Critical Illness (CI)

1. Critical Illness (CI)

2. Agenda • Housekeeping • Critical illness stats • Recap of the EDGE Critical illness • Features of the EDGE Critical illness plan • Enrollment process • Incentives • Questions

3. Your Client Knows the Stats In Canada: • It is estimated there will be over 196,900 new cases of cancer in 20161. • 65% of all Canadian CI claims are cancer related2 (ACE 67%) • There are an estimated 70,000 heart attacks each year. • That’s one heart attack every 7 minutes.3 • Up to 40,000 cardiac arrests occur each year. • That’s one cardiac arrest every 13 minutes.3 • There are an estimated 62,000 strokes each year. • That’s one stroke every 9 minutes.3 • Source: Canadian Cancer Society http://www.cancer.ca/en/cancer-information/cancer-101/canadian-cancer-statistics-publication/?region=on • Source: CLHIA Insurance Statistics 2015 http://clhia.com • Source: Heart & Stroke Foundation http://www.heartandstroke.on.ca/site/c.pvI3IeNWJwE/b.3581729/k.359A/Statistics.htm

4. The Individual vs. Group CI Market • And yet, Individual Critical Illness plans continue to see high rate of declines/rated, making it difficult to get coverage. • But clients know the stats, and it’s actually becoming easier to sell. • But in addition to knowing the stats… • People are experiencing what it costs for family members to go through treatment • Provincial plans continue to cut back on what they will cover • Cancer treatments are becoming available in pill form (and sometimes not covered if not administered in hospital)

5. What to Do with All Those CI Declines • It’s a difficult message to explain to your client... • Why you were able to get them Life coverage but can’t provide the Critical Illness coverage, after you told them how important it is to have it. • You don’t want your client looking elsewhere for coverage. Fortunately, The EDGE’s simplified approach to offering Critical Illness can become the solution.

6. Quick Recap of The EDGE CI Plan Eligibility: ages 18‐64, coverage to age 70 • TIER 1:Guaranteed Issue amounts up to $25,000 • TIER 2:With short health questionnaire, additional $25,000 available. • TIER 3: If Tier 2 level questions are satisfied, an additional $25,000 OR $50,000 of coverage is also available for purchase. (Additional health questions arerequired) • TOTAL AMOUNT COMBINED AVAILABLE: $100,000 * Must obtain maximum amount of coverage in each Tier before advancing to the next.

7. 23 Covered Conditions 23 Covered Conditions Loss of Independence Benefit – Pays 100% of the principal sum if unable to perform 2 of 6 activities of daily living. (Previously 25% of the principal sum.) • Alzheimer’s Disease • Aorta Surgery • Benign Brain Tumour • Blindness • Cancer • Cancer Recurrence • Coma • Coronary Artery Bypass Surgery • Deafness • Dismemberment • Heart Attack • Heart Valve Replacement • Loss of Independence • Loss of Speech • Major Organ Failure • Major Organ Transplant • Motor Neuron Disease • Multiple Sclerosis • Occupational HIV • Paralysis • Parkinson’s Disease • Severe Burns • Stroke DCIS Benefit – Pays 20% of the principal sum if diagnosed with Ductal Carcinoma in Situ (breast cancer cells), and no longer reduces the principal sum by that payout. Early Prostate Cancer – Pays 20% of the principal sum if early Prostate Cancer is detected, and no longer reduces the principal sum by that payout.

8. Other Features of the Plan AUTOMATIC INCREASE IN BENEFIT Every 5 years the benefit amount will increase by 5% of the original benefit amount. Up to a maximum of 25%. Example: Original Purchase Amount: $100,000 Coverage must be uninterrupted, and premiums paid to date.

9. Industry Leadership All questions are accept or reject – simply answer “NO” to all questions and coverage is immediate This means those previously declined due to Family History can get this coverage! • Assuming all the questions are answered correctly • We will look at the specific questions later This is a first in our industry – FULL CRITICAL ILLNESS of up to $100,000 without involving an underwriter

10. The Power of The EDGE Critical Illness Plan • Potential payout of new limits – up to $250,000! • Example: • Initial Purchase $100,000* • Automatic Increase Benefit (5%/5 yrs) $25,000* • Total First Claim $125,000 • Plus Second Event Benefit $125,000* Total Benefits without an Underwriter $250,000! *Assumes Height/Weight and Qualifying Questions are satisfied; Policy is owned 25 Yrs; Based on Second Event restrictions within the policy; 90 DCIS Exclusion is satisfied.

11. Second Event Benefit A payment may be made for a second event. • If the Insured is deemed to be fully recovered from the initial diagnosis and not receiving treatment for at least 90 days. • The Second Event must not be the same category of condition as the first and is limited those conditions. • The Second Event Benefit is also subject to surviving • 30 days after the diagnosis

12. Second Event Examples Heart Attack, Stroke, Coronary Artery Bypass or undergoes Aorta Surgery + Any other listed condition Heart Attack, Stroke, Coronary Artery Bypass or undergoes Aorta Surgery Cancer* Cancer + Any other listed condition 1st DIAGNOSIS 2nd DIAGNOSIS 1st DIAGNOSIS 2nd DIAGNOSIS Coverage will terminate upon benefit payment, and you will not be eligible to re-apply for new coverage under this plan * If Cancer is the first diagnosis, and the Cancer recurs before the Second Event Benefit is paid, then benefits may be payable through the Cancer Recurrence Benefit, if 60 months have passed since the diagnosis and treatment of the previous Cancer.

13. Other Features of the Plan Second Event Benefit • If the insured is diagnosed with either of the following:  • Category of Conditions • Cancer, or • Cardiovascular Condition • Includes: • Heart Attack • Stroke • Coronary Artery Bypass, • Aorta Surgery or Heart Valve Replacement

14. The Second Event Pathway to a Paid Claim 8. Second Event Benefit paid. Policy cancelled. 7. Insured survives 30 days from eligible 2nd condition. 6. Second Event Benefit not payable – Both conditions fall under Category B. 6. Second Event Benefit eligible for claim – 2nd event condition fall under Category A. 6. Second Event Benefit eligible for claim. 5. Insured is diagnosed with ALS. 5. Insured is diagnosed with a Cancer. 5. Insured is diagnosed with a Stroke. 4. Insured returns to work, continuously for at least 90 days. 3. Following any treatment period, the physician determines insured is fully recovered. 2. Claimant survives 30 days, claim determined payable - the benefit amount is paid. 1. Insured diagnosed with a Cardiovascular Condition – Coronary Artery Bypass.

15. Covered Conditions Already Diagnosed • What happens when an insured has already been diagnosed with a covered condition before the effective date of their coverage? • Will they be eligible to claim after the 24 month Pre-Ex period is exhausted?

16. Covered Conditions Already Diagnosed No! • Guaranteed Issue Critical Illness coverage is like all other insurance plans. • It is meant to cover the insured “in the event of” while coverage is “in-force”. (with the exception of Cancer Recurrence benefit) • Let’s consider these next two scenarios to help understand and explain the answer...

17. Covered Conditions Already Diagnosed Remember that collision coverage I said I didn’t need? I’d like to bind that now please. Photo credit: Chubb

18. Covered Conditions Already Diagnosed Photo credit: Chubb Hello! Yes I’d liketo add fire damage to my home insurance policy please.

19. Then How Does the Pre-Ex Work? • Examples of Pre-Existing Conditions • High cholesterol • Diabetes • Alcoholism • Gout • High blood pressure • Emphysema • hypertension • arthritis • asthma • List of 23 Covered Conditions • Loss of Speech • Major Organ Failure • Major Organ Transplant • Motor Neuron Disease • Multiple Sclerosis • Occupational HIV • Paralysis • Parkinson’s Disease • Severe Burns • Stroke • Alzheimer’s Disease • Aorta Surgery • Benign Brain Tumour • Blindness • Cancer • Cancer Recurrence • Coma • Coronary Artery Bypass Surgery • Deafness • Dismemberment • Heart Attack • Heart Valve Replacement • Loss of Independence

20. Then How Does the Pre-Ex Work? • Examples of Pre-Existing Conditions • High cholesterol • Diabetes • Alcoholism • Gout • High blood pressure • Emphysema • hypertension • arthritis • asthma • List of 23 Covered Conditions • Loss of Speech • Major Organ Failure • Major Organ Transplant • Motor Neuron Disease • Multiple Sclerosis • Occupational HIV • Paralysis • Parkinson’s Disease • Severe Burns • Stroke • Alzheimer’s Disease • Aorta Surgery • Benign Brain Tumour • Blindness • Cancer • Cancer Recurrence • Coma • Coronary Artery Bypass Surgery • Deafness • Dismemberment • Heart Attack • Heart Valve Replacement • Loss of Independence Timeline of Coverage Aug 2016 Policy Becomes effective

21. Then How Does the Pre-Ex Work? • Examples of Pre-Existing Conditions • High cholesterol • Diabetes • Alcoholism • Gout • High blood pressure • Emphysema • hypertension • arthritis • asthma • List of 23 Covered Conditions • Loss of Speech • Major Organ Failure • Major Organ Transplant • Motor Neuron Disease • Multiple Sclerosis • Occupational HIV • Paralysis • Parkinson’s Disease • Severe Burns • Stroke • Alzheimer’s Disease • Aorta Surgery • Benign Brain Tumour • Blindness • Cancer • Cancer Recurrence • Coma • Coronary Artery Bypass Surgery • Deafness • Dismemberment • Heart Attack • Heart Valve Replacement • Loss of Independence Timeline of Coverage Aug 2016 Policy Becomes effective

22. Then How Does the Pre-Ex Work? • Examples of Pre-Existing Conditions • High cholesterol • Diabetes • Alcoholism • Gout • High blood pressure • Emphysema • hypertension • arthritis • asthma • List of 23 Covered Conditions • Loss of Speech • Major Organ Failure • Major Organ Transplant • Motor Neuron Disease • Multiple Sclerosis • Occupational HIV • Paralysis • Parkinson’s Disease • Severe Burns • Stroke • Alzheimer’s Disease • Aorta Surgery • Benign Brain Tumour • Blindness • Cancer • Cancer Recurrence • Coma • Coronary Artery Bypass Surgery • Deafness • Dismemberment • Heart Attack • Heart Valve Replacement • Loss of Independence Not eligible for claim. The “Covered Condition” was a direct result of a “Pre-Existing Condition” and within 24 months of the effective date Timeline of Coverage Aug 2016 Policy Becomes effective July 2018

23. Then How Does the Pre-Ex Work? • Examples of Pre-Existing Conditions • High cholesterol • Diabetes • Alcoholism • Gout • High blood pressure • Emphysema • hypertension • arthritis • asthma • List of 23 Covered Conditions • Loss of Speech • Major Organ Failure • Major Organ Transplant • Motor Neuron Disease • Multiple Sclerosis • Occupational HIV • Paralysis • Parkinson’s Disease • Severe Burns • Stroke • Alzheimer’s Disease • Aorta Surgery • Benign Brain Tumour • Blindness • Cancer • Cancer Recurrence • Coma • Coronary Artery Bypass Surgery • Deafness • Dismemberment • Heart Attack • Heart Valve Replacement • Loss of Independence Eligible for claim. The 24 month Pre-Ex period is exhausted. Timeline of Coverage Aug 2016 Policy Becomes effective Aug 2018

24. Then How Does the Pre-Ex Work? 22 • Examples of Pre-Existing Conditions • High cholesterol • Diabetes • Alcoholism • Gout • High blood pressure • Emphysema • hypertension • arthritis • Asthma • List of 23 Covered Conditions • Loss of Speech • Major Organ Failure • Major Organ Transplant • Motor Neuron Disease • Multiple Sclerosis • Occupational HIV • Paralysis • Parkinson’s Disease • Severe Burns • Stroke • Alzheimer’s Disease • Aorta Surgery • Benign Brain Tumour • Blindness • Cancer • Cancer Recurrence • Coma • Coronary Artery Bypass Surgery • Deafness • Dismemberment • Heart Attack • Heart Valve Replacement • Loss of Independence At no time will any claim be eligible as a result of the covered condition diagnosed before coverage effective date. Timeline of Coverage Aug 2016 Policy Becomes effective

25. Then How Does the Pre-Ex Work? • Examples of Pre-Existing Conditions • High cholesterol • Diabetes • Alcoholism • Gout • High blood pressure • Emphysema • hypertension • arthritis • Asthma • List of 23 Covered Conditions • Loss of Speech • Major Organ Failure • Major Organ Transplant • Motor Neuron Disease • Multiple Sclerosis • Occupational HIV • Paralysis • Parkinson’s Disease • Severe Burns • Stroke • Alzheimer’s Disease • Aorta Surgery • Benign Brain Tumour • Blindness • Cancer (10 years ago) • Cancer Recurrence • Coma • Coronary Artery Bypass Surgery • Deafness • Dismemberment • Heart Attack • Heart Valve Replacement • Loss of Independence At no time will any claim be eligible as a result of the covered condition diagnosed before coverage effective date, excluding Cancer Recurrence. Timeline of Coverage Aug 2016 Policy Becomes effective

26. A Note Regarding Cancer Cancer is a general term used. • There are over 100 named cancers (usually based on their locations in the body). • When a diagnosis of cancer is made it is specifically named in medical charts. • If another cancer is diagnosed and it is not the same named cancer that is a new diagnosis. • When a previous cancer spreads (“metastasized”) to a new location, it is diagnosed as a metastasized cancer, (usually of the same name) and would not be considered a new diagnosis.

27. Cancer Enhancement Recurrence of cancer is now covered, if you have not had any treatment* for 60 months – this is a first in the industry *NOTE: Treatment does not include preventive medications and/or follow-up visits to the doctor.

28. NEW Cancer Recurrence Benefit Remember However, No Cancer is eligible for claim in the first 90 days of coverage or latest reinstatement date.

29. Cancer Recurrence & Second Event Benefits Example 1: Client receives 3 separate claim payments Insured survives 30 days. Claim is determined to be payable2. The benefit amount is paid; policy remains in-force. Insured survives 30 days from eligible second event condition (Category B). Second Event Benefit paid2. Policy cancelled. Critical Illness Coverage purchased. After 7 years3, the cancer recurs Insured goes into remission. 8 months later: Insured diagnosed with Cancer1. Insured goes into remission. Insured survives 30 days, claim is determined to be payable2. The benefit amount is paid under the Cancer Recurrence Benefit; policy remains in-force. 9 months later: Insured has a heart attack. • Guaranteed issue amounts have a 24/24 Pre-Ex limitation. • Subject to all terms and conditions of the policy being met. • And no treatment related to the cancer has been received within 60 months.

30. Cancer Recurrence & Second Event Benefits Example 2: Client receives 2 separate claim payments Insured survives 30 days. Claim is determined to be payable2. The benefit amount is paid; policy remains in-force. Insured survives 30 days from eligible second event condition (Category B). Second Event Benefit paid2. Policy cancelled. Critical Illness Coverage purchased. 8 months later: Insured diagnosed with Cancer1. 9 months later: Insured has a heart attack. • Guaranteed issue amounts have a 24/24 Pre-Ex limitation. • Subject to all terms and conditions of the policy being met.

31. Cancer Recurrence & Second Event Benefits Example 3: Client receives unlimited number of eligible claim payments. Insured survives 30 days, claim is determined to be payable2. The benefit amount is paid under the Cancer Recurrence Benefit; policy remains in-force. Insured survives 30 days. Claim is determined to be payable2. The benefit amount is paid; policy remains in-force. Critical Illness Coverage purchased. After 7 years3, the cancer recurs. After 5 years3, the cancer recurs Insured goes into remission. Insured goes into remission. Insured goes into remission. 8 months later: Insured diagnosed with Cancer1. Insured survives 30 days, claim is determined to be payable2. The benefit amount is paid under the Cancer Recurrence Benefit; policy remains in-force. After 5 years3,the cancer recurs. Insured survives 30 days, claim is determined to be payable2. The benefit amount is paid under the Cancer Recurrence Benefit; policy remains in-force. • Guaranteed issue amounts have a 24/24 Pre-Ex limitation. • Subject to all terms and conditions of the policy being met. • And no treatment related to the cancer has been received within 60 months. Menu

32. CI – Application • Tier 1 Critical Illness Coverage • Standalone available in units of $5,000 up to $25,000 • No questions asked – same coverage and process as before

33. Tier 2 – Additional CI $25,000 • TIER 2 ADDITIONAL Critical Illness Coverage • Tier 2 Critical Illness is only available if Tier 1 is achieved • If 2 qualifying questions are satisfied, an additional $25,000 is available for a maximum total of up to $50,000 of Critical Illness coverage in force with The EDGE. • If you believe your client will be declined for CI coverage or Life coverage, which they have not yet applied for, now is the time they can get Tier 2 coverage through The EDGE • Increase their coverage from $25k to $50k

34. Tier 3 – Enhanced CI $25,000 or $50,000 Remember to read the italicized notifications! • TIER 3 ENHANCED Critical Illness Coverage • Tier 3 Critical Illness is only available if Tier 1 & Tier 2 is achieved • If Tier 2 is achieved AND 7 qualifying questions are satisfied, an additional $25,000 OR $50,000 is available for a maximum total of up to $100,000 of Critical Illness coverage in force with The EDGE.

35. How the Plan Works 3 2 1

36. CI Guaranteed Issue: Adjudication If a claim is made within the first 2 years, we review medical evidence to determine whether the condition was directly related to a pre-existing condition, or already being investigated at time of application.

37. Final Expense

38. Final Expense What If... they had one less thing to worry about

39. Final Expense Fit • 46.8% of Canadians still do not own any Life Insurance* • Uninsurable individuals *CLHIA KeyFacts 2006 vs. Canadian Population June 4, 2007

40. Final Expense • Total benefit available is $50,000 • Tier 1 – Up to $25,000 Guaranteed Issue • Tier 2 – Another $25,000 can be added • Clients must answer a series of good health questions in order to qualify for Tier 2 • Tier 1 – ages 18 to 85 can purchase • Term 100 plan • Tier 2– ages 18 to 70 can purchase • Term 75 plan

41. Final Expense • Tier 1 Guaranteed Issue is an Accidental Death only benefit for the first two years • Death by illness under two years results in a premium refund • After two years – Accidental Death Pays 4 x the Benefit • After two years – Death by Illness pays 1 x the Benefit • Tier 2 – Additional $25,000 is underwritten using Good Health questions • And therefore is full Life Insurance (pays for Accidental and Illness) • If someone purchases both Tier 1 ($25,000) andTier 2(another $25,000) the 24 month Pre-existing condition limitation is waived on both • Note: You must purchase the full $25,000 of Tier 1 in order to apply for Tier 2 • In other words, you can’t purchase $5,000 of Tier 1 and $25,000 of Tier 2.

42. Final Expense Tier 2 Questions • You must answer “No” to the following:

43. Final Expense • Our Tier 2 Final Expense is not a Guaranteed Issue plan • Not designed for those who have been declined or rated previously for Life Insurance • Note: Those that have been declined for Life Insurance, can still purchase up to $25,000 of Tier 1 Guaranteed Issue • Ideal for healthy individuals who want more than $25,000 (current plan) • If death is due to accident, the plan pays out $200,000 (4 x benefit); other than accident  $50,000 • Using a quick and easy process

44. Final Expense Exclusions & Limitations Limitations: • Benefits are not payable if death is caused by suicide within 2 years of the effective date or latest reinstatement date of coverage, in such event payment will be limited to the return of premiums. If Tier 2 is not purchased, and a non-accidental death occurs within 2 years of the effective date or latest reinstatement of coverage, payment will be limited to the return of premiums.

45. The Ways to Get Paid… What’s in it for you to sell EDGE

46. Quarterly Incentives

47. Quick Start Program WHO IS ELIGIBLE? ALL NEW ADVISORS 1st APPLICATION ANY NEW ADVISOR who submits their 1st application within the calendar year will receive a welcome letter with a stylus pen to help with their next application. 2nd APPLICATION ANY NEW ADVISOR who submits their 2nd application in the same calendar year will receive a $10.00 gift certificate, AND one or more ballots* entered into a draw for a Flat Screen TV to be drawn at year end. You will also receive ballots* for each and every application submitted thereafter within the calendar year.

48. SUPER Quick Start BONUS Program IN ADDITION TO THE QUICK START PROGRAM ALL NEW ADVISORS are eligible for a BONUS if they submit their 2nd and 3rd applications within a specific time frame. 2nd APPLICATION Write your SECOND APPLICATION within 6 weeks of your first application, you will earn $50 3rd APPLICATION Write your THIRD APPLICATION within 6 weeks of your second application, you will earn $100

49. VIP Club Top 50 Share in $300,000 1) AVERAGE 10% additional paid out Advisors who are in the Top 50 qualify for the Leader Pool. Premium Credits equal 66 2/3% for H&D, and 100% for all other products. Max. bonus payable per Advisor is $25,000. Persistency must be within 15% of company average to qualify. Written premium is shown for illustration purposes only. Actual Bonus Pool is paid out proportionately based on SETTLED calendar year premium credits in 2017.

50. VIP Lifestyle Protection Conference Top 10 EDGE Advisors Will Qualify (Or $100,000 total premium credit achievement to guarantee a spot) Top 10 qualify based on written premium. No minimum premium required, but you must be in the Top10. You can guarantee a spot by writing a minimum of $100,000 in Premium credits. All EDGE premium counts towards the Conference, however, there is 66⅔% credit for Health and Dental Premium and 100% for all other products. Persistency must be within 15% of the company average.