What

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Whats New at Canada Life 2005
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Canada Life Products

• One Company Provides it All!!

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About Canada Life

• First Canadian Life Insurance Company, founded in
  1847
• Total Assets in excess of 62 billion
• Operates in Canada, United States, Ireland, U.K.,
  Brazil, Germany, Hong Kong and the Caribbean
• Shares traded on the Toronto and New York Stock
  Exchanges

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Strength Stability

• A.M. Best A (Superior)
• Moodys Aa3 (Excellent)
• Standard Poors AA (Very strong)

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About Toronto City Regional Marketing Centre
Canada Lifes 1 Marketing Centre
Jeanette McPherson, CFP, CLU, CHFC, TEP Adriana
Mauro, RHU

• Your Marketing Consultants provide
• Product knowledge on Life Insurance, Disability
  Critical Illness Insurance, Investment Products
• Dedicated Marketing Sales Support
• Sales Strategies Support

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About Toronto City Regional Marketing Centre
Canada Lifes 1 Marketing Centre

• Investment Consultant Ian Kerr provides
• Product knowledge on segregated funds and
  annuities
• Market sensitive information to you as well as
  sales ideas

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About Toronto City Regional Marketing Centre
Canada Lifes 1 Marketing Centre

• Living Benefits Consultant Dwight Donald
  provides
• Product knowledge on Living Benefits
• Market sensitive information to you as well as
  sales ideas

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Simply Preferred Term 10

• Effective August 29th, 2005 term 10 enhancements
  include
• Increased term 10 maximum issue age nearest from
  70 to 75
• Extended term 10 conversion age from age 65 to 70
• Extending the following benefits on term 10 joint
  first-to-die policies
• New survivor benefit
• New exchange option upon partnership dissolution
• When a joint Millennium UL policy is purchased
  and a term rider is requested, a separate term
  policy will be issued for the term rider and the
  term policy fee is waived.

2005 Enhancements
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Simply Preferred Term 20

• Effective May 30, 2005 term 20 enhancements
  include
• Rate reductions for most ages
• Two new benefits
• Survivor benefit
• Exchange option feature
• Waiving of policy fee on multiple policies with
  common billing
• Waiving of policy fee on term riders when issued
  on joint policies

2005 Enhancements
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Simply Preferred Term 20 Rate Improvements
Male, n/s Age 30
250,000 Annual Premium 500,000 Annual Premium
Company A 265 Company A 480
Canada Life 278 Company E 490
Company C 280 Canada Life 505
Company E 283 Company C 505
Company F 305 Company D 530
Company D 310 Company B 530
Company B 310 Company F 530
Company G 318 Company G 565
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Simply Preferred Term 20Rate Improvements
Male, n/s Age 40
250,000 Annual Premium 500,000 Annual Premium
Company A 420 Company A 785
Canada Life 435 Company C 800
Company C 435 Canada Life 815
Company F 458 Company D 840
Company E 460 Company B 840
Company D 470 Company F 840
Company B 470 Company E 845
Company G 478 Company G 876
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Life InsuranceMillennium Universal Life

• Competitive YRT and LCOI Rates
• Well-rounded insurance coverage, investment
  options and additional benefits
• Sophisticated tax sheltering capability
• Enhanced bonuses

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Millennium Universal Life Enhancements

• Effective May 30, 2005 Millennium enhancements
  include
• Reduced annually increasing (AI) minimum premium
• More choice for Millennium Accumulator options
• These enhancements complement the March
  improvements
• to Millennium
• Level cost of insurance (COI) reductions by as
  much as 20 per cent
• AI COI reductions by as much as 10 per cent
• Removal of partial surrender charge on requested
  face amount decreases
• Effective August 29, 2005, increased renewal
  compensation for years
• two to 10.

2005 Enhancements
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Life InsuranceMillennium Universal Life
Level COI - 500,000 face amount Coverage Plus
Canada Canada Competitor Age Life Zoom Life Zoom 1 2 3 4 5 6 8.0 8.3
40
45
50
55
60
65
70
3,306 (9)
4,041 (4)
5,571 (5)
7,898 (4)
10,898 (1)
15,367 (2)
21,429 (2)
2,755 (3)
3,796 (2)
5,510 (3)
7,714 (1)
10,837 (1)
15,367 (2)
21,429 (2)
2,607
3,750
5,439
7,770
11,209
15,929
22,607
2,750
3,811
5,531
7,806
10,921
15,580
21,917
2,776
3,867
5,480
7,837
10,980
15,612
22,048
2,886
3,921
5,566
7,921
11,031
15,321
21,641
2,918
4,133
5,673
7,995
10,990
15,684
21,378
3,148
4,518
6,483
9,503
12,558
18,268
26,693
The numbers in parenthesis reflect Canada Lifes
LifeGuide ranking with respect to the particular
age group. The information provided is accurate
as of February 2005. Competitors minimum annual
premium is based on LifeGuide Release
2005.02. Companies included in the comparison are
AIG, ManuLife, National Life, RBC, Standard Life
and Transamerica. The province used in
calculating the annual minimum premium was
Ontario.
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Time Saving Services

• Jet Underwriting
• Enhanced ASTRA Program
• Attainable Health Requirements
• Case Coordinator
• RepNet
• FasatWeb
• User-friendly illustration software

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Enhanced ASTRA

• Working with you to grow your business

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History of ASTRA

• ASTRA
• Automatic Substandard Table Reduction Agreement
• Canada Life developed ASTRA in 1996 to
• Reduce underwriting time and administration costs
• Volume of facultative business to be decreased
• An edge for distribution channel
• The assumption by many was the program had little
  or no cost

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Why enhance ASTRA?

• To impact a greater range of brokers and clients
• To efficiently spread pricing reduction to
  moderate and severely rated clientele
• To offer a more competitive priced Term 10,
• Term 20 and Universal Life products

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Who Benefits?

• Competitive rates for term and universal life
  products
• Future enhancements on Term 10 and
  Non-participating whole life plans
• Enhanced ASTRA appeals to broader audience than
  the original program

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How will enhanced ASTRA work?

• Underwriters will assess each individual who
  applies for insurance
• Once a decision has been determined, if an
  individual is rated the ASTRA program will be
  applied
• Canada Life will reduce rating by
• 2 tables for all ages
• 1 table 25 per cent mortality
• Available on Dynaterm, Universal Life, and
  Participating products at issue
• Available on all inforce, new issues term
  policies, and Enhanced Coverage Option (ECO) at
  time of conversion
• It is critical to understand the ASTRA program is
  only applied after
• the underwriting decision ( we make our best
  offer upfront!)

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How enhanced ASTRA works with Canada Life plans?
Plan Type Available at Issue? Available at Conversion?
Millennium universal life Yes N/A
Participating whole life Yes N/A
Non-participating whole life Yes N/A
Term 10 No Yes
Term 20 No Yes
All inforce, new issue term policies, and
Enhanced Coverage Option (ECO) are eligible to
qualify for ASTRA at time of conversion.
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What is our competition doing?

• Sun Life
• Recently removed program (late 2004)
• Manu Life
• Offer standard on all cases that would be rated
  at 137 per cent or below (very close to cases
  commonly issued standard in most underwriting
  shops)
• Available only on Manu Universal Life
• Industrial Alliance
• Offer standard on all cases that would otherwise
  be rated at 174 per cent or below (not available
  on 175 per cent and above)
• Available on Life products

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How ASTRA works

• Lets look at how ASTRA works with
• Simply preferred term insurance
• Single life coverage
• Joint first-to-die coverage

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Simply Preferred Term Insurance

• Term policies and term riders are not eligible
  for ASTRA at issue
• Inforce term policies, new term sales, term
  riders, and Enhanced Coverage Option (ECO) are
  eligible for ASTRA at time of conversion
• Permanent plans that qualify for ASTRA with a
  term rider will have term policy issued
  separately and the term policy fee will be waived

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Single life coverage all permanent products

• ASTRA is available on permanent plans on single
  life coverage
• Male 45 NS Rated 250 1,000,000 of coverage
• Coverage Plus, Level COI
• Before enhanced ASTRA
• Male NS 45 Rated 250
• Minimum Premium 18, 184
• After enhanced ASTRA
• Male NS 45 Rated 200
• Minimum Premium 14,571

Savings of 3,613 per year
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Joint first-to-die Non-participating products

• Male NS 35 Rated 300 and Female NS 35 Standard
• 1,000,000, Coverage Plus, Level COI
• Before enhanced ASTRA
• Male NS 35 table rating converted to flat extra
  (7.44 per 1,000
• of coverage) prior to illustrating
• Minimum Premium 13,959 based on JEA of MNS 43
• After enhanced ASTRA
• Male NS 35 table rating reduced by two tables
  to 250
• reduced table rating converted to Flat extra
  (5.52 per 1,000 of coverage)
• Minimum Premium 12,000 based on JEA of MNS 43

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Attainable Health Requirements

• Highest Non-med limits
• 249,999 up to age 50
• No APS required if a medical has recently been
  completed by Physician (up to 1,000,000)

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RepNet

• New Business Tracking
• Inforce Summary
• Address Changes
• Bank Information Changes
• Downloads
• Up-to-date Product Information

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Spring into business with LifeAdvance

• One of Canadas leading products now reflecting
  market adjustments

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Delivering Value

• Leading product features
• Company strength and stability
• Flexible plan designs
• Competitive rates

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LifeAdvance Critical Illness Insurance

• Premium and coverage options
• permanent level premium, paid up at 100
• 10-year renewable term to 75, convertible to 65
• level premium term to 75, paid up at 65
• level premium term to 75
• Features
• 24 critical illness insured conditions
• Illness assist benefit
• Surgery advance benefit
• Services provided by Best Doctors

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Second Event Rider
Cancer In their lifetime 1 in 2.3 men 1 in 2.6
women
Heart Disease In their lifetime 1 in 1.2 men 1
in 1.3 women
Stroke 50,000 Canadians suffer a stroke each
year
. Sources Heart and Stroke Foundation,
2004 National Cancer Institute of Canada Canadian
Cancer Statistics 2004
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Second Event Rider
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Second Event Rider
Example
1st Event Life-Threatening Cancer
2nd Event Heart Attack
Policy becomes fully paid up
250,000
50,000
30 days
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Leading Product Features

• Customize Premium Paybacks (PPB) to your clients
  needs
• Affluent
• Middle-Income
• Up-and-Coming

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Permanent T100 Plan
Premium Payback Options

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Permanent T100 Plan
Affluent
A
100
Middle-Income

100
B
Up Coming
100
C
Timeline 10 15 20 25
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Premium Payback Rider Markets
Affluent

• Option A
• Need for earlier PPB option date
• Limited insurance coverage needs

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Premium Payback Rider Markets
Middle-Income

• Option B
• Need for balance between PPB option dates and
  insurance coverage needs

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Up and Coming Market
Up Coming

• Option C
• Need for extended PPB option dates
• Need for extended insurance coverage

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Partial Withdrawals
Built-in Features

• Reduced Paid-up
• Pay-up all future premiums by reducing coverage
• Once PPB reaches 100
• every 5 year interval
• Rate card will be available

• Receive eligible premiums when surrendering a
  portion of coverage
• Remaining coverage stays inforce with premium
  payback

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Improved Illness Assist Benefit
Example 250,000 lump-sum benefit

• Improvements with LifeAdvance
• Illness Assist
• Waiting period has been removed
• Does not reduce premium payback benefit

Canada Life
Company A
Company B
250,000
275,000
250,000
10 to max 25,000
25 to max 50,000
10 to max 15,000
25,000 Illness Assist
250,000 CI Lump-sum
250,000 CI Lump-sum
250,000 CI Lump-sum
50,000 Illness Assist
25,000 Illness Assist
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New Surgery Advance
Example 250,000 lump-sum benefit
Canada Life
Company A
Company B
10 to max 15,000
10 to max 10,000
Not Applicable
Illness Assist
CI Lump-sum
CI Lump-sum
CI Lump-sum
Advance Benefit
Surgery Advance
Illness Assist
Illness Assist
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Insured Male 45 yrs Non smokerPlan Term to
Age 100Insured Amount 250,000Optional
Benefits Option A Premium Payback Rider, Second
Event Coverage
LifeAdvance in Action

• Eg. Diagnosed with early prostate cancer stage
  T1A
• Illness Assist Benefit (lesser of 10
  or) 25,000
• Eg. Require surgery on diagnosis and before the
  30 days
• Surgery advance Benefit (lesser of 10
  or) 15,000
• Eg. Diagnosed with colon cancer
• Base insured amount 235,000
  (250,000-15,000)
• 13 months later suffers a heart attack
• Second Event Coverage (the lesser of 50
  or) 50,000
• Total Benefits available 325,000

This is for illustration purposed only.
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Company Strength Stability

• Over 60 years Living Benefits experience
• LB Underwriting Claims
• Life Underwriting Claims

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The Business of Claims
Breakdown of Claims
Munich Re CI Survey 2004
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Breakdown of Claims
Average face amount 99,613 Average
claim 78,495 Average age at claim Females 44.7
Males 47.5 Total paid in 2003
22,000,000
Munich Re CI Survey 2004
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Disability InsurancePersonal Products

• Lifestyle Protection Plan
• Target Market
• Professionals Executives
• Independence Plus Plan
• Target Market
• Business Owners Employees
• Independence Plan
• Target Market
• Home-Based Part-Time Workers

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Disability InsuranceBusiness Products

• Overhead Expense Plan
• Purpose
• To pay for specific expenses that the
  policyholder continues to be responsible for in
  the event of a disability

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Disability InsuranceBusiness Products

• Keyperson Plan
• Purpose
• Provides benefits in the event of a key
  employees Total Disability

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Disability InsuranceBusiness Products

• Buy/Sell Plan
• Purpose
• Provides the funds necessary to enable one or
  more business owners to purchase the shares of a
  disabled partner or shareholder

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Investment Products

• Generations
• More than 50 segregated funds
• 12 Fund Management Companies
• Significant product enhancements due to be
  launched this fall!
• Annuities, RRIFs LIFs
• Complete lineup!!

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Working with Canada LifesNEAT Consultants

• Tom Pilkington
• CA,CLU,CH.F.C,CFP,TEP

• Frank Abate
• CA,CFP

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Tom Pilkington CA,CLU,CH.F.C,CFP,TEP

• Tom is a Chartered Accountant with extensive
  experience in the life insurance industry.
• Toms expertise includes
• -personal and corporate tax planning
• -insurance planning and taxation
• -business succession planning
• -estate planning
• Tom is a member of
• -Ontario Institute of Chartered Accountants
• -Canadian Tax Foundation
• -Society of Trust and Estates Practitioners
• -Advocis
• -Associate member of CALU

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Frank Abate CA,CFP

• Frank began his career as a tax practitioner with
  a national accounting firm, and then moved to a
  mid-sized firm where he practiced tax until he
  joined Canada Life.
• Franks experience includes
• -Personal and Corporate tax planning
• and compliance
• Frank is a member of
• -Institute of Chartered Accountants of
• Ontario
• -Financial Planners Standards Council
• -Canadian Tax Foundation

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Working in the current environment ...

• The changing marketplace
• New products
• Consolidation
• Changes to tax rules
• Litigation
• Competition
• Government rules
• Consumer awareness

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Working in the current environment ...
The bottom line

• With every change comes more
• opportunity
• (perhaps a little more complexity, too!)

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What you have to offer ...

• The ability to create and preserve wealth
• Life insurance products
• Savings and investment products
• Disability income products
• Critical illness insurance
• Retirement income products
• Knowledge and experience
• Relationships

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What we have to offer ...

• A professional team with tax, business and estate
  planning EXPERTISE and EXPERIENCE

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What we focus on...

• Large insurance cases
• Post-factfinding support
• Canada Life products
• Complement to our other product and marketing
  resources

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Examples of what we do

• Case consultation
• Review and analysis of facts, develop innovative
  and useful solutions
• Client meetings/client advisor meetings
• Seminars and conferences
• Assist in developing centres of influence

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• Thank You for your time and we will
• continue with product improvements
• throughout 2005 to maintain our
• competitive position