Planning for health expenses Comparing the Options Alternate option aligned with template

Longevity couples age 45 to 65 This visual is taken from the Longevity Risk Calculator in the Money for Life web app. We have run the tool using a 60 year old couple but similar calculation can be done for individuals of couples age 45 and up. This states: 50% of couples age 60 will see at least one member live to age 93 25% will see at least one member live to 96 5% will see at least one member live to over 100 Source: 2008 Canadian Critical Illness (CANCI) tables published by the Canadian Institute of Actuaries, July 2012 trended to 2014

realities of aging 90% chance one will suffer a significant illness by 93 57% If we believe in longevity and planning for your client’s money to last until they are well over age 90 then we also have to understand what their health might look like at an advanced age. The Longevity Risk Calculator goes one step further and helps to demonstrate the risk of significant health events. With a 90% chance at least one of them will suffer a significant illness by 93. 57% chance it will be Alzheimer’s, dementia or other condition requiring constant supervision chance of cognitive impairment requiring constant supervision Source: 2008 Canadian Critical Illness (CANCI) tables published by the Canadian Institute of Actuaries, July 2012 trended to 2014

AGENDA Health events and planning A confident conversation The product options Let’s begin

What’s the Risk Where’s the risk When’s the risk

Protecting against “IF” Planning for “WHEN” “If I get sick.” “When I need care.” Protecting against the unexpected Planning for a high likelihood At any age In old age Retirement planning interrupted Disrupted retirement income plan Asset withdrawal Market timing Tangible asset disposal Early retirement/delayed retirement Mental capacity Key person/succession planning/financial protection Estate preservation CII solutions LTCI solutions maintaining CII helpful Does anyone in the room want to offer their answer to this question? Do you have an opinion on the role government programs will play? If government programs are not the complete answer, have you thought about your personal expenses Have you considered where you will receive care, what that care will look like and who will deliver that care?

The life time line 35 50 85 Debt Protection Asset Protection Does anyone in the room want to offer their answer to this question? Do you have an opinion on the role government programs will play? If government programs are not the complete answer, have you thought about your personal expenses Have you considered where you will receive care, what that care will look like and who will deliver that care? Asset Protection Retirement Income Protection Estate Protection

health Conversation Start the

1 2 3 health conversation Ask a critical question Start the health conversation 1 STEP 2 STEP Ask a critical question 3 STEP Introduce three financial strategies The Health conversations begins with a critical question Any idea what that question might be? Make the decision

1 STEP Understand your client’s Wishes and beliefs Do you expect to be financially responsible for your care as you age? What do you believe will be the biggest barrier to retiring as you’ve planned? Does anyone in the room want to offer their answer to this question? Do you have an opinion on the role government programs will play? If government programs are not the complete answer, have you thought about your personal expenses Have you considered where you will receive care, what that care will look like and who will deliver that care?

1 Barriers to Growth Eliminating debt/reducing expenses STEP What do the Barriers to Growth look like? Eliminating debt/reducing expenses Changes in employment These are annual costs. The need for care typically emerges over time. Costs might be lower in the beginning but increase with time. On average individuals who require substantial assistance with at least two activities of daily living will need this help for 3 years. Those with severe dementia requiring supervision can live for a decade or more. For couples the need for care will almost certainly emerge at different times and not always align. And, in almost every case, couples wish to remain together. This will mean a retirement residence and additional care or remaining in the home with added care and support. As Stephanie/Roxanne said in the video the caregiver requires support to help them remain physically and emotionally healthy as well. Poor market performance Source: Taking Care Inc., 2013

1 Care look like The ‘Default’ Choice The ‘Considered’ Choice STEP What does Care look like There is no wrong choice The ‘Default’ Choice Long-term care facility or nursing home Your cost $25,000 annually The ‘Considered’ Choice Retirement residence or assisted living Your cost $72,000 annually + $36,000 annually These are annual costs. The need for care typically emerges over time. Costs might be lower in the beginning but increase with time. On average individuals who require substantial assistance with at least two activities of daily living will need this help for 3 years. Those with severe dementia requiring supervision can live for a decade or more. For couples the need for care will almost certainly emerge at different times and not always align. And, in almost every case, couples wish to remain together. This will mean a retirement residence and additional care or remaining in the home with added care and support. As Stephanie/Roxanne said in the video the caregiver requires support to help them remain physically and emotionally healthy as well. The ‘Preferred’ Choice Care at home Your cost $72,000 annually Source: Taking Care Inc., 2013

Marketing support Provincial Cost of Care Reports on Sunlife.ca The custom proposal Marketing support Provincial Cost of Care Reports on Sunlife.ca

1 2 3 health conversation Ask a critical question Start the health conversation 1 STEP 2 STEP Ask a critical question 3 STEP Introduce three financial strategies Now we have an understanding of the options available when care is needed and the potential costs the next step in the conversation is to talk about the financial strategies that can be deployed to plan for this future need. Make the decision

2 Three strategies Self-fund the risk Share the risk STEP Three strategies for health funding: Self-fund the risk Share the risk The three strategies are… Fully transfer the risk

1 2 3 health conversation Ask a critical question Start the health conversation 1 STEP 2 STEP Ask a critical question 3 STEP Introduce three financial strategies How then does one decide which strategy is the right strategy? The good news is that there is no wrong answer. You can confidently have this conversation knowing each strategy is available. Let’s review Make the decision

The product options

3 Aligning Product Using critical illness insurance: STEP Aligning Product Using critical illness insurance: Self-fund the risk No insurance purchase Review investments risk profile Assess current plan for vulnerability Share the risk CII coverage to age 75 during accumulation Self – insure later years Include ROPC to help self-fund later years The three strategies are… Fully transfer the risk Lifetime CII coverage ROPD but no ROPC

3 Aligning Product Using long term care insurance: Self-fund the risk STEP Aligning Product Using long term care insurance: Self-fund the risk No insurance purchase Establish a health fund Review investments risk profile Share the risk Self – fund emerging and initial care Use Sun Retirement Health Assist for catastrophic need Or Use limited benefit period Sun LTCI for initial need and self-fund unexpected significant lasting need The three strategies are… Fully transfer the risk Lifetime, unlimited Sun LTCI coverage ROPD guarantees what’s paid into the plan is received in some form of benefit.

ASK ME ANYTHING Visit Sunlife.ca/advisor - Health IHPD@sunlife.com About Sun LTCI, Sun RHA, and Holistic Planning Visit Sunlife.ca/advisor - Health IHPD@sunlife.com Advanced case managers and SST 1-877-272-2020 option 6, 3, 1 SST@sunlife.com ISS@sunlife.com

In summary Explain and identify the risk – the unexpected “if”; the expected “when”. Have the conversation – self-fund, share or transfer the risk. Chose the product solution to fit the outcome of the conversation. Let’s begin

Thank you

disclaimer This information is presented with the understanding that it is intended for information purposes only. Neither Sun Life Assurance Company of Canada nor the presenter has been engaged for the purpose of providing legal, accounting, taxation, or other professional advice. No one should act on the examples/information without a thorough examination of the legal/tax situation with their own professional advisors after the facts of the specific case are considered.