Universal Life Is It Time To Rethink YRT? Michael Hamel Director, Business Development Ontario West

AGENDA Understanding SSQ Universal Life Extreme Disability Benefit Case Study Underwriting Most recent statistics: December 31, 2011 Rate of enrolment is stable for ages 25-49 and increases afterwards… used liberally by seniors. Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

Simple Flexible Competitive 3 Fundamental Themes Most recent statistics: December 31, 2011 Rate of enrolment is stable for ages 25-49 and increases afterwards… used liberally by seniors. Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes. Simple Flexible Competitive

Universal Life Individual Minimum $25,000 Joint First To Die (JFTD) Joint Last To Die (JLTD) Most recent statistics: December 31, 2011 Rate of enrolment is stable for ages 25-49 and increases afterwards… used liberally by seniors. Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes. Minimum $25,000 Maximum $10,000,000

YRT T100 0 to 85 0 to 80 Years years Two Types of COI Most recent statistics: December 31, 2011 Rate of enrolment is stable for ages 25-49 and increases afterwards… used liberally by seniors. Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

YRT T100 Death Benefit Increasing or Level Increasing Most recent statistics: December 31, 2011 Rate of enrolment is stable for ages 25-49 and increases afterwards… used liberally by seniors. Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes. Increasing or Level Increasing

YRT LEVEL Surrender Charges 7 Years NONE Most recent statistics: December 31, 2011 Rate of enrolment is stable for ages 25-49 and increases afterwards… used liberally by seniors. Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

YRT To 90, New Approach Most recent statistics: December 31, 2011 Rate of enrolment is stable for ages 25-49 and increases afterwards… used liberally by seniors. Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

YRT 90 Most recent statistics: December 31, 2011 Rate of enrolment is stable for ages 25-49 and increases afterwards… used liberally by seniors. Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes. Illustrations, and actual results “don’t blow up” like YRT to 100 Maximum investment build up in early years compared to YRT to 85

Investment Options Most recent statistics: December 31, 2011 Rate of enrolment is stable for ages 25-49 and increases afterwards… used liberally by seniors. Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

Investment Options Most recent statistics: December 31, 2011 Rate of enrolment is stable for ages 25-49 and increases afterwards… used liberally by seniors. Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

Investment Options Most recent statistics: December 31, 2011 Rate of enrolment is stable for ages 25-49 and increases afterwards… used liberally by seniors. Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

Investor Profile Most recent statistics: December 31, 2011 Rate of enrolment is stable for ages 25-49 and increases afterwards… used liberally by seniors. Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

Investor Profile Most recent statistics: December 31, 2011 Rate of enrolment is stable for ages 25-49 and increases afterwards… used liberally by seniors. Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

As of 6th policy anniversary Guaranteed Bonus 1% As of 6th policy anniversary Most recent statistics: December 31, 2011 Rate of enrolment is stable for ages 25-49 and increases afterwards… used liberally by seniors. Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

Additional Benefits Term Life Insurance – T10, T20 Critical Illness Insurance – T10, T20, T75, T100, T100 Paid-Up 20 Years Critical Illness Rider Child Rider Waiver of Premium in case of Disability AD&D Benefit in case of Fracture Most recent statistics: December 31, 2011 Rate of enrolment is stable for ages 25-49 and increases afterwards… used liberally by seniors. Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

Juvenile Policies – Included with Child Coverages Insurability benefit – up to five increase options, to a maximum of $50,000 per increase to an overall maximum increase of $250,000 Increase Options: Birthdays: 21, 24, 27, 30, 33, 36, 39 Life Events: Bachelor or Master’s Degree or Birth of Child Critical illness Benefit – 25% of insurance amount, up to maximum $50,000 Covered Illnesses: Autism, Blindness, Cancer, Deafness, Kidney Failure, Major Organ Transplant, Muscular Dystrophy, Paralysis Most recent statistics: December 31, 2011 Rate of enrolment is stable for ages 25-49 and increases afterwards… used liberally by seniors. Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

Extreme Disability Benefit Provides 50% of life insurance amount up to $250,000 At NO additional cost Up to Age 60 Offered on ALL individual life insurance products Unique to SSQ Most recent statistics: December 31, 2011 Rate of enrolment is stable for ages 25-49 and increases afterwards… used liberally by seniors. Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

Extreme Disability Benefit Extreme disability means the insured is affected by a medical condition that renders him or her in a state of total and irrecoverable disability (at least 6 months) as a result of which the insured cannot perform activities of daily living without a reasonable expectancy of recovery as determined by a physician Most recent statistics: December 31, 2011 Rate of enrolment is stable for ages 25-49 and increases afterwards… used liberally by seniors. Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

Extreme Disability Benefit Insured cannot perform four (4) out of the following six (6) activities of daily living : 1. Bathing - the ability to wash oneself in a bathtub, shower or by sponge bath, with or without the aid of equipment; 2. Dressing - the ability to put on and remove necessary clothing including braces, artificial limbs or other surgical appliances; 3. Toileting - the ability to get on and off the toilet and maintain personal hygiene; 4. Bladder and Bowel Incontinence - the ability to manage bowel and bladder function with or without protective undergarments or surgical appliances so that a reasonable level of hygiene is maintained; 5. Transferring - the ability to move in and out of a bed, chair or wheelchair, with or without the use of equipment; 6. Feeding - the ability to consume food or drink that already has been prepared and made available, with or without the use of adaptive utensils. Most recent statistics: December 31, 2011 Rate of enrolment is stable for ages 25-49 and increases afterwards… used liberally by seniors. Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

Highly Competitive Commissions YRT Level T100 Year 1 65% up to target premium 5% on the excess* 55% up to target premium 5% on the excess* Years 2 to 10 5% Years 11 + 0.3% on the fund value Most recent statistics: December 31, 2011 Rate of enrolment is stable for ages 25-49 and increases afterwards… used liberally by seniors. Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

User Friendly Tools Simple to use, but fully enabled Illustration software Investor profile tool Simple clear statements www.ssq.ca to download software Most recent statistics: December 31, 2011 Rate of enrolment is stable for ages 25-49 and increases afterwards… used liberally by seniors. Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

CASE STUDY – Male 50 Non-Smoker Wants permanent coverage with an increasing death benefit Needs $250,000 amount of insurance Deposit $12,000 Annually for 10 years Most recent statistics: December 31, 2011 Rate of enrolment is stable for ages 25-49 and increases afterwards… used liberally by seniors. Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

Comparing The Competition Company A Company B SSQ Illustrated Rate 4% Total DB Age 65 $412,670 $403,840 $427,553 Total DB Age 75 $462,710 $442,678 $498,179 Total DB Age 85 $443,321 $428,433 $549,203 Most recent statistics: December 31, 2011 Rate of enrolment is stable for ages 25-49 and increases afterwards… used liberally by seniors. Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

Assumed Fund Return (Gross) How To Illustrate UL Company A Company B SSQ Assumed Fund Return (Gross) 7.4% Fund MER - 2.4% 0% *** UL Management Fee 3% 2% Illustrated Rate 4.4% Bonus +.25% Starting year 5 +1% Starting year 6 Most recent statistics: December 31, 2011 Rate of enrolment is stable for ages 25-49 and increases afterwards… used liberally by seniors. Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes. Notes: ***The fund MER is built into the SSQ management fee

How To Illustrate UL Company A Company B SSQ Illustrated rate 4.4% 3% DB Age 65 $420,110 $387,546 $435,400 DB Age 75 $485,443 $400,516 $522,058 DB Age 85 $480,247 $348,303 $603,476 Accumulated COI $190,449 $145,479.76 $129,222.50 *lapses at age 92* Most recent statistics: December 31, 2011 Rate of enrolment is stable for ages 25-49 and increases afterwards… used liberally by seniors. Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

Commission at 170% Override Compensation Company A Company B SSQ 1st Year $3214.81 $6174.18 $6358.50 Most recent statistics: December 31, 2011 Rate of enrolment is stable for ages 25-49 and increases afterwards… used liberally by seniors. Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

Summary Competitive Rates for YRT COI Extreme Disability Benefit Riders - Child Life Rider, Stand alone CI and Term Insurance Flexibility to change YRT to Level Strong selection of investment options Guaranteed MERs 1% guaranteed bonus after 6 years Most recent statistics: December 31, 2011 Rate of enrolment is stable for ages 25-49 and increases afterwards… used liberally by seniors. Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

Director, Business Development Michael Hamel Director, Business Development Individual Insurance & Investment Products 416-209-9635 michael.hamel@ssq.ca Sheldon Frisch Business Development Associate 416-997-5315 Sheldon.frisch@ssq.ca Most recent statistics: December 31, 2011 Rate of enrolment is stable for ages 25-49 and increases afterwards… used liberally by seniors. Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.