1. Launch of Participating Life Insurance
Dawit Hamilton, BA,CFP,CLU,CHS
Regional Sales Director- Individual Insurance
Desjardins Insurance
Desjardins Insurance refers to Desjardins Financial Security Life Assurance Company.

2. Agenda Our new product offer Case Study
DESJARDINS INSURANCE | FOR ADVISORS ONLY

3. Why Use Desjardins Insurance?
The data presented in this document is from a 2015 Bloomberg study and does not represent Desjardins’ current position. This document is for advisor use only.

4. In-force business managed by Desjardins Insurance since…
1st participating life insurance product appeared around 1860
State Farm,
Protector, Flexivie, PermaPar, PermaPlus, PermaVie, Partenaire, Sauvegarde, FlexPlus, Sauvegarde,
Maxi-terme…
In-force business managed by Desjardins Insurance since…
1896!
It’s NOT anything new
Be proud!
Imperial Life…1896
Which other companies?
DESJARDINS INSURANCE | FOR ADVISORS ONLY

5. Participating Life Insurance
Accelerated Growth
20 pay To 100
Enhanced Insurance (T1 + PUA) 10-year Guarantee Lifetime Guarantee
Paid-Up Additions (PUA)
Estate Enhancer
Dividends on Deposit
Premium Offset
Cash Payment
Annual Premium Reduction
DESJARDINS INSURANCE | FOR ADVISORS ONLY

6. Target markets
Emerging mass-affluent, mass-affluent, and high-net-worth clients
Business owners
DESJARDINS INSURANCE | FOR ADVISORS ONLY

7. Client profile
Have cash or assets they don’t need to maintain their lifestyle
Need permanent life insurance
Accelerated Growth
Mass-affluent and high-net-worth clients aged 45 to 65
Estate Enhancer
Emerging-mass- affluent and mass- affluent clients adults 35 to 65 years of age
With children or grandchildren aged 0 to 17
DESJARDINS INSURANCE | FOR ADVISORS ONLY

8. Client profile Accelerated Growth 10 to 15 years
Estate Enhancer 20 to 25 years
Having access to more cash at the start of their contract for short to medium term needs
Increasing their retirement income
Diversifying their assets
Planning their estate and covering taxes owing upon death
Maximizing the value of their estate upon death
Compensating for the rising inheritance tax
Building a solid financial foundation for their children or grandchildren, and guaranteeing their insurability
Having access to cash during their lifetime
Planning a charitable donation
DESJARDINS INSURANCE | FOR ADVISORS ONLY

9. Dividend scale Paid-up additions options(PUA)
Estate Enhancer
Accelerated growth
10-15 years
If we compare the dividends’ scale of these 2 products, we can see that our hare/accelerated growth is faster at the start, while the tortoise /estate enhancer is better after a certain period (around years)
DESJARDINS INSURANCE | FOR ADVISORS ONLY

10. Death benefit Paid-up additions options (PUAs)
Cash surrender value Paid-up additions option (PUAs)
20-25 years
20-25 years
If we compare the death benefit and the cash surrender value, we can see that our hare/accelerated growth will increase faster at the start, while the tortoise/estate enhancer has better values after a certain period (around years)
Estate enhancer
Accelerated growth
DESJARDINS INSURANCE | FOR ADVISORS ONLY

11. Dividend options and Premium Offset
DESJARDINS INSURANCE | FOR ADVISORS ONLY

12. 01 02 03 04 05 06 Cash Payment Annual Premium Reduction
Dividends on Deposit
Paid-Up Additions (PUA) 05 06
Enhanced Insurance
Premium Offset
DESJARDINS INSURANCE | FOR ADVISORS ONLY

13. Annual dividends paid to policyowner by cheque01
Cash Payment
Annual dividends paid to policyowner by cheque
This is the simplest option!
DESJARDINS INSURANCE | FOR ADVISORS ONLY

14. Annual Premium Reduction02
Annual Premium Reduction
Affordable way of paying policy premiums
If dividends credited are higher than premiums, Desjardins Insurance pays the difference to policyowner
Only available if the premium is paid annually
DESJARDINS INSURANCE | FOR ADVISORS ONLY

15. 03
Dividends on Deposit
Automatically deposited into a Desjardins Insurance savings account
Accessible at all times
Daily interest with annual compounding
Interest rate of 1.7%
DESJARDINS INSURANCE | FOR ADVISORS ONLY

16. Paid-Up Additions (PUA)04
Paid-Up Additions (PUA)
All dividends credited to the policy used to purchase permanent paid-up insurance
No additional premiums for this insurance
New paid-up insurance has cash surrender values and generates dividends
Death benefit and cash surrender values increase over time
The PUA cash surrender values grow on a tax-efficient basis
DESJARDINS INSURANCE | FOR ADVISORS ONLY

17. Paid-up additions Death benefit PUAs Basic amount of insurance
Voici un graphique qui illustre l’option de bonification d’assurance libérée.
La partie verte représente le montant de base au décès qui est uniforme et garanti.
La partie grise représente les bonifications d’assurance libérée qui augmentent dans le temps.
La partie grise n’est pas garantie et varie en fonction du barème de participations futur.
DESJARDINS ASSURANCES | À L'USAGE EXCLUSIF DES CONSEILLERS

18. 05
Enhanced Insurance
Combination of one-year term insurance (T1) and PUAs
Guaranteed for 10 years or for life
This option provides a higher death benefit as of the time of issue, at a lower cost
DESJARDINS INSURANCE | FOR ADVISORS ONLY

19. Dividend crossover point
Enhanced Insurance
Death benefit
PUAs T1
Basic amount of insurance
Dividend crossover point
Voici un graphique qui illustre l’option de bonification d’assurance libérée.
La partie verte représente le montant de base au décès qui est uniforme et garanti.
La partie grise représente l’assurance temporaire d’un an. Avec le temps cette assurance est remplacée par des Bonifications d’assurance libérée (partie jaune-mauve)
Le montant au décès total est uniforme jusqu’à ce que le point d’équilibre des participation soit atteint. À ce moment-là, le montant au décès commence à croître.
Les parties grise et jaune ne sont pas garanties et varient en fonction du barème de participations futur. ???? Je croyais qu’il y avait une garantie de 10 ans ou à vie???? DANS LE LOGICIEL D’ILLUSTRATION JE CHOISI UN MONTANT D’ASSURANCE SUPPLÉMENTAIRE EX $ ET J AI UN CAPITAL DE BASE DE $ S’IL N’Y A PAS DE PARTICIPATIONS DE VERSÉES A L’ANNIVERSAIRE DE MON CONTRAT ET QUE JE DÉCÈDE QU’ELLE MONTANT D’ASSURANCE SERA PAYÉ À MON BÉNÉFICIAIRE?
DESJARDINS ASSURANCES | À L'USAGE EXCLUSIF DES CONSEILLERS

20. 06
Premium Offset
Allows policyowners to pay premiums with dividends credited annually
Can be activated when there are enough annual dividends and non-guaranteed cash surrender values to pay all future premiums
Available with all dividend options, except Annual premium reduction
DESJARDINS INSURANCE | FOR ADVISORS ONLY

21. Dividend scale
DESJARDINS INSURANCE | FOR ADVISORS ONLY

22. Expenses and taxes paid by insurer
Dividend Scale
Expenses and taxes paid by insurer
Investment returns
Mortality rate

23. Investment return risk
Stable long-term performance
DESJARDINS INSURANCE | FOR ADVISORS ONLY

24. Dividend scale interest rate
Desjardins Insurance guarantees an interest rate of until January 1, 2023 5%
DESJARDINS INSURANCE | FOR ADVISORS ONLY

25. Joint Last-to-Die, Paid-up First Death
Joint First-to-Die
Individual
Joint Last-to-Die, Paid-up First Death
Joint Last-to-Die
DESJARDINS INSURANCE | FOR ADVISORS ONLY

26. A head start for the future
Participating life insurance for children
We all want the best for our children or grandchildren. But life happens. Illness, lifestyle choices, even some hobbies, can affect their ability to qualify for life insurance as adults, when they have a family of their own to protect.
Give them a head start and protect their future insurability.
DESJARDINS INSURANCE | FOR ADVISORS ONLY 26

27. Why buy PERMANENT life insurance for a child?
Provides a lifetime of protection at children’s rates
Having insurance today can protect their future insurability
Insuring a child is easy when they are young and healthy
Protects a family’s financial security so parents can take leave from work
The guaranteed insurability additional coverage is an affordable way to make it possible for your child to purchase insurance in the future
Life insurance is a lasting gift that can play an important role in a child’s financial future.
Life insurance can create a safety net that provides your child with lifelong benefits …
Changes in health, certain jobs or hobbies could make a child uninsurable later in life.
without evidence of insurability

28. Why buy Par Life insurance on a child?
Protection and savings in one plan
Lifetime coverage
Par Life can grow with your child and meet their changing insurance and savings needs
Premiums are level and guaranteed
The policy can be paid up in 20 years
A child will have permanent protection that can provide for his own family’s financial wellbeing and tax-efficient transfer of assets to their heirs.
A 20 pay plan provides them with a paid-up insurance at a time when their needs are high but their income may not be.
DESJARDINS INSURANCE | FOR ADVISORS ONLY 28

29. 1 2 3 Advantages of PAR life insurance for a child
By purchasing a Par Life while the child is young, the policy benefits from greater compound growth over time.
A child can use the cash value in the policy to fund their post-secondary education, to purchase a home or anything else they may need through: a cash withdrawal, policy loan or collateral loan. 2 3
Provides a stable investment option with tax-advantaged growth but does not require active management like other investments.
DESJARDINS INSURANCE | FOR ADVISORS ONLY 29

30. Case study 1 Meet Annice, proud grandmother of Anna
DESJARDINS INSURANCE | FOR ADVISORS ONLY 30

31. The situation Annice would like to:
Establish a financial foundation for her 12-year-old granddaughter Anna to help her achieve her future goals and dreams
Spend $1,500 per year on insurance protection for her granddaughter
Anna’s RESP is maximized and she does not have any other insurance
She wants a growing guaranteed death benefit
DESJARDINS INSURANCE | FOR ADVISORS ONLY 31

32. The need
Provide permanent whole life insurance that would protect Anna now and in the future
Create a stable investment option with tax-advantaged growth
Access cash value to fund education, for example
Transfer the ownership of the policy to her granddaughter without transferring the responsibility for premium payment to her
She wants a growing guaranteed death benefit
DESJARDINS INSURANCE | FOR ADVISORS ONLY 32

33. 01 02 03 04 Coverage Premium Option Par Account
Solution: Participating life insurance 01
Estate Enhancer for long term death benefit and cash values growth
Coverage 02
Premium
Limited payment – 20 years 03
Option
Paid-up additions (PUAs)
Coverage : Estate Enhancer for the long term death benefit and cash values growth
Premium : Limited payment – 20 years
Option : Paid-up additions (PUAs) option because of potential death benefit and cash value growth that is tax-advantaged
PAR Account : - Opportunity to earn dividends
- Stable long term hands-off investment option 04
Par Account
Opportunity to earn dividends
Stable long term hands-off investment option
DESJARDINS INSURANCE | FOR ADVISORS ONLY 33

34. Solutions for Anna 20 year pay - Premium $1, 507 Product
Initial coverage
Annual premium
Estate enhancer, PUA option
$100,000
$1,507
Estate enhancer, Enhanced Insurance option
$131,359
Accelerated growth, PUA option
$1,566
Accelerated growth, Enhanced Insurance option
N/A
GWL 20 year pay
$325,278
Estate Enhancer EI Option
Basic coverage $67,115
Enhanced coverage
DESJARDINS INSURANCE | FOR ADVISORS ONLY 34

35. Guaranteed cash values
Total cash values – PUAs option
Estate Enhancer
Accelerated Growth
GWL 20 Pay
Year
Age
Total cash values
Guaranteed cash values 1 13
$96
$258 $0 5 17
$1,148
$2,471
$1,204 10 22
$4,892
$9,414
$4,011 20 32
$23,538
$24,215
$32,072 30 42
$51,449
$50,124
$38,487 40 52
$92,163
$87,366
$56,182 50 62
$158,943
$148,673
$85,815 60 72
$262,399
$244,675
$127,148
Dividends are not guaranteed.
Therefore, the death benefit and cash value may vary.
DESJARDINS INSURANCE | FOR ADVISORS ONLY 36

36. Total death benefit – PUAs option
Year
Age
Estate Enhancer
Accelerated Growth
GWL 20 Pay 1 13
$100,898
$101,273
$325,278 5 17
$106,966
$110,326 10 22
$119,905
$127,296 20 32
$162,65
$166,228 30 42
$216,720
$211,593 40 52
$281,073
$267,292 50 62
$358,586
$336,381 60 72
$453,400
$423,590
Dividends are not guaranteed
Therefore, the death benefit and cash value may vary.
DESJARDINS INSURANCE | FOR ADVISORS ONLY 37

37. Estate Enhancer: Comparison between PUAs and Enhanced Insurance (same premium)
Year
Age
PUAs death benefit
Enhanced Insurance death benefit
PUAs cash values
Enhanced Insurance cash values 1 13
$100,898
$131,359
$96
$80 5 17
$106,966
$1,148
$984 10 22
$119,905
$4,892
$4,248 20 32
$162,650
$142,707
$23,538
$20,615 30 42
$216,720
$190,188
$51,449
$45,132 40 52
$281,073
$246,731
$92,163
$80,881 50 62
$358,586
$314,833
$158,943
$139,525 60 72
$453,400
$398,138
$262,399
$230,392
DESJARDINS INSURANCE | FOR ADVISORS ONLY 38

38. Current dividend scenario Alternate dividend scenario
Current and alternate dividend scenarios
Estate enhancer – PUAs option
Current dividend scenario
Alternate dividend scenario
Contractual year
Age
Total death benefit
Total cash values 20 32
$16,265
$23,538
$139,890
$19,187 40 52
$281,073
$92,163
$198,675
$63,483 60 72
$453,400
$262,399
$270,780
$153,815
DESJARDINS INSURANCE | FOR ADVISORS ONLY 39

39. When Anna grows up…
When Anna reaches age of 32 and the policy is paid-up, the death benefit is equal to 163% more than the initial amount.
If Anna decides to buy a house at age 32, she can access the cash value through a:
cash withdrawal
policy loan
collateral loan
DESJARDINS INSURANCE | FOR ADVISORS ONLY 40

40. When Anna grows up…
When Anna turns 32, her dividend will be worth $ 1,005.
With a yearly premium of $510, she could buy a $1M T20 to cover her debts.
In addition, she could still have a remaining $500.
DESJARDINS INSURANCE | FOR ADVISORS ONLY 41

41. Customizing Anna’s plan
There are a variety of additional coverages to help tailor the child’s plan to ensure it continues to meet their needs. These include:
Guaranteed Insurability Benefit
Accidental Fracture
Accidental Dismemberment or Loss of Use
Accident
DESJARDINS INSURANCE | FOR ADVISORS ONLY 42

42. Thinking about combining it with a CI?
31 illnesses
20 Pay
$50,000
31 illnesses 20 Pay
$100,000
28 illnesses
Harmony New Generation
$520
$892
$446
$744
Estate Enhancer
Enhanced Insurance option: $100,000
$1,157
Total premium
$1,677
$2,049
$1,603
$1,901
*Estate enhancer enhanced insurance with a total face amount of $100,000 (premium amount $1,157)
DESJARDINS INSURANCE | FOR ADVISORS ONLY 43

43. Sales material and tools
Product sheet for clients
Advisor’s Guide
Quick Reference
Which Par for which client?
Participating account brochure
DESJARDINS INSURANCE | FOR ADVISORS ONLY

44. For everyone Self-training Webinar
Introduction to Participating Life Insurance (Module 1) Learn about participating life insurance, who it’s for and how it works
Available since August 17
Participating Life Insurance (Module 2)
Understand participating life insurance and find out more about the types and dividend options
Discovering the Participating Life Insurance Illustration
Webinar
September 12, 14, 19 and 21, 2017:
1:30 p.m. to 3:00 p.m.
New product – Participating Life Insurance
TAKE THE SELF-TRAINING FIRST
DESJARDINS INSURANCE | FOR ADVISORS ONLY

45. With Desjardins Insurance
You have choices, we offer solutions!
DESJARDINS INSURANCE | FOR ADVISORS ONLY 46

46. Thank you!
Desjardins Insurance refers to Desjardins Financial Security Life Assurance Company.