ASSUMPTION LIFE PARPLUS Participating Whole Life Insurance Features Issue ages Premium payment period Minimum sum insured Maximum sum insured Banding Annual fees Guaranteed cash values Riders Dividend options Joint policy How to apply Permanent life insurance with guaranteed basic insurance amount payable at death. Participating policy (dividends are payable) Simplified issue available for ages 18-65 with life insurance coverage of $5,000 to $250,000. All answers to medical and lifestyle questions must be in the negative. Full underwriting for ages 66 to 75. Guaranteed level premiums, that is, premiums remain the same for the premium payment period. Smoker and non-smoker rates. Available as a policy only. Available as an individual policy or a joint first-to-die policy on two insureds. 18 to 70 years of age (If payable for 20 years) 18 to 75 years of age (If payable for life) For joint policies, the equivalent age and the age of both insureds must be from 18 to 70 or 18 to 75 years of age depending on the premium payment period chosen. 20-Year-Pay Life Pay (If individual policy, payable to attained age of 100. If joint policy, payable to the equivalent attained age of 100) $5,000 $4,000,000 $5,000-$24,999 $100,000-$250,000 $25,000-$99,999 More than $250,000 (Full underwriting for sum insured exceeding $250,000) $80 per policy Available as of the sixth policy anniversary (AD&D) Accidental Death and Dismemberment only on individual policy. (WPI) Waiver of Premiums Upon Disability (CIB) Child Insurance Benefit The following dividend options are available. You may change your selected dividend option by written notice to Assumption Life before any policy anniversary date (limits & exclusions may apply): Paid-in Cash Premium Reduction Paid-up Additions (PUA)* Enhanced** *If Paid-up Additions option is not selected at purchase, medical underwriting will be necessary to choose this option afterwards.(only an Enhanced option can be changed to PUA without medical underwriting) **Enhanced option is only available at time of purchase. The enhancement insurance initial sum insured is guaranteed for the first 10 policy years. If selected, this option can be changed to any of the other four dividend options afterwards. Available as a joint first-to-die policy. (equivalent age) Online application only. No paper application. 4789-00A-MAR10 Page 2 of 8
Features Issue ages Premium payment period Annual fees ASSUMPTION LIFE PARPLUS JUNIOR Participating Whole Life Insurance Permanent life insurance with guaranteed basic insurance amount payable at death. Participating policy (dividends are payable). Simplified issue with life insurance coverage of $250,000 or less (all answers to medical and lifestyle questions must be in the negative). Guaranteed level premiums, that is, the premiums remain the same for the premium payment period. Available as a policy only. Available as an individual policy. 0 (15 days) to 17 years of age Payable 20 years $80 per policy Minimum sum insured $5,000 Maximum sum insured $2,000,000 Banding $5,000-$99,999 $100,000 and up Full underwriting for sum insured exceeding $250,000 Guaranteed cash values Available as of the sixth policy anniversary Riders Dividend options How to apply (AD&D) Accidental Death and Dismemberment (WPI) Waiver of Premiums Upon Disability (WPD) Waiver of Premium Upon Death The following dividend options are available. You may change your selected dividend option by written notice to Assumption Life before any policy anniversary date (limits & exclusions may apply): Paid-in Cash Reduced Premium Paid-up Additions (PUA)* Enhanced** *If Paid-up Additions option is not selected at purchase, medical underwriting will be necessary to choose this option afterwards.(only an Enhanced option can be changed to PUA without medical underwriting) **Enhanced option is only available at time of purchase. The enhancement insurance initial sum insured is guaranteed for the first 10 policy years. If selected, this option can be changed afterwards to any of the other four dividend options. Electronic application only. No paper applications. 4789-00A-MAR10 Page 3 of 8
PARPLUS & PARPLUS JUNIOR The purpose of this document is to summarize the features of Assumption Life products. It is neither a contract nor an offer of insurance and no right is granted hereunder. In the event of conflict or ambiguity, the contract shall prevail. Unless indicated otherwise herein: Please read carefully Age means an insured s age at his or her birthday nearest to the date of issue of the policy or rider under which he or she is insured. Attained age means the sum of (i) the age at the date of issue of the policy or rider, as applicable, and (ii) the number of complete years of insurance from the date of issue of the policy or rider, as applicable. Equivalent age means the age of the insureds under a joint policy, at its date of issue, as determined according to actuarial calculations based on the age, sex and smoking status of each insured. Equivalent attained age means the sum of i) the equivalent age at the date of issue of the joint policy and ii) the number of complete years of insurance from the date of issue of the joint policy. Premiums are calculated per $1,000 per annum. Non-annual premiums are calculated as a percentage of the annual premium: (i) semi-annually.53 (ii) quarterly.27 (iii) monthly (via preauthorized cheques).09 For additional information concerning the product and its limitations and exclusions, please refer to the contract. 4789-00A-MAR10 Page 4 of 8
RIDERS ParPlus & ParPlus Junior Products If the insured becomes totally disabled before the attained age of 60 for a period of 4 consecutive months (waiting period), the company will reimburse premiums paid during this 4-month period and waive future premiums for the duration of disability (even after the attained age of 60). Subject to limits and exclusions (See contract for further details). Issue Ages: 18 to 55 years of age. Expiry Date: This benefit expires upon the first of the following dates: at the WPI s anniversary date nearest the insured s 60th birthday at the end of the contract s premium payment period Calculation of Premiums: The premiums are calculated as a percentage of the basic policy premiums including any rider attached to it. WPI on second insured: This benefit may also be added for the additional insured using the same formula as above. In the event of total disability of the first or second or both insureds, the premiums for the policy will be waived. (WPI) Waiver of Premium upon Disability Definition of Waiting Period: Waiting period means an uninterrupted period of four (4) consecutive months during which the insured is not eligible for the contract s waiver of premiums. The waiting period begins on the date of the accident or on the first day of the illness causing total disability. A separate waiting period applies in respect of each claim for waiver of premiums. Definition of Total Disability: Total disability means a condition that results from an accidental injury or an illness that requires the continuous care of a physician and that prevents the insured from engaging, for compensation, in any work or occupation for which he or she is reasonably qualified as a result of his or her education, training or experience or for which he or she could reasonably become qualified. The availability of any work or occupation is not a criterion that we take into account. Total disability also includes, even if the insured engages in an occupation, the complete loss of any of the following: the sight in both eyes; the use of both hands; the use of both feet; the use of one hand and one foot. Loss of sight means the total and irreversible loss of sight in both eyes. Loss of the use means the total, permanent and irreversible loss of use, which cannot be corrected by surgery nor by any other means and which persists without interruption for at least 365 days. Recurrent Total Disability If the insured recovers from a disability and becomes disabled again from the same causes within six months, this disability is considered to be a continuation of the previous one. 4789-00A-MAR10 Page 5 of 8
In the event of death of the insured under this rider, the premiums for the other lives insured will be waived. Subject to limits and exclusions (See contract for further details). Issue Ages: 18 to 55 years of age (WPD) Waiver of Premium upon Death Termination: Waiver of premiums under the contract will terminate on the earliest of the following dates: a. The last date for which premiums are payable under the contract. b. The expiry date of the WPD rider, that is, the first of the following: (i) The WPD rider anniversary nearest to the insured s 65th birthday. (ii) The 20th anniversary of the WPD rider. Calculation of premiums: The premiums are calculated as a percentage of the premiums of all insurance products covering all lives insured under the policy other than the insured for WPD. This benefit provides for the payment of its sum insured if the insured dies accidentally. Death must occur within 90 days of the accident. This benefit also pays 100% of its sum insured for the accidental loss of: two hands, two feet, sight in both eyes, one hand and one foot, one hand and the sight in one eye, one foot and the sight in one eye. 50% of the benefit s sum insured is paid for the accidental loss of: one hand, one foot or sight in one eye. The maximum amount payable is one time the sum insured (AD&D). Subject to limits, reductions or exclusions (See contract for further details). (AD&D) Accidental Death and Dismemberment Issue Ages: 0 to 55 years of age. Minimum: $1,000 Maximum: $300,000 this includes all other Assumption Life policies with this benefit without exceeding the sum insured of the policy to which it is attached. Termination This benefit terminates on its anniversary nearest to the insured s 65th birthday. Calculation of premiums: Premiums are calculated on a per thousand basis using an annual rate. 4789-00A-MAR10 Page 6 of 8
A term life insurance rider that covers each child of the insured who is single and dependent upon the insured for support and: a. Who is a natural or adopted child and is at least 15 days but less than 18 years old on the date of issue of the rider and is specifically designated in the insurance application; or b. Who is a natural child born after the effective date of the rider and is at least 15 days or more; or c. Who is a child adopted after the effective date of the rider and is at least 15 days but less than 18 years old on the date of adoption. Issue ages: 18 to 60 years of age of the Insured (parent) (CIB) Child Insurance Benefit Amounts available: $10,000 or $20,000 (on each child). The $20,000 maximum includes all other CIB riders in force with Assumption Life. Expiry date Coverage on each child terminates upon the first of the following dates: at the child s 21st birthday or, if he or she is registered as a full-time student in a recognized learning institution, his 25th birthday. at the rider anniversary date nearest the Insured s (parent) 65th birthday. Conversion On the expiry date set for this rider, the term insurance on each insured child may be converted to an individual permanent life insurance offered by Assumption Life at the time of this conversion right without proof of insurability. The smoker premium class and regular risk will apply. The insurance company must receive an application for insurance along with payment of the first premium during the 90-day period preceding the expiry date of the term insurance. The permanent life insurance becomes effective on such expiry date. The permanent life insurance on each insured child cannot exceed five times the sum insured under this rider (maximum of $100,000 including the conversion of any other CIB rider in force with Assumption Life). Annual premium: $55.55 per $10,000 of insurance. For additional information concerning the product and its limitations and exclusions, please refer to the contract. 4789-00A-MAR10 Page 7 of 8
Dividend Options ParPlus & ParPlus Junior Products Paid in Cash Under this option dividends will simply be paid to you at the policy anniversary date. Please note that dividends may be taxable. Premium Reduction Under this option dividends are applied to pay part/all of the policy premium, thus reducing your net payable premium. Please note that dividends may be taxable. Under this option, the dividends are left to accumulate on the policy and will earn interest at the policy anniversary date at the predetermined interest rate set by the Company. Any interest earned on dividends is taxable. Dividends may also be taxable. Paid-up Additions Under this option, dividends are used to purchase paid-up additions to increase the death benefit. The amounts of paid-up additions may vary from those illustrated since they are purchased with the dividends which are not guaranteed. If not selected at purchase, medical underwriting will be necessary to choose this option afterwards. Under this option, dividends are used to purchase a combination of one-year term insurance and paid-up additions, the sum of which is guaranteed to be equal to the enhancement insurance initial sum insured during the first 10 policy years. During the first policy year, a one-year term insurance equal to the enhancement insurance initial sum insured is automatically provided. After the first policy year, any dividend credited on the policy anniversary date will be used firstly to purchase as much paid-up additions possible while leaving a sufficient amount to purchase the one-year term insurance to attain the enhancement insurance initial sum insured. Enhanced The amount of insurance purchased by dividends in subsequent years is the difference between the enhancement insurance initial sum insured and the cumulative total paidup additions in force. From the 11th policy year on, should the dividend amount not suffice to purchase the one year term insurance required to attain the enhancement insurance initial sum insured, no paid up additions will be purchased and the total dividend shall be used to purchase the maximum one-year term insurance. Your total death benefit will then decrease accordingly for the policy year in which the dividend was insufficient. The Enhanced option is only available at time of purchase, However, if selected, the Enhanced option can be changed afterwards to any of the other four dividend options. Paid in Cash Reduced Premium Paid-up Additions Enhanced 4789-00A-MAR10 Page 8 of 8