1. Prepared by: PENMORE FINANCIAL GROUP INC 205-7880 Keele St, Concord On L4K 4G7  905-669-5577 Fax 905-669-5738  clientservice@penmorefinancial.com

2. The Concept:  A Critical Illness policy provides for the payment of a tax free lump sum payment upon the diagnosis of one of the covered conditions specified in your contract. The Origin:  Critical Illness was first introduced in 1983 in South Africa as a top up benefit to medical expense coverage. Medical professionals were, in fact, the architects of the original idea.

3.  Who do you know that has suffered from cancer, heart attack or stroke?  Do you think Canada’s health care system will be better or worse in the next 5 to 10 years?  30 top heart surgeons in Canada 10 years ago, only 3 remain.  Today, over 5,000 people are on the waiting list for a heart transplant, in 10 years time there will be over 25,000  At age 40, 3-4% will die before the age of 65, however 35% will suffer from a critical illness  46% of all bank foreclosures are due to a critical illness, only 3% due to death  Minimum 6 month waiting list for heart surgery in Ontario, vs. 48 hours in Buffalo  4-6 weeks to get a MRI in Ontario vs. same day in the United States (Denmark has more MRI machines than all of Canada)\  In 1999 woman surpassed men in both heart attacks and strokes

4. In Canada Cancer  1 in 3 Canadians will contract some form of life threatening cancer.  125,000 new cancer cases are diagnosed annually.  Since 1970 the incidence of cancer has increased 1% annually.  Canada has the 2nd highest rate in the world for diagnosis of breast cancer (1 in 9)  50% + survival rate after 5 years, of top 10 cancers.  67% of current cancer treatment costs are unfunded.  87% of drugs used for cancer treatment are NOT covered by group benefit plans

5. In Canada Heart  1 in 4 Canadians will contract heart disease.  75,000 Canadians will suffer heart attacks each year.  70% of all open heart operations are for coronary bypasses.  More woman are dying from heart attacks then all forms of cancer combined  50% decrease in the heart and stroke death rate since 1950.  90-95% of heart attack victims survive the first attack and only 20% survive the second attack due to stress.

6. In Canada Stroke  50,000 Canadians suffer a stroke each year.  1 in 20 run the risk of having a stroke before age 70.  75% of stroke victims will survive the initial event.

7. Comparing the benefits of a Critical Illness policy to Disability Coverage: Critical IllnessDisability Coverage Lump Sum BenefitMonthly Benefit Covered Medical IllnessInability to Work One ClaimOngoing Payments Covers conditions that require immediate medical attention Covers many conditions outside of Critical Illness Coverage (I.e. depression, back problems)

8.  Expenses beyond OHIP and Group Insurance  Transportation  Renovations to your home  Treatment in the United States  In home care  Treatments not yet approved in Canada  Child care and housing expenses

9.  Heart attack  Cancer  Stroke  CABG (Heart Bypass Surgery)  Multiple sclerosis  Alzheimer’s  Parkinson’s  Major Organ Transplant  Paralysis  Kidney failure  Coma  Blindness  Severe burns  Loss of speech  Deafness  Occupational HIV  Loss of limbs  Motor neuron disease (ALS)  $25,000 to $2,000,000  To age 65, 75, or 100  Non Cancellable or Guaranteed Renewable  Up to 22 Conditions covered  100% return of premium benefit available if no claim made SOME COVERED CONDITIONS

10. Critical Illness Case Study November 25, 2001 Executive age 45, working with a large advertising firm in Canada, has good benefits under their employer’s plan, but is looking to supplement these benefits. Their group disability income is capped at $5,000 per month, well below their current income level. A critical illness policy will help cover any income shortfall with a lump sum benefit of $25,000 to $2,000,000, if diagnosed and survives a life-threatening illness. The Executive would also like to have financial security coverage upon retirement. While working, they can easily cover the premiums for their critical illness plan, but would like to keep their retirement years free of premium payments since their forecasted income will be less than 70% of their current income. After retirement, group benefits will terminate, leaving their retirement income the only financial support available against a critical illness. After consulting their financial planner, the Executive understands the need to protect all financial assets, and more importantly, their family, with critical illness coverage. Living Benefit 65 is the perfect plan for the Executive looking to supplement their group benefits under an employer’s plan. With full coverage to age 65, the critical illness benefit could be used to top up disability income as well as cover any extraordinary expenses incurred. Also, with a fully paid up policy at age 65, the Executive can also enjoy their golden years knowing that the financial portfolio they spent years to create is protected from a life threatening illness. As an added bonus, some critical illness carriers provide the Critical Care Assistant Benefit, providing access to top qualified physicians and specialists, expert medical information and recommendations regarding the best treatment alternatives and options for the Insured’s medical condition. In addition, if the Executive dies before age 65 and never makes a claim, their designated beneficiary will receive 100% of the annual premiums paid on her policy. Now the most important assets are financially secure. Source: AIG