2. A QUICK LOOK AT THE UNDERINSURED LIFE INSURANCE MARKET

3. Measuring the Underinsured Market A typical rule of thumb is to carry enough life insurance to replace income for about 7 to 12 years. Canadian Life Insurance Ownership Trends, LIMRA, 2013. 10

4. Gap In Coverage There is a wide gap between the amount of life insurance households currently own and the amount they feel they should have.

5. Sales Potential

7. What Keeps Consumers From Taking Action

8. What Can You Do?

10. LIFE INSURANCE: A QUICK LOOK BACK

11. A QUICK LOOK BACK PAR Products Popular in the 80s – High interest rates – Mutual companies Interest rate decline and high returns from stock market = lower sales Late 90s early 2000s – lawsuits regarding “vanishing premiums” concept Universal Life Popular in the 90s and early 2000s – High stock market returns – Flexibility for DIY Interest rate decline and market volatility = lower sales ULs sold based on double- digit returns could result in future litigation.

12. TODAY’S REALITY Lower interest rates = Increased LCOI rates and lower GIC rates Increased uncertainty: economy, markets, political When clients think of insurance, they think of SECURITY.

13. WHERE DO WE GO FROM HERE ?

14. ParPlus VS UL DOES UL MAKE SENSE TODAY?

15. A LOOK AT THE NUMBERS

16. Male, Age 35, NS -- $100,000 ProductPremiumPay YearsYear 20Age 65Age 75 UL (min. premium) $809For life$661$1,259$2,160 ParPlus –Enh.$908For life$11,178$22,445$37,637

17. Male, Age 35, NS -- $100,000 ProductPremiumPay YearsYear 20Age 65Age 75 UL (min. premium) $809For life$661$1,259$2,160 ParPlus –Enh.$908For life$11,178$22,445$37,637 UL$908For life$3,717$7,079$12,142

18. Male, Age 35, NS -- $100,000 PlanPremiumPay YearsYear 20Age 65Age 75 UL (min. premium) $809Life$661$1,259$2,160 ParPlus –Enh.$908Life$11,178$22,445$37,637 UL$908Life$3,717$7,079$12,142 ParPlus - PUA$1,764Life$31,701$67,186$122,461 UL$1,764Life$29,632$56,438$96,794

19. Male, Age 35, NS -- $100,000 PlanPremiumPay YearsYear 20Age 65Age 75 UL (min. premium) $809Life$661$1,259$2,160 ParPlus –Enh.$908Life$11,178$22,445$37,637 UL$908Life$3,717$7,079$12,142 ParPlus - PAU$1,764Life$31,701$67,186$122,461 UL$1,764Life$29,632$56,438$96,794 ParPlus-Enh.$1,39020 Pay$15,959$28,765$44,646 UL$1,39020 pay$18,623$18,313$17,846

20. Male Age 35 NS $100,000 PlanPremiumPay YearsYear 20Age 65Age 75 UL (min. premium) $809Life$661$1,259$2,160 ParPlus –Enh.$908Life$11,178$22,445$37,637 UL$908Life$3,717$7,079$12,142 ParPlus - PAU$1,764Life$31,701$67,186$122,461 UL$1,764Life$29,632$56,438$96,794 ParPlus-Enh.$1,39020 Pay$15,959$28,765$44,646 UL$1,39020 pay$18,623$18,313$17,846 ParPlus-PAU$2,45520 pay$43,501$82,785$139,761 UL$2,45520 pay$51,558$67,896$92,493

21. Universal Life Flexibility Willing to take risks for higher return Hands-on Disciplined saver Universal Life Flexibility Willing to take risks for higher return Hands-on Disciplined saver Par Whole Life Security Not willing to take additional risks Hands-off Likes predictability, not surprises Par Whole Life Security Not willing to take additional risks Hands-off Likes predictability, not surprises Estate Planning: Level or increasing insurance Liquidity through cash values

22. PARTICIPATING WHOLE LIFE CAN BE A PIECE OF THE PUZZLE

23. BUILDING THE SOLUTION FOR THE WHOLE FAMILY 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) Participating Whole Life

24. INSURANCE SOLUTION FOR THE WHOLE FAMILY 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)

25. 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 of changing dividend options as financial needs change.  Term life is renewable and convertible If term insurance needs last 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. INSURANCE SOLUTION FOR THE WHOLE FAMILY

26. Additional Options  DI on term life 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. INSURANCE SOLUTION FOR THE WHOLE FAMILY

27. 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. INSURANCE SOLUTION FOR THE WHOLE FAMILY

28. FOR THE BUSINESS OWNER

29. Cost comparison Life insurance premiums paid with “after-tax” money. How much income before tax must be generated to pay premiums? Assuming Robert’s marginal tax rate is 42%, he would have to earn $1,724 for each $1,000 in premiums. If the Opco is a Qualified Small Business with a tax rate of 16%, the amount of before-tax income required for each $1,000 in premiums is $1,191. PERSONAL OR CORPORATE-OWNED INSURANCE

30. Robert, 45 years old and in good health, owns a successful communications and marketing business. He also owns a Holdco company to which he plans to transfer $35,000 per year for 20 years – until retirement - from his operating company (Opco) to avoid keeping too much retained earnings in his Opco. Robert’s primary goal is to maximize the value of his estate, and he is not willing to take on too much risk with his money. He was thinking about investing in fixed income securities. LIFE INSURANCE FOR BUSINESS OWNER OpcoHoldco Tax-free intercompany dividends

31. Investments Corporate investment income taxed at high rate. Money paid out of Holdco to estate taxed as dividends. Life Insurance (owned by Holdco) Death benefit from life insurance is paid tax-free to Holdco. Capital Dividend Account (CDA) created – death benefit less policy ACB – and capital dividends payable tax-free to shareholders. INVEST OR BUY LIFE INSURANCE

32. Money available to estate Investment of $35k at beginning of year for 20 years compared with a $1,050,000 ParPlus life insurance with paid-up additions. INVEST OR BUY LIFE INSURANCE Fixed Income Portfolio at 4% annual interest Life Insurance - ParPlus YearAfter-Tax ValueTotal Death BenefitCDA Balance 10$386,763$1,189,336$863,933 20$867,552$1,554,547$969,524 30$1,078,460$2,082,240$1,768,319 40$1,370,138$2,823,947 For illustration purposes, investment income is fully taxable at a 45% rate. Premiums for ParPlus are $34,951.

33. Liquidity at retirement While Robert’s primary concern is to maximize the value of his estate, he may have some worries about accessing cash from Holdco during retirement to top up his retirement income. The most tax-efficient way to get extra income would be from a loan where the insurance policy is offered as a guarantee. Therefore, there would not be any deemed disposition of the policy. Cash values on the illustrated ParPlus policy: – Year 10$179,687 – Year 20$619,493 – Year 30$1,217,363 – Year 40$2,076,764 INVEST OR BUY LIFE INSURANCE

34. Permanent, Whole Life Participating Insurance

35. Issue ages: 18-75 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 18-65 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 (15, 20 or 25-year term life insurance with DI and critical illness riders) – Youth Plus (Term-to-age-25 life insurance for kids, with guaranteed insurability option) – Child Insurance Benefit – Accidental Death and Dismemberment – Waiver of Premiums upon Disability or upon Death – DI based on loan or DI based on income PARPLUS FEATURES

36. Permanent, Whole life Participating Insurance

37. Issue ages: 0 (15 days) - 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 of $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) PARPLUS JUNIOR FEATURES

38. DIVIDEND OPTIONS

39. Reduced PremiumReduced Premium Used to reduce the annual premium otherwise payable. Reduced PremiumReduced Premium Used to reduce the annual premium otherwise payable. AccumulationAccumulation Accumulate dividends with interest as part of the policy. AccumulationAccumulation Accumulate dividends with interest as part of the policy. Paid in CashPaid in Cash Paid to the policyholder annually at the policy anniversary in cash/by cheque. Paid in CashPaid in Cash Paid to the policyholder annually at the policy anniversary in cash/by cheque. Paid-Up AdditionsPaid-Up Additions Used to purchase paid-up additions, which will exponentially increase the death benefit. Paid-Up AdditionsPaid-Up Additions Used to purchase paid-up additions, which will exponentially increase the death benefit. EnhancedEnhanced Dividends are 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. EnhancedEnhanced Dividends are 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. 1 2 3 4 DIVIDEND OPTIONS 5

40. Flexible dividend options: help 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 18-65 and for amounts of $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! CLIENT BENEFITS

41. Excellent FYC commissions (get paid twice a week) Online product – no paper - Faster commissions! Simplified issue–for ages 18-65 and for amounts of $250,000 or less! (if all questions answered no, subject to MIB) Great dividend options: 5 options to choose from! Flexible! Something for the whole family. (ParPlus, ParPlus Junior, FlexTerm rider and Youth Plus rider) BROKER BENEFITS

42. WHO ARE WE ? Assumption Life is a thriving Canadian Mutual Life Insurance Company with over a century of experience! (since 1903) We provide a broad range of insurance and investment products such as: Individual life insurance Group insurance Investment products through well-know fund managers (AGF, Fidelity Investments, CI investments and Louisbourg Investments) Group savings and retirement plans Mortgage loans

43. WHERE ARE WE ? Moncton, NB

44. CORPORATE OVERVIEW Excellent Rating, AM Best (15 years running) Solvency Ratio = 251% (2013 ) 405% Sales Growth (5 years)

45. WE DELIVER Simplified products < 2 days Quick Issue products < 5 days Simplified: Have answered Yes to one of the medical questions or have a face amount higher than $250,000. Quick Issue: Face amount of $250,000 or less, where client answers no to all questions.

46. PERSONALIZED MARKETING SUPPORT

47. EXCLUSIVE VIDEO LEAD GENERATING TOOL

48. lia.assumption.ca

55. Get your business placed faster! Eliminate errors Get paid faster Increase productivity No need to carry around stacks of paper applications Related forms are all integrated into the e-app. Offer your clients a faster turnaround SELL ONLINE WITH

56. Join Assumption Life today! Doing business with us is easy!