Volume 5, Issue 6 September Life Insurance

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1 Volume 5, Issue 6 September 2010 Life Insurance 1. New version of FlexOptions and FlexTerm launched October 4! True to our ongoing commitment towards offering competitive products, Assumption Life will launch on October 4 its revamped FlexOptions and FlexTerm! Following are the changes made to these two term products. (See page 2 and 3) 2. If an application was submitted this week, will the client be insured under the new FlexTerm and FlexOptions versions? Policies submitted prior to the launch date will be issued under the old version of the product. However, clients who would like to be insured under the new version can re-apply after the launch date. (See page 3) 3. Table on changes made to FlexTerm and FlexOptions For a quick look at the changes made to the new FlexTerm and FlexOptions see table on page Notice of closure of two funds Financial Services Effective December 7, 2010, Assumption Life will no longer offer these two funds: Assumption/Montrusco Quantitative E.A.F.E. Equity Fund Assumption/Montrusco Global Equity Fund. (See page 5) 1

2 Changes to and 1. New version of FlexOptions and FlexTerm launched October 4! True to our ongoing commitment towards offering competitive products, Assumption Life will launch on October 4 its revamped FlexOptions and FlexTerm! Following are the changes made to these two term products. A. 15-, 20- and 25-year terms The coverage period will be for 15, 20 and 25 years for both FlexOptions and FlexTerm. Terms of 10, 30 and 35 years will be removed for FlexOptions, while the 30- and 35-year terms will be dropped for FlexTerm. B. Maximum coverage for FlexOptions and FlexTerm now increased to $4,000,000 The maximum coverage will increase from $2,000,000 to $4,000,000. C. Two disability income options Clients will be able to choose from the following two disability income options for both of these products: Disability income based on loans (DI loan repayment) OR Disability income based on employment income (DI income replacement) Even better, when their loan is paid off, clients may convert their DI based on loans into a DI based on employment income. Conversion is only upon request and with proof of insurability. Disability income for both FlexTerm and FlexOptions is paid for a maximum of 24 months for the same disability and a maximum of 48 months for disabilities resulting from different illnesses (24/48).* The end of loan disability income has been removed for FlexOptions. * Except for mental illness or nervous disorder. D. Mental or nervous disorder The insured will no longer be required to be hospitalized for 90 days for treatment of mental illness or nervous disorder in order to receive his or her disability income payments. This requirement will be removed. However, disability income for mental illness and nervous disorder will be paid for a maximum of six months. E. Critical illness insurance eliminated The option to add critical illness insurance will also be eliminated for these two products. F. Declaration of Insurability modified (Medical questionnaire) The Declaration of Insurability (medical questionnaire) for these two products will now be the same as the one used for our ParPlus participating product. G. Insurance premiums revised FlexOptions and FlexTerm insurance premiums have been revised. It is therefore important to download the latest version of the application system available online on October 4 - to give your clients the correct premium amount. 2 Page 2 of 5

3 Changes to FlexOptions and FlexTerm (cont.) H. Everything online next Monday The latest application, data collection forms, product and underwriting guides for FlexTerm and FlexOptions will be posted on the Producer s Corner next Monday. Online Applications The new online applications 8.6.0, which can be found on Producer s Corner, can be accessed in two ways: By clicking the Tools & Software. The Online Application System is under Sales Systems Software Downloads. By clicking on Software Downloads posted in the quick links list. The Online Application System is under the Sales Systems Software Downloads. The online application system out of service this week-end Due to changes made to FlexTerm and FlexOptions, our Online application system will be out of service this weekend. Therefore, no application can be submitted online from 8 pm (Atlantic Standard Time) Friday, October 1 until 10 am (Atlantic Standard Time) Monday, October 4. Product guide The product guide is posted under FlexOptions and FlexTerm in the Individual Insurance section. Data collection form The Data collection form can also be found under FlexOptions and FlexTerm in the Individual Insurance section. Due to changes made to the medical questionnaire (Declaration of Insurability) it is therefore important to destroy any version of this form printed before October 4. Underwriting guide To access the underwriting guide, click on «underwriting guide» posted in the «Helpful links» list under «FlexOptions» and «FlexTerm» in the «Individual Insurance» section. Changes to FlexTerm only I. Fees of $40 The annual policy fees for FlexTerm are now $40 instead of $60 the same as for FlexOptions. J. Convertible FlexTerm may be converted into a permanent insurance, without proof of insurability as of the policy s first anniversary. Changes to FlexOptions only K. A maximum decrease of 50% The initial coverage amount can decrease to a maximum of 50%, instead of being reduced to zero%. 2. If an application was submitted this week, will the client be insured under the new FlexTerm and FlexOptions versions? Unfortunately, no. Policies submitted prior to the launch date will be issued under the old version of the product. However, clients who would like to be insured under the new version can reapply after the launch date. Page 3 of 53

4 3. Table on changes made to FlexTerm and FlexOptions For a closer look at the changes made to the new FlexTerm and FlexOptions see table below: Term durations Maximum sum insured FLEXTERM The coverage period will be for 15, 20 and 25 years. The 30- and 35-year terms have been dropped. The maximum coverage has been increased from $2,000,000 to $4,000,000. Changes to FlexOptions and FlexTerm (CONT.) FLEXOPTIONS The coverage period will be for 15,20, and 25 years. The and 35-year terms have been dropped. The maximum coverage has been increased from $2,000,000 to $4,000,000. Disability income based on loans (DI loan repayment) Disability income based on employment income (DI income replacement) When his or her loan is paid off, the client may convert his/her DI based on loans into a DI based on employment income. Conversion only upon request, with proof of insurability. When his or her loan is paid off, the client may convert his/her DI based on loans into a DI based on employment income. Conversion only upon request, with proof of insurability. The end of loan disability income has been eliminated for FlexOptions. Disability income for mental or nervous disorder The insured is no longer required to be hospitalized for 90 days for treatment of mental illness or nervous disorder to receive his/her disability income. However, the disability income for mental illness or nervous disorder will be paid for a maximum of six months. The insured is no longer required to be hospitalized for 90 days for treatment of mental illness or nervous disorder to receive his/her disability income. However, the disability income for mental illness or nervous disorder will be paid for a maximum of six months. Critical illness insurance This option will be dropped. This option will be dropped. Declaration of insurability (Medical questionnaire) The same as for our ParPlus participating product. The same as for our ParPlus participating product. Annual fees Conversion Decreasing amount Premiums The policy fees are now $40 instead of $60 - the same as for FlexOptions. This life insurance may be converted into a permanent policy, without proof of insurabilityas of thepolicy s first anniversary. This conversion privilege terminates on the policy anniversary nearest the insured s 65th birthday. Conversion only upon request and with certain conditions (see product guide). The insurance premiums have been revised. Download the latest version of the online applications system October 4 for the new premium amounts. No change. This life insurance may be converted from the first policy anniversary for the sum insured in effect at the time of conversion. The conversion privilege terminates on the first of the following dates: 5 years before the policy s expiry date or on the policy anniversary nearest to the insured s 65th birthday. Conversion only upon request and with certain conditions (see product guide). The initial coverage amount can decrease to a maximum of 50% of the initial amount, instead of being reduced to zero%. Insurance premiums have been revised. Download the latest version of the online applications system on October 4 for the new premium amounts. Page 4 of 5 4

5 Financial Services: closure of two funds 4. Notice of closure of two funds Effective December 7, 2010, Assumption Life will no longer offer these two funds: Assumption/Montrusco Quantitative E.A.F.E. Equity Fund Assumption/Montrusco Global Equity Fund. This means that all amounts invested in either one of these funds must be transferred to another fund. We recommended to our clients, in a letter mailed at the beginning of September, to transfer to very similar funds: Fund closed December 7 Assumption/Montrusco Quantitative E.A.F.E. Equity Fund Assumption/Montrusco Global Equity Fund Fund recommended for transfer Assumption/AGF International Stock Class Fund Assumption/CI Global Managers Corporate Class Fund 5 Page 5 of 5