Securing financial stability is a sought-after goal for every Canadian. But data indicates this goal is further and further away for more Canadians. According to a 2023 study conducted by the Life Insurance Marketing and Research Association (LIMRA), nearly half of Canadians say they aren’t financially secure enough to weather the death of a primary wage earner, and more than 43% of Canadians say they are very concerned about saving enough for retirement.ⁱ

“Advisors play a really important role in informing, educating and inspiring Canadians with sound guidance and custom solutions to help ensure they are financially stable,” explains Paul Savage, Head of Insurance at Manulife Canada. “When a proper plan is in place, coupled with the right products, clients feel assured that they are prepared to navigate unpredictable moments that may come their way.”

But for the 74 per cent of Canadians who say they are either uninsured or underinsured,ⁱⁱ securing financial stability is more than a goal, it is essential.

For underinsured Canadians, competing financial priorities like the rising costs of food, housing, and daily expenses can be overwhelming. These everyday pressures can make it difficult to consider insurance, yet a critical event could threaten to tip the balance. “When someone faces a difficult scenario, such as a critical illness, insurance can provide financial stability so they can focus on healing – both physically and emotionally,” says Savage. “Insurance gives people the option of putting their health first, which is a gift.”

The 2023 LIMRA study also found that 31 per cent of underinsured Canadians said the reason they don’t have life insurance is due to having other financial priorities.

There is a misconception that insurance is expensive, but premiums aren’t as high as many people think, Savage stresses. “Insurance can be affordable – it’s simply based on a person’s needs and advisors can work with clients to find protection that fits any budget. It’s much better to have some kind of protection than none at all,” he says.

He points to another approach for Canadians to save on their premiums. The Manulife Vitality program encourages policyholders to engage in healthy activities, such as exercising, eating well, and undergoing regular health screenings, in order to earn points towards lowering premiums by as much as 15 per cent. “This unique offering helps clients improve their long-term health, while giving them control over their insurance costs,” adds Savage. Vitality can support advisors in deepening relationships that may have previously been only transactional, which in turn results in earning more trust with clients.

The program is popular with clients, earning an 82 per cent satisfaction rateⁱⁱⁱ and positive feedback on how valuable the rewards can be in terms of discounts on various brands like

Apple, Adidas®, HelloFresh™ and more, while offering motivation to boost their longevity and improve overall well-being.

Newcomers to Canada can also require guidance to find the ideal insurance policy to suit their needs, Savage says. It can be challenging and overwhelming for newcomers to navigate our financial, healthcare and tax systems, but with the help and guidance from advisors, those obstacles can be hurdled with ease. “Advisors can add value by acting as a conduit to these systems and figuring out what they have in place already, such as lawyers and accountants, and providing holistic financial planning,” he says.

Savage stresses how flexible solutions can be attractive to clients from any financial position. What can begin with a term policy can end up shifting to a permanent policy. “Purchasing term insurance at a young, healthy age allows individuals to secure coverage now, with the flexibility to convert to more permanent solutions if their health changes over time,” explains Savage. “The key is to find the right solution for you and your family. Collaborating with a knowledgeable advisor ensures you are well-prepared to navigate life’s uncertainties with confidence and peace of mind.”

---

ⁱLIMRA: https://www.limra.com/en/newsroom/industry-trends/2024/nearly-one-third-of-canadian-adults-report-living-with-a-life-insurance-coverage-gap/

ⁱⁱLIMRA: https://www.limra.com/en/newsroom/industry-trends/2024/nearly-one-third-of-canadian-adults-report-living-with-a-life-insurance-coverage-gap/

ⁱⁱⁱProgram member data as at February 28, 2021.

In the ever-changing world of insurance, advisors are facing mounting pressures to sustain their businesses and provide clients with holistic advice and personalized service. Canada’s evolving regulatory environment, heightened competition, increased administrative demands, and ongoing geopolitical and macroeconomic uncertainties all contribute to the challenge. In this climate, advisors are seeking ways to prioritize what truly matters: building meaningful connections with their clients.

“In speaking with advisors across Canada, we know they are looking for innovative products and solutions that will help differentiate them and set them apart,” says Paul Savage, Head of Individual Insurance, Manulife Canada. “We’re hearing that advisors are looking for more. Providing products is no longer enough – they want help forging lasting relationships with clients by delivering solutions that offer value throughout their life.”

Manulife’s Vitality program is designed to do just that.

Backed by behavioural science and the only program of its kind in Canada, Vitality gives clients helpful tools, as well as access to the latest technology, resources, and rewards, to help them live longer, healthier, better lives.

Manulife Vitality is designed to encourage policyholders to take small, everyday steps toward better health through a robust framework of rewards and incentives. Participants earn points by engaging in a variety of health-promoting activities such as exercising, undergoing regular health screenings, and even receiving vaccinations. These points translate into tangible rewards like premium discounts,¹ gift cards, and reduced gym memberships.

But why is promoting client health so crucial for advisors?

“For advisors, Vitality is more than an incentive-based rewards program. It offers them the opportunity to connect with their clients on a deeper, more personal level,” explains Karen Cutler, Chief Underwriting Officer, Manulife Canada. “The Vitality program is a game-changer for both clients and advisors. It transforms the traditional insurance model by incentivizing healthy living, which, in turn, helps Manulife manage risk while enhancing client satisfaction.”

With Canada’s healthcare system under strain and over six million Canadians lacking access to a primary care provider,² supporting client health is more critical than ever. In just one year,³ Manulife Vitality members who had out of range results saw an 11 per cent improved of Body Max Index (BMI) into a healthy range; 26 per cent improved glucose readings; 21 per cent improved cholesterol and 31 per cent improved blood pressure.

For advisors, Vitality provides access to a broader market of customers, with flexible engagement options defined by clients and their unique needs. And it is paying off. A recent survey found that more than two-thirds of advisors say Vitality helps them differentiate from the competition, and more than half of advisors say the program helps them deepen, retain and expand their relationships with clients. Additionally, three out of four advisors agree that Vitality provides them with new opportunities to interact with their clients.⁴

“It’s a win-win,” continues Cutler. “Clients are motivated to improve their health, and in doing so, they can not only extend their life expectancy but can also reduce their insurance costs. Advisors, in turn, benefit from increased client engagement and loyalty.”

Boasting an 82 per cent satisfaction rate,⁵ Vitality continues to impress clients and gives advisors the confidence to recommend this unique product to Canadians who are finding new and exciting ways to improve their physical and mental health.

“As we continue to move towards a future where health and financial security are increasingly intertwined, Manulife Vitality stands out as an innovative disruptor in a crowded marketplace,” says Savage. “By encouraging healthier lifestyles, we are not only transforming the way we think about insurance, but empowering individuals to take charge of their well-being. Vitality is more than just a program—it’s a commitment to a longer, healthier and better life.”

Learn more at manulife.ca/vitality

---

¹ Available on select policies.

² https://www.thestar.com/news/canada/6-5-million-canadians-dont-have-a-family-doctor-senators-say-their-plan-can-deliver/article_c57cd9c8-7f4b-11ef-99d9-23c64de6bf90.html

³ Verified by Vitality Health Check of Manulife Vitality members who had readings in 2019 and 2020 

⁴ Source: Manulife individual Insurance Advisor, Environics Research, July 2022

⁵ Program member data as at February 28, 2021

The market environment for health and dental insurance is changing. What does this mean for you and your business?

Download white paper

Environment, social and governance performance is about risk management and resiliency, says Manulife Investment Management.

Sustainable investing and smart investing can go hand in hand. Increasingly, that means measuring and engaging in progress around ESG: environment, social and governance factors.

“In my opinion, focusing on the sustainability of the business can improve the risk-return profile,” says Patrick Blais, Senior Managing Director and Senior Portfolio Manager, Manulife Investment Management.

ESG covers how companies fare around climate impact, natural resource use, waste management, employee health and safety, diversity and inclusion, respect for the community, board and executive composition and oversight, shareholder rights, and more.

Blais believes organizations that excel in these areas tend to show better financial performance and returns over time.

“Companies that take ESG seriously signal a culture to manage overall risks and opportunities effectively on an ongoing basis,” he says.

When you operate in a responsible way for the benefit of all stakeholders, Blais says the shareholders ultimately profit.

Consider the impact of reducing waste and energy consumption, fostering loyal employees and customers, adopting even more sound management and controls, enhancing your reputation, and increasing the social license to operate.

All of that makes ESG progress a competitive advantage. Margaret Childe, Head of ESG, Canada, Manulife Investment Management, says that such stewardship is a prime indicator of resilience.

Placing a priority on ESG issues speaks to companies that are forward-thinking more broadly.
That’s evident in the bottom line. And it makes such companies, and portfolios that strongly consider ESG, better able to weather various storms and create long-term value.

“That’s a value proposition that ESG provides,” says Childe.

ESG is mainstream

Manulife Investment Management has received an A+ from the United Nations-supported Principles for Responsible Investment (PRI) for ESG strategy and governance, integration in listed equity and fixed income SSA which includes sovereigns, supranationals, and agency bonds.

The company developed its first ESG policy in 2015 and signed onto PRI the same year. PRI is a global organization of over 3,000 signatories, which collectively manage more than $103 trillion in assets.

The scale of these signatories underscores a critical trend among asset owners: to demand that investment managers build sustainable investing principles into their decisions.

Investors can live with risks, says Blais. Everything has a risk. What we don’t want to be exposed to, he says, are the types of risks with a low probability of performance and dire results.

“A good ESG framework allows you to have confidence that a company can better avoid those tail risks,” he says.

That framework speaks to management that’s always looking ahead says Blais, and looks at the broad range of what can possibly affect their business. “It puts their company on a more sustainable pathway,” he says.

Childe says that the Manulife Investment Management approach to considering ESG has three elements.

It starts with due diligence. When Childe started in 2017, her team included three ESG analysts. There are now 13. Manulife Investment Management undertakes a deep analysis of data and material ESG factors, including ones specific to the given industry and general ones. That’s part of a foundational assessment.

Her team also gauges ESG performance against benchmarks. At least quarterly, they sit down with investment groups to review ESG profiles.

Lastly, there’s stewardship. That includes engaging with invested companies around their ESG efforts. Are they vulnerable to ESG risks? How are they embracing ESG opportunities? Proxy voting to express views and help drive change is also part of active investing.

Doing good and doing well

ESG monitoring isn’t new, but companies are becoming much more systemic in how they do it, says Childe. Sustainable investing has evolved from a do-no-harm philosophy to grasping the business case: doing good and doing well are linked.

“It’s table stakes to have an ESG approach,” says Childe.

Manulife Investment Management focuses on ESG integration throughout all portfolio management teams. It also offers thematic ESG investment opportunities like the Manulife Climate Action Fund, which launched this May.

The idea for the Fund came in response to growing demand from the investment community. Engagement with the community revealed a high interest in ESG and in a product that addresses specific values and issues – climate being number one.

The Fund strategy focuses on companies that the portfolio management team considers as climate leaders (aligned with a net-zero investment strategy), as well as companies that have committed to or have verified science-based targets.

“They’re preparing themselves for the new reality,” says Blais. “This only makes them better investments.”

In making assessments and decisions, Manulife Investment Management is focused on the bottom-up fundamentals. What the company understands is that ESG factors aren’t distinct from those fundamentals. Strong metrics in these areas should give investors more confidence.

“In my opinion, you can’t be credible without having a true ESG framework embedded throughout your investment process,” says Blais. “ESG improves your investment approach.”

Learn more about how Manulife Investment Management focuses on ESG to drive better returns, and how to align investments with opportunities that lay ahead. Learn how here.

Sponsored by Manulife Investment Management, as of March 2021. Individual professionals may have different views and opinions that are subject to change without notice. The historical success, or Manulife’s belief in the future success of any of the strategies is not indicative of, and has no bearing on, future results. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. Manulife Investment Management does not provide investment, legal or tax advice, and you are encouraged to consult your own lawyer, accountant, or other advisor before making any financial decision.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the fund facts as well as the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Manulife Funds are managed by Manulife Investment Management Limited (formerly named Manulife Asset Management Limited). Manulife Investment Management is a trade name of Manulife Investment Management Limited. Manulife, Manulife Investment Management, the Stylized M Design, and Manulife Investment Management & Stylized M Design are trademarks of The Manufacturers Life Insurance Company and are used by it, and by its affiliates under license.