Giraffe & Friends Life Insurance Company

Giraffe & Friends Life Insurance Company giraffe & friends Insurance Plan Please take the time to read your policy carefully. In this Policy, Giraffe & Friends Life Insurance Company will be referred to as we, our, us and Giraffe & Friends. We promise to pay the Beneficiary the amount of insurance if: 1) this Policy is in force; and 2) we are sent proof of death of the Insured acceptable to us. The amount of insurance is the Initial Amount if the Insured dies before age twenty-one (21). The amount of insurance is the Guaranteed Age 21 Amount if the Insured dies on or after age twenty-one (21). Age twenty-one (21) means the first Policy anniversary on or after the Insured s twenty-first (21st) birthday. This Policy is a legal contract between the Policyholder and Giraffe & Friends Life Insurance Company. If for any reason you are not completely satisfied with your Policy, you may cancel this Policy by returning it to us within thirty (30) days of receiving the Policy. If you cancel the Policy within such thirty (30) days, the Policy shall be void from the Date of Issue, and we will refund your initial Premium payment. Non-participating whole life insurance with automatic increase in insurance amount at age 21 premiums payable for the lifetime of the insured. General Provisions The Contract: This insurance is granted in consideration of the application and payment of the Premiums. This Policy (including the Policy Schedule) and the application for this Policy are the entire contract. In the absence of fraud, all statements made in the application will be considered representations and warranties. This Policy may not be amended, nor may any of our rights be waived, except in writing signed by our President or a Vice-President. Non-participation: This Policy is a non-participating policy. It is not entitled to any share of Giraffe & Friends profits or surplus. Date of Issue: This Policy takes effect on the Date of Issue provided that the first premium has been paid. All Policy durations and anniversaries referred to are determined and calculated from the Date of Issue. Misstatement of Age: If the age of the Insured has been misstated, the benefits under this Policy will be increased or decreased to the amount that would have been provided for the same premium at the correct age. Incontestability: Except for non-payment of Premiums, the Policy will be incontestable by us after it has been in force during the Insured s lifetime for two (2) years from the Date of Issue. This applies only to the Initial Amount. In cases involving fraud, we may contest the Policy at any time. 1

Premium and Reinstatement Provisions Premiums: All Premiums are payable in Canadian dollars to us at our head office. Each premium must be paid on or before its due date. A receipt signed by us will be furnished on request. Amount and Frequency: Premiums are payable in the amount and frequency shown in the Policy Schedule. You may change the frequency of the Premium payment subject to our written approval. Default: Any Premium, other than the first Premium, which is not paid on or before the due date constitutes a Default under this Policy. The Policy will then terminate, subject to the Grace Period, Options on Default and Reinstatement. Grace Period: A Grace Period of thirty-one (31) days will be allowed for payment of a Premium in default. Your Policy will continue to be in force during the Grace Period. If the Insured dies during the Grace Period, we will deduct from the proceeds of the Policy any unpaid Premium that is due. Premium Refund at Death: The Beneficiary will receive, in addition to the proceeds of the Policy, any Premiums paid past the end of the Policy month in which death occurs. Reinstatement: If the Policy has terminated because of a Default and the Grace Period has expired, the Policy may be reinstated within three (3) months of the date of Default. Reinstatement of the Policy is subject to: 1. Submission of evidence of insurability of the Insured satisfactory to us; 2. Payment of all past due premiums with interest accrued daily at a rate determined by us, which interest rate will not exceed the Bank of Canada prime rate plus 2% per year and shall be calculated on the basis of the actual number of days elapsed divided by 365 or 366, as the case may be; 3. Payment or reinstatement of any indebtedness (as defined in the Loan Provision) with interest accrued daily at a rate determined by us, which interest rate will not exceed the Bank of Canada prime rate plus 2% per year and shall be calculated on the basis of the actual number of days elapsed divided by 365 or 366, as the case may be. The Policy cannot be reinstated if it has been surrendered for its cash value. Policyholder, Beneficiary & Assignment Policyholder: Before the Insured reaches age twenty-one (21), unless otherwise provided in the application, the Policyholder will be the Beneficiary, if alive; otherwise, the Insured. After the Insured reaches age twenty-one (21), the Insured will have the right to become the Policyholder subject to making a written request to our head office in a form satisfactory to us and we have recorded the change. The change will have no effect on any payment made or other action taken by us until we have received a written request at our head office and have recorded the change. The Policyholder may exercise all rights and take any action in connection with this Policy (including changing the Policyholder as set out below). Beneficiary: The Beneficiary named in this Policy or in the last Beneficiary designation filed with us will receive the amount of insurance payable under this Policy. If two (2) or more people are named Beneficiaries, the amount of insurance will be paid to the person or persons who are alive when the benefit becomes payable. If more than one (1) 2

Beneficiary is alive, the amount of insurance will be shared equally, unless otherwise specified in this Policy. If no Beneficiary survives the Insured, the proceeds will be payable to the Insured s estate. Change of Policyholder or Beneficiary: Subject to the prior written consent of the Insurer, the Policyholder may change the named Policyholder or Beneficiary at any time during the life of the Insured. The Insurer shall not withhold consent if the new policyholder or beneficiary has an insurable interest in the life of the Insured. The Policyholder may make these changes by making a written request to our head office in a form satisfactory to us. The change is not effective until we have consented to the change and recorded it. The change will have no effect on any payment made or other action taken by us until we have received a written request at our head office and have consented to and recorded the change. Assignments: An assignment is a transfer of some or all of the rights under this Policy. Subject to the prior written consent of the Insurer, the Policyholder has the right to assign this Policy. The Insurer shall not withhold consent if the new policyholder has an insurable interest in the life of the insured. No assignment will be binding on us or deemed to be in force until we have received a written request at our head office and have consented to and recorded the change. We assume no responsibility for the validity of any assignment. While an assignment is in force, the rights of the Policyholder and other persons referred to in the Policy are subject to the prior rights of any assignee. Cash Values & Options on Default Cash Values: Where there is no Default, the Policyholder will be paid the Net Cash Value upon surrender of this Policy. The Policyholder may surrender this Policy for the Net Cash Value at any time during a Policy year. Cash Values are shown on the Policy Schedule. Cash Values at any time during a Policy year will be adjusted for time elapsed and for Premiums paid during the year. Net Cash Value: The net cash value is equal to the Cash Value less any Indebtedness. Options on Default: Upon Default, while this Policy has a Net Cash Value, the Policyholder may elect by written request within three (3) months of Default to surrender the Policy for its Net Cash Value or apply the Net Cash Value to continue insurance under either of Option 1 or Option 2. Until such time as an election is made within three (3) months of Default or if no election is made, the Policyholder shall be deemed to have selected Option 2. Option 1: Reduced Paid-up Insurance: The Policy may be continued as a paid-up policy from the date of Default for the lifetime of the Insured for a reduced face amount. The reduced face amount of insurance will be determined by us based upon how much the Net Cash Value will purchase a paid-up insurance policy from us as a net single premium as of the date of Default for the Insured s age at that date. However, the face amount of insurance for such a policy before the Insured reaches twenty-one (21) cannot exceed the Initial Amount as shown on the Policy Schedule, less any Indebtedness. Option 2: Extended Term Insurance: Before Insured is age twenty-one (21): Starting from the date of Default, the Policy may be continued as paid-up insurance for a shorter period of time than life. Its value will be the Initial Amount, less any Indebtedness. After Insured is age 21: The Policy may be continued as a paid-up insurance policy from the date of Default for a shorter period of time than life for an amount equal to the Guaranteed Age 21 Amount, less any Indebtedness. 3

The period of the term insurance will be determined by us based upon the term that the Net Cash Value at the date of Default will purchase as a net single premium for the Insured s age at that date. Loan Provision Policy Loans: While this Policy has a Loan Value, the Policyholder may obtain a policy loan from us if: 1. No Default has occurred beyond the Grace Period; and 2. The Policy is provided as security to us for the loan in a manner satisfactory to us. Loan Value: This Policy s Loan Value equals 90% of its Cash Value less any Indebtedness to the date Premiums have been paid. The amount that can be borrowed may not exceed the Loan Value. Reduced paid-up insurance and extended term insurance have no cash value or loan value. Indebtedness: Indebtedness means all unpaid loans and due and accrued loan interest. Loan Interest: Interest on a loan will accrue daily at a rate determined by us, which interest rate will not exceed the Bank of Canada prime rate plus 2% per year and shall be calculated on the basis of the actual number of days elapsed divided by 365 or 366, as the case may be. The loan interest will become part of the indebtedness. Repayment of a Loan: A loan may be repaid at any time while the Insured is living and the Policy is in force. Any outstanding Indebtedness will be deducted from the policy proceeds. Termination of Policy: When the Indebtedness against this Policy equals or exceeds the Loan Value, this Policy shall be terminated and be without further value thirty-one (31) days after we have mailed notice to that effect to the Policyholder at his/her last known address. Guaranteed Options to Purchase Additional Insurance The Policyholder may purchase up to two (2) additional amounts of insurance without evidence of insurability subject to all provisions contained herein. The maximum amount of each additional amount of insurance is shown in the Policy Schedule. Purchase Option Dates Regular Option Dates: There are two (2) regular option dates where the Policyholder may purchase additional insurance at a premium to be determined by us and upon the terms set out herein and in the Policy Schedule (each Additional Insurance ). The regular option dates are the first policy anniversaries on or after the Insured s 21st and 28th birthdays. The right to purchase additional insurance under this provision will expire thirty-one (31) days after the relevant option date (the 1st regular option date and the 2nd regular option date ). If the Policyholder does not exercise the 1st regular option on the 1st regular option date, the right to exercise the 2nd regular option on the 2nd regular option date will not be affected. Acceleration Option Date: If a living child is born to, or a child is legally adopted by, the Insured after the 1st regular option date but before the 2nd regular option date, the Policyholder may exercise the 2nd regular option ninety (90) 4

days after such birth or adoption. An accelerated option date will not be allowed following the adoption of a child who is over seventeen (17) years of age. We may require satisfactory proof of birth or adoption. Terms for Additional Insurance Additional insurance will be on the same terms and conditions as this Policy (with premiums payable for life). Additional insurance will be issued subject to the following: 1. The application for additional insurance must be on our standard form and received at our head office within ninety (90) days of the relevant option date. 2. The amount of the additional insurance is subject to the maximum shown in the Policy Schedule. It cannot be less than the minimum permitted by us on the date the additional insurance takes effect. 3. All premiums for the Policy must be paid up to the relevant option date. 4. The date the additional insurance takes effect will be the relevant option date. 5. Premiums for additional insurance will be based on our standard rate for the age and sex of the Insured on the date the additional insurance takes effect. The premium for the additional insurance is due on its date of issue and must be paid within thirty-one (31) days while the Insured is still living. 6. The time periods of incontestability and suicide will be modified for any additional insurance to start on the date the additional insurance takes effect. 7. If any of the days within the ninety (90) day period allowed for the application to purchase additional insurance pursuant to the accelerated option and any of the days within the thirty-one (31) days period after the 2nd regular option date allowed for the application to purchase additional insurance overlap, the Insured may choose which option date will be exercised. Exclusions and Limitations No benefit will be paid under this Policy if death results directly or indirectly from one or more of the following: 1. suicide, while sane or insane, within two (2) years of the Date of Issue; 2. self-inflicted injury, while sane or insane; 3. injury caused or contributed to by war or any act of war, whether declared or not; 4. participation in a riot or civil commotion; 5. active service outside of Canada in the armed forces of any country; 6. direct or indirect participation in a criminal act or any attempt to commit a criminal offense, including but not limited to, operating a motor vehicle while the concentration of alcohol in one hundred (100) milliliters of Your blood exceeds eighty (80) milligrams; 7. chronic use of alcohol; 8. drug use apart from controlled drugs as prescribed by and on the advice of a licensed physician; 9. normal pregnancy, childbirth or termination of pregnancy, excluding unexpected medical complications; 5

10. the Insured is born more than 1 month prematurely and death of the Insured occurs within the first six (6) months of birth; 11. cosmetic or elective surgery, excluding unexpected medical complications; or 12. illness, disease, mental, nervous or psychiatric disorder for which any one of (i) medical advice, (ii) treatment, (iii) service, (iv) prescribed medication, (v) diagnosis or (vi) consultation, including consultation to investigate and /or diagnose (where diagnosis has not yet been made), was received by You or would have been received by a prudent individual within both (a) six (6) months immediately preceding the Date of Issue and (b) the six (6) months immediately following the Date of Issue. This exclusion only applies if Your death first occurs within twenty-four (24) months of the Date of Issue. Financial Consumer Agency of Canada If you have a concern and wish to make a complaint, please visit the giraffe & friends website at www.giraffeandfriends.com or call us toll free at 1-844-694-2633 for information on our Complaint Resolution process. Please note that consumers may contact the following federal agency in Canada at any time for information and assistance on complaints: Financial Consumer Agency of Canada 427 Laurier Ave. West, 6th Floor Ottawa, Ontario K1R 1B9 Website: www.fcac-acfc.gc.ca. 6

Policy Schedule Policyholder: Insured: Beneficiary: Age of Insured: Initial Amount: Guaranteed Age 21 Amount: Date of Issue: Policy Number: Premiums Monthly Quarterly Semi-Annual Annual Premium Period For Life 7

Guaranteed Option to Purchase Additional Coverage At Age 21: up to $ At Age 28: up to $ TOTAL: up to $ Values Values shown in this table are for completed policy years. These values assume that premiums are paid for the number of years stated and that there is no indebtedness. The cash, loan and reduced paid-up insurance values are for the Initial Amount. Extended Term Insurance is term insurance, for the Initial Amount, for the period listed below. Values between policy anniversaries will be adjusted for any premiums paid and time elapsed during the year. Values for any policy years not shown in the table will be furnished on request. End of Policy Year Cash Value Loan Value Reduced Paid-up Insurance Extended Term Insurance (years) 8