Universal Life Is It Time To Rethink YRT

Universal Life Is It Time To Rethink YRT? Michael Hamel Director, Business Development Ontario West

AGENDA § Understanding SSQ Universal Life § Extreme Disability Benefit § Case Study § Underwriting 2

3 Fundamental Themes üSimple üFlexible üCompetitive 3

Universal Life § Individual § Minimum $25, 000 § Joint First To Die (JFTD) § Maximum $10, 000 § Joint Last To Die (JLTD) 4

Two Types of COI YRT 0 to 85 Years 5 T 100 0 to 80 years

Death Benefit 6 YRT T 100 Increasing or Level Increasing

Surrender Charges 7 YRT LEVEL 7 Years NONE

YRT To 90, New Approach 8

YRT 90 § Illustrations, and actual results “don’t blow up” like YRT to 100 § Maximum investment build up in early years compared to YRT to 85 9

Investment Options 10

Investment Options 11

Investment Options 12

Investor Profile 13

Investor Profile 14

Guaranteed Bonus 1% As of 15 th 6 policy anniversary

Additional Benefits § Term Life Insurance – T 10, T 20 § Critical Illness Insurance – T 10, T 20, T 75, T 100 Paid-Up 20 Years § Critical Illness Rider § Child Rider § Waiver of Premium in case of Disability § AD&D § Benefit in case of Fracture 16

Juvenile Policies – Included with Child Coverages Insurability benefit – up to five increase options, to a maximum of $50, 000 per increase to an overall maximum increase of $250, 000 Increase Options: Birthdays: 21, 24, 27, 30, 33, 36, 39 Life Events: Bachelor or Master’s Degree or Birth of Child Critical illness Benefit – 25% of insurance amount, up to maximum $50, 000 Covered Illnesses: Autism, Blindness, Cancer, Deafness, Kidney Failure, Major Organ Transplant, Muscular Dystrophy, Paralysis 17

Extreme Disability Benefit § Provides 50% of life insurance amount up to $250, 000 § At NO additional cost § Up to Age 60 § Offered on ALL individual life insurance products § Unique to SSQ 18

Extreme Disability Benefit Extreme disability means the insured is affected by a medical condition that renders him or her in a state of total and irrecoverable disability (at least 6 months) as a result of which the insured cannot perform activities of daily living without a reasonable expectancy of recovery as determined by a physician 19

Extreme Disability Benefit Insured cannot perform four (4) out of the following six (6) activities of daily living : 1. Bathing - the ability to wash oneself in a bathtub, shower or by sponge bath, with or without the aid of equipment; 2. Dressing - the ability to put on and remove necessary clothing including braces, artificial limbs or other surgical appliances; 3. Toileting - the ability to get on and off the toilet and maintain personal hygiene; 4. Bladder and Bowel Incontinence - the ability to manage bowel and bladder function with or without protective undergarments or surgical appliances so that a reasonable level of hygiene is maintained; 5. Transferring - the ability to move in and out of a bed, chair or wheelchair, with or without the use 20 of equipment;

Highly Competitive Commissions YRT Year 1 21 Level T 100 65% up to target premium 5% on the excess* Years 2 to 10 5% 5% Years 11 + 0. 3% on the fund value

User Friendly Tools § Simple to use, but fully enabled Illustration software § Investor profile tool § Simple clear statements § www. ssq. ca to download software 22

CASE STUDY – Male 50 Non-Smoker § Wants permanent coverage with an increasing death benefit § Needs $250, 000 amount of insurance § Deposit $12, 000 Annually for 10 years 23

Comparing The Competition 24 Company A Company B SSQ Illustrated Rate 4% 4% 4% Total DB Age 65 $412, 670 $403, 840 $427, 553 Total DB Age 75 $462, 710 $442, 678 $498, 179 Total DB Age 85 $443, 321 $428, 433 $549, 203

How To Illustrate UL Company A Company B SSQ Assumed Fund Return (Gross) 7. 4% Fund MER - 2. 4% 0% *** UL Management Fee 3% 2% 3% Illustrated Rate 4. 4% 3% 4. 4% - +. 25% Starting year 5 +1% Starting year 6 Bonus Notes: • ***The fund MER is built into the SSQ management fee 25

How To Illustrate UL Company A Company B SSQ Illustrated rate 4. 4% 3% 4. 4% DB Age 65 DB Age 75 DB Age 85 $420, 110 $485, 443 $480, 247 $387, 546 $400, 516 $348, 303 $435, 400 $522, 058 $603, 476 Accumulated COI $190, 449 $145, 479. 76 $129, 222. 50 *lapses at age 92* 26

Commission at 170% Override Compensation st 1 27 Year Company A Company B SSQ $3214. 81 $6174. 18 $6358. 50

Summary § Competitive Rates for YRT COI § Extreme Disability Benefit § Riders - Child Life Rider, Stand alone CI and Term Insurance § Flexibility to change YRT to Level § Strong selection of investment options § Guaranteed MERs § 1% guaranteed bonus after 6 years 28

Michael Hamel Director, Business Development Individual Insurance & Investment Products 416 -209 -9635 michael. hamel@ssq. ca Sheldon Frisch Business Development Associate 416 -997 -5315 Sheldon. frisch@ssq. ca 29