THE COMBO APPROACH A Simple Way to Insure the Whole Family

Do you have clients who’s untimely death would result in: final expenses to their estate – funeral, estate administration, taxes, inheritance, etc.? leaving debts behind? diminished lifestyle for their immediate family? jeopardizing goals such as kids’ education, retirement for surviving spouse, etc.? A majority of people will answer “yes” to one or more of the questions above. But covering financial needs with life insurance is not the only thing consumers are looking for…

Guarantees Flexibility Additional Options Simplicity

Guarantees, flexibility and additional options are mostly product-related. Participating whole life encompasses these features. Simplicity is as much about the process than it is the product. The easier it is for clients to understand why they have the insurance plan that was recommended to them, the better the chance they’ll stick with it. Simplicity 1.Identify insurance needs. 2.Categorize each need as permanent or temporary. 3.Use a corresponding insurance coverage (permanent or term) for each need or group of needs. 4.If possible, group the various coverages in one policy.

Participating Whole Life Final expenses, donation, inheritance Protecting family lifestyle until retirement of surviving spouse Debts (match insurance term with debt amortization) Insuring kids for their future financial security. Term Life Rider with matching term Term Life for kids (with guaranteed insurability option)

Guarantees  Guaranteed premiums – No surprises!  Guaranteed insurance amount – Just pay the premiums.  Cash surrender value, which can be used for: Reduced paid-up option Guarantee for a policy loan or collateral loan Withdrawals upon surrender of part or all of the whole life insurance.  Guaranteed insurability for the kids (term life rider)

Flexibility  Dividends Increase the insurance amount – PUA; this helps reduce risk of inflation on final expenses or increase the value of inheritance. More insurance for a lower premium with the Enhanced dividend option. Use them for liquid savings or to reduce your premiums, or cash them. Possibility to change dividend options as financial needs change.  Term life is renewable and convertible If temporary insurance need lasts longer than expected (i.e. it takes longer to repay debts) or a new permanent insurance need arises, renewal and conversion options can help to address the issue.

Additional Options  DI on participating or term life insurance to help cover loan payments or replace part of income in case of disability.  Term life insurance for the kids – guarantees their future insurability.  Waiver of premiums in case of disability or death.

Simplicity  Simplified issue process for total insurance amount of $250k or less.  Same questions for whole life and term insurance (adults)  No investment decision required from the client.  Easy step-by-step electronic application.  Matching insurance type with needs helps clients better understand why they’re buying the insurance.

Profits Par Fund Projected returns Underperforms Greater performance!

Mutual Company 100% of the Par Fund profits go to the participating policy holders. They have ownership interest in the insurance company. Public Company A portion of the Par Fund profits goes to the shareholders instead of the policy holders. The shareholders are the owners of the company.

$10 billion 3 million policyholders, During , when many insurance companies demutualized: It is estimated that over $10 billion was handed out to 3 million participating life insurance policyholders, that is in addition to retaining their continuing life insurance coverage and policy cash values. As a participating policyholder, you have an ownership interest in the mutual insurance company.

Reduced Premium OptionReduced Premium Option Used to reduce the annual premium otherwise payable. Reduced Premium OptionReduced Premium Option Used to reduce the annual premium otherwise payable. Paid in Cash OptionPaid in Cash Option Paid to the policyholder annually in cash / cheque Paid in Cash OptionPaid in Cash Option Paid to the policyholder annually in cash / cheque 1 2

Whole Life Basic Insurance Time Death Benefit Total Initial Amount Reduce Your Annual Premiums Reduce Your Annual Premiums (Tax-free) Reduce Your Annual Premiums (Tax-free) Cash back! Get your dividends paid-out. Cash back! Get your dividends paid-out.

The projected dividends will coincide with the premium amount roughly after 30 years* Illustration based on Male, 35, NS, for $50,000 * Dividend amounts are not guaranteed. The actual period at which premiums and dividends coincide may be more or less than 30 years.

Reduced Premium OptionReduced Premium Option Used to reduce the annual premium otherwise payable. Reduced Premium OptionReduced Premium Option Used to reduce the annual premium otherwise payable. Accumulation OptionAccumulation Option Accumulate with interest as part of the policy (interest is taxable). Accumulation OptionAccumulation Option Accumulate with interest as part of the policy (interest is taxable). Paid in Cash OptionPaid in Cash Option Paid to the policyholder annually in cash / cheque Paid in Cash OptionPaid in Cash Option Paid to the policyholder annually in cash / cheque 1 2 3

Whole Life Basic Insurance Time Death Benefit Total Initial Amount Dividends accumulate and gain interest! Interest on dividends is taxable.

Reduced Premium OptionReduced Premium Option Used to reduce the annual premium otherwise payable. Reduced Premium OptionReduced Premium Option Used to reduce the annual premium otherwise payable. Accumulated OptionAccumulated Option Accumulate with interest as part of the policy. Accumulated OptionAccumulated Option Accumulate with interest as part of the policy. Paid in Cash OptionPaid in Cash Option Paid to the policyholder annually in cash / cheque Paid in Cash OptionPaid in Cash Option Paid to the policyholder annually in cash / cheque Paid-Up Additions OptionPaid-Up Additions Option Used to purchase paid-up additions, which will exponentially increase the death benefit. Paid-Up Additions OptionPaid-Up Additions Option Used to purchase paid-up additions, which will exponentially increase the death benefit

Whole Life Basic Insurance Paid-Up additions Time Death Benefit Total Initial Amount Dividends buy more permanent life insurance every year! NO ADD’L UNDERWRITING IF CHOSEN AT PURCHASE

Illustration based on Male, 35, NS, for $50,000 At age 86, death benefit is triple the original amount. At age 71, death benefit is double the original amount * Dividend amounts are not guaranteed. The actual age at which the death benefit will be double and triple the initial insurance amount may be different.

Reduced Premium OptionReduced Premium Option Used to reduce the annual premium otherwise payable. Reduced Premium OptionReduced Premium Option Used to reduce the annual premium otherwise payable. Accumulated OptionAccumulated Option Accumulate with interest as part of the policy. Accumulated OptionAccumulated Option Accumulate with interest as part of the policy. Paid in Cash OptionPaid in Cash Option Paid to the policyholder annually in cash / cheque Paid in Cash OptionPaid in Cash Option Paid to the policyholder annually in cash / cheque Paid-Up additions OptionPaid-Up additions Option Used to purchase paid-up additions, which will exponentially increase the death benefit. Paid-Up additions OptionPaid-Up additions Option Used to purchase paid-up additions, which will exponentially increase the death benefit. Enhanced OptionEnhanced Option Used to purchase a combination of one-year term insurance and paid-up additions. Under this option, the death benefit is equal to the sum of the basic insurance amount, the paid-up additions and the one-year term insurance amount. Enhanced OptionEnhanced Option Used to purchase a combination of one-year term insurance and paid-up additions. Under this option, the death benefit is equal to the sum of the basic insurance amount, the paid-up additions and the one-year term insurance amount

Term Insurance (T1) Paid-up Additions One-year term Paid-up Additions Total Initial Amount Non-guaranteed Time Death Benefit MUST BE SELECTED AT PURCHASE Whole Life Basic Insurance 15-year Guarantee

Term Insurance (T1) Paid-up Additions One-year term Paid-up Additions Total Initial Amount Non-guaranteed Time Death Benefit MUST BE SELECTED AT PURCHASE Whole Life Basic Insurance Guarantee to age 100

Notice the premiums for the enhanced option are much lower Illustration based on Male, 35, NS, for $50,000

Paid-Up Additions and Enhanced Options Policy dividends under these two options are not taxable. Cash or Accumulation Options If the dividend paid exceeds the policy’s adjusted cost basis (ACB), the excess amount will be fully taxable in the year it is paid. For the Accumulation option, interest paid on the accumulated dividends is fully taxable. However, withdrawals made from the dividend account are not taxable. Premium Reduction Option The portion of the dividend used to reduce the premium is not taxable. Any excess dividend paid to the policyholder will be taxable if it exceeds the policy’s ACB in the year it is paid.

Under the enhanced option, combination of – Basic whole life insurance – Paid-up addition and one-year term bought with dividends When changing from the enhanced option to another dividend option, the total insurance amount at the time of the change will be equal to the basic whole life + the paid-up insurance. Example 35-year-old MNS takes a $100,000 policy with the enhanced option. Year Basic Whole Life Insurance Amount Paid-Up Insurance Amount One-Year Term Insurance Amount 1$40,519$280$59,201 5$40,519$1,312$58,169 10$40,519$3,200$56,281 15$40,519$6,589$52,892

Permanent, whole life participating insurance

T-15, T-20 or T-25 Life Insurance DI Rider available Based on loan payment Based on earned income Renewable to age 80 Convertible to ParPlus before age 65 Term to age 25 for children Guaranteed insurability option at age 25 Living benefit in case of covered illness

Issue age: Online Product Online Product -no paper apps. Guaranteed Guaranteed level premiums Permanent, Permanent, life-pay or 20-pay whole life insurance SingleJoint-first-to-die Coverage type: Single or Joint-first-to-die Simplified issue Simplified issue available on ages and amounts of $250,000 or less. ( if all questions answered no and subject to MIB ) Basic insurance amounts: Basic insurance amounts: Min. $5,000 / Max: $4,000,000 Policy fee: $80 (flat fee) Riders: Riders: – FlexTerm (Term 15, 20 or 25 life insurance with DI rider) – Youth Plus (Term-to-age-25 life insurance for kids, with guaranteed insurability option) – Child Insurance Benefit –rider (CIB) – Accidental Death and Dismemberment (AD&D) – Waiver of Premiums upon Disability (WPI) – Waiver of Premiums upon Death (WPD) – Disability Income available (loan payment or earned income)

Dividend options: Enhanced Enhanced (15 year guarantee or guarantee to age 100) (15 year guarantee or guarantee to age 100) Paid-Up Addition Paid-Up Addition Accumulation Accumulation Cash / Reduced premium Cash / Reduced premium Premium band: 5-24K 5-24K 25-99K 25-99K K K More than 250K More than 250K

Permanent, whole life participating insurance

Issue age: 0-17 Online Product Online Product (no paper app.) Guaranteed Guaranteed level premiums 20-pay Permanent, 20-pay life insurance Simplified issue Simplified issue available on amounts $250,000 or less. (If all questions answered no, subject to MIB) Single Coverage type: Single Coverage amounts: Coverage amounts: Min. $5,000 / Max: $4,000,000 Policy fee: $80 Riders: Riders: – FlexTerm (Term 15, 20 or 25 life insurance with DI rider) – Youth Plus (Term-to-age-25 life insurance for kids, with guaranteed insurability option) – Accidental Death and Dismemberment (AD&D) – Waiver of Premiums upon Disability (WPI) – Waiver of Premiums upon Death (WPD)

Dividend options: Enhanced (15 year guarantee or guarantee to age 100) Enhanced (15 year guarantee or guarantee to age 100) Paid-Up Additions Paid-Up Additions Accumulation Accumulation Cash / Reduced premium Cash / Reduced premium Premium band: 5-99K 5-99K 100-and up 100-and up Full selection for 250K + Full selection for 250K +

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Guarantees Flexibility Additional Options Simplicity

Flexible dividend options: helps you get customized insurance Become a part-owner!!! Permanent coverage! Insurance for life Term riders for a more complete coverage Guaranteed level premiums! Premiums will never go up, guaranteed! Easy application process –simplified issue for ages and for amounts $250,000 or less! Means, no needles- no blood test- no doctors… No-hassle insurance! No need to track your portfolio or worry about when your insurance will end. Stability you can depend on! Bank-friendly! Some financial institutions will loan up to 85% of the accumulated cash value Online product – quicker process More than just coverage, it’s insurance that pays you back!

Excellent FYC commissions (get paid twice a week) Online product – no paper - Faster commissions! Simplified issue–for ages and for amounts $250,000 or less! (if all questions answered no, subject to MIB) Great dividend options: 5 options to choose! Flexible! Something for the whole family. (ParPlus, ParPlus Junior, FlexTerm rider and Youth Plus rider)

Assumption Life century of experience! Assumption Life is a thriving Canadian Mutual Insurance Company with over a century of experience! (since 1903) solution-based easier for our clients! We pride ourselves on our innovative, solution-based, approach in making every step easier for our clients!