1. Universal Life Is It Time To Rethink YRT?
Michael Hamel
Director, Business Development
Ontario West

2. AGENDA Understanding SSQ Universal Life Extreme Disability Benefit
Case Study
Underwriting
Most recent statistics: December 31, 2011
Rate of enrolment is stable for ages and increases afterwards… used liberally by seniors.
Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

3. Simple Flexible Competitive 3 Fundamental Themes
Most recent statistics: December 31, 2011
Rate of enrolment is stable for ages and increases afterwards… used liberally by seniors.
Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.
Simple
Flexible
Competitive

4. Universal Life Individual Minimum $25,000 Joint First To Die (JFTD)
Joint Last To Die (JLTD)
Most recent statistics: December 31, 2011
Rate of enrolment is stable for ages and increases afterwards… used liberally by seniors.
Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.
Minimum $25,000
Maximum $10,000,000

5. YRT T100 0 to 85 0 to 80 Years years Two Types of COI
Most recent statistics: December 31, 2011
Rate of enrolment is stable for ages and increases afterwards… used liberally by seniors.
Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

6. YRT T100 Death Benefit Increasing or Level Increasing
Most recent statistics: December 31, 2011
Rate of enrolment is stable for ages and increases afterwards… used liberally by seniors.
Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.
Increasing or Level
Increasing

7. YRT LEVEL Surrender Charges 7 Years NONE
Most recent statistics: December 31, 2011
Rate of enrolment is stable for ages and increases afterwards… used liberally by seniors.
Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

8. YRT To 90, New Approach Most recent statistics: December 31, 2011
Rate of enrolment is stable for ages and increases afterwards… used liberally by seniors.
Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

9. YRT 90
Most recent statistics: December 31, 2011
Rate of enrolment is stable for ages and increases afterwards… used liberally by seniors.
Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.
Illustrations, and actual results “don’t blow up” like YRT to 100
Maximum investment build up in early years compared to YRT to 85

10. Investment Options Most recent statistics: December 31, 2011
Rate of enrolment is stable for ages and increases afterwards… used liberally by seniors.
Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

11. Investment Options Most recent statistics: December 31, 2011
Rate of enrolment is stable for ages and increases afterwards… used liberally by seniors.
Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

12. Investment Options Most recent statistics: December 31, 2011
Rate of enrolment is stable for ages and increases afterwards… used liberally by seniors.
Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

13. Investor Profile Most recent statistics: December 31, 2011
Rate of enrolment is stable for ages and increases afterwards… used liberally by seniors.
Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

14. Investor Profile Most recent statistics: December 31, 2011
Rate of enrolment is stable for ages and increases afterwards… used liberally by seniors.
Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

15. As of 6th policy anniversary
Guaranteed Bonus 1%
As of 6th policy anniversary
Most recent statistics: December 31, 2011
Rate of enrolment is stable for ages and increases afterwards… used liberally by seniors.
Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

16. Additional Benefits Term Life Insurance – T10, T20
Critical Illness Insurance – T10, T20, T75, T100, T100 Paid-Up 20 Years
Critical Illness Rider
Child Rider
Waiver of Premium in case of Disability
AD&D
Benefit in case of Fracture
Most recent statistics: December 31, 2011
Rate of enrolment is stable for ages and increases afterwards… used liberally by seniors.
Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

17. Juvenile Policies – Included with Child Coverages
Insurability benefit – up to five increase options, to a maximum of $50,000 per increase to an overall maximum increase of $250,000
Increase Options: Birthdays: 21, 24, 27, 30, 33, 36, 39
Life Events: Bachelor or Master’s Degree or Birth of Child
Critical illness Benefit – 25% of insurance amount, up to maximum $50,000
Covered Illnesses: Autism, Blindness, Cancer, Deafness, Kidney Failure, Major Organ Transplant, Muscular Dystrophy, Paralysis
Most recent statistics: December 31, 2011
Rate of enrolment is stable for ages and increases afterwards… used liberally by seniors.
Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

18. Extreme Disability Benefit
Provides 50% of life insurance amount up to $250,000
At NO additional cost
Up to Age 60
Offered on ALL individual life insurance products
Unique to SSQ
Most recent statistics: December 31, 2011
Rate of enrolment is stable for ages and increases afterwards… used liberally by seniors.
Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

19. Extreme Disability Benefit
Extreme disability means the insured is affected by a medical condition that renders him or her in a state of total and irrecoverable disability (at least 6 months) as a result of which the insured cannot perform activities of daily living without a reasonable expectancy of recovery as determined by a physician
Most recent statistics: December 31, 2011
Rate of enrolment is stable for ages and increases afterwards… used liberally by seniors.
Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

20. Extreme Disability Benefit
Insured cannot perform four (4) out of the following six (6) activities of daily living :
1. Bathing - the ability to wash oneself in a bathtub, shower or by sponge bath, with or without the aid of equipment;
2. Dressing - the ability to put on and remove necessary clothing including braces, artificial limbs or other surgical
appliances;
3. Toileting - the ability to get on and off the toilet and maintain personal hygiene;
4. Bladder and Bowel Incontinence - the ability to manage bowel and bladder function with or without protective undergarments or surgical appliances so that a reasonable level of hygiene is maintained;
5. Transferring - the ability to move in and out of a bed, chair or wheelchair, with or without the use of equipment;
6. Feeding - the ability to consume food or drink that already has been prepared and made available, with or without the use of adaptive utensils.
Most recent statistics: December 31, 2011
Rate of enrolment is stable for ages and increases afterwards… used liberally by seniors.
Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

21. Highly Competitive Commissions
YRT
Level T100
Year 1
65% up to target premium
5% on the excess*
55% up to target premium 5% on the excess*
Years 2 to 10 5%
Years 11 +
0.3% on the fund value
Most recent statistics: December 31, 2011
Rate of enrolment is stable for ages and increases afterwards… used liberally by seniors.
Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

22. User Friendly Tools
Simple to use, but fully enabled Illustration software
Investor profile tool
Simple clear statements
to download
software
Most recent statistics: December 31, 2011
Rate of enrolment is stable for ages and increases afterwards… used liberally by seniors.
Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

23. CASE STUDY – Male 50 Non-Smoker
Wants permanent coverage with an increasing death benefit
Needs $250,000 amount of insurance
Deposit $12,000 Annually for 10 years
Most recent statistics: December 31, 2011
Rate of enrolment is stable for ages and increases afterwards… used liberally by seniors.
Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

24. Comparing The Competition
Company A
Company B
SSQ
Illustrated Rate 4%
Total DB Age 65
$412,670
$403,840
$427,553
Total DB Age 75
$462,710
$442,678
$498,179
Total DB Age 85
$443,321
$428,433
$549,203
Most recent statistics: December 31, 2011
Rate of enrolment is stable for ages and increases afterwards… used liberally by seniors.
Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

25. Assumed Fund Return (Gross)
How To Illustrate UL
Company A
Company B
SSQ
Assumed Fund Return (Gross)
7.4%
Fund MER -
2.4%
0% ***
UL Management Fee 3% 2%
Illustrated Rate
4.4%
Bonus
+.25% Starting year 5
+1% Starting year 6
Most recent statistics: December 31, 2011
Rate of enrolment is stable for ages and increases afterwards… used liberally by seniors.
Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.
Notes:
***The fund MER is built into the SSQ management fee

26. How To Illustrate UL Company A Company B SSQ Illustrated rate 4.4% 3%
DB Age 65
$420,110
$387,546
$435,400
DB Age 75
$485,443
$400,516
$522,058
DB Age 85
$480,247
$348,303
$603,476
Accumulated COI
$190,449
$145,479.76
$129,222.50
*lapses at age 92*
Most recent statistics: December 31, 2011
Rate of enrolment is stable for ages and increases afterwards… used liberally by seniors.
Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

27. Commission at 170% Override
Compensation
Company A
Company B
SSQ
1st Year $ $ $
Most recent statistics: December 31, 2011
Rate of enrolment is stable for ages and increases afterwards… used liberally by seniors.
Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

28. Summary Competitive Rates for YRT COI Extreme Disability Benefit
Riders - Child Life Rider, Stand alone CI and Term Insurance
Flexibility to change YRT to Level
Strong selection of investment options
Guaranteed MERs
1% guaranteed bonus after 6 years
Most recent statistics: December 31, 2011
Rate of enrolment is stable for ages and increases afterwards… used liberally by seniors.
Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.

29. Director, Business Development
Michael Hamel
Director, Business Development
Individual Insurance & Investment Products
Sheldon Frisch
Business Development Associate
Most recent statistics: December 31, 2011
Rate of enrolment is stable for ages and increases afterwards… used liberally by seniors.
Over the last three years, the average annual contribution to RRSPs was about $34 billion compared with $29 billion for TFSAs. TFSAs are therefore very close to RRSPs in terms of the level of contribution, even if contributions to TFSAs come from income after taxes, whereas contributions to RRSPs come from income before taxes.