Some things are just better !

1. Somethingsare justbetter!

2. Individual Life Insurance and Creditor Life Insurance Ideal for people who… • Have a mortgage or loan • Are starting a family • Are business owners

3. The need for life insurance ?

4. Household debt in Canada

5. Total credit debt in Canada in the fourth quarter of 2014: $1.81 trillion Source: Canadian household debt burden rises to record level, The Globe and Mail Published Monday, Dec. 15 2014

6. Creditor Life Insurance • In 2014, Canadians paid a total of $2.14 billion in premiums for life insurance bought through their financial institutions.* • Obviously, people are concerned about leaving a debt burden to loved-ones upon death. • Is Creditor Life Insurance the best solution? • Let’s compare with individual life insurance policy such as FlexTerm. *Source: Canadian Life and Health Insurance Facts, 2015 Edition, CLHIA

7. Which insurance does your customer wants? Do they have any idea?

8. Individual life insurance The customer is the policyholder. As the policyholder, he/she determines the beneficiaries. Beneficiaries are free to use the death benefit as they see fit. Creditor life insurance The bank or credit union is the policyholder. The bank or credit union is also the beneficiary. Let’s take a look... Or

9. Individual life insurance The policy stays in-force even if the customer switch lender. Thecustomersdecide whether they want decreasing or level insurance. Creditor life insurance If they switch lender, they lose their insurance and have to apply with the new lender. Higher premiums when they switch. Will their health be the same at every switch? Portability and Flexibility Or

10. Portability and Flexibility • When it comes to protecting mortgage in case of death, an individual insurance policy gives the clients the freedom to move the mortgage to take advantage of a better protection without worrying about: • New and higher premium rates • New health issues that could affect your insurability

11. Scenario – Moving the mortgage around A 31-year-old individual gets a $200,000 mortgage from RBC with a 5% annual interest, 20-year amortization and 5-year fixed term resulting in payments $1,314 per month. Five years later, at age 36, upon renewal, the individual switches his mortgage balance of $159,721 to Scotiabank. We assume the interest rate and payments remain the same. Five years after that, at age 41, upon renewal, the individual takes his mortgage balance of $115,119 to TD Canada Trust for the remaining 10 years.

12. Scenario – Moving the mortgage around (continued) Total premium cost over the duration of the mortgage *Premium rates taken from each bank’s website in February, 2015. Sales tax apply to banks’ mortgage insurance in some provinces.

13. Who can apply for life insurance? Individual life insurance • Anybody within the required age range can apply for life insurance. Creditor life insurance • Only the borrower (no one else!) Or

14. Individual life insurance Underwriting process occurs at time of application. Field underwriting – broker starts process with medical questionnaire (further tests may be required). Clients know they’re insured once they start paying the premiums. Creditor life insurance “Post-claim underwriting” Could result in nasty surprises and financial hardship as seen in certain news stories over the years. When does underwriting take place? Or

15. Mortgage life insurance labelled “junk” product http://www.lifehealthpro.ca/news/mortgage-life-insurance-labelled-junk-product-186187.aspx

16. http://www.cbc.ca/marketplace/episodes/2008-episodes/in-denialhttp://www.cbc.ca/marketplace/episodes/2008-episodes/in-denial

17. Individual life insurance Convertible to permanent insurance. Some reasons to maintain insurance protection: Final expenses Income replacement Tax Legacy Charitable donation Creditor life insurance No conversion options Conversion Or

18. Individual life insurance covers more than just mortgages • A mortgage is just one type of loan clients don’t want to leave uninsured. What about car loans, personal loans or line of credit. • With an individual life insurance, like FlexTerm, coverage is not limited to one loan. • Clients is free to apply for an amount to cover debt and income replacement.

19. Insurance needs go beyond the mortgage • Income replacement • Estate planning • Other debt • Leaving a legacy

20. Individual life insurance may protect business loans Are the premiums tax deductible?

21. Deductible Premiums - Conditions • When an individual life insurance is used as collateral to secure a loan, the “Income Tax Act” (ITA) permits a limited deduction under the following rules: • The assignment of the policy must be required by the lender as collateral for the loan. • The lender must be a bank, trust company, credit union, insurance corporation or loan company. • The interest paid on the loan must be deductible in computing the borrower’s income. • The amount deductible may not exceed the lesser of the premiums payable and the “net cost of pure insurance” (NCPI) in respect of the policy.

22. Deductible Premiums – Conditions (cont’d) • The amount deductible is that portion of the lesser of the premiums payable and the NCPI that may reasonably be considered to relate to the amount owing. • Example: Where the amount of the collateral life insurance is $500,000 and the average balance owing is $300,000, the deduction will be limited to 60% of the lesser of the premiums payable and the NCPI. • The taxpayer seeking the deduction must also be the policyholder. • Other rules apply. To find out more, contact your life insurance provider.

23. Credit Insurance Premiums – Are Not Deductible Based on the following rule: The taxpayer seeking the deduction must also be the policyholder. Creditor life insurance premiums are not deductible because the owner is the financial institution selling the insurance. Therefore, the borrower is not the policyholder.

24. Do your clients have creditor insurance?Let’s do something about it?

25. The better solution for your clients Build-your-own term, disability and critical illness insurance

26. New Features! • Terms - T10, T30 & T35 • Rate bands • Simplified issue for $249,999 or less • New Child Insurance Benefit (CIB) rider • Available as a first-to-die joint policy • Modification of the term • Between the 2nd and 5th anniversary • Issue age

27. Term Life Insurance

28. Term Life Insurance

29. Term Life Insurance

30. Child InsuranceBenefit Rider (CIB)

31. CIB Rider

32. CIB Rider

33. DisabilityInsurance • Your choice of disability benefit used as: • Mortgage or loan replacement; or • income replacement.

34. Disability Insurance

35. Disability Insurance

36. Eligible loans for DI (loan payment replacement) • Loans with a remaining duration of 5 years at the time the insurance application is signed and an initial amortization period of at least 15 years. • Eligible loans include mortgage loans, personal loans, personal line of credit, leases on an asset, Home Buyers Plan.

37. DI Benefit Periods “24/48”: Payment period ends after 24 monthly income payments for same disability or 48 monthly income payments for different disabilities or the end of the policy or, for the “loan payment replacement” only, the end of the loan if earlier.

38. Disability definition Disability means a condition resulting from an illness, an injury or a nervous disorder that prevents the insured from performing his regular duties in regards to: • the occupation in which he was engaged immediately before the date he became disabled; • his principal occupation; • any occupation for which the insured worked at least 20 hours per week for at least 8 weeks during the 12 months immediately preceding his total disability.

39. CriticalIllnessInsurance Rider

40. CI Rider • Minimum coverage: $10,000 • Maximum coverage: $25,000 • All critical illness rider coverage for a single insured cannot exceed $25,000. This maximum amount will not take into account CI coverage before 2014 and still in effect. • Joint policies - each insured can apply for a CI coverage amount of up to 50% of the amount of life insurance coverage, without exceeding $25,000 • A pre-existing 12-month clause may be applicable

41. What’s covered? • Cancer • Heart attack • Stroke • Coronary bypass • Kidney failure • Blindness • Major burns • Organ transplant • Awaiting major transplant • Coma • Aorta surgery • Replacement of heart valves • Aplastic anemia • Bacterial meningitis • Paralysis caused by an injury/accident and not an illness • Accidental dismemberment

42. Rates • Male, Non smoker, Age 45, $250,000 *Based on LifeGuide rates retrieved January 2015

45. Who are we? Assumption Life is a thriving Canadian MutualInsurance Company with over a century of experience! We provide a broad range of insurance and investments products such as: Life Insurance Group Insurance Investment products through well-know fund manager (AGF, Fidelity Investments, CI investments and Louisbourg Investments) Group Savings and retirement plans Mortgage Loans

46. Corporate Overview • Excellent rating, Am Best (15 years running) • Solvency ratio: 232% (2014) • Assets under Management: 1.5 billion

47. Getting Started With Assumption Life 1 - Obtain a broker code: Complete the “Broker Registration Form” and send to your MGA. 2 - You will receive an email from Assumption Life indicating your username, passwordas well as your broker code.

48. LIA – Electronic sales tool • Multiplatform (PC, Mac, Android, iPad, Cloud Technology) • Save to any device • Your device directly to our underwriter • Online or offline

49. Signature Page Don’t forget to fax or email us the signature form!

50. Non Face-to-Face Sales • Referrals • Replacement • Up sell/ Cross sell • Business where you want, when you want, how you want!