Term Life Insurance. Permanent Life Insurance PRODUCT GUIDE A-JUL14. LifePhases is marketed through PPI Solutions.

Transcription

1 Term Life Insurance Permanent Life Insurance PRODUCT GUIDE A-JUL14 LifePhases is marketed through PPI Solutions.

2 This document is a summary of the various features of the LifePhases and LifePhases PLUS products. It is neither a contract nor an insurance offer and does not confer any rights. In the event of conflict or ambiguity, the contract will prevail. Something Different Traditional term insurance is characterized by premiums that are very affordable in the first term but increase considerably; often as much as five times the initial premium at the first renewal and up to one hundred times the initial premium at the last renewal. Such increases do not reflect the increase consumers generally see in their revenues and disposable income. Permanent insurance is characterized by level premiums which, in the case of many consumers, are not within their means in the early years of owning life insurance. The LifePhases alternative LifePhases and LifePhases PLUS address both these issues. With affordable initial premiums and increases that are limited to 50% every ten years, the cost of these products is in keeping with consumers disposable and rising incomes. LifePhases and LifePhases PLUS address a family s changing life insurance needs and fit well in an overall financial plan. Both products provide a selected level insurance amount for the years when clients have debts and are often raising children. LifePhases and LifePhases PLUS each offer a unique automatic decreasing coverage schedule to suit a family s future goals. LifePhases Underwritten by Assumption Mutual Life Insurance Company, doing business under the name Assumption Life Non-Participating Term Life Insurance LifePhases PLUS Underwritten by Assumption Mutual Life Insurance Company, doing business under the name Assumption Life Non-Participating Permanent Life Insurance Target market LifePhases is designed for people who are looking for an easy-to-understand term life insurance product at an affordable price. It is an ideal product to cover temporary needs that occur upon the insured s death, such as the reimbursement of personal or commercial loans, providing income replacement to maintain the family s lifestyle, children s education, creating an emergency fund or more. Target market Like LifePhases, LifePhases PLUS covers the temporary life insurance needs a family faces, but can also cover permanent needs such as final expenses, taxes, charitable donations, etc A-JUL14 Page 2 of 16

3 LifePhases Non-Participating Term Life Insurance LifePhases PLUS Non-Participating Permanent Life Insurance Features Non-participating (no dividends are paid on the policy) Guaranteed premiums Convertible Available with smoker and non-smoker rates One premium band only Features Level Term life insurance to age 65, and decreasing to age 75 Available as an individual policy or as a rider on any LifePhases product. The rider must be issued at the same time as the policy to which it is attached. Guaranteed level sum insured to age 65. Starting at the policy or rider anniversary nearest to the insured s age 66, the sum insured decreases linearly once per year to reach $0 at the policy or rider anniversary nearest to age 75, at which point the insurance coverage terminates. Features Permanent life insurance Available as an individual policy or as a rider on a LifePhases PLUS policy. The rider must be issued at the same time as the policy to which it is attached. Guaranteed level sum insured to age 70. Starting at the policy or rider anniversary nearest to the insured s age 71, the sum insured decreases linearly once per year to reach 25% of the initial sum insured at the policy or rider anniversary nearest to age 80, at which point the insurance coverage is paid-up and the remaining sum insured remains in force until the death of the insured. Issue ages 18 to 55 years of age Issue ages 18 to 60 years of age Premiums The premiums are guaranteed and, in most cases, will increase at the end of each ten-year period following the insurance coverage s issue date. The number of times the premium will increase is limited and depends on the age of the insured when the insurance coverage is issued. Issue Ages Number of Premium Increases Premiums The premiums are guaranteed and, in most cases, will increase at the end of each ten-year period following the insurance coverage s issue date. The number of times the premium will increase is limited and depends on the age of the insured when the insurance coverage is issued. Issue Ages Number of Premium Increases 18 to to to to to to to to A-JUL14 Page 3 of 16

4 LifePhases Non-Participating Term Life Insurance LifePhases PLUS Non-Participating Permanent Life Insurance Premiums Example: Mrs. Smith s nearest age is 32 when her LifePhases policy is issued. Therefore, based on the above table, there will be two (2) increases in her premiums. The first one will occur on the policy anniversary nearest to her age 42 and the second increase will occur on the policy anniversary nearest to her age 52. Premiums Example: Mrs. Smith s nearest age is 32 when her LifePhases PLUS policy is issued. Therefore, based on the above table, there will be three (3) increases in her premiums. The first one will occur on the policy anniversary nearest to her age 42 and the second increase will occur on the policy anniversary nearest to her age 52 and the third increase will occur on the policy anniversary nearest to her age 62. Minimum initial sum insured $100,000 Maximum initial sum insured $5,000,000 Annual fees Policy $40 Rider $20 The LifePhases or LifePhases PLUS policy or rider may be converted to a new permanent life insurance policy offered by Assumption Life for this conversion privilege without proof of insurability, for the sum insured on the date the conversion privilege is exercised. Conversion The conversion privilege is available from the first LifePhases or LifePhases PLUS policy or rider anniversary. If only part of the sum insured is converted, the policyholder may keep the LifePhases or LifePhases PLUS coverage in force only if the remaining sum insured is at least $100,000. The conversion privilege terminates on the LifePhases or LifePhases PLUS policy or rider anniversary nearest the insured s 70 th birthday. Conversion credit A conversion credit will be applied towards the premium payment of the new permanent life insurance policy if the LifePhases or LifePhases PLUS coverage is converted between its 9 th and 10 th anniversaries (the Conversion Credit Period) To be eligible for the conversion credit, the application for conversion must be received at Assumption Life s head office before the 10 th anniversary of the LifePhases or LifePhases PLUS coverage A-JUL14 Page 4 of 16

5 LifePhases Non-Participating Term Life Insurance LifePhases PLUS Non-Participating Permanent Life Insurance Conversion credit If conversion of the LifePhases coverage is made on its 10 th anniversary, the conversion credit will be equal to 200% of its annual premium, excluding any attached rider, applicable immediately prior to conversion. Conversion credit Continued If conversion of the LifePhases PLUS coverage is made on its 10 th anniversary, the conversion credit will be equal to 350% of its annual premium, excluding any attached rider, applicable immediately prior to conversion. Conversion credit If conversion of the LifePhases or LifePhases PLUS coverage is made during the year preceding its 10 th anniversary, a reduced conversion credit will apply. The reduced conversion credit will be equal to the conversion credit of the LifePhases or LifePhases PLUS coverage on its 10 th policy anniversary, multiplied by the number of months during which the coverage was in force from its date of issue to the date of conversion (120 months minus the number of months left from the date of conversion to its 10 th policy anniversary), divided by 120 months. For example, when the conversion is made 8 months before the LifePhases or LifePhases PLUS coverage s 10 th anniversary, the conversion credit will be calculated as follows: Conversion Credit x (112 / 120) Example Example Conversion credit Mrs. Smith has a $250,000 LifePhases policy with an annual premium of $305.On the 10 th anniversary of the coverage, Mrs. Smith converts the LifePhases sum insured in its entirety to a new permanent life insurance policy. A conversion credit of $610 (200% x $305) will be applicable on the premium of the new permanent life insurance policy. If the conversion takes place 8 months before the 10 th anniversary of the LifePhases policy or rider, the conversion credit will be: $ x (112 / 120) = $ Conversion credit Mrs. Smith has a $250,000 LifePhases PLUS policy with an annual premium of $ On the 10 th anniversary of the coverage, Mrs. Smith converts the LifePhases PLUS sum insured in its entirety to a permanent life insurance policy. A conversion credit of $1, (350% x $457.50) will be applicable on the premium of the new permanent life insurance policy. If the conversion takes place 8 months before the 10 th anniversary of the LifePhases PLUS policy or rider, the conversion credit will be: $1, x (112 / 120) = $1, A-JUL14 Page 5 of 16

6 LifePhases Non-Participating Term Life Insurance LifePhases PLUS Non-Participating Permanent Life Insurance Conversion credit If only part of the sum insured is converted, the conversion credit will be pro rated accordingly. For example, if half of the sum insured is converted, only half of the conversion credit, including applicable reductions, will apply. The conversion credit does not have any cash value on conversion or on subsequent termination of the new converted permanent life insurance policy. A reduction of the sum insured of the new converted permanent life insurance policy during the first policy year will result in the remaining conversion credit, if applicable, being pro rated accordingly. Application Online submissions only. No paper applications. The following riders may be added to the LifePhases or LifePhases PLUS policy, except as noted. LifePhases (see features above) o Maximum of 1 rider per policy on a different individual than the insured under the policy. LifePhases PLUS Available on LifePhases PLUS only (see features above) o Maximum of 1 rider per policy on a different individual than the insured under the policy. Riders Youth Plus (see product guide for features) o Maximum of 5 Youth Plus riders per policy o Maximum of one Youth Plus coverage per insured child The following additional benefits may be added as riders to the LifePhases or LifePhases PLUS policy or rider and must be issued at the same time as these. Critical Illness Rider Disability income (Based on loans) Disability income (Based on employment income) Waiver of premium upon (WP) Waiver of premium upon death (WPD) For additional information concerning products and their limitations and exclusions, please refer to the contracts by going to and clicking on the Producer s Corner link (top left of the page). Log in with your user name and password, then click on Individual Insurance. You will find the sample contracts under the Helpful Links section (bottom of page) A-JUL14 Page 6 of 16

7 Critical Illness Rider Features Term critical illness insurance with level sum insured. 16 covered critical illnesses. Same questionnaire as for the life insurance coverage to which it is attached. Simplified issue (all answers to medical and lifestyle questions must be in the negative). Guaranteed level premiums for the term selected. Available with smoker and non-smoker rates. Renewable until the rider anniversary nearest to the insured s 75th birthday. If the life insurance coverage terminates before its anniversary nearest to the insured s 75th birthday, the critical illness rider will also terminate. Covered critical illnesses 1. Accidental loss of limbs 2. Aortic surgery 3. Aplastic anemia 4. Bacterial meningitis 5. Blindness 6. Cancer (life-threatening) 7. Coma 8. Coronary artery bypass surgery 9. Heart attack 10. Heart valve replacement or repair 11. Kidney failure 12. Major organ failure on waiting list 13. Major organ transplant 14. Paralysis due to an accident 15. Severe burns 16. Stroke (cerebrovascular accident) No critical illness insurance benefit is payable if the insured suffers from a covered critical illness at any time during the 12-month period following the later of: Exclusion for pre-existing condition i) The effective date of this rider; or ii) The date of its most recent reinstatement, if applicable; and the diagnosed critical illness results directly or indirectly from an illness or condition for which, during the 12-month period prior to the later of the two dates above, the insured: (a) Showed signs or symptoms, or underwent tests or investigations; or (b) Received a diagnosis or has been treated, hospitalized or under the care of a physician; or (c) Was recommended to seek treatment or to consult a physician; or (d) Was prescribed or took medication. Terms 15 years 20 years 25 years Issue ages T to 60 years of age T to 55 years of age T to 50 years of age A-JUL14 Page 7 of 16

8 Critical Illness Rider () Minimum sum insured $10,000 Maximum sum insured $25,000, without exceeding 50% of the initial life insurance coverage. The sum of all Critical Illness riders in force with Assumption Life for a single insured cannot exceed $25,000. Possible combinations Termination of the Critical Illness Rider For the LifePhases and LifePhases PLUS products, the owner may choose among the three available terms (15, 20 or 25 years) for the Critical Illness rider. The Critical Illness rider terminates on the first of the following: (a) The death of the insured. (b) The date a critical illness insurance benefit is paid under the Critical Illness rider. (c) The date Assumption Life receives written notice from the owner requesting termination of the Critical Illness rider or the date of termination requested in the notice, should this date be later. (d) The date the life insurance policy or rider to which the Critical Illness rider is attached terminates, for whatever reason. (e) The date the life insurance policy or rider to which the Critical Illness rider is attached is as reduced paid-up insurance. (f) The rider anniversary nearest the insured s 75th birthday, regardless of the last renewal date. For additional information concerning the product and its limitations and exclusions, please refer to the contract by going to and clicking on the Producer s Corner link (top left of the page). Log in with your user name and password, then click on Individual Insurance. You will find the sample contracts under the Helpful Links section (bottom of page) A-JUL14 Page 8 of 16

9 Disability Income Rider (based on loans) Features Available with the LifePhases or LifePhases PLUS policy or rider and must be issued at the same time. Provides for a monthly income benefit payment if the insured becomes totally disabled before the rider anniversary nearest the insured's 60 th birthday (see definition of total ). The total number of monthly payments is 24 for the same cause of total. The total number of monthly payments is 48 for periods of total resulting from different total causes. Premiums are level, guaranteed and payable to earliest of the following: end of loan(s), end of policy or income rider anniversary nearest the insured s 60 th birthday. Available with smoker and non-smoker rates. The waiting period to receive a first benefit payment is 90 consecutive days with retroactive payment to the 61 st day of total. Benefit payable to the insured. Contains limitations and exclusions (please refer to contract for more information). Contains an exclusion for pre-existing conditions if total occurs within six months of the effective date of insurance and the cause of this is due to any pathological condition, illness or disease, whether diagnosed or not, that the insured suffered during the six months immediately preceding the effective date of insurance. Definition of total Total or totally disabled means a condition resulting from an illness, an injury or a nervous disorder that requires the continuous care of a physician and that prevents the insured from performing his or her regular duties in regard to any of the following: (a) Any occupation in which he or she was engaged immediately before the date he or she became disabled. (b) His or her main occupation. (c) Any occupation for which the insured worked at least 20 hours per week for at least 8 weeks during the 12 months immediately preceding his or her total. To be considered totally disabled, the insured must not engage in any gainful occupation, employment or activity allowing him or her to draw profits, gains, salaries or any other form of remuneration while he or she is totally disabled. Issue ages Minimum sum insured Maximum sum insured 18 to 55 years of age $300 per month 1% of the initial sum insured of the LifePhases or LifePhases PLUS policy or rider, without exceeding $3,000 per month A-JUL14 Page 9 of 16

10 Disability Income Rider (based on loans) () Entitlement to income benefit Loans eligible for income When submitting a claim, in addition to the proof of total, the insured must provide formal proof of the existence of any loan and of any written financial commitment related to any deferred real estate mortgage loan, as applicable, upon which we have set the monthly sum insured of the income rider on the date the LifePhases or LifePhases PLUS application was signed and proof of the existence of a replacement loan, if applicable, before the end of the loan period specified in the LifePhases or LifePhases PLUS application. No benefit is payable if the same loan is covered by another insurer. Additional conditions apply to maintain the income benefits. Please refer to the contract for additional information. Real estate mortgage loans in effect or deferred at the time the LifePhases or LifePhases PLUS application is signed. The expected start date of the deferred loan is set at no later than six months after the application is signed. Personal loans in effect at the time the LifePhases or LifePhases PLUS application is signed, whether for the lease, purchase or purchase/buyback of any goods. Personal lines of credit with a minimum credit limit of $20,000 in effect at the time the LifePhases or LifePhases PLUS application is signed. All loans must have been signed in a Canadian province by the insured individually or jointly at a financial institution. Withdrawals from a registered retirement savings plan (RRSP) made through the Canada Revenue Agency s Home Buyer s Plan (HBP) before the date the LifePhases or LifePhases PLUS application is signed. The initial loan amortization period (initial duration of the loan) must be for a minimum of 15 years. All loans must have a remaining period of at least five years, except for lines of credit, on the date the LifePhases or LifePhases PLUS application is signed. Any commercial loan, any commercial line of credit and any credit card balance are not eligible for the insurance. Replacement loan means a real estate mortgage loan or line of credit in force at the latest six months following the complete payment, before the end of the remaining period indicated in the application, of a real estate mortgage loan or line of credit. The maximum monthly income benefit payment is equal to the least of: Maximum monthly benefit in case of total The sum insured under the income rider at the date of total. 1% of the initial sum insured under the disabled insured s LifePhases or LifePhases PLUS policy or rider to which the income rider is attached. The sum of (1) and (2) as defined below (1) The amount of regular monthly payments of any loan specified on the LifePhases or LifePhases PLUS application or any replacement loan, excluding any line of credit, due and payable to any financial institution to cover the principal and interest only for any loan in effect on the date of total, excluding any line of credit. (2) The average monthly payments, including interest, made on the line of credit during the six months preceding the onset of total, or, if the line of credit was established less than six months before the date of total, the average monthly payments, including interest, for the period between the date the line of credit was established and the date of total. Penalties, arrears, interest bonuses, property tax holdbacks, insurance premiums and any other amounts added to the regular loan payment are excluded from the calculation of the monthly payments in (1) and (2) A-JUL14 Page 10 of 16

11 Disability Income Rider (based on loans) () Termination of monthly income benefit payments Disability income benefit payments terminate on the first of the following: The date on which the insured ceases to be totally disabled. The date of death of the disabled insured. The date the disabled insured s LifePhases or LifePhases PLUS policy or rider to which the income rider is attached terminates for any reason. The date of the 24 th monthly benefit payment for the same cause of total except for the following total causes: Soft tissue injury or degenerative disc disease: the benefit terminates on the date of the first benefit payment. Mental or nervous disorder: the benefit terminates on the date of the sixth monthly benefit payment. The date of the 48 th monthly income benefit payment for periods of total resulting from different total causes. The date all loans on which the monthly sum insured for the income rider was based on the date the LifePhases or LifePhases PLUS application was signed or any existing replacement loan at the date of the total are completely reimbursed. The date on which the insured is released from his/her obligations under the loan or any existing replacement loan at the date of total. The date on which the insured refuses to submit to medical examinations or treatments prescribed by a doctor without reasonable justification. Termination of income rider The income rider terminates on the first of the following: The date of death of the insured. The date the insured s LifePhases or LifePhases PLUS policy or rider to which the income rider is attached terminates. The date Assumption Life receives written notice to terminate the income rider or the termination date specified in the notice, if later. The date Assumption Life has made 48 monthly benefit payments. The date all loans on which the monthly sum insured of the income rider was based on the date the LifePhases or LifePhases PLUS application was signed or any replacement loan are completely reimbursed, subject to any transfer, assignment or refinancing of loan. The date on which the insured is released from his obligations under all loans. The rider anniversary nearest the insured's 60 th birthday. The maximum expiry date of all loans specified in the insurance application Please note that if the insured starts receiving benefits at age 59, he or she could receive a maximum of 24 monthly payments until age 61, as long as the LifePhases or LifePhases PLUS policy or rider to which the income rider is attached remains in force and as long as he or she is entitled to receive benefit payments according to the terms of the contract A-JUL14 Page 11 of 16

12 Disability Income Rider (based on loans) () Change to income rider (based on employment income) The income rider (based on loans) may be changed to a income rider (based on employment income) if: All loans are paid in full before the expiry date calculated for the end of the income rider, and No claim has been submitted. In order to be eligible for the income rider (based on employment income), the insured must: Submit his request within 60 days following full payment of all loans. Complete a declaration of insurability that includes smoking status and medical requirements. Financially justify the sum insured of the income rider (The maximum monthly sum insured for income from all sources, excluding the credit insurance benefits, may nevertheless not exceed 75% of the insured s average monthly employment income during the 12 months immediately preceding the date the request is made to change to a income rider based on employment income)- without, however, exceeding the sum insured of the income rider (based on loans) at the date all loans are paid in full. For additional information concerning the product and its limitations and exclusions, please refer to the contract by going to and clicking on the Producer s Corner link (top left of the page). Log in with your user name and password, then click on Individual Insurance. You will find the sample contracts under the Helpful Links section (bottom of page) A-JUL14 Page 12 of 16

13 Disability Income Rider (based on employment income) Features Available with LifePhases or LifePhases PLUS insurance policy or rider and must be issued at the same time. Provides for a monthly benefit payment if the insured becomes totally disabled before the rider anniversary nearest the insured's 60 th birthday (see definition of total ). The total number of monthly payments is 24 for the same cause of total. The total number of monthly payments is 48 for periods of total resulting from different total causes. Renewable at the same time as the LifePhases or LifePhases PLUS policy or rider to which it is attached until the income rider anniversary nearest the insured s 60 th birthday. Guaranteed level premiums (do not change at renewal). Available with smoker and non-smoker rates. The waiting period to receive a first benefit payment is 90 consecutive days, with retroactive payment to the 61 st day of total. Benefit payable to the insured. Contains limitations and exclusions (please refer to contract for more information). Contains an exclusion for pre-existing conditions if total occurs within six months of the effective date of insurance and the cause of this is due to any pathological condition, illness or disease, whether diagnosed or not, that the insured has suffered during the six months immediately preceding the effective date of insurance. Definition of total Issue ages Minimum sum insured Total or totally disabled means a condition resulting from an illness, an injury or a nervous disorder that requires the continuous care of a physician and that prevents the insured from performing his or her regular duties in regard to any of the following: (a) Any occupation in which he or she was engaged immediately before the date he or she became disabled. (b) His or her main occupation. (c) Any occupation for which the insured worked at least 20 hours per week for at least 8 weeks during the 12 months immediately preceding his or her total. 18 to 55 years of age $300 per month Maximum sum insured 1% of the initial sum insured of the LifePhases or LifePhases PLUS policy or rider, without exceeding $3,000 per month. The maximum monthly sum insured for income from all sources, excluding credit insurance income, may nevertheless not exceed 75% of the insured's average monthly employment income during the 12 months immediately preceding the date the income rider application was signed A-JUL14 Page 13 of 16

14 Disability Income Rider (based on employment income) () Maximum monthly payments in case of total The maximum monthly benefit payment is equal to the least of: The sum insured under the income rider at the date of total. 1% of the initial sum insured of the disabled insured s LifePhases or LifePhases PLUS policy or rider to which the income rider is attached. An amount which, combined with other monthly benefit payments from all other sources (excluding credit insurance benefits) during the total period, does not exceed 75% of the insured s average monthly employment income during the 12 months immediately preceding the onset of total. Termination of monthly benefit payments Disability benefit payments terminate on the first of the following: The date on which the insured ceases to be totally disabled. The date of death of the disabled insured. The date the disabled insured s LifePhases or LifePhases PLUS policy or rider to which the income rider is attached terminates for any reason. The date of the 24 th monthly benefit payment for the same cause of total except for the following total causes: Soft tissue injury or degenerative disc disease: the benefit terminates on the date of the first benefit payment. Mental or nervous disorder: the benefit terminates on the date of the sixth monthly benefit payment. The date of the 48 th monthly benefit payment for periods of total resulting from different total causes. The date on which the insured refuses to submit to examination or treatment prescribed by a doctor without reasonable justification. Termination of the income rider The income rider terminates on the first of the following: The date of death of the insured. The termination date of the insured s LifePhases or LifePhases PLUS policy or rider to which the income rider is attached. The date Assumption Life receives written notice to terminate the income rider or the termination date specified in the notice, if later. The date Assumption Life has made 48 monthly benefit payments. The rider anniversary nearest the insured's 60 th birthday. The maximum expiry date of all loans specified in the insurance application Please note that if the insured begins receiving benefits at age 59, he or she could receive a maximum of 24 monthly payments until age 61, as long as the LifePhases or LifePhases PLUS policy or rider to which the income rider is attached remains in force and as long as he or she is entitled to receive benefits according to the terms of the contract. For additional information concerning the product and its limitations and exclusions, please refer to the contract by going to and clicking on the Producer s Corner link (top left of the page). Log in with your user name and password, then click on Individual Insurance. You will find the sample contracts under the Helpful Links section (bottom of page) A-JUL14 Page 14 of 16

15 Waiver of Premium Upon Disability (WP) Features Available with the policy and must be issued at the same time Can be issued on a maximum of two people per contract: the insured on the life insurance, the owner or the payer. The contract s premiums will be waived if the insured becomes totally disabled (see definition of total ) before the rider anniversary nearest the 60 th birthday of the insured under the WP. A waiting period of four consecutive months applies for total. If the insured under this benefit remains totally disabled according to the terms of the contract after this waiting period, Assumption Life will reimburse any premiums paid during this waiting period and will waive future premiums as long as total persists. Premiums can be waived for the duration of the contract s premium payment period. The contract s premiums will be waived based on the monthly payment method, regardless of the method of premium payment chosen. This rider automatically terminates on the first of the following: The termination date of the policy. On the rider anniversary nearest the 60 th birthday of the insured under the WP. Subject to limitations and exclusions (please refer to contract for more information). Total or totally disabled means a condition resulting from an illness, an injury or a nervous disorder that requires the continuous care of a physician and that prevents the insured from performing his or her regular duties in regard to any of the following: During the first 24 months of total : Definition of total Any occupation in which he or she was engaged immediately before the date he or she became disabled. His or her main occupation. Any occupation at which the insured worked at least 20 hours per week for at least 8 weeks during the 12 months immediately preceding his or her total. From the 25 th month of total Any occupation for which he or she is, or may reasonably become, qualified through his or her education, training or experience. The availability of the occupation is not considered. Issue ages 18 to 55 years of age A-JUL14 Page 15 of 16

16 Waiver of Premium Upon Death (WPD) Features Issue ages Available with the policy and must be issued at the same time. Can be issued for a maximum of two people per contract: the owner, the payer or an insured under the life insurance policy or riders. The contract s premiums will be waived if the insured under the WPD dies. The WPD rider and the waiver of premiums under the contract following death of the insured under the WPD will terminate on the earliest of the following: (a) The last date for which premiums are payable under the contract; (b) The expiry date of the WPD rider, that is, the first of the following: i. The rider anniversary nearest the 65 th birthday of the insured under the WPD rider. ii. The 20 th anniversary of the WPD rider. When the contract is still in force at the end of its waiver of premium period and there is an insurance benefit under the contract for which a premium remains payable, the owner must pay the premium when due to keep that benefit in force. Subject to limitations and exclusions (refer to contract for more information). 18 to 55 years of age A-JUL14 Page 16 of 16