Launch of Participating Life Insurance Desjardins Insurance refers

Launch of Participating Life Insurance Desjardins Insurance refers to Desjardins Financial Security Life Assurance Company.

Agenda 1. Our product offer 2. Case Study DESJARDINS INSURANCE | FOR ADVISORS ONLY 2

It’s NOT anything new DESJARDINS INSURANCE | FOR ADVISORS ONLY 3

Participating Life Insurance Accelerated Growth Estate Enhancer 20 pay To 100 Enhanced Insurance (T 1 + PUA) 10 -year Guarantee Lifetime Guarantee Paid-Up Additions (PUA) Dividends on Deposit Cash Payment Annual Premium Reduction Premium Offset DESJARDINS INSURANCE | FOR ADVISORS ONLY 4

Client profile • Have cash or assets they don’t need to maintain their lifestyle • Need Permanent Life Insurance Accelerated • Mass-affluent and high-net-worth Growth clients aged 45 to 65 Estate Enhancer DESJARDINS INSURANCE | FOR ADVISORS ONLY • Emerging-mass- affluent and massaffluent clients adults 35 to 65 years of age • With children or grandchildren aged 0 to 17 5

Client profile Accelerated Growth 10 to 15 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 DESJARDINS INSURANCE | FOR ADVISORS ONLY Estate Enhancer 20 to 25 years • Maximizing the value of their estate upon death • 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 6

Dividend scale Paid-up additions options(PUA) Estate Enhancer Accelerated growth 10 -15 years DESJARDINS INSURANCE | FOR ADVISORS ONLY 7

Death benefit Paid-up additions options (PUAs) Cash surrender value Paid-up additions option (PUAs) 20 -25 years Estate enhancer DESJARDINS INSURANCE | FOR ADVISORS ONLY Accelerated growth 8

Dividend options and Premium Offset DESJARDINS INSURANCE | FOR ADVISORS ONLY 9

01 Cash Payment 02 Annual Premium Reduction 03 04 Dividends on Deposit Paid-Up Additions (PUA) 05 06 Enhanced Insurance DESJARDINS INSURANCE | FOR ADVISORS ONLY Premium Offset 10

01 Cash Payment Annual dividends paid to policyowner by cheque This is the simplest option! DESJARDINS INSURANCE | FOR ADVISORS ONLY 11

02 Annual Premium Reduction • Affordable way of paying policy premiums • If dividends credited are higher than premiums, Desjardins Insurance pays the difference to policy owner Only available if the premium is paid annually DESJARDINS INSURANCE | FOR ADVISORS ONLY 12

03 Dividends on Deposit • Automatically deposited into a Desjardins Insurance savings account • Accessible at all times • Daily interest with annual compounding DESJARDINS INSURANCE | FOR ADVISORS ONLY 13

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 DESJARDINS INSURANCE | FOR ADVISORS ONLY The PUA cash surrender values grow on a tax-efficient basis 14

Paid-up additions Death benefit PUAs Basic amount of insurance DESJARDINS ASSURANCES | À L'USAGE EXCLUSIF DES CONSEILLERS 15

05 Enhanced Insurance • Combination of one-year term insurance (T 1) 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 16

Enhanced Insurance Death benefit PUAs T 1 Basic amount of insurance Dividend crossover point DESJARDINS ASSURANCES | À L'USAGE EXCLUSIF DES CONSEILLERS 17

Premium Offset 06 • 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 18

Dividend scale DESJARDINS INSURANCE | FOR ADVISORS ONLY 19

Dividend Scale Investment Returns Mortality rate Expenses and taxes paid by insurer 20

Dividend scale interest rate Desjardins Insurance guarantees an interest rate of 5% until January 1, 2023 DESJARDINS INSURANCE | FOR ADVISORS ONLY 21

A head start for the future Participating Life Insurance for children DESJARDINS INSURANCE | FOR ADVISORS ONLY 22

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 DESJARDINS INSURANCE | FOR ADVISORS ONLY 23

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 DESJARDINS INSURANCE | FOR ADVISORS ONLY 24

Advantages of PAR life insurance for a child 1 2 3 DESJARDINS INSURANCE | FOR ADVISORS ONLY 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. Provides a stable investment option with taxadvantaged growth but does not require active management like other investments. 25

Case study Meet Joyce, proud grandmother of Amanda DESJARDINS INSURANCE | FOR ADVISORS ONLY 26

The situation • Joyce would like to: ‒ Establish a financial foundation for her 12 -year-old granddaughter Amanda to help her achieve her future goals and dreams ‒ Spend $1, 500 per year on insurance protection for her granddaughter • Amanda’s RESP is maximized and she does not have any other insurance DESJARDINS INSURANCE | FOR ADVISORS ONLY 27

The need • Provide permanent whole life insurance that would protect Amanda 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 DESJARDINS INSURANCE | FOR ADVISORS ONLY 28

Solution: Participating life insurance Estate Enhancer for long term death benefit and cash values growth Limited payment – 20 years Paid-up additions (PUAs) 01 Coverage 02 Premium 03 Option Par 04 Account • Opportunity to earn Dividends • Stable long term hands-off investment option DESJARDINS INSURANCE | FOR ADVISORS ONLY 29

Solutions for Amanda 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 $1, 507 Accelerated growth, PUA option $100, 000 $1, 566 GWL 20 year pay $325, 278 $1, 507 DESJARDINS INSURANCE | FOR ADVISORS ONLY 30

Guaranteed cash values – PUAs option Guaranteed cash values Year Age Estate Enhancer Accelerated Growth GWL 20 Pay 1 13 $0 $122 $0 10 22 $2, 088 $5, 569 $4, 011 20 32 $11, 573 $32, 072 30 42 $21, 294 $38, 487 40 52 $29, 137 $56, 182 50 62 $39, 335 $85, 815 60 72 $52, 271 $127, 148 DESJARDINS INSURANCE | FOR ADVISORS ONLY 31

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 32

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 $325, 278 10 22 $119, 905 $127, 296 $325, 278 20 32 $162, 65 $166, 228 $325, 278 30 42 $216, 720 $211, 593 $325, 278 40 52 $281, 073 $267, 292 $325, 278 50 62 $358, 586 $336, 381 $325, 278 60 72 $453, 400 $423, 590 $325, 278 Dividends are not guaranteed Therefore, the death benefit and cash value may vary. DESJARDINS INSURANCE | FOR ADVISORS ONLY 33

Estate Enhancer: Comparison between PUAs and Enhanced Insurance (same premium) Year Age PUAs death benefit 1 13 $100, 898 $131, 359 $96 $80 5 17 $106, 966 $131, 359 $1, 148 $984 10 22 $119, 905 $131, 359 $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 Enhanced Insurance death benefit PUAs cash values Enhanced Insurance cash values 34

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 35

When Amanda grows up… Policy is paid-up, the death benefit is equal to 163% more than the initial amount. If Amanda 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 36

When Amanda grows up… When Amanda turns 32, her dividend will be worth $ 1, 005. With a yearly premium of $510, she could buy a $1 M T 20 to cover her debts. In addition, she could still have a remaining $500. DESJARDINS INSURANCE | FOR ADVISORS ONLY 37

Customizing Amanda’s plan There 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 38

Think about combining it with Critical Illness 31 illnesses 20 Pay $50, 000 Harmony New Generation 31 illnesses 20 Pay $100, 000 28 illnesses 20 Pay $50, 000 28 illnesses 20 Pay $100, 000 $520 $892 $446 $744 Estate Enhancer Enhanced Insurance option: $100, 000 $1, 157 Total premium $1, 677 $2, 049 $1, 603 $1, 901 DESJARDINS INSURANCE | FOR ADVISORS ONLY 39

With Desjardins Insurance You have choices, we offer solutions! DESJARDINS INSURANCE | FOR ADVISORS ONLY 40

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