This document is intended for Financial Advisors only and not consumers. Broker Guide to Canada Life Products Version 42 SOURCE: Marketing Information valid as per April 2013 This Guide does not form part of any contract. Although prepared with care, it is intended only as a summary and you should always refer to the appropriate policy conditions. Canada Life cannot accept liability for any errors or omissions in this Guide. This guide must be read in conjunction with the relevant Policy Brochure and/or Fund Factsheets. Canada Life Assurance (Ireland) Limited is regulated by the Central Bank of Ireland.
CONTENTS Protection, Investment & Savings Product Overview Page 2 Pensions Product Overview Page 3 SECTION 1: INVESTMENTS & SAVINGS Page 5 Investments & Savings overview Page 6 Gateway Portfolio Page 7 Canada Life Access Savings Plan Page 9 SECTION 2: PROTECTION Page 11 Protection Overview Page 12 Mortgage Term Plan Page 13 Flexible Term Plan Page 14 SECTION 3: PENSIONS Page 15 Pre Retirement Options overview Page 16 Advantage Plus Plan Page 17 Advantage Plan Page 19 Pensions Term Assurance Page 21 Retirement Bond Page 22 Advantage 100 (Series 3) Option Page 23 Standard PRSA Page 25 Advance PRSA Page 27 Premium PRSA Page 28 Post retirement options overview Page 29 Approved Retirement Fund/Approved Minimum Retirement Fund Page 30 Approved Retirement Fund with Lifelong Income Benefit Page 32 Annuities Page 34
Protection Canada Life Protection, Investment & Savings Product Overview Life Investment/Savings Mortgage Protection Single Premium Regular Premium Mortgage Term Plan Unit Linked Unit Linked Gateway Portfolio The Access Savings Plan Term Flexible Term Plan Specified illness 2
Pensions Term Assurance Canada Life Pensions Product Overview Pre-Retirement Options Canada Life Advantage Plus Plan Canada Life Advantage Plan Canada Life Standard PRSA Canada Life Advance PRSA Canada Life Premium Plan Can be used for any of the following types of pensions Can be used for any of the following types of pensions PERSONAL EXECUTIVE AVC GROUP PRSA PRSA AVC only Self employed and Employees where employer will NOT pay at least 1/10th of Contributions Employer will pay at least 1/10th of total pension contributions (including AVC s) Canada Life Retirement Bond Self Employed and Employers who are not members of a scheme that provides retirement benefits Members of a scheme that provides retirement benefits 3
Post retirement options After allowing for tax free lump sum Is your client s pension held in a.. A personal pension Occupational pension - defined contribution plan AVC Fund PRSA Yes No Do you have a guaranteed pension of 12,700? Buy a Canada Life Annuity No Yes First 63,500 Surplus over 63,500 Invest in a Canada Life AMRF Tax free growth Buy a Canada Life Annuity Invest in a Canada Life ARF or Canada Life ARF with lifelong income benefit Buy a Canada Life Annuity Become entitled to minimum specified income Tax free growth No Yes Withdraw money as income, pay income tax 4
SECTION 1: INVESTMENTS & SAVINGS 5
Canada Life Investment and Savings Overview Unit Linked Gateway Portfolio 6
Gateway Portfolio Product Description A lump sum unit linked investment plan. Optional regular payments can be taken from the fund. Objective Capital Growth Risk Medium Risk Age Limits Anyone between 18 and 85 Applications may be accepted for children with a supplementary application form. Please note that the policy cannot be amended or encashed until the child s 18th birthday. Minimum Term None. The policyholder may surrender the policy at any time though early surrender charges will apply in the first five years after payment of the premium. Fund Choices Canada Life/Setanta Liquidity Fund Canada Life/Setanta Fixed Interest Fund Canada Life/Setanta Balanced Fund Canada Life/Setanta Strategic Growth Fund Canada Life/Setanta European Equity Fund Canada Life/Setanta Global Opportunity Fund Canada Life/Setanta Irish Equity Fund Canada Life/SEI MoM Japanese Equity Fund Canada Life/Setanta Focus 15 Fund Canada Life Quadrivium Fund Canada Life/Setanta Equity Dividend Fund Canada Life/Setanta Balanced Dividend Fund Canada Life/Setanta Income Opportunities Fund Canada Life/SEI MoM Opportunistic Fixed Income Fund Canada Life/SEI MoM Global Fixed Income Fund Canada Life/SEI MoM Global Balanced Fund Canada Life/SEI MoM Global Equity Fund Canada Life/SEI MoM UK Equity Fund Canada Life/SEI MoM European Equity Fund Canada Life/SEI MoM US Equity Fund Canada Life/Setanta Property Fund Canada Life/SEI MoM Pacific Basin Equity Fund Canada Life/SEI MoM Emerging Markets Equity Fund Canada Life/Morgan Stanley European Property Fund Canada Life/Merrion Managed Fund Maximum Term None Structure Single Life or Joint Life Last Survivor Minimum Investment d5,000 Additional contributions can be made at any time. The minimum amount of an additional contribution is d650. Maximum Investment d2,500,000 Income Facility Yes Frequency: Yearly, Half-yearly, Quarterly or Monthly Minimum Amount: d125 per payment Maximum Amount: 7.5% of the fund in any one policy year Minimum surrender value remaining: d1,250 Income is not subject to encashment charges. Switching 2 free switches per year, d25 for each further switch Policy Fee Currently d48.00 per annum (d4.00 per month) if premium < d10,000 None if premium is greater than or equal to d10,000 Bid/Offer Spread No Annual Management Charge Canada Life Quadrivium Fund 1.75% Canada Life/SEI MoM Opportunistic Fixed Income Fund 1.80% Canada Life/SEI MoM Global Fixed Income Fund 1.80% Canada Life/SEI MoM Global Balanced Fund 2.00% Canada Life/SEI MoM Global Equity Fund 2.10% Canada Life/SEI MoM UK Equity Fund 2.10% Canada Life/SEI MoM European Equity Fund 2.10% Canada Life/SEI MoM US Equity Fund 2.10% Canada Life/SEI MoM Japanese Equity Fund 2.10% Canada Life/SEI MoM Pacific Basin Equity Fund 2.30% Canada Life/SEI MoM Emerging Markets Equity Fund 2.40% Canada Life/Morgan Stanley European Property Fund 2.15% All other funds 1.50% Death Benefit Early Surrender Charges 101% of fund value on day after receipt of notification of death Early surrender charges will apply in the first five years after payment of the premium. The early surrender charges are as follows: 7
Gateway Portfolio Surrender in year Early Surrender Charge 1 5% 2 5% 3 5% 4 3% 5 2% 6 or later None Separate surrender penalties are calculated and separate periods apply in respect of the initial investment and any subsequent additional investments. Standard Commission There are 3 commission options available with the allocation rates shown in the table below. Option A Option B Option C 3.0% initial and 0.5% of the fund value each year 4.0% initial and 0.25% of the fund value each year 5.0% initial and no fund-based commission Amount Invested Percentage Allocated d5,000 - d149,999 100% d150,000 - d499,999 100.50% d500,000+ 101.25% For each 1% of initial commission sacrificed, the percentage allocated will be increased by 1%. Where commission is sacrificed, the allocation rate cannot exceed 105.25%. There are three other commission variants available: Option A, Variant 1: Option A, Variant 2: Option B, Variant 1: 3.0% initial and 0.25% of the fund value each year The policyholder will be allocated extra units to the value of 0.25% of the fund value at the end of each policy year. 3.0% initial no fund-based commission The policyholder will be allocated extra units to the value of 0.5% of the fund value at the end of each policy year. 4.0% initial no fund-based commission The policyholder will be allocated extra units to the value of 0.25% of the fund value at the end of each policy year. The purpose of these commission variants is to offer policyholders a reduced effective annual management charge. 8
Canada Life Access Savings Plan Product Description Minimum Entry Age Minimum Premium Maximum Premium Lump Sums The Canada Life Access Savings Plan is a regular premium unit-linked savings plan. It can be written on a single life or joint life first death basis. This product is underwritten by Canada Life Assurance (Ireland) Limited. 12 attained (13 next birthday) (under 18 with a supplementary application form). Please note that the policy cannot be amended or encashed until the child s 18th birthday. d75 monthly d2000 Monthly Minimum d3000; Maximum d30,000. Fund Choices Canada Life/Setanta European Equity Fund Canada Life/Setanta Liquidity Fund Canada Life/Setanta Fixed Interest Fund Canada Life/Setanta Strategic Growth Fund Canada Life/Setanta Balanced Fund Canada Life/Setanta Equity Dividend Fund Canada Life/Setanta Balanced Dividend Fund Canada Life/Setanta Income Opportunities Fund Canada Life/Morgan Stanley European Property Fund Canada Life/SEI MoM Opportunistic Fixed Income Fund Canada Life/SEI MoM UK Equity Fund Canada Life/SEI MoM US Equity Fund Canada Life/SEI MoM Pacific Basin Equity Fund Canada Life/Morgan Stanley European Property Fund Canada Life/Setanta Irish Equity Fund Canada Life/Setanta Global Opportunity Fund Canada Life/Setanta Property Fund Canada Life/Setanta Focus 15 Fund Canada Life/SEI MoM Global Balanced Fund Canada Life/SEI MoM Global Equity Fund Canada Life/SEI MoM European Equity Fund Canada Life/SEI MoM Global Fixed Income Fund Canada Life/SEI MoM Emerging Markets Equity Fund Canada Life/SEI MoM Japanese Equity Fund Canada Life/Merrion Managed Fund Canada Life Quadrivium Fund Policy Fee Currently d4.50 per month. This may be increased by the Actuary. Annual Management Charge The management charge varies depending on the funds chosen: Canada Life Quadrivium Fund Canada Life/Setanta Focus 15 Fund Canada Life/SEI MoM Opportunistic Fixed Income Fund Canada Life/SEI MoM Global Fixed Income Fund Canada Life/SEI MoM Global Balanced Fund Canada Life/SEI MoM Global Equity Fund Canada Life/SEI MoM UK Equity Fund Canada Life/SEI MoM European Equity Fund Canada Life/SEI MoM US Equity Fund Canada Life/SEI MoM Japanese Equity Fund Canada Life/SEI MoM Pacific Basin Equity Fund Canada Life/SEI MoM Emerging Markets Equity Fund Canada Life/Morgan Stanley European Property Fund All other Funds 1.75% p.a. deducted from the unit price 1.75% p.a. deducted from the unit price 1.80% p.a. deducted from the unit price 1.80% p.a. deducted from the unit price 2.10% p.a. deducted from the unit price 2.10% p.a. deducted from the unit price 2.10% p.a. deducted from the unit price 2.10% p.a. deducted from the unit price 2.10% p.a. deducted from the unit price 2.10% p.a. deducted from the unit price 2.30% p.a. deducted from the unit price 2.40% p.a. deducted from the unit price 2.15% p.a. deducted from the unit price 1.50% p.a. deducted from the unit price On certain commission options, a bonus equal to 0.5% of the value of the fund will be added each year, starting from year eight, provided the client is still paying premiums. [See table overleaf.] The bonus has the effect of reducing the effective management charge by 0.5% per annum from that point onwards. If they increase their premiums, the bonus is first paid on the extra amount on the 8th anniversary of the increase. The annual management charge applying to any additional single premium will be as outlined above for regular premiums, with the exception of the bonuses. Bonuses for any single premium depend on commission option chosen. See table overleaf Plan Management Charge Dependent on commission option chosen. See table overleaf. This charge will be deducted monthly via unit cancellation. 9
Canada Life Access Savings Plan Bid Offer Spread No bid offer spread. Fund Switching 2 free p.a. Currently d25 each after that. Product Details Minimum monthly premium increase is d12.50 Premium decrease is allowed, as long as monthly premium does not fall below d75 Premium holidays allowed for up to 6 months (1 year for yearly premiums). The policy must have been in force for at least 6 months and only 3 premium holidays allowed per policy - there must be 6 months between each holiday. Optional inflation protector. Automatic premium increase of 5% p.a. Policies may be made paid up at any time after 2 full policy years have elapsed, provided there is at least d450 in the fund. If the fund value is less than d450, the policy automatically ceases and the policyholder is paid the fund value. A full policy fee will continue to be charged. Bonuses paid on regular premiums starting from year eight or single premiums do not apply. Partial Encashments Partial encashments may be made. The minimum encashment value is d350. A minimum of d450 must be left in the fund after the partial encashment. Surrender Penalties A full encashment may be made at any time without penalties except when invested in the Unitised With Profits Fund (see the Canada Life Guide to Investment Funds for more details). The UWP Fund is no longer open for new business. Death Benefit The death benefit is 100% of the fund value on the policy. In the case of a joint life policy, the death benefit is payable on the first death of the two lives. Accidental Death Benefit Every policy will have an Accidental Death Benefit (ADB). Policies with premiums of over d200 per month will have ADB of d25,000 otherwise the ADB will be d12,500. The ADB is not optional and cannot be removed from the contract. Plan Management Charge & Bonuses Dependent on commission option chosen (See Commission table below): Regular Premium Bonus Single Premium Bonus Plan Management Charge ASP1 (25/3) 0.5% bonus will be added at the end of each year starting from year eight 0.75% bonus will be added at the end of each year ASP2 (15/3) 0.5% bonus will be added at the end of each year starting from year eight 0.5% bonus will be added at the end of each year ASP3 (10/0.5) 0% 0.75% bonus will be added at the end of each year ASP4 (Flat 5%) 0.5% bonus will be added at the end of each year starting from year eight 0.5% bonus will be added at the end of each year 0.25% p.a. 0% p.a. 0.25% p.a. 0% p.a. Commission - Regular Premiums The allocation rates vary by the commission structure as follows: ASP1 (25/3) ASP2 (15/3) ASP3 (10/0.5) ASP4 (Flat 5%) Allocation 94% 95% 100% 95% Initial Commission 25% 15% 10% 5% Renewal Commission 3% 3% 0.5% 5% Initial commission is earned evenly over 5 years (1 year on ASP4). Commission clawback will apply on surrender, reductions in premiums or conversion to paid-up within the first 5 years (within the first year for ASP4). No commission sacrifice available, other than those offered above. Commission - Single Premiums ASPA ASPB Allocation 96.5% 100% Commission 3.5% 0% No commission options available, other than those offered above. 10
SECTION 2: PROTECTION 11
Canada Life Protection Overview Protection Life Mortgage Protection Term Mortgage Term Plan Specified illness Flexible Term Plan 12
Mortgage Term Plan Product Description Eligible Ages Mortgage cover where the death benefit chosen at the outset by the policyholder decreases at each calendar month from the start of the policy, in line with a repayment mortgage repayable monthly in arrears, at an interest rate of 6% per annum. This product is underwritten by Canada Life Assurance (Ireland) Limited. Min - 19 next birthday, Max - 70 next birthday Max expiry age - 80 next birthday; 55 next birthday for Guaranteed Insurability Options. Terms Minimum Premium Standard Benefits Guaranteed Insurability Options (GIO s) Cover Policy Fee Commission 5 to 40 (Max term is 80 minus age next birthday) 13 a month Life Cover, Terminal Illness Cover and Guaranteed Insurability Options (GIO s) Allows increases in life cover on birth/marriage/purchase of new principal private residence in Ireland. This is subject to a maximum increase of the lesser of 50% of the original sum assured or 200,000. On the purchase of a new principal private residence the maximum increase is limited to the increase in the loan amount relative to the previous mortgage on the principal private residence, subject to the limits above. This benefit applies automatically to lives under age 55 accepted on standard terms - GIO s are specifically excluded if an application is accepted with an extra premium loading or if any exclusions for cover are imposed, on either life in Joint Life cases. In order for GIO s to apply to a Joint Life policy both lives must meet all criteria relating to GIO s. Accelerated Specified Illness Cover is limited to a maximum sum assured of 750,000 per life. Life Cover is limited to a maximum of 4,000,000 per life. All cover is subject to appropriate medical and financial underwriting approval. Underwriting should be contacted if a request is made for cover above these limits. Currently 3.85 per month Standard Commission Option: Initial Commission will be the lesser of 10% X Term and 90% Renewal Commission is 3% 13
Flexible Term Plan Product Description Client Details Eligible Ages This plan offers economical cover with built in Terminal Illness Cover. This product is underwritten by Canada Life Assurance (Ireland) Limited. Min - 19 next birthday; Max - 70 next birthday for Life Cover; 65 next birthday for Specified Illness Cover. Max expiry age - 80 next birthday for Life Cover, 75 next birthday for Specified Illness Cover, 55 next birthday for Guaranteed Insurability Options, 65 next birthday for Hospital Cash Benefit and 60 next birthday for Personal Accident Benefit Terms Minimum Premium Standard Benefits Optional Benefits Guaranteed Insurability Options (GIO s) Cover Options Available 1 to 40 (Max term for life cover is 80 minus Age next birthday) (Max term for specified illness cover is 75 minus Age next birthday) 15 a month Life Cover, Terminal Illness Cover, Specified Illness Cover and Guaranteed Insurability Options (GIO s). Hospital Cash Benefit and Personal Accident Benefit. Allows increases in life and specified illness cover on birth/marriage/purchase of new principal private residence in Ireland. This is subject to a maximum increase of the lesser of 50% of the original sum assured or 200,000. On the purchase of a new principal private residence the maximum increase is limited to the increase in the loan amount relative to the previous mortgage on the principal private residence, subject to the limits above. This benefit applies automatically to lives under age 55 accepted on standard terms - GIO s are specifically excluded if an application is accepted with an extra premium loading or if any exclusions for cover are imposed. Standalone / Accelerated / Double Payout Specified Illness Cover is limited to a maximum sum assured of 750,000 per life. Life Cover is limited to a maximum of 4,000,000 per life. All cover is subject to appropriate medical and financial underwriting approval. Underwriting should be contacted if a request is made for cover above these limits. Indexation option: increases the level of cover by 5% per annum. Conversion Option: chosen at outset allows policyholder the option at any time before the expiry date of the policy, (or age 65 if earlier) of changing this policy (without any further medical evidence) to a new level non-converting term assurance plan as offered by Canada Life at that time. This option is only available on life and specified illness cover. Policy Fee 3.85 per month Commission Initial Commission will be the lesser of 10% X Term or 90% Renewal: Commission is 3%. 14
SECTION 3: PENSIONS 15
Pensions Term Assurance Canada Life Pre-Retirement Options Canada Life Advantage Plus Plan Canada Life Advantage Plan Can be used for any of the following types of pensions PERSONAL EXECUTIVE AVC GROUP Self employed and Employees where employer will NOT pay at least 1/10th of Contributions Employer will pay at least 1/10th of total pension contributions (including AVC s) Canada Life Retirement Bond Canada Life Standard PRSA Canada Life Advance PRSA Canada Life Premium PRSA Can be used for any of the following types of pensions PRSA PRSA AVC only Self Employed and Employees that are also not members of a scheme that provides retirement benefits Members of a scheme that provides retirement benefits 16
Advantage Plus Plan Product Details Minimum Amount Maximum Amount Minimum and Maximum Entry Ages Indexation Option Fund Choices Accumulator unit plan Personal, Executive, AVC & Group plans. This product is underwritten by Canada Life Assurance (Ireland) Limited. d100 monthly or d1,200 per annum Personal Executive, AVC, Group d1,250,000 Minimum entry age: 18 attained. Maximum: 75 attained (personal pension plans), 69 attained (executive pension plans). Contributions and risk benefits (available for executive plans only) increase automatically each year. Canada Life/Setanta Consensus Index Fund Canada Life/Setanta Equity Fund Canada Life/Setanta Property Fund Canada Life/Setanta Fixed Interest Fund Canada Life/Setanta Passive Equity Fund Canada Life/Setanta Equity Dividend Fund Canada Life/Setanta Balanced Dividend Fund Canada Life/Setanta Lifestyle Fund** Canada Life/Setanta Income Opportunities Fund Canada Life/SEI MoM Global Balanced Fund Canada Life/SEI MoM Opportunistic Fixed Income Fund Canada Life/SEI MoM Global Equity Fund Canada Life/SEI MoM European Equity Fund Canada Life/SEI MoM Pacific Basin Equity Fund Canada Life/Setanta Pension Managed Fund Canada Life/Setanta Focus 15 Fund* Canada Life/Setanta Liquidity Fund Canada Life/Setanta European Equity Fund Canada Life/Setanta Irish Equity Fund Canada Life/BlackRock Managed Fund Canada Life/Morgan Stanley European Property Fund Canada Life/SEI MoM Global Fixed Income Fund Canada Life/SEI MoM UK Equity Fund Canada Life/SEI MoM Japanese Equity Fund Canada Life/SEI MoM US Equity Fund Canada Life/SEI MoM Emerging Markets Equity Fund Canada Life Quadrivium Fund Canada Life/Merrion Managed Fund *Minimum investment in the Focus 15 fund is d5,000 p.a. or d12,500 single premium ** If you have taken the Advantage Plus Plan as an executive pension plan, a lifestyle option will be available. Here your contributions are initially invested in the Pension Managed Fund. In the 9 years before your normal retirement date, the pension plan begins switching funds gradually into the Pension Liquidity Fund and Pension Fixed Interest Fund so that at your selected retirement age the pension plan is wholly invested in these two funds. Switching 2 free switches per year, all further switches are charged at 1% of value currently (minimum d25 maximum d60 per switch). The Pensions Unitised With Profits Fund is no longer open for new business. Bid/Offer Spread 0% Policy Fee d58.80 per annum. This may be increased by the Actuary Fund Management Charge An effective annual management charge applies as follows: Canada Life/Setanta Consensus Index Fund 1.275% Canada Life/Setanta Passive Equity Fund 1.30% Canada Life Quadrivium Fund 1.60% Canada Life/BlackRock Managed Fund 1.60% Canada Life/SEI MoM Opportunistic Fixed Income Fund 1.55% Canada Life/SEI MoM Global Fixed Income Fund 1.55% Canada Life/SEI MoM Global Equity Fund 1.85% Canada Life/SEI MoM UK Equity Fund 1.85% Canada Life/SEI MoM European Equity Fund 1.85% Canada Life/SEI MoM US Equity Fund 1.85% Canada Life/SEI MoM Japanese Equity Fund 1.85% Canada Life/SEI MoM Global Balanced Fund 1.95% Canada Life/SEI MoM Pacific Basin Equity Fund 2.05% Canada Life/SEI MoM Emerging Markets Equity Fund 2.15% Canada Life/Morgan Stanley European Property Fund 2.00% All Other Funds 1.35% The management charge will already have been applied when we are declaring the fund price. The annual manual charge applied to the fund will be 0.25% higher than those listed above. While contributions are being paid at the end of each year a bonus equal to 0.25% of the value of the fund will be added to the plan in the form of extra units. This has the effect of reducing the effective management charge to those listed above. On Series 2 commission options the annual management charge will be 0.6% lower. Other Charges A Pension Board fee applies to all executive & group pension plans: The fee is 8.00 p.a. per policy in the scheme. 17
Advantage Plus Plan Allocation Rates Annual Amount Invested Percentage Allocated in Year 1 and throughout term < d3,600 97% less renewal commission d3,600 - d7,199 99% less renewal commission >= d7,200 100% less renewal commission First year only reduction factors apply where term is less than 5 years. Max NRA for calculating term is 65 4 to 5 years 99% 3 to 4 years 98% 2 to 3 years 97% 1 to 2 years 96% Less than 1 year 95%. On certain commission options the allocation rate may be different. Please refer to the table below.where at least 10 years regular contributions have been paid to the pension plan and the original selected term is at least 10 years, at retirement (providing this is on or after the original selected retirement age and premiums are still being paid) a bonus will be added to the value of the pension plan. This does not apply to retirement funds generated by premium increases made within the last 10 years of the policy. On Series 1 commission terms the bonus rate is 6%, and on Series 2 the bonus rate is 5% Early Termination Paid Up Option Value of units. Value of units allocated. Full policy fee continues to be charged while Policy is paid up and the effective annual management charge increases by 0.25%. Commission Terms Commission Payment Terms are as follows : Commission is earned over 5 years. In all cases term is calculated as NRA (max. 65) +1 - age NB Series 1 (1.35% effective annual management charge (Standard Funds), 6% maturity bonus): 1.25%* term max 25% initial, 4% renewal 1.2%* term max 24% initial, 3% renewal 1.15%* term max 23% initial, 2% renewal 1.1%* term max 22% initial, 1% renewal 1.05%* term max 21% initial, no renewal 1.5%* term max 30%, 3% renewal, (1% lower allocation) 1%* term max 20%, 4% renewal, (1% higher allocation) 1.55%* term max 31%, 4% renewal (1% lower allocation) Series 2 (0.75% effective annual management charge (Standard Funds), 5% maturity bonus): 0.75%* term max 15% initial, 3% renewal, (2% lower allocation) 0.65%* term max 13%, 1% renewal (2% lower allocation 18
Advantage Plan Product Details Details apply to the following: Personal, Individual, AVC & Group. This product is underwritten by Canada Life Assurance (Ireland) Limited. Minimum Amount d100 monthly or d1,200 per annum Personal, Individual, AVC, Group Maximum Amount d1,250,000 Minimum and Maximum Entry Ages Minimum entry age: 18 attained. Maximum: 75 attained (personal pension plans), 69 attained (executive pension plans). Indexation Option Contributions and risk benefits (available for executive plans only) increase automatically each year. Single Premium Option Yes, minimum additional d650. The minimum standalone single premium is d6,500 Fund Choices Canada Life/Setanta Consensus Index Fund Canada Life/Setanta Equity Fund Canada Life/Setanta Property Fund Canada Life/Setanta Fixed Interest Fund Canada Life/Setanta Passive Equity Fund Canada Life/Setanta Equity Dividend Fund Canada Life/Setanta Balanced Dividend Fund Canada Life/Setanta Lifestyle Fund** Canada Life/Setanta Income Opportunities Fund Canada Life/SEI MoM Global Balanced Fund Canada Life/SEI MoM Opportunistic Fixed Income Fund Canada Life/SEI MoM Global Equity Fund Canada Life/SEI MoM European Equity Fund Canada Life/SEI MoM US Equity Fund Canada Life/Setanta Pension Managed Fund Canada Life/Setanta Focus 15 Fund* Canada Life/Setanta Liquidity Fund Canada Life/Setanta European Equity Fund Canada Life/Setanta Irish Equity Fund Canada Life/BlackRock Managed Fund Canada Life/Morgan Stanley European Property Fund Canada Life/SEI MoM Pacific Basin Equity Fund Canada Life/SEI MoM Global Fixed Income Fund Canada Life/SEI MoM UK Equity Fund Canada Life/SEI MoM Japanese Equity Fund Canada Life/SEI MoM Emerging Markets Equity Fund Canada Life Quadrivium Fund Canada Life/Merrion Managed Fund *Minimum investment in the Focus 15 fund is d5,000 p.a. or d12,500 single premium ** If you have taken the Advantage Plan as an executive pension plan, a lifestyle option will be available. Here your contributions are initially invested in the Pension Managed Fund. In the 9 years before your normal retirement date, the pension plan begins switching funds gradually into the Pension Liquidity Fund and Pension Fixed Interest Fund so that at your selected retirement age the pension plan is wholly invested in these two funds. Switching 2 free switches per year, all further switches are charged at 1% of value currently (minimum d25, maximum d60 per switch). There may be restrictions on switching into the Pensions Unitised With Profits Fund. The Pensions Unitised With Profits Fund is no longer open for new business. Bid/Offer Spread 0% Policy Fee d4.90 per month or d58.80 per annum. This may be increased by the Actuary Fund Management Charge An effective annual management charge applies as follows: Canada Life/Setanta Consensus Index Fund 0.675% Canada Life/Setanta Passive Equity Fund 0.70% Canada Life Quadrivium Fund 1.00% Canada Life/BlackRock Managed Fund 1.00% Canada Life/SEI MoM Opportunistic Fixed Income Fund 1.10% Canada Life/SEI MoM Global Fixed Income Fund 1.10% Canada Life/SEI MoM Global Equity Fund 1.40% Canada Life/SEI MoM UK Equity Fund 1.40% Canada Life/SEI MoM European Equity Fund 1.40% Canada Life/SEI MoM US Equity Fund 1.40% Canada Life/SEI MoM Japanese Equity Fund 1.40% Canada Life/SEI MoM Global Balanced Fund 1.35% Canada Life/SEI MoM Pacific Basin Equity Fund 1.60% Canada Life/SEI MoM Emerging Markets Equity Fund 1.70% Canada Life/Morgan Stanley European Property Fund 1.40% All Other Funds 0.75% The management charge will already have been applied when we are declaring the fund price. The annual manual charge applied to the fund will be 0.25% higher than those listed above. While contributions are being paid or a single premium policy has been taken out, at the end of each year a bonus equal to 0.25% of the value of the fund will be added to the plan in the form of extra units. This has the effect of reducing the effective management charge to those listed above. Where trailer commission is chosen premiums will be invested in a fund which has a 0.5% higher annual management charge. Other Charges A Pension Board fee applies to all executive & group pension plans: this is d8.00 p.a. per policy in the scheme. 19
Advantage Plan Allocation Rates Annual Amount Invested Percentage Allocated Gross of Commission < d3,600 95% d3,600 - d7,199 99% >= d7,200 100% First year only reduction factors apply where term is less than 5 years. Max NRA for calculating term is 65. 4 to 5 years 99% 3 to 4 years 98% 2 to 3 years 97% 1 to 2 years 96% Less than 1 year 95%. Allocation Rates Single Premium Initial commission deducted as paid Amount Invested Percentage Allocated Gross of Commission < d6,500 95% d6,500 - d19,999 98% >= d20,000 100% If the term is four years or less, the allocation will be reduced by 0.5% x (5 - term) where term is defined as NRA(max 65) + 1 - ANB. Initial commission deducted as paid Early Termination Paid Up Option Value of units. Full policy fee continues to be paid while Policy is paid up and the effective annual management charge increases by 0.25%. Commission Payment Terms All are available on the quotation disk. Nil Commission, Flat 1% - Flat 5% inclusive 1.25% * term (NRA (max 65) + 1 - age nb), max 25% initial, 4% renewal Trail commission of 0.5% will be available on the Flat commission options and on stand alone single premium policies. For standalone single premiums the commission rate is 5% 20
Pension Term Assurance Product Description Client Details Eligible Ages Terms Min Premium Standard Benefits Options Available This plan offers economical Life cover. This product is underwritten by Canada Life Assurance (Ireland) Limited. Min - 21: Max - 70 next birthday Maximum expiry age - 75 1 to 40 years 15 a month Life Cover Only. Indexation option: increases the level of cover by 5% every year. Conversion Option: chosen at outset allows policyholder the option at any time before the expiry date of the policy, (or age 65 if earlier) of changing this policy (without any further medical evidence) to a new level non-converting term assurance plan as offered by Canada Life at that time. Policy Fee 3.85 per month Commission Initial Commission will be the lesser of 10% X Term or 90% Renewal: Commission is 3% Tax Relief Tax relief is available for self-employed and employees where an employer will not pay at least 1/10th of contributions in an occupational pension scheme. Contributions up to a maximum of 5% of net relevant earnings qualify for tax relief. This tax relief may affect the maximum tax relief that can be obtained on contributions into a Retirement Annuity Contract or a Personal Retirement Savings Account (PRSA) 21
Retirement Bond Product Details Individual policy into which only transfer values from company pension schemes can be invested. Minimum Amount 6,500 Maximum Amount None Single Premium Option Exclusively Fund Choices Canada Life/Setanta Consensus Index Fund Canada Life/Setanta Pension Managed Fund Canada Life/Setanta Equity Fund Canada Life/Setanta Focus 15 Fund* Canada Life/Setanta Property Fund Canada Life/Setanta Liquidity Fund Canada Life/Setanta Fixed Interest Fund Canada Life/Setanta European Equity Fund Canada Life/Setanta Passive Equity Fund Canada Life/Setanta Irish Equity Fund Canada Life/Setanta Equity Dividend Fund Canada Life/BlackRock Managed Fund Canada Life/Setanta Balanced Dividend Fund Canada Life/SEI MoM Pacific Basin Equity Fund Canada Life/Setanta Income Opportunities Fund Canada Life/SEI MoM Global Balanced Fund Canada Life/Morgan Stanley European Property Fund Canada Life/SEI MoM Global Fixed Income Fund Canada Life/SEI MoM Opportunistic Fixed Income Fund Canada Life/SEI MoM UK Equity Fund Canada Life/SEI MoM Global Equity Fund Canada Life/SEI MoM Japanese Equity Fund Canada Life/SEI MoM European Equity Fund Canada Life/Merrion Managed Fund Canada Life/SEI MoM US Equity Fund Canada Life Quadrivium Fund Canada Life/SEI MoM Emerging Markets Equity Fund Switching The first 2 switches each year are free. Currently we charge 25 for each further instruction received. Bid/Offer Spread 0% Policy Fee None Fund Management Charge An effective annual management charge applies as follows: Canada Life/Setanta Consensus Index Fund 0.675% Canada Life/Setanta Passive Equity Fund 0.70% Canada Life Quadrivium Fund 1.00% Canada Life/BlackRock Managed Fund 1.00% Canada Life/SEI MoM Opportunistic Fixed Income Fund 1.10% Canada Life/SEI MoM Global Fixed Income Fund 1.10% Canada Life/SEI MoM Global Equity Fund 1.40% Canada Life/SEI MoM UK Equity Fund 1.40% Canada Life/SEI MoM European Equity Fund 1.40% Canada Life/SEI MoM US Equity Fund 1.40% Canada Life/SEI MoM Japanese Equity Fund 1.40% Canada Life/SEI MoM Global Balanced Fund 1.35% Canada Life/SEI MoM Pacific Basin Equity Fund 1.60% Canada Life/SEI MoM Emerging Markets Equity Fund 1.70% Canada Life/Morgan Stanley European Property Fund 1.40% All Other Funds 0.75% The management charge will already have been applied when we are declaring the fund price. The annual management charge applied to the fund will be 0.25% higher than those listed above. At the end of each year a bonus equal to 0.25% of the value of the fund will be added to your plan in the form of extra units. This has the effect of reducing the effective management charge to those listed above. Where trailer commission is chosen premiums will be invested in a fund which has a 0.5% higher annual management charge. Allocation Rates Annual Amount Invested Percentage Allocated net of 2% commission < d6,500 - d19,999 96% >= d20,000 98% If the term is four years or less, the allocation will be reduced by 0.5% x (5 - term) where term is defined as NRA(max 65) + 1 - ANB. For details please speak to the Pensions Actuary. Early Termination Value of units. Commission Payment Terms Initial commission 2% Trailer commission Optional 0.5% 22
Advantage 100 (Series 3) Option Product Details Minimum Amount Maximum Amount Single Premium Option Can be taken as Single Premium Personal Pension, Single Premium Executive Pension, Personal Retirement Bond. Also available for Group Personal Retirement Bonds. 6,500 for Individual business None Exclusively Fund Choices Canada Life/Setanta Consensus Index Fund Canada Life/Setanta Equity Fund Canada Life/Setanta Property Fund Canada Life/Setanta Fixed Interest Fund Canada Life/Setanta Passive Equity Fund Canada Life/Setanta Equity Dividend Fund Canada Life/Setanta Balanced Dividend Fund Canada Life/Setanta Income Opportunities Fund Canada Life/Morgan Stanley European Property Fund Canada Life/SEI MoM Opportunistic Fixed Income Fund Canada Life/SEI MoM Global Equity Fund Canada Life/SEI MoM European Equity Fund Canada Life/SEI MoM US Equity Fund Canada Life/SEI MoM Emerging Markets Equity Fund Canada Life/Setanta Pension Managed Fund Canada Life/Setanta Focus 15 Fund* Canada Life/Setanta Liquidity Fund Canada Life/Setanta European Equity Fund Canada Life/Setanta Irish Equity Fund Canada Life/BlackRock Managed Fund Canada Life/SEI MoM Pacific Basin Equity Fund Canada Life/SEI MoM Global Balanced Fund Canada Life/SEI MoM Global Fixed Income Fund Canada Life/SEI MoM UK Equity Fund Canada Life/SEI MoM Japanese Equity Fund Canada Life/Merrion Managed Fund Canada Life Quadrivium Fund *Minimum investment in the Focus 15 fund is 12,500 single premium Switching The first 2 switches each year are free. Thereafter we charge 1% of the value switched for each instruction received (currently a minimum charge of ë25 and a maximum charge of ë60 for each switch applies). The Pensions Unitised With Profits Fund is no longer open for new business. Bid/Offer Spread 0% Policy Fee Where the single premium is less than 25,000 a policy fee of 4.90 per month applies. Fund Management Charge The annual management charge is 1% with the exception of the following funds: Canada Life/Setanta Consensus Index Fund 0.925% Canada Life/Setanta Passive Equity Fund 0.95% Canada Life Quadrivium Fund 1.25% Canada Life/BlackRock Managed Fund 1.25% Canada Life/SEI MoM Opportunistic Fixed Income Fund 1.35% Canada Life/SEI MoM Global Fixed Income Fund 1.35% Canada Life/SEI MoM Global Equity Fund 1.65% Canada Life/SEI MoM UK Equity Fund 1.65% Canada Life/SEI MoM European Equity Fund 1.65% Canada Life/SEI MoM US Equity Fund 1.65% Canada Life/SEI MoM Japanese Equity Fund 1.65% Canada Life/Morgan Stanley European Property Fund 1.65% Canada Life/SEI MoM Global Balanced Fund 1.60% Canada Life/SEI MoM Pacific Basin Equity Fund 1.85% Canada Life/SEI MoM Emerging Markets Equity Fund 1.95% The management charge will already have been applied when we are declaring the fund price. The above table assumes that no trailer commission is taken. Where trailer commission is taken, the effective annual management charge increases by the percentage of trailer commission taken per annum (either 0.25% or 0.5%). For policies with trailer commission, a different set of fund links are used and these fund links have annual management charges that are 0.5% higher than those listed above. If the amount of trailer commission being taken is 0.25% per annum, a loyalty bonus equal to 0.25% of the unit fund is added at the end of each policy year so that the effective annual management charge is 1.25% per annum for standard Setanta funds. Allocation Rates 100% net of commission for policies with a term greater than or equal to 10 years. The allocation will be reduced by 0.75% X (10 - Term) for terms less than 10 years. For details please speak to the Product Specialist. 23
Advantage 100 (Series 3) Option Term is defined as the number of years between the policyholder s next birthday when the policy is taken out and the policyholder s normal retirement age, where normal retirement age is subject to an upper limit of 65 for the purposes of calculating the term. Early Termination Surrender penalties apply during the first five years after investment as follows: Surrender occuring in the year since investment 1 5% 2 5% 3 5% 4 3% 5 2% 6+ None Surrender penalty as a proportion of the units surrendered Surrender penalties apply on early retirement or transfer out during the first five years after investment, surrender penalties will not apply on death or on retirement on or after the policyholder s originally selected normal retirement date. Commission Payment Terms 5% For each 1% of commission sacrificed, the percentage allocation will be increased by 1%. Trailer Commission of 0.25% or 0.5% is also available. Where trailer commission is taken the effective annual management charge is increased appropriately as described above. 24
Standard PRSA Product Details Age Limits: Minimum Amount: Fund Choices: Details apply to standard PRSA s (including AVC only PRSA s) Minimum age 19 next birthday, No maximum age. {50 per payment or {10 per payment if paid by Direct Debit Canada Life/Setanta Consensus Fund (P) Canada Life/Setanta Pension Managed Fund (P) Canada Life/KBI Pension Managed Fund (P) Canada Life/Setanta Fixed Interest Fund (P) Canada Life/Setanta Passive Equity Fund (P) Canada Life/Setanta Liquidity Fund (P) Canada Life/Setanta Dividend Fund (100% Equity) Canada Life/Setanta Dividend Fund (Equity/Bonds) Default Investment Option: Under the default investment option, funds will be invested in the Canada Life/Setanta Managed Fund until the client is nine years from their selected retirement age. At this point, and at the end of every 12 months thereafter, the funds will be smoothly moved into the Fixed Interest and Liquidity Funds so that by the selected retirement age, 75% of the money will be invested in the Fixed Interest Fund and 25% will be invested in the Liquidity Fund. Indexation: Switching: Only available to policies paid by direct debit. Premiums inflate by 5% at each policy anniversary. There are currently no limits to the number of fund switches allowed in a period, and there will be no charge on switches. Fund Management Charge: 1% Product Options: Death Benefit: Allocation Rates: There are 6 different product options under the Canada Life Standard PRSA: 1. Standard PRSA (STD03) Flat 3% commission 2. Standard PRSA (STD10) 10% Initial commission 3. Standard PRSA (STD05) Flat 5% commission 4 Standard PRSA (STD15) 15% Initial commission 5 Standard PRSA (STD00) Nil commission 6 Standard PRSA (STDX0) Nil commission for groups with higher average premiums 100% of the fund value. Additional life cover not available on PRSAs. The allocation rate on transfers in must be 100%. Otherwise, the allocation rates differ between product options as follows: Product Code: STD10 or STD03 STD15 or STD05 STD00 STDX0 Contributions < {125 Contributions > {125 97% 97% 95% 95% 95% 100% 100% 100% STDXO will only be available on group schemes where the average contribution exceeds {1200 per annum Bid/offer Policy Fees None None Commission: Standard Commission Payment Terms - Regular Premium: Product Code: STD15 STD10 STD05 STD03 STD00 - Payable in first 12 months 3% * term to NRA (max 65), max 15% - Renewal commission payable after month 12 - Initial commission payable after month 12 * 2% up to month 72, 5% thereafter 1% * term to NRA (max 65), max 10% 5% 3% 0% 2% 5% 3% 0% 5% 2% 5% 3% 0% * This is also the initial commission payable after month 12 on increases that occurred in the first 12 months of a policy. Under STD10 and STD15, initial commission will not be clawed back beyond year one in normal circumstances but Canada Life reserves the right to clawback based on a 3 year earnings period. 25
Standard PRSA Standard Commission Payment Terms - Single Premium: Single Premium Amount < {20,000 {20,000 - {99,999 > = {100,000 Product Code STD10 or STD03 STD15 or STD05 STD00 or STDX0 STD10 or STD03 STD15 or STD05 STD00 or STDX0 STD10 or STD03 STD15 or STD05 STD00 or STDX0 Single Premium (excluding transfers in) 3% 5% 0% 3% 5% 0% 3% 5% 0% Transfers In 0% 0.15% * term to NRA (max 65), max 1.5% 0.2% * term to NRA (max 65), max 2% When commission is paid: For Individual business For Group business Flat commission of 3% or 5% on regular premiums is available on all Standard PRSAs from {25pm+ For STD10 and STD15, commission will only be payable on regular premiums and single premiums (excluding transfers in) if: (i) the regular premiums are paid by direct debit, and (ii) the regular premium on a policy is greater than or equal to {1,200 p.a. and less than or equal to {25,000 p.a. and (i) the average regular premium on the group is greater than or equal to {1,200 p.a. and (ii) the number of members is less than or equal to 20 Also on group schemes no initial commission will be paid on policies with regular premiums in excess of {25,000 per annum 26
Advance PRSA Product Details Minimum Amount: Fund Choices and Fund Annual Management Charge Details apply to non-standard PRSA s (including AVC only PRSA s) 50 per payment or 10 per payment if paid by Direct Debit Fund Annual Management Charge Canada Life/Setanta Consensus Fund (P) 1% Canada Life/Setanta Managed Fund (P) 1% Canada Life/Setanta Passive Equity Fund (P) 1% Canada Life/KBI Pension Managed Fund (P) 1% Canada Life/Setanta Fixed Interest Fund (P) 1% Canada Life/Setanta Liquidity Fund (P) 1% Canada Life/Setanta Equity Fund (P) 1.1% Canada Life/Setanta Focus 15 Fund (P) 1.1% Canada Life/Setanta Property Fund (P) 1.1% Canada Life/BlackRock Pension Managed Fund (P) 1.35% Canada Life/Setanta Dividend Fund (100% Equity) 1.00% Canada Life/Setanta Dividend Fund (Equity/Bonds) 1.00% Default Investment Option: Under the default investment option, funds will be invested in the Canada Life/Setanta Managed Fund until the client is nine years from their selected retirement age. At this point, and at the end of every 12 months thereafter, the funds will be smoothly moved into the Fixed Interest and Liquidity Funds so that by the selected retirement age, 75% of the money will be invested in the Fixed Interest Fund and 25% will be invested in the Liquidity Fund. Switching: Product Options: Allocation Rates: There are currently no limits to the number of fund switches allowed in a period, and there will be no charge on switches. There are 4 different product options under the Canada Life Advance PRSA: 1. Advance PRSA (ADV05) Flat 5% commission 2. Advance PRSA (ADV15) 15% Initial commission 3. Advance PRSA (ADV00) Nil commission 4. Advance PRSA (ADVX0) Nil commission for groups with higher average premiums The allocation rate on transfers in must be 100%. Otherwise, the allocation rates differ between product options as follows: Product Code: ADV15 or ADV05 ADV00 ADVX0 Contributions < {125 Contributions > {125 95% 95% 95% 100% 100% 100% ADVX0 will only be available on group schemes where the average contribution exceeds 1,500 per annum. Standard Broker Commission Payment Terms: Product Code: ADV15 ADV05 Regular Premium: - Payable in the first 12 months 3% * term to NRA (max 65), max 15% 5% - Renewal commission payable after month 12 2% up to month 72, 5% thereafter 5% - Initial commission payable after month 12 Single Premium (excluding transfers in): 5% 5% 5% 5% * This is also the initial commission payable after month 12 on increases that occurred in the first 12 months of a policy. Under ADV15, initial commission will not be clawed back beyond year one in normal circumstances but Canada Life reserves the right to clawback based on a 3 year earnings period. When commission is paid: For Individual business For Group business Flat commission of 5% is available on all Advance PRSAs from 25pm+ For ADV15, commission will only be payable if: (i) the premiums are paid by direct debit, and (ii) the premium on a policy is greater than or equal to 1,200 p.a. and less than or equal to 25,000 p.a. (i) the average premium on the group is greater than or equal to 1,200 p.a., and (ii) the number of members is less than or equal to 20 Also on group schemes no initial commission will be paid on policies with premiums in excess of 25,000 per annum. 27
Premium PRSA Product Details Minimum Amount: Fund Choices and Fund Annual Management Charge Details apply to non-standard PRSA s (including AVC only PRSA s) 50 per payment or 10 per payment if paid by Direct Debit Fund Annual Management Charge Canada Life/Setanta Consensus Fund (P) 1% Canada Life/Setanta Managed Fund (P) 1% Canada Life/Setanta Passive Equity Fund (P) 1% Canada Life/KBI Pension Managed Fund (P) 1% Canada Life/Setanta Fixed Interest Fund (P) 1% Canada Life/Setanta Liquidity Fund (P) 1% Canada Life/Setanta Equity Fund (P) 1.1% Canada Life/Setanta Focus 15 Fund (P) 1.1% Canada Life/Setanta Property Fund (P) 1.1% Canada Life/BlackRock Pension Managed Fund (P) 1.35% Canada Life/Setanta Dividend Fund (100% Equity) 1.00% Canada Life/Setanta Dividend Fund (Equity/Bonds) 1.00% Default Investment Option: Under the default investment option, funds will be invested in the Canada Life/Setanta Managed Fund until the client is nine years from their selected retirement age. At this point, and at the end of every 12 months thereafter, the funds will be smoothly moved into the Fixed Interest and Liquidity Funds so that by the selected retirement age, 75% of the money will be invested in the Fixed Interest Fund and 25% will be invested in the Liquidity Fund. Loyalty Bonus: Switching: Allocation Rates: Bid/Offer Policy Fees Standard Broker Commission Payment Terms: 0.5% of the value of the fund will be added to the PRSA through an addition of units at month 132 after the start of the PRSA, and every 12 months thereafter. There are currently no limits to the number of fund switches allowed in a period, and there will be no charge on switches. The allocation rate on transfers in must be 100%. Otherwise, the allocation rate is 50% for regular contributions paid by direct debit and 97% for one-off contributions in the first policy year, and 97% thereafter. If the regular contribution payment method is changed during the first year, then the 50% contribution charge will continue to apply until the end of the first year. None None Product Code: PRM30 Regular Premium: - Payable in the first 12 months 1.5% * term to NRA (max 65), max 30% - Renewal commission payable after month 12 4% - Initial commission payable after month 12 4% Single Premium (excluding transfers in): 3% * This is also the initial commission payable after month 12 on increases that occurred in the first 12 months of a policy. Initial Commission will be earned over first 12 months When commission is paid: No commission will be paid if the premium at outset is below 1,200 per annum (or the average premium at outset is below 1,200 per annum for group business). Also, commission will only be payable if: (i) the premiums are paid by direct debit, and (ii) the premium on a policy is less than or equal to 25,000 per annum, and (iii) in the case of group business, there are less than 20 members in the group. and average premium on the group is greater than or equal to 1,200 p.a. 28
Post retirement options After allowing for tax free lump sum Is your client s pension held in a.. A personal pension Occupational pension - defined contribution plan AVC Fund PRSA Yes No Do you have a guaranteed pension of 12,700? Buy a Canada Life Annuity No Yes First 63,500 Surplus over 63,500 Invest in a Canada Life AMRF Tax free growth Buy a Canada Life Annuity Invest in a Canada Life ARF or Canada Life ARF with lifelong income benefit Buy a Canada Life Annuity Become entitled to minimum specified income Tax free growth No Yes Withdraw money as income, pay income tax 29
Approved Retirement Fund/Approved Minimum Retirement Fund Product Details Minimum Age ARF AMRF 50 next birthday Post retirement investments made with the proceeds of pension policies. Currently available to personal pension holders, 5% + company directors (company plans) and AVC contributors (company plans) For investing the first 63,500 of fund above. Not required if guaranteed income of 12,700 p.a. is in place for investor. Minimum Amount The minimum contribution is 20,000. The minimum additional lump sum contribution is 650. Maximum Amount No maximum amount Fund Choices Canada Life/Setanta Consensus Index Fund Canada Life/Setanta Equity Fund Canada Life/Setanta Property Fund Canada Life/Setanta Fixed Interest Fund Canada Life/Setanta Passive Equity Fund Canada Life/Setanta Irish Equity Fund Canada Life/Setanta Equity Dividend Fund (Non-distributing) Canada Life/Setanta Balanced Dividend Fund (Non-distributing) Canada Life/Setanta Income Opportunities Fund Canada Life/Morgan Stanley European Property Fund Canada Life/SEI MoM Global Fixed Income Fund Canada Life/SEI MoM UK Equity Fund Canada Life/SEI MoM Japanese Equity Fund Canada Life/SEI MoM Pacific Basin Equity Fund Canada Life/SEI MoM Global Balanced Fund Canada Life/Setanta Pension Managed Fund Canada Life/Setanta Focus 15 Fund* Canada Life/Setanta Liquidity Fund Canada Life/Setanta European Equity Fund Canada Life/BlackRock Managed Fund Canada Life Quadrivium Fund Canada Life/Setanta Equity Dividend Fund (Distributing) Canada Life/Setanta Balanced Dividend Fund (Distributing) Canada Life/SEI MoM Opportunistic Fixed Income Fund Canada Life/SEI MoM Global Equity Fund Canada Life/SEI MoM European Equity Fund Canada Life/SEI MoM US Equity Fund Canada Life/SEI MoM Emerging Markets Equity Fund Canada Life/Merrion Managed Fund * Minimum investment in the Focus 15 fund is 12,500 single premium. Switching 2 free switches per year. All further switches are charged at 25 Allocation Rates: ARF Premium Net Allocation Rates 20,000-149,999 100% 150,000-599,999 101% 600,000+ 101.25% AMRF Premium* Net Allocation Rates 20,000-63,500 100% *Premiums above 63,500 that are transfers from existing AMRFs may be invested in the AMRF provided Revenue legislation is adhered to. The allocation rate on such transfers will be 100%. Bid/Offer Spread Other Charges No Annual fund charge* Canada Life/Setanta Consensus Index Fund 0.925% Canada Life/SEI MoM European Equity Fund 1.60% Canada Life/Setanta Passive Equity Fund 0.95% Canada Life/SEI MoM US Equity Fund 1.60% Canada Life Quadrivium Fund 1.25% Canada Life/SEI MoM Japanese Equity Fund 1.60% Canada Life/BlackRock Managed Fund 1.25% Canada Life/SEI MoM Global Balanced Fund 1.60% Canada Life/SEI MoM Opportunistic Fixed Income Fund 1.30% Canada Life/SEI MoM Pacific Basin Equity Fund 1.80% Canada Life/SEI MoM Global Fixed Income Fund 1.30% Canada Life/SEI MoM Emerging Markets Equity Fund 1.90% Canada Life/SEI MoM Global Equity Fund 1.60% Canada Life/Morgan Stanley European Property Fund 1.65% Canada Life/SEI MoM UK Equity Fund 1.60% All Other Funds 1.00% * The management charge will already have been applied when we are declaring the fund price. The annual management charge applied to your fund will be 0.50% higher than those listed above. At the end of each year a bonus will be added to your plan in the form of extra units, the bonus rate will be 0.50% for all funds.this has the effect of reducing the effective management charge to those listed above. 30
Approved Retirement Fund/Approved Minimum Retirement Fund If the 5% commission option is chosen, an additional investment management fee of 0.25% is payable 6 months after the commencement date and every six months thereafter. Each of these half-yearly fees is applied to the policy as a 0.25% cancellation of units from the policy. This has the effect of increasing the effective annual management charge from those listed above. Surrender Penalty Encashment before the end of the year Encashment Charge 1 5% 2 5% 3 5% 4 3% 5 2% Partial encashments must be at least 650 in value and there must be at least 1,250 remaining in the fund. The first partial encashment in a policy year is free; further encashments in a policy year now incur a charge, which is currently 25. Automatic income Automatic incomes will only be allowed on ARF s but not AMRFs Policyholder can opt for automatic income to be paid on a yearly, half-yearly, quarterly or monthly basis. The income can only be a fixed amount. The minimum modal installment is 125 (i.e. regardless of the income payment frequency). The minimum remaining amount of the investment is 1,250 The maximum amount of income allowed in any one policy year is 10% of the surrender value. The maximum income that can be set up at the outset of the policy is 10% of the single premium. There is no charge for this facility. The auto-income will not be subject to encashment charges. Income tax will be payable on the automatic incomes. Commission payment Terms OPTION A: 3% Initial Commission only OPTION B: 3% Initial Commission plus 0.5% of the fund value annually OPTION C: 5% Initial Commission only If option B is selected then fund-based commission of 0.25% is payable 6 months after the commencement date, and every 6 months thereafter. Each of these half-yearly payments is charged to the policy as a 0.25% cancellation of units from the policy. Initial commission may be sacrificed to enhance the allocation rate. For each 1% of commission sacrificed, the allocation rate will be increased by 1%. 31
Approved Retirement Fund with Lifelong Income Benefit IMPORTANT : Please note this is just an overview of the ARF with Lifelong Income Benefit product. For full details of how the product works refer to the Canada Life Approved Retirement Fund with lifelong income benefit Advisor Product Guide (CANMU1279) Product Description This is an ARF with optional lifelong income benefit designed for clients with qualifying ARF options. This product is underwritten by Canada Life Assurance (Ireland) Limited. All guarantees are provided by Canada Life Assurance (Ireland) Limited. Minimum age at entry 60 Maximum age at entry 80 Minimum premium 25,000 Maximum premium 1,000,000 Income withdrawal percentage Age at first income payment date Income withdrawal percentage 60-64 4.00% 65-69 4.25% 70-74 4.50% 75-80 4.75% Income lock-ins Allocation Rate Monthly income payment Every year on the anniversary of the start date of the client s policy, Canada Life will review the value of the policy. If the fund value is more than the current lifelong income withdrawal base, Canada Life will reset the lifelong income withdrawal base to be equal to the increased value of the fund. For more information please see the Advisor Product Guide. 100% net of commission (Commission can be sacrificed in steps of 0.5%. For each 0.5% of commission sacrificed, the allocation rate increases by 0.5%.) The amount paid monthly will be the higher of a. 1/12 of the annual lifelong income amount; and b. 1/12 of 5% of the fund value of the policy at the date the payment is calculated Automatic regular income payment dates are normally the 1st of each month or the nearest previous working day, if the 1st of the month is not a working day. Your client will receive income payments no later than 7 days after the income payment date Annual Management Charge 1% of fund value (allowed for in the investment fund price) Annual Guarantee Charge The annual guarantee charge applies only if the lifelong income benefit has been selected. Investment Fund Annual Guarantee Charge (% of lifelong income withdrawal base) Conservative Fund 1.00% Moderate Fund 1.25% Advanced Fund 1.50% This charge may increase depending on the cost of providing the guarantee. The charge will not increase by more than 0.5% of the lifelong income withdrawal base in total. The charge is deducted each month. If lifelong income benefit is removed from the policy, then the annual guarantee charge will no longer be applied to the policy. Annual plan fee Policy Fee 0.25% of the fund per annum. It only applies if commission option B or C is selected. The plan fee is deducted once every six months. 3.00 per month, increasing annually in line with consumer price inflation Switching Bid/Offer spread There is no charge for fund switches. Clients can only invest in one fund at any given time but it is possible to switch funds during the course of the investment to reduce equity holdings. Any fund switch must be to a fund with lower equity content. No 32
Approved Retirement Fund with Lifelong Income Benefit Surrender Penalties These apply on transfer to another provider or to any discretionary withdrawals or surrenders taken as detailed in the table below. Policy year 1 2 3 4 5 6+ Penalty % of fund value withdrawn or transferred 5% 5% 5% 3% 2% 0% Administration Charge Taxation There is an administration charge, currently 25, for each discretionary withdrawal made. All income payments, discretionary withdrawals and surrenders are made under the PAYE system and are subject to the client s marginal rate of income tax, Universal Social Charge and PRSI as applicable. This is subject to any changes made by law. If required Canada Life will deduct tax on the basis of an imputed distribution. For further details please see page 21 of the Canada Life Approved Retirement Fund with lifelong income benefit Advisor Product Guide. ARF without lifelong income benefit For some clients an ARF without lifelong income benefit may be more suitable. In this case clients may wish to invest in Canada Life s standard ARF or to invest in the ARF with lifelong income benefit and opt not to select the lifelong income benefit. (Please see Automatic Income section in Standard Approved Retirement Fund/Approved Minimum Retirement Fund Brochure). Commission Payment Terms Option A: 3% initial and no fund based commission Option B: 3% initial and 0.25% of the fund each year Option C: 4% initial and no fund based commission 33
Annuities Product Details Regular income payable for life purchased with the proceeds of personal or company pension plans. This product is underwritten by Canada Life Assurance (Ireland) Limited. All guarantees are provided by Canada Life Assurance (Ireland) Limited. Minimum Amount 6,500 Maximum Amount Single Premium Option í 250,000 Exclusively for investing retirement funds Commission Payment Terms Initial Commission 0% - 2% Renewal Commission None 34
CANZBGP42 04/13