
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