INTRODUCING: THE NEW WAY OF DETERMINING YOUR LIFE INSURANCE NEEDS

1. INTRODUCING:THE NEW WAY OF DETERMINING YOUR LIFE INSURANCE NEEDS

2. Fact: Canadian families typically have ahigher need for life insurance protection during the earlystages of their lives, but much of their needs decreaseover time.

3. The need for decreasing insurance protection • Income Replacement • Mortgage/Debt Protection • Education/Other Temporary Needs • Estate Planning

4. Case study:

5. Case study: Mortgage decreases annually Education need gone after 15 years Credit line is paid in 5 years Each year less is needed to insure David’s income DAVID HAS A INSURANCE NEED THAT DIMINISHES EACH YEAR:

6. David’s need Today Need Insurance Today: $1,443,739 Today Retirement Death Based on a borrowed amount of $250,000 with a 5.75% interest rate for a five year term. Payments are made on a monthly basis.

7. David’s need 11 Years From Now Need Insurance Age 46: $1,373,126 Today Retirement Death

8. David’s need 21 Years From Now Need Insurance Age 56: $923,821 Today Retirement Death

9. David’s need 30+ Years From Now Need Insurance Age 80: $97,901 Today Retirement Death

10. What happens if you address only your current need? It may mean that you’re over insuring throughout your lifetime – inadvertently creating a “need gap”

11. Satisfying only the current need Need Insurance “NEED GAP” +$164,108 +$762,436 +$1.3 M Today Retirement Death

12. What happens if we buy only what we think we can afford? IE: Basing a decision solely on our disposable income. You say how much can I afford “for insurance” You could inadvertently beunder insuring in the early years and over insuring in the later years – creating a different “need gap”

13. Buying only what we think we can afford Need Insurance “NEED GAP” -$930,711 -$779,631 +$423 M Today Retirement Death

14. How can you address either need gap? Solution = Transamerica’s Layered Insurance

15. Insuring current need, what we think we can afford vs. a Layered solution Need Need Need Insurance Insurance Insurance Current need only: Using Level What we think we can afford: Using Level Actual need: Using Decreasing (layered) insurance

16. Comparing the costs of each approach? Assuming an average net return of 6%.

17. Benefits of Layered insurance • Total overall cost is less • Shorter payment period • Better matching of protection needs • Reduces both“need gaps” • Plus, includes a savings element that can be used as emergency fund/retirement or accessed for potential future health challenges

18. Canadians are spending more, and saving less As a result, Canadians are less prepared to meet financial emergencies than in previous years.

19. How well are we saving? 14 13% 12 10 8 7% 6 Canada 3% 4 1% 2 United States 0 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 3Q08 PERSONAL SAVINGS RATE – ANNUAL SAVINGS AS % OF PERSONAL DISPOSABLE INCOME AFTER TAXES Source: The Current State of Canadian Family Finances 2008 Report, The Vanier Institute of the Family

20. Can Average Canadians Afford: Life Insurance Critical Illness Insurance Disability Insurance Long Term Care Insurance And save for retirement? Can average Canadians afford:

21. Statistically, Canadians are unprepared for retirement Workers aged 55+ represent 15% of the total number employed in Canada This group accounted for 55% of all job growth in Canada since 2000 17% of those who retired returned to work About half reported that they had returned to work for financial considerations Source: The Current State of Canadian Family Finances, The Vanier Institute of the Family, 2007.

22. The layered approach helps with savings Adopting the “layered” approach helps with forced savings for short and long-term needs Matching your decreasing insurance need allows you to better use the money to build a tax-free* savings account to draw from Based on the interpretation of the current Income Tax Act (Canada) and CRA guidelines.

23. Savings using current need, what we think we can afford vs. Layered Need Need Insurance Insurance Need Insurance Savings Current need only: Using Level What we think we can afford: Using Level $0 savings $0 savings Actual need: Using decreasing (layered) insurance $$ savings

24. The savings plan that comes from a layered solution SAVINGS GROWING AT 6% The Personal Savings Plan: Age 85: $124,305 Need Insurance Savings Today Retirement Death

25. The savings plan that comes from a layered solution Need Insured FV @ 200/mthPremium Savings SAVINGS GROWING AT 6% For $50 more a month see how much more you get The Personal Savings Plan: Age 85: $266,000 Today Retirement Death

26. The savings plan that comes from a layered solution Need Insurance Savings SAVINGS GROWING AT 6% The retirement zone Almost $ 266,000 in the savings account Today Retirement Death

27. Is preparing for health issues optional? 23% Disability rate for Canadians between ages 35 to 74 60% The chance of having 1 of 4 major illnesses (heart attack, stroke, cancer, coronary artery bypass) before age 75 82% The probability of a 60 year old couple needing long term care during their remaining lifetime   The monthly cost for basic long-stay programs not covered by provincial healthcare: $1,614 Source: Munich Re., 2007 Ontario Ministry of Long Term Care.

28. Advantages of Self Insuring: • No CI underwriting • Flexible payment options • More ways to claim (CI/DI/LTC) • No age restrictions

29. The layered approach also helps with CI, DI and LTC needs Provides the opportunity to build a savings element that could be available on a tax-free basis via the Living Benefits provision May help avoid qualifying for separate and expensive permanent CI, DI and LTC plans Based on the interpretation of the current Income Tax Act (Canada) and CRA guidelines.

30. Advantages of self-insuring: Cost of a $100,000 Conventional CI Policy = $286.86/mnth (40M NS/40F NS, level COI to age 75 w/ROP) $286.86/month Invested in EstateADVANTAGE4 @ 5% 40MNS, 40FNS, $300FA, JLTD, Level COI, Increasing DB

31. The savings plan that comes from a layered solution Need Insurance Savings SAVINGS GROWING AT 6% The “CI/DI zone The “LTC” zone Remember the $50 of additional premium? The Personal Savings Plan: Age 55: $43,919 The Personal Savings Plan: Age 85: $265,823 Today Retirement Death *Please note, that accessing your living benefits will have a direct impact on the death benefit available.

32. Recap: The new way of determining our needs for insurance • Needs can be for a decreasing insurance need, not just Level • Lower overall cost over the long term using a layered approach • Layered solution greatly reduces “need gaps” • Layered solution helps build much needed savings account • May help avoid need for separate and expensive CI, DI and LTC plans by allowing access to the dollars tax-free*

33. I like this idea but it seems too complicated to calculate my decreasing needs! Not to worry…

34. Introducing: Transamerica’s new LifeScripter • A revolutionary program designed to help you pick the right kinds AND the right amounts of life insurance.

35. 30 second video that outlines the importance of insurance and that there’s a way of “purchasing smart” to get the most for your dollar

36. A real life case study clearly demonstrates that as your life story evolves, your need for insurance protection will decrease

37. A video will introduce the “Insurance calculator”

38. Tools to help make life easier! Enter your personal information

39. Tools to help make life easier! List your debts

40. Tools to help make life easier! List remaining details SECTION #3: INCLUDING INCOME PROTECTION/ FINAL AND ESTATE EXPENSES!!

41. Tools to help make life easier! See the results

42. The customized report • Simple two page report • Summarizes your “story” (income, mortgage, debt, education burial and estate expenses) • Provides a layered, cost effective insurance solution based on the data you have inputted

43. The report is then used to construct a customized insurance strategy for you! Based on contributing $200/month until age 65.

44. Provides $ when you are most likely to need things like Long-Term Care

45. THANK YOU!

46. Notice This presentation is prepared by Transamerica Life Canada ("Transamerica") and includes material obtained from third party sources. It is for advisor use only. Any commentaries and/or information contained herein are intended for general informational and educational use only and should not be considered specific or personal investment, insurance, estate planning or tax advice or a solicitation to purchase or sell securities or insurance.  While reasonable efforts have been made to ensure that the contents of this presentation have been derived from sources believed to be reliable and accurate at the time of publication, Transamerica does not warrant the accuracy or completeness of the information contained herein. Examples given in this presentation are for illustration purposes only. The specific facts and circumstances of each case will differ from client to client. Neither Transamerica, nor its affiliates, officers, employees or any other person accepts any liability whatsoever for any direct, indirect or consequential loss(es) arising from any use or reliance on the information, general strategies or opinions contained herein.