Desjardins Insurance refers to Desjardins Financial Security Life Assurance Company. Release February 6 th, 2014

2/34 DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY February 6 th, 2014 content News in: Health Insurance Life Insurance Underwriting Fusion

Long-term Care Advance 3/34 DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY TraditionalUniversal Life Life 20Precision 20 Life at 65Precision at 65 Foundation (T00) Commission: Same as the life insurance coverage to which it is associated.

What you need to know… 1.It is now offered up to the age 59 in Fusion. 2.Clients between 56 and 59 individual consideration 3.10-year minimum before to receive the monthly benefit 4/34 DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY

You want to know the LTC Advance price? 5/34 DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY

You want to know the LTC Advance price? Look at the tree view! 6/34 DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY

And the price of CI Advance? Same thing! 7/34 DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY

8/34 DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY Success measure From the launch up to end of December:

A new VIA – Life with LTC Advance in 3 easy steps 9/34 DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY

Financing the LTC Advance with the MCD! With LTC Advance, if a applies the client keeps it! 10/34 DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY

Just an example Female, age 35 11/34 DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY RecommendationWithout MCDWith MCD Life 20 – $100,000 Term 20 – $400,000 $132.30$121.95

(Traditional) Twin of Precision at 65 Best guaranteed cash surrender value Multi-Coverage Discount available –Remains when LTC Advance is added Rate Reduction Program available 12/34 DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY

Rate Reduction Program 13/34 DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY Examples Products Substandard premium reduced by… If substandard premium of 100% If substandard premium of 150% Life 10 and Precision 1050%+ 50%+ 75% Life Start 1545%+ 55%+ 82.5% Life 20 and Precision 2040%+ 60%+ 90% Life at 65 and Precision at 65 Issue ages: % 40% 45% + 65% + 60% + 55% % + 90% % Guaranteed Whole Life and Precision30%+ 70%+ 105% MAXLife and Foundation20%+ 80%+ 120%

(Traditional) - cont'd Commissions 14/34 DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY

Male NS, Age 35, $100,000 - RankCompany Monthly premium CSV (Age 65) 30 years CSV (Age 80) 45 years 1Desjardins (UL) ,88060,520 2La Capitale (Trad) ,68450,765 3La Capitale (UL) ,68450,765 4Sun Life (UL) ,14945,655 5Equitable Life (UL) ,62448,355 6Desjardins (Trad) ,00068,000 7Industrial-Alliance (Trad) ,60062,450 8UL Mutual (Adj. Trad) ,00057,500 9Co-Operators Life (Par)137.43Div. 15/34 DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY

T30 (Trad) and Flex 30 (UL) Rate reduction of 7% in average –Regular and Preferred rate –#1 with MCD / between 1-4 without MCD-in Life Guide Consistant with T10 and T20 rates Top 3 in LifeGuide  Even more competitive with the Multi-Coverage Discount 16/34 DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY

T30 – Competitive analysis Male NS, Age 30 for $250,000 17/34 DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY RankCompanyMonthly premium 1SSQ Assurance Western Desjardins Industrial-Alliance La Capitale Wawanesa Life Transamerica Life BMO Insurance Primerica Life38.95

Business Insurability Option (BI Option) Markets Growth business Businesses currently lacking the financial capacity to cover the potential business need Needs Buy-sell agreement Capital gains taxes Business debts 18/34 DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY

BI Option – cont'd Allows to purchase additional life insurance for the first 10 years of the contract –Based on the growth of the business Fair Market Value Issue age: 18 to 65 BI Option amount at issue: –Min: $100K –Max: the lesser of : $3.33M Insured's share of the Fair Market Value of the Business (at issue) –Allows to exercise up to 3 time the BI Option amount 19/34 DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY

BI Option – cont'd At time to exercise the option –No medical evidence –Financial statement for the company's last three fiscal year to justify the business growth Maximum amount to purchase at time of the option –The lesser of The increased value of the owner's share in the business 3 times the option amount (less any amounts previously exercised) 20/34 DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY

BI Option – cont'd Products available when option is exercised –All products available for conversion –+ All term products (except Enhanced T10) Offer on all life insurance coverages (Traditional and Pace UL) 21/34 DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY Commissions FYCYears 2 to 5Years 6 to 10 Trad and UL35%4% (incl. deposits at 3% in UL) 2%

BI Option – Case study Company ABC with 2 owners –Owner A, male NS, 35 years old, owning 50% of shares –Owner B, female NS, 30 years old, owning 50% of shares Value of the business: $1.5M –Owner A's value of the share: $750,000 –Owner B's value of the share: $750,000 22/34 DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY

BI Option – Case study A buys T10 of $750,000 + BI Option for $750,000 (maximum cumulative of $2.25 million) –T10 annual premiums of $440 + BI Option of $ B buys T10 of $750,000 + BI Option for $750,000 (maximum cumulative of $2.25 million) –T10 annual premiums of $280 + BI Option of $75 2 years from now, FMV = $2.5M ($1.25M each owner) A exercises $500,000 ($1.25M – 750K) in a new T10 B exercises $500,000 ($1.25M – 750K) in a new T10 New balance of the BI Option on each insured is $1.75M ($2.25M–500K) 23/34 DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY

BI Option – Marketing Tools Calculator in Fusion and Webi –Help you to calculate the FMV and then the amount to enter in Fusion –Any other relevant methods are also accepted by the underwriting One-pager (with product description) Client brochure with case study CRM alert at the policy anniversary 24/34 DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY

Multi-Coverage Discount Light change in the permanent life insurance No change in the Term life insurance Always as competitive, #1 or #2 What is changing? No longer discount for the 10K rate band for permanent insurance –When sold with another eligible product, the other products still get a discount –Low level of sales in the 10K rate band (often for conversion) Discount on permanent product is now limited for certain situations 25/34 DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY

Preferred Offer Available on T10, T20 & T30 (Trad and UL) –$250,000 and $750,000 When an insured is accepted P1, P2 or R1 –Contract issue with an higher face amount, when box is checked in Fusion No additional medical evidence to provide Very simple in Fusion, let's see… 26/34 DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY

Fusion – Preferred Offer Excellent way to respect the budget and increase the legacy 27/34 DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY

Underwriting Requirements More relaxed underwriting requirements for: –Life insurance amount higher than $2M (ex.: no Financial Questionnaire for amount between $2M to $3M) Then, updated Financial Underwriting Guide –For Life insurance and Critical Illness Insurance: More relaxed requirements and increased the maximum amount limit 28/34 DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY

Fusion New icon for the Investor Profile After February 21, 2014, only illustrations produced with the Fusion illustration software version will be accepted 29/34 DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY

Transition Rule 30/34 DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY Contracts will be issued based on the old conditions, if Head Office receives the application and illustration on or before February 21, 2014 by mail, fax or . A contract issued with the old conditions must be settled within 40 days following the approval date from the underwriting department. If you are already submitted an application for T30 or Flex 30, thenew lower rates may be applied if the contract has not been issued.

Summary New Competitive commissions Best CSV Multi-Coverage Discount LTC Option Reduced rates for T30 (Trad) and Flex 30 (UL) Reduced by 7% Top 3 in LifeGuide 31/34 DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY

Summary - cont'd Business Insurance Option Additional life insurance for the first 10 years, based on the increased Fair Market Value of the business Very competitive premiums Competitive commissions Multi-Coverage Discount Slight change for Permanent products Still very competitive Still #1 or #2 No change for the Term products 32/34 DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY

Summary – cont'd Preferred Offer for Term Insurance Increase the amount of insurance when P1, P2 or R1 if box checked in Fusion More relaxed underwriting requirements For Life insurance greater than $2M No financial questionnaire Updated Financial guide 33/34 DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY

Desjardins Insurance refers to Desjardins Financial Security Life Assurance Company. Questions? Thanks! 34/34 DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY