Putting it All Together.

Transcription

1 C A N A D A L I F E S Putting it All Together. O F V A R I A B L E P R O D U C T S ASSET MODEL ALLOCATION PORTFOLIOS For Registered Representative Use Only. Not For Public Distribution.

2 Canada Life s Prestige Series SM VARIABLE PRODUCTS This material is authorized for use only when preceded or accompanied by a current prospectus for Canada Life s Prestige Series SM VUL, VUL Accumulator, VariFund Annuity, or VariFund PLUS containing more complete information, including all charges and expenses. The prospectus should be read carefully before sending money. Before investing, please discuss the suitability of your purchase with your Registered Representative. Annuities are insurance policies, not deposits of, obligations of, or guaranteed by, any depository institution. They are not insured by the FDIC or any federal agency, and as such are subject to market fluctuation and investment risk including possible loss of principal invested. The Canada Life Fixed Account of our variable products (not the separate accounts) is backed by Canada Life Insurance Company of America.

3 Asset Allocation Worksheet for The Prestige Series Of Variable Products This worksheet is a step-by-step process to help you determine the optimal allocation of your assets to best suit your time horizon and risk tolerance. Please answer each question and enter your score in the accompanying box. When the worksheet is completed, add up the points for each question and refer to the scoring table following the questions. As with any important investment decision, please discuss your options with your registered representative. The model portfolios are only suggestions and can be customized to suit your personal needs. 1. How long do you plan to hold this policy? Points 4-6 years years years 6 more than 16 years Do you have an emergency fund? Points No, I do not have an emergency fund. 0 I have an emergency fund, but less than six months of after-tax income. 2 Yes, I have an adequate emergency fund Approximately what portion of your total investable assets are you considering purchasing this product with? Less than 25% 4 Between 25% and 50% 3 Between 50% and 75% 2 More than 75% 1 Points 4. Which one of the following describes your expected earnings over the next five years? Points I expect my earnings to increase and far outpace inflation (due to promotions, new job etc.). 4 I expect my earnings increases to stay somewhat ahead of inflation. 3 I expect my earnings to keep pace with inflation. 2 I expect my earnings to decrease (due to retirement, part-time work, economically depressed industry, etc.) When thinking about your investments, where would you place yourself? Points I want to minimize my losses and fluctuation as much as possible. 0 I want to maintain a balanced savings mix with some fluctuation of growth. 2 I want my money to have the potential to grow as much as possible regardless of risk or fluctuation Have you ever invested in individual bonds or bond mutual funds? Points No, and I would be uncomfortable with the risk if I did. 0 Yes, but I was uncomfortable with the risk. 1 No, but I would be comfortable with the risk if I did. 3 Yes, and I felt comfortable with the risk Have you ever invested in individual stocks or stock mutual funds? Points No, and I would be uncomfortable with the risk if I did. 0 Yes, but I was uncomfortable with the risk. 3 No, but I would be comfortable with the risk if I did. 6 Yes, and I felt comfortable with the risk. 8

4 Worksheet (continued) 8. Which one of the following statements describes your feelings toward choosing investment options for this policy? I would prefer to select investment options that have a low degree of risk associated with them (i.e., it is unlikely that my original investment will ever decline in value). 1 I prefer to select a mix of investment options with emphasis on those with a low degree of risk and a small portion in others that have a higher degree of risk but may yield greater returns. 2 I prefer to select a balanced mix of investment options - some that have a low degree of risk and others that have a higher degree of risk but may yield greater returns. 4 I prefer to select a mix of investment options - some that have a low degree of risk, but with an emphasis on others that have a higher degree of risk but may yield greater returns. 5 I would only select investment options that have a higher degree of risk with a greater potential for higher returns. 6 Points 9. Approximately what portion of your monthly take-home income goes toward paying off debt other than a home mortgage? Less than 10% 6 Between 10% and 25% 4 Between 25% and 50% 2 More than 50% 1 Points 10. If you could improve your chances of increasing your returns by taking more risk, Points would you: be willing to take a lot more risk with all your money? 10 be willing to take a lot more risk with some of your money? 8 be willing to take a little more risk with all your money? 6 be willing to take a little more risk with some of your money? 4 be unlikely to take much more risk? 2 TOTAL Scoring For Fully Allocated Model Portfolios A-E Model A Aggressive Growth Model B Growth Model C Growth & Income Model D Asset Protection & Income Model E Asset Protection 50 to to to to 27 6 to 16 Scoring For Equity Only Program Equity Only Aggressive Growth Equity Only Moderately Aggressive Growth Equity Only Growth n/a n/a I understand that the asset allocation model is an attempt to match my current risk tolerance with the available subaccounts. I also understand that my risk tolerance can shift and therefore should discuss any changes to the above answers with my registered representative. Client Signature Date

5 Model Portfolios Model A Aggressive Growth Investor Profile Objective is to accumulate wealth to meet long-term financial goals. Willing to accept greater fluctuations in order to maximize the potential for long-term asset growth. Income 10.00% Balanced 10.00% Growth & Income 15.00% Growth 15.00% Aggressive Growth 25.00% International Growth 25.00% Model B Growth Investor Profile Objective is to build wealth to meet mid-term or long-term financial goals. Understands the mid and long-term return potential of growth portfolios, and is willing to accept fluctuations of principal in order to seek growth of assets. Capital Preservation 10.00% Income 10.00% Balanced 10.00% Growth & Income 25.00% Growth 10.00% Aggressive Growth 20.00% International Growth 15.00% Model C Growth & Income Investor Profile Objective is to preserve future purchasing power. Willing to take modest risk in seeking to outpace inflation. Capital Preservation 20.00% Income 20.00% Balanced 5.00% Growth & Income 20.00% Growth 10.00% Aggressive Growth 10.00% International Growth 15.00% Model D Asset Protection & Income Investor Profile Objective is to protect investment principal, yet experience some opportunity for appreciation. Looking for a relatively conservative portfolio with a small percentage of equities, and is willing to accept some fluctuation of principal. Capital Preservation 30.00% Income 40.00% Growth & Income 20.00% Growth 10.00% Model E Asset Protection Investor Profile This investor s primary objective is to protect investment principal. Cautious about experiencing any reduction of principal. Currently invests primarily in savings vehicles and other high-stability investments. Capital Preservation 45.00% Income 40.00% Growth & Income 15.00%

6 Equity Only Program The equity only portfolios were established for individuals whose strategy is to separate the longterm assets from the short-term assets. The strategy employs focusing on equities with long term investment vehicles, such as life insurance and annuities. The assumption is that assets that are being held for long terms can tolerate market fluctations better than short term assets. The holding time of the assets is aligned with the investment style and vehicle. Since insurance and annuities can be one of the longest term assets that an individual may hold, the dollars in the policy should be allocated disproportionately towards the equity sub-accounts. Shorter term assets should be well diversified in shorter term investments, such as CDs and savings accounts or shorter term bonds (funds). To achieve this goal, we have virtually eliminated the income and, to some degree, the growth and income allocations of the equity only model portfolios. This approach offers a true equity based portfolio within which to allocate long-term dollars going into variable annuities and variable life insurance products. The strategy allows you to take advantage of the opportunities within the equity marketplace due to a longer period of time to ride out market fluctuations. The following portfolios were designed specifically for use with this strategy. Equity Only Aggressive Growth International Growth 10.00% Aggressive Growth 50.00% Growth 15.00% Specialty 25.00% Equity Only Moderately Aggressive Growth International Growth 7.00% Aggressive Growth 40.00% Growth 25.00% Growth & Income 10.00% Specialty 18.00% Equity Only Growth International Growth 5.00% Aggressive Growth 22.00% Growth 43.00% Growth & Income 17.00% Specialty 13.00%

7 Canada Life s Prestige Series SM VARIABLE PRODUCTS Issued By: Canada Life Insurance Company of America 6201 Powers Ferry Road, N.W., Atlanta, Georgia Offered By: Canada Life of America Financial Services, Inc., (Member, NASD) A Subsidiary of Canada Life Insurance Company of America 6201 Powers Ferry Road, N.W., Atlanta, Georgia Variable Universal Life Customer Service: Variable Annuity Customer Service: InTouch Automated Account Information: Canada Life s One Source Sales Center: extension 4595

8 OUR VISION A world-class financial services provider, delivering exceptional customer value and helping people achieve more, through the excellence and integrity of our people. V3012 5M 4/03 (5/02 - Date of first use) 133/03