For advisor use only Not for use with

For advisor use only. Not for use with the public. 504633 CAN (09/18)

Life Insurance Policy Review Agenda – Understanding • The situation • The opportunity • The strategy – Case Studies For advisor use only. Not for use with the public.

Life Insurance Policy Review Thank you! Any questions? Understanding the situation For advisor use only. Not for use with the public.

Life Insurance Policy Review Understanding the situation Why complete a Life Insurance Policy Review? – To ensure your client understands their current coverage and the reasons for purchasing this coverage – Examine the original risk class, as your client’s health may have changed, or the insurance companies may have amended their underwriting guidelines leading to more preferable underwriting offers – To discuss new products or features that may be of interest to your client – To ensure that as needs change, your client’s coverage protects those changing needs – To strengthen your relationship with your client For advisor use only. Not for use with the public.

Life Insurance Policy Review Understanding the situation What are some top common key triggers for a policy review? For advisor use only. Not for use with the public.

Life Insurance Policy Review Understanding the opportunity For advisor use only. Not for use with the public.

Life Insurance Policy Review Understanding the opportunity – 2016 LIMRA survey revealed at least 75% of the participants under the age of 44 preferred a life insurance policy review every 2 years or less How often insureds prefer to review life insurance coverage 1 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Under age 35 35 to 44 Once a year 1 to 2 years 45 to 54 3 to 5 years 1 Stats 55 to 64 6 years or more provided by 2016 Life Insurance Ownership in Focus completed by LIMRA http: //www. limra. com/research/abstracts/pdf/2016/160928 -01. aspx For advisor use only. Not for use with the public. At my request 65 or older

Life Insurance Policy Review Understanding the opportunity What does frequent policy reviews provide to your client? Evaluate life-changing events • Understand how changes impact life insurance needs • Ensure proper beneficiaries are listed • Review inforce coverage to ensure it’s performing as expected Examine original underwriting offer • Positive changes in health or improvements made to a company’s underwriting guidelines could lead to a better risk class • Declining health may reveal opportunities to leverage available conversion privileges with current term coverages For advisor use only. Not for use with the public. Review product features of interest • Riders and features • Policy cost and loan structure • Policy loan provisions

Life Insurance Policy Review Understanding the opportunity What does frequent policy reviews provide you as an advisor? Stronger relationships • Builds deeper connections with current clients • Gains deeper insight into client’s goals, vision and values Trust • Demonstrates commitment to the client’s future and their family • Inspires clients to take charge of their own future • Develops a stronger referral network For advisor use only. Not for use with the public. Business • Opens the door to crossselling opportunities • Helps advisor’s persistency; better handle on replacement or lapse business • Can increase advisor’s revenue

Life Insurance Policy Review Understanding the strategy For advisor use only. Not for use with the public.

Life Insurance Policy Review Understanding the Strategy An effective Life insurance Policy Review can: – Identify life changes – Evaluate your client’s in-force coverages – Identify coverage gaps – Introduce innovative offerings that give opportunities to improve your client’s life insurance coverage For advisor use only. Not for use with the public.

Life Insurance Policy Review Understanding the Strategy The Life Insurance Policy Review process: Approac h Review and evaluat e Take action For advisor use only. Not for use with the public.

Life Insurance Policy Review Understanding the Strategy Approach: – Identify ideal prospects: • Between the ages of 30 -65 • In-force coverage that is at least 2 years old • In good health • Had recent life or financial changes • Can be existing clients, prospects or business professionals – Reach out to these clients to schedule an appointment by: • Using personalized letter or e-mail • Phone call For advisor use only. Not for use with the public. • Social Media Infographics

Life Insurance Policy Review Understanding the Strategy Approach: – What happens if they have never had a policy review? • Your client may not understand or appreciate the importance of a policy review • When calling to schedule an appointment, accentuate why they would benefit from a policy review For advisor use only. Not for use with the public.

Life Insurance Policy Review Understanding the Strategy Review and evaluate: – Data with your client with these tools: • Time for a gathering policy review checklist • Life Insurance Policy Review Factfinder • Existing Coverage Inquiry • How Much Life Insurance Do I Need – Prepare a recommendation for your client based on your evaluation For advisor use only. Not for use with the public.

Life Insurance Policy Review Understanding the Strategy What should you be able to answer as a result of a Life Insurance Policy Review with your client? – Does your client understand what they purchased and are they satisfied with the features and benefits available? – Is the current ownership structure adequate for their goals? – Is your client’s current underwriting class accurate? For advisor use only. Not for use with the public. – Are beneficiaries up-to-date on your client’s coverage? – Does your client have too little, too much, or just enough protection with their current coverage? – Does the current coverage offer all the features and benefits your client desires and/or needs?

Life Insurance Policy Review Understanding the Strategy Take action: – Discuss with your client the information that you evaluated: • Their financial position: Ø Today’s financial position versus their financial position when insurance was originally purchased Ø Highlight any gaps uncovered in the amount of protection necessary to meet their needs Ø Review important upcoming events and discuss how it may impact their insurance needs For advisor use only. Not for use with the public.

Life Insurance Policy Review Understanding the Strategy Take action: − Their inforce coverage: Ø Discuss: ü Premium and if it’s adequate to keep the coverage inforce. ü Death benefit amount and cash values in comparison to their current needs. ü How their current coverage either meets today’s needs, falls short or is too high to cover both their short- and long-term obligations. Ø Review ownership and beneficiaries to ensure accuracy For advisor use only. Not for use with the public.

Life Insurance Policy Review Understanding the Strategy Take Action: No change required – Based on your evaluation, make your recommendation. You should be in a position to recommend making either: • Inforce policy effectively meets client’s goals Minor alterations may be required • Adjusting the premium and/or payment period • Implementing a new more efficient policy • Changes to the death benefit amount or death benefit option • Combining multiple policies into a single policy • Addition or removal of riders (if applicable) For advisor use only. Not for use with the public. Substantial modifications required • Layering additional new coverage on top of existing coverage

A Charitable Advantage Canadians are charitably minded • According to a Statistics Canada, 82% of Canadians have made financial donations to a charitable or non-profit organization 1 • Older donors give more on average. For example, in 2013 donors aged 75 and over gave an average of $726 to nonprofit or charitable organizations, compared to $531 for all Canadian donors 1 Source: Statistics Canada, 2013 General Social Survey – Giving, Volunteering and Participating. For advisor use only. Not for use with the public.

A Charitable Advantage The most popular causes • The top 5 causes in Canada are: 2 • Health and safety • Religious services and faith • Human services • Children and youth • International development 2 Source: 2017 Global Trends in Giving Report For advisor use only. Not for use with the public.

A Charitable Advantage The sales opportunity • 8 out of 10 prospective clients have donated to a charity 1 • Prospective clients are likely interested in donation programs that are simple, convenient and make a lasting contribution 1 Source: Statistics Canada, 2013 General Social Survey – Giving, Volunteering and Participating. For advisor use only. Not for use with the public.

A Charitable Advantage Charity Benefit provision • Foresters will pay an additional 1% of the basic insurance amount in effect on the date of death of the designated insured to a registered charitable organization as designated by the owner 6 • The maximum payment under this provision is $100, 000 • Automatically included as part of the contract and there is no additional premium required 6 The maximum payment under this provision is $100, 000. The designated charitable organization must be registered as a charity with the Canada Revenue Agency. For advisor use only. Not for use with the public.

A Charitable Advantage Charity Benefit provision • Designated charitable organization must be registered as a charity with the Canada Revenue Agency • Payment is made as a donation in the name of the insured • Donation is 100% tax free and does not need to be included as part of the insured’s estate • Donation may be eligible for a charitable tax receipt from the charity For advisor use only. Not for use with the public.

A Charitable Advantage Charity Benefit provision • Provides another opportunity to engage prospective clients • Remember, ask a prospective client if they have donated to a charity and 8 out of 10 times the answer will be yes • Which charities do they donate to? Would they be interested in learning more about a product that will help them protect their family and donate more to their favourite registered charity? For advisor use only. Not for use with the public.

Life Insurance Policy Review Case Studies For advisor use only. Not for use with the public. 504633 CAN (09/18)

Case Study: Steve & Mary Life Insurance Policy Review Meet Steve (36) and Mary (35) with their two children Four years ago: – Steve started a new job with no benefits and Mary was a stay-at-home parent with their child – Neither Steve nor Mary had any life insurance – They purchased a Foresters Financial. TM $100, 000 Term 102 life insurance on Steve due to budget limitations 2 Underwritten by Foresters Life Insurance Company. For advisor use only. Not for use with the public.

Case Study: Steve & Mary Life Insurance Policy Review Meet Steve (36) and Mary (35) with their two children Today (information gathered during meeting): – Steve and Mary welcomed their second child recently – Steve was promoted to construction site manager. He now has a flat $75, 000 death benefit at work and 6 -years remaining on the $100, 000 10 -year term – Mary currently has no life insurance coverage inforce For advisor use only. Not for use with the public.

Case Study: Steve & Mary Life Insurance Policy Review Meet Steve (36) and Mary (35) with their two children Their priorities: – Short-term priorities: Ø If Steve passes first, be able to cover the mortgage, minimum of 5 years living expenses and potentially cover a portion of the children's postsecondary education Ø If Mary passes first, be able to cover the mortgage and potentially cover a portion of the children's post-secondary education Ø They want their children to have some form of life insurance protection – Long-term priorities: Ø Have enough coverage to cover final expenses during retirement – The factfinder reveals that Steve needs $500, 000 and Mary needs $300, 000 worth of life insurance protection to meet their short-term needs For advisor use only. Not for use with the public.

Case Study: Steve & Mary Life Insurance Policy Review Solution presented to couple: – Covering Steve’s life insurance needs: – Covering Mary’s life insurance needs: • Convert $100, 000 term to Advantage Plus 3 Whole Life 20 -pay; Enhanced Insurance Dividend Option assuming non-smoker • Purchase a $50, 000 Advantage Plus 20 -pay; Enhanced Insurance Dividend Option assuming nonsmoker • Add a new 30 -year Term Rider for $325, 000 assuming medically underwritten preferred plus non-smoker • Add a 30 -year Term Rider for $250, 000 assuming Preferred Non Smoker • Total coverage of $500, 000 ($425, 000 new and $75, 000 work) 3 Underwritten • Total coverage of $300, 000 by The Independent Order of Foresters. For advisor use only. Not for use with the public.

Case Study: Steve & Mary Life Insurance Policy Review Their solution Product Advantage Plus Premium Term Rider Combined Monthly Premium Steve's Premiums Mary's Premiums Monthly Duration $126. 84 20 years $51. 09 20 years $36. 56 30 Years $21. 15 30 Years 1 -20 $235. 64 Years 21 -30 $57. 71 For advisor use only. Not for use with the public.

Life Insurance Policy Review Case Study: Steve & Mary Children’s Insurance Benefit – Built-in benefit provided at no extra premium – Provides $3, 000 of convertible term insurance for each insured child – Insurance stays in effect until the child’s 25 th birthday – On certain dates, the $3, 000 of term may be converted to permanent insurance and an additional $7, 000 of permanent coverage may be purchased on each child without evidence of insurability – If both parents have Advantage Plus certificates, children receive the full benefit from both certificates For advisor use only. Not for use with the public.

Case Study: Steve & Mary Life Insurance Policy Review Parent with Advantage Plus certificate Children’s Insurance Benefit for each child Additional permanent insurance available for purchase at conversion Total Steve $3, 000 $7, 000 $10, 000 Mary $3, 000 $7, 000 $10, 000 Total Children’s Insurance Benefit for each insured child $6, 000 For advisor use only. Not for use with the public. Total permanent insurance available for each child without evidence of insurability $20, 000

Case Study: Hector & Sophia Life Insurance Policy Review Meet Hector (35) and Sophia (32) and their 5 year old daughter Five years ago: – Hector was a self-employed graphic designer and Sophia worked for a successful software company, which provided her with a flat $50, 000 death benefit. Outside this coverage, neither had individual coverage in-force – Due to the birth of their daughter, they purchased a $400, 000 Foresters Term 20 policy on Sophia, who had the more regular income, to cover their mortgage, 2 years of living expenses and daughters post-secondary education For advisor use only. Not for use with the public.

Case Study: Hector & Sophia Life Insurance Policy Review Meet Hector (35) and Sophia (32) and their 5 year old daughter Today (information gathered during meeting): – Sophia was promoted to a VP position within her company. She now has a flat $75, 000 death benefit at work and 15 -years remaining on her $400, 000 20 -year term coverage – Hector is still a self-employed graphic designer but now only works parttime so he can look after their young daughter – Sophia’s cousin was recently diagnosed with cancer and had to take a year off work to recover For advisor use only. Not for use with the public.

Case Study: Hector & Sophia Life Insurance Policy Review Meet Hector (35) and Sophia (32) and their 5 year old daughter Their priorities: – Their short-term priorities: Ø If Sophia passes, be able to cover the mortgage, 2 -years’ salary, their daughters post-secondary education and final expenses Ø If Sophia becomes critically ill, cover one year of living expenses Ø If Hector passes, be able to cover mortgage, their daughters postsecondary education and final expenses – Their long-term priority: Ø Once mortgage is paid-off, have enough coverage to cover final expenses – The fact finder reveals they need a total of $750, 000 to meet their shortterm needs, then reduces to $50, 000 to meet their long-term needs For advisor use only. Not for use with the public.

Life Insurance Policy Review Case Study: Hector & Sophia Solution presented to couple: – Covering Hector’s insurance needs: • Purchase Advantage Plus Whole Life 20 Pay; Enhanced Insurance Dividend Option with $25, 000 of coverage and a Term 20 Rider with $250, 000 of coverage – Covering Sophia’s insurance needs: • Keep current Term 20 in place • Purchase a Life. Care T 75 with $100, 000 of coverage and Return of Premium (ROP) rider assuming standard non-smoker • Purchase Advantage Plus Whole Life 20 Pay; Enhanced Insurance Dividend Option with $25, 000 of coverage • Daughter has additional protection of Children’s Insurance Benefit from both Advantage Plus certificates For advisor use only. Not for use with the public.

Case Study: Hector & Sophia Life Insurance Policy Review Product Hector's Premiums Sophia's Premiums Monthly Duration Current Term 20 N/A $22. 50 15 years Life. Care T 75 with ROP N/A $79. 56 Age 75 Advantage Plus 20 Pay $65. 62 20 Years $44. 10 20 Years Combined Monthly Premium For advisor use only. Not for use with the public. $211. 78

Case Study: Eric & Beth Life Insurance Policy Review Meet Eric (64) and Beth (62) 20 years ago: – Eric and Beth were 20 years from retirement and had 3 children to help get through university – Both had good jobs, but each only had $50, 000 of coverage through their employer – Advisor sold them each a term policy; a 20 year term for $500, 000 For advisor use only. Not for use with the public.

Case Study: Eric & Beth Life Insurance Policy Review Meet Eric (64) and Beth (62) Today (information gathered during meeting): – Eric and Beth are retiring – Both of their term policies expire this year and both are past their conversion period – In addition to their retirement savings, they have managed to save $150, 000 to leave as a legacy to their 3 children – They would like to maximize that legacy as much as possible For advisor use only. Not for use with the public.

Case Study: Eric & Beth Life Insurance Policy Review Solution presented to couple: – Covering Eric and Beth life insurance needs: • Purchase a Non-Par Whole Life, 3 20 Pay, Joint Last to Die • Assuming standard non-smoker rates for both, $150, 000 of premium paid over 20 years buys $285, 000 of coverage • $135, 000 added to legacy for Eric and Beth’s 3 children Product Annual Premiums Duration $7, 508. 45 20 years Non-Par Whole Life Total coverage For advisor use only. Not for use with the public. $285, 000

Disclaimer • The information contained in this presentation is intended to be general in nature, for information purposes and advisor use only. There are other tools available to support your learning needs. You must ensure that you correctly represent, to a customer or prospect, the product features based on the actual wording of the applicable certificate and riders for your province. • Neither Foresters Financial. TM nor its representatives engage in rendering legal, business, estate tax, accounting or other tax advice. The information in this training module is intended as a general overview. Please advise your clients to consult their individual tax or legal advisors regarding their specific situation. • Foresters products are subject to eligibility requirements, underwriting approval, limitations, contract terms and conditions and variations. • Foresters Financial and Foresters are trade names and trademarks of The Independent Order of Foresters (a fraternal benefit society, 789 Don Mills Road, Toronto, Canada M 3 C 1 T 9) and its subsidiaries. For advisor use only. Not for use with the public. 504633 CAN (09/18)

Thank you! Any questions? To learn more about how Foresters can help you build your business, contact your Foresters Regional Vice President. For advisor use only. Not for use with the public. 504633 CAN (09/18)