Protection Solutions. Your guide to. Whole Life insurance. with Standard Life. Making Retirement Better. Grow. Protect. Live. Transfer.

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1 Protection Solutions Your guide to Whole Life insurance with Standard Life Making Retirement Better Grow. Protect. Live. Transfer.

2 Hello.

3 There are few guarantees in life. So how do you prepare for what might happen tomorrow? After having worked hard to build financial security for themselves and their families, your clients want guarantees that will keep their family safe no matter what happens to them. As you help them put together their long-term financial plan, offer your clients something that comes with guarantees. Offer them permanent insurance. Your clients can have the satisfaction of knowing they re ready for tomorrow and that their loved ones will be taken care of. Standard Life 1

4 Talk to your clients about Whole Life insurance Whole Life insurance offers permanent coverage with guarantees your clients will appreciate. More than just insurance, it can serve as a source of additional cash for those looking to augment their retirement income and who no longer require the coverage. It also offers a smart solution for those simply wanting to leave something behind for their loved ones. With its guaranteed values and price, Whole Life insurance comes with no surprises: just security. Product features See page 4 Preferred underwriting See page 6 2 Standard Life

5 Benefits and riders Who can benefit from Whole Life insurance? See page 7 See page 10 Client scenarios See page 12 Standard Life 3

6 Product features There are two types of Whole Life coverage Whole Life 100 Whole Life Limited Pay: Whole Life Limited Pay To Age 65 Whole Life Limited Pay To Age 75 Whole Life Limited Pay 20, 25 or 30 years Whole Life insurance offers fully guaranteed premiums and values. It is a non-participating product. Types of insurance Single Joint-last-to-die (offered on 2 lives) Joint-first-to-die (offered on up to 5 lives) Issue ages: Whole Life 100 Single life: 18 to 80 years old Joint-last-to-die and Joint-first-to-die: Equivalent Single Age (ESA) but must be at least 18 years old; maximum ESA is 80 years old. In addition, each life insured must meet issue age criteria. Issues ages: Whole Life Limited Pay Single life: -- Whole Life Limited Pay 20, 25, 30 years: 0 to age 100 minus the premium payment period -- Whole Life Limited Pay To Age 65: 0 to age Whole Life Limited Pay To Age 75: 0 to age 55 Joint-last-to-die and Joint-first-to-die: Equivalent Single Age (ESA) but must be at least 18 years old; in addition, each life insured must be an adult life. Non-forfeiture options Cash Surrender Value (CSV) The cash surrender value begins at the 10 th policy anniversary. Automatic Premium Loan (APL) APL is the default non-forfeiture option and is only available if there is Cash Surrender Value. Interest will be charged on the amount of the loan. Reduced Paid-up Values (RPU) The reduced paid up option entitles the client to stop paying the insurance premiums provided there is a cash value to do so. Once this option is selected, the client cannot pay back the premium and have the sum insured increased to the original amount. 4 Standard Life

7 Product features Partial withdrawal (reduction of sum insured) Sum insured reductions are permitted on all plans except in cases where the sum insured would be reduced to less than $25,000. Sum insured reductions are not permitted before the 3 rd policy year. Along with this option, a partial cash withdrawal is available if the reduction occurs after the 10 th policy year, and will be proportionate to the reduction in the sum insured. Once this option is selected, your client will not be permitted to restore the sum insured to its original amount. In some cases, the reduction may cause a change in the rate band. In these cases, the premium would be adjusted based on the rates in effect at your client s original issue age, and for the band corresponding to the reduced sum insured. Taxation Whole Life insurance is a tax-exempt product. Policy fees The annual policy fee is $65. Minimum sum insured: $25,000 Maximum sum insured: no maximum (For amounts over $5,000,000, please contact custom.quotes@standardlife.ca for a special quote) Rate Banding Band 1: Sum insured of $25,000 to $99,999 Band 2: Sum insured of $100,000 to $249,999 Band 3: Sum insured of $250,000 to $499,999 Band 4: Sum insured of $500,000 or more Premium payments Your clients can make premium payments annually or according to the following factors: Semi-annually: 0.52 Quarterly: Monthly: 0.09 Quarterly and monthly payments are only available on a pre-authorized chequing (PAC) basis. Policy loans Policy loans are available and would allow your client to borrow up to 85% of their policy s cash surrender value. Such loans are available from the 10 th policy year. Standard Life 5

8 Life Profiles Preferred underwriting Life Profiles is Standard Life s method of underwriting all our insurance products, including Whole Life. It matches clients premiums to their overall lifestyle and medical history. For sum insureds of $250, 000 or more, a preferred rate may apply. Based on the criteria tobacco use, weight/height, family and personal medical history, and lifestyle your client will fall under one of five profiles. This determines their rate class. Profiles 1 People with very healthy lifestyles and excellent personal and medical family history People with healthy lifestyles who have a very good personal and family medical history. People with healthy lifestyles who have not smoked in the last 12 months. People with healthy lifestyles who do not smoke cigarettes or use nicotine products (e.g., nicotine patch or gum) but who use any of the following: cigars, pipes or chewing tobacco. (Same as Profile 2 apart from tobacco use.) People with healthy lifestyles who smoke cigarettes or use nicotine products. (People who do not qualify for Profile 4.) For sum insureds under $250,000, smoker and non-smoker rates will apply. Talk to your clients about their overall lifestyle and medical history and find out how you can help them save money. 6 Standard Life

9 Additional benefits and riders Standard Life understands that everyone s needs are different. This is why we offer benefits and riders that can be added to a Whole Life policy to ensure your clients have the amount of coverage that s right for them. Accidental Death Benefit (ADB) Additional amount of insurance paid to the beneficiary if the insured dies as a result of an accident Minimum coverage of $10,000 Maximum coverage for insureds aged 15 days to 25 years is the lesser of $100,000 and the sum insured under the Whole Life insurance policy Maximum coverage for insureds between age 25 and 65 is the lesser of $300,000 and the sum insured under the Whole Life insurance policy Benefit ceases at age 70 Guaranteed Insurability Benefit (GIB) Available at the time of issue for insureds aged 40 or less Choice of sum insured between $10,000 and the lesser of $100,000 and twice the sum insured of the Whole Life insurance policy to which the GIB is attached Benefit may be exercised on any of the occasions permitted, as stated in the policy Waiver of Premium on Disability Waiver of premiums during the disability of the insured before age 60 up to the date of recovery or death of the insured Benefit expires upon the recovery or death of the insured Waiver of Premium on Death or Disability This benefit, available with Whole Life Limited Pay, provides a waiver of premium if the policyholder dies or becomes disabled on the earlier of the following dates: before the child reaches age 25 or before the policyholder reaches age 60. Survivor s Insurance Benefit 65 or 70 Survivors of Joint-first-to-die policies have the option of purchasing any insurance plan, without evidence of insurability Sum insured under the new policy must be the same as under the original coverage Right may be exercised by survivors under 65 or 70 years of age, depending on the benefit selected If there is more than one survivor, they can each elect to take out a Single Life policy or a Joint-first-to-die policy among them. Standard Life 7

10 Additional benefits and riders Term 10 Renewable and Convertible or Term 20 Renewable and Convertible Insurance Rider 10 or 20 year terms Automatic renewal Coverage to age 85 Change in premium every 10 or 20 years, depending on the chosen coverage (premium guaranteed at issue) Convertible to any permanent life insurance plan offered by Standard Life before age 65 Protecta 10 Critical Illness Insurance Rider (4 illnesses or Enhanced: 24 illnesses) 10 year term Automatic renewal Coverage to age 75 Convertible to any level premium CI insurance product offered by Standard Life until age 64 Protecta 65 Critical Illness Insurance Rider (4 illnesses or Enhanced: 24 illnesses) Guaranteed level premiums Coverage to age 65 Protecta 65 Joint Coverage Critical Illness Insurance Rider (4 illnesses or Enhanced: 24 illnesses) Offered on two lives Coverage to age 65 of the older of the insureds Coverage for both insureds terminates as soon as a claim is made, excluding a claim for a partial benefit for each insured Protecta 75 Critical Illness Insurance Rider (4 illnesses or Enhanced: 24 illnesses) Guaranteed level premiums Coverage to age 75 8 Standard Life

11 Additional benefits and riders Offer your clients guarantees so they know that their family will be safe no matter what. Protecta 100 Critical Illness Insurance Rider (4 illnesses or Enhanced: 24 illnesses) Guaranteed level premiums Coverage to age 100 Payment of the sum insured at age 100 if the insured is still alive and no claim has been made, excluding claim for partial benefit Protecta Child Critical Illness Insurance Rider (13 childhood illnesses) Level premiums to age 75 Coverage for children s illnesses to age 18 At age 18, if no claim has been made, the covered illnesses are replaced by those under Protecta 75 Enhanced for adults Children s Protection Rider Sum insured between $2,000 and $20,000 level insurance Covers only one child Age at issue: 15 days to 17 years Coverage until age 25 or wedding date, whichever comes first Convertible to any life insurance product offered by Standard Life 31 days before expiry date Children s Enhanced Protection Rider Sum insured between $2,000 and $20,000 level insurance Covers only one child Age at issue: 15 days to 17 years Coverage to age 25 or wedding date, whichever comes first Convertible to any life insurance product offered by Standard Life 31 days before expiry date for amounts of 5 times the initial sum insured, including a Guaranteed Insurability Benefit with new coverage If a child is a non-smoker at age 18, they can apply for reduced rates (subject to underwriting requirements). Protecta Critical Illness Insurance riders are available with the Return of Premium on Death option only. Whole Life insurance is not available as a rider to any insurance products. Other insurance products can be converted to Whole Life policies. Whole Life insurance cannot be converted to any other insurance product. Standard Life 9

12 Target markets Whole Life insurance offers guarantees that will give your clients peace of mind. Whether they are thinking about retirement or simply looking for permanent protection, this insurance product can be an important part of their financial plans for the future. Individuals approaching retirement For clients who are thinking about retirement. Whole Life insurance is ideal for those who have consumed most or all of their assets throughout their lifetime, and are looking for an economical way to leave something behind for their loved ones. Also ideal for clients who wish to leave a special asset for their heirs but do not want to burden them with the tax bill associated with that asset. Young families For clients who are thinking about longer term financial plans. Whole Life insurance is a practical solution that can meet their insurance needs. Permanent coverage will ensure that their family is cared for should something happen to them. 10 Standard Life

13 Whole Life insurance can be an important part of your clients financial plans. Standard Life 11

14 Client scenarios With the right approach, you can help your clients decide on the coverage that best suits their needs. Here are some client scenarios: Leaving an inheritance Jeffrey, 53 years old, and his wife, Anne, 50 years old, each plan to retire at age 65. They expect that they will consume most of their assets during their retirement, but want to leave something behind for their children. illness, so Jeffrey and Anne can rest easy knowing that even if one of them is diagnosed with a critical illness, they will not have to dip into their retirement assets and their children s inheritance will remain untouched. A Joint-last-to-die Whole Life insurance policy with a Protecta 65 Joint coverage rider would ensure that their heirs receive something when they re gone. The CI rider provides protection against Protecting your family John, 36 years old, and his wife, Jennifer, 34 years old, have just moved into a new house to accommodate their growing family. With a new mortgage and two young children, ages 5 and 2, and a third one on the way, both John and Jennifer want to be sure their family is protected for the future. diagnosed with a critical illness, John and Jennifer will have money to help them take time off from work to care for them, hire a caregiver, or pay for therapy or medical care. Protection in the event of a death or being struck by a critical illness can protect their financial assets and lifestyle at a time when a family needs it most. A Whole Life 100 policy will provide John and Jennifer with protection for life. Add a Protecta 65 joint coverage rider, and they ll also be covered in the event of a critical illness. Protecta Child riders on the children will ensure that if their children are 12 Standard Life

15 Resources Resources to help you better serve your clients Advisor Source Advisor Source contains all the materials you need to help you sell our products including Whole Life insurance. To find everything you need, go to: Sales support For more information on Whole Life insurance, or to obtain printed copies of the marketing material, contact your sales office or one of our regional centers. Eastern Region Central Region Western Region

16 Retirement Investments Insurance Talk soon The Standard Life Assurance Company of Canada