Wealth creation and management Wealth protection Retirement Financial Security at Death Liquidity Living Benefits About Crossgrove & Company Since 1985 our team has been providing management consultants and executive across Canada with: - In-depth Knowledge - Superior Service - Optimum Tailored Risk Management Solutions We have worked with members of the Canadian Association of Management Consultants since 1993 Our area of specialty is Living Benefits

What are living benefits? Insurance designed to financially assist you through the recovery of an illness There are three types: - Critical Illness Insurance - Disability Insurance - Long-Term Care Insurance Today we will focus on Critical Illness Insurance (CI)

Critical Illness Insurance An individual insurance contract that is: - Non-Cancelable - Fully Guaranteed Amount of Coverage Definitions Premium In the majority of cases, 30 days after the diagnosis of a covered condition, a lump sum tax-free payment is made to the insured It is to the insured’s discretion how to use the tax-free benefit

Statistical Considerations 1 in 4 Canadians will develop a critical illness before retirement Sources: Canadian Cancer Society, Heart and Stroke Foundation of Canada Heart Disease and Stroke 1 in 2 men and 1 in 3 women are predicted to develop heart disease in their lifetime 1 in 2 heart attack victims are under the age of 65 95% of heart attack victims survive the initial occurrence 91% of patients admitted to Toronto’s leading cardiac emergency hospitals would have qualified for a critical illness payout after 30 days 75% of stroke victims survive the initial event Up to 80% of stroke survivors return to their homes, still requiring assistance for daily living Cancer 1 in 2.4 men and 1 in 2.7 women living in Canada will develop cancer Since 1970 the incidence of cancer has increased at the rate of 1% annually More than half of all people living with cancer will survive at least 5 years after diagnosis

Changes in life expectancy Women (ages) Men (ages) Source: Statistics Canada Canadians are living longer

$2,000 $4,000 $8,000 $15,000 Source: National Health Expenditure Database, CIHI Health care needs change over our lifetime. This chart shows how much provincial/territorial governments spent per person on health care by age group. Government health care costs

Newcomers (20-24) Retiring (60-64) 0 1,000 1,500 2,000 2,500 3, This area identifies a time when the number of newcomers to the labour market will be surpassed by those retiring. This results in lower tax revenues, further straining our health care system. Source: Actuarial Report, Canada Student Loans Program Thousands Evolution of persons retiring to newcomers

Source: The Fraser Institute, Annual Waiting List Survey Waiting periods in weeks BC AB SK MB ON QC NB NS PE NL CAN Provincial Statistics

Out of country treatment (based on treatment at the Mayo Clinic) $CDN Coronary artery bypass (1-4 vessels, 5-7 days in hospital) Heart transplant (2-4 weeks in hospital) $248, ,000 $89, ,700 Radiation cancer therapy (for 6 weeks) $39, ,058 Source: Transplant Financial Services / Mayo Rochester Estimating Services / Mayo Rochester Average waiting time for Canadians is 16.2 weeks (between referral by GP and treatment) Source: The Fraser Institute, Annual Waiting List Survey The wait for medical care may be long and could cause a financial drain if you seek treatment elsewhere. Consider your family, friends & lifestyle

Loss or reduction of income – loss of savings, liquidity, home –17% of called bank loans are due to critical illness –67% of current cancer treatment costs are unfunded Increased living expenses Lifestyle changes Loss of choice and independence Jeopardized retirement goals and dreams Risk to your children’s future Emotional trauma and stress to you and your family Possible problems affecting your family Source: Canadian Cancer Society, Canadian Bankers Association

How can I protect myself & my family? What are my current financial options?

Interest Rate 10 year Repayment Term 20 year Repayment Term 8% 6% $199,837 $257,916 $218,389 $301,118 10% $237,871 $347,407 Many loan facilities require proof of active employment income. During a period of critical illness, borrowing may not be a viable option to many. A lender will likely charge a higher interest rate to a borrower with a critical condition and reduced income than otherwise expected. The following example illustrates the cost of borrowing $150,000 The high cost of borrowing

An unplanned sale of Investment Assets may trigger surrender fees or market value adjustments Market timing: a forced liquidation during market downturns can increase the total cost of selling assets Ease of disposal or sale Reduce or eliminate compound growth from the assets for retirement or inheritance Sell assets?

Critical Illness Funding Analysis $150,000 RRSP withdrawal vs. Critical Illness Insurance

Exclusive offering On behalf of Canadian Association of Management Consultants we have negotiated an exclusive discount with Canada Life on their Critical Illness Insurance offering CMC members can purchase from $25,000 to $2 million of coverage at discounted rates The contracts are owned and paid for by each member, which means: you can still maintain them should you leave the association once issued, the discount is contractually guaranteed and not dependent upon future membership in the association Any insurance benefit will be tax-free to you Canada Life provides the most comprehensive coverage in the marketplace Return of Premium (ROP) option available should you not have a claim Canada Life is particularly expeditious in paying their CI claims as we can attest on behalf of our clients who have had a covered condition.

Standing by their offering Canada Life has paid over $42 million in claims (2003 – 2008) Age at claim Diagnosis Cancer Leukemia Breast Cancer Stroke Multiple Sclerosis Coma Heart Attack Prostate Cancer Ovarian Cancer Lung Cancer Coronary Artery Bypass Surgery Parkinson’s Disease Benefit Amount $250,000 $300,000 $100,000 $200,000 $50,000 $250,000 $100,000 $250,000 $350,000 $100,000 Examples of claims paid

Comprehensive Coverage Canada Life Offers the Most Comprehensive Coverage Alzheimer’s Disease Aortic Surgery Aplastic Anaemia Bacterial Meningitis Benign Brain Tumour Blindness Coma Coronary Artery Bypass Surgery Deafness Heart Attack Heart Valve Replacement Kidney Failure In addition, Two Unique Riders Life-Threatening Cancer Loss of Limbs Loss of Speech Major Organ Failure on Waiting List Major Organ Transplant Motor Neuron Disease Multiple Sclerosis Occupational HIV Infection Paralysis Parkinson’s Disease Severe Burns Stroke Best Doctors Loss of Independent Existence for the Duration of Coverage Second Event (50% up to $50,000 before age 65)

Linking you with Best Doctors® Canada Life provides you with access to the services of Best Doctors, which are designed to help you and your treating physician, upon diagnosis of a covered condition, improve the chances of a successful outcome through access to additional information. InterConsultation TM provides an in-depth review of your medical records, personalized medical evaluation and treatment recommendations from specialists affiliated with leading medical institutions throughout the world. FindBestDoc TM is your link to more than 50,000 specialists in Canada and around the world. You are provided with the names and professional profiles of up to three top specialists based on your geographic preference, who have been identified by other doctors as the “best” for treating your condition. FindBestCare ® provides assistance with medical appointments to help ensure that your medical priorities are met.

Next steps Set a time with us to discuss your unique situation From our private discussion we will create a custom proposal for your consideration based upon your specific needs Should you wish to proceed, an application and medical requirements need to be completed All requirements (phone meeting, application & medical requirements) are completed based upon your schedule The entire process is extremely flexible Ongoing administration and claims support

Conclusion Have the financial security to cover all your medical expenses? Be able to maintain your current lifestyle? Want access to advanced medical knowledge and treatments? Need counseling and support services? What about your family? Are you prepared? Invest a moment today to safeguard tomorrow ® If you were diagnosed with a Critical Illness would you?

Questions please We welcome your questions & thoughts.