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What’s New at Canada Life 2005

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  1. What’s New at Canada Life 2005

  2. Canada Life Products One Company Provides it All!!

  3. 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

  4. Strength & Stability • A.M. Best A+ (Superior) • Moody’s Aa3 (Excellent) • Standard & Poor’s AA (Very strong)

  5. About Toronto City Regional Marketing Centre Canada Life’s #1 Marketing Centre • Your Marketing Consultants provide: • Product knowledge on Life Insurance, Disability & Critical Illness Insurance, Investment Products • Dedicated Marketing & Sales Support • Sales Strategies Support Jeanette McPherson, CFP, CLU, CHFC, TEP Adriana Mauro, RHU

  6. About Toronto City Regional Marketing Centre Canada Life’s #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

  7. About Toronto City Regional Marketing Centre Canada Life’s #1 Marketing Centre • Living Benefits Consultant Dwight Donald provides: • Product knowledge on Living Benefits • Market sensitive information to you as well as sales ideas

  8. 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

  9. 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 riderswhen issued on joint policies 2005 Enhancements

  10. Simply Preferred Term 20 Rate Improvements Male, n/s Age 30

  11. Simply Preferred Term 20Rate Improvements Male, n/s Age 40

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

  13. 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

  14. Life InsuranceMillennium Universal Life Level COI - $500,000 face amount – Coverage Plus The numbers in parenthesis reflect Canada Life’s 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.

  15. Time Saving Services • Jet Underwriting • Enhanced ASTRA Program • Attainable Health Requirements • Case Coordinator • RepNet • FasatWeb • User-friendly illustration software

  16. Enhanced ASTRA Working with you to grow your business

  17. 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

  18. 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

  19. 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

  20. 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!)

  21. How enhanced ASTRA works with Canada Life plans? *All inforce, new issue term policies, and Enhanced Coverage Option (ECO) are eligible to qualify for ASTRA at time of conversion.

  22. 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

  23. How ASTRA works Let’s look at how ASTRA works with: • Simply preferred term insurance • Single life coverage • Joint first-to-die coverage

  24. 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

  25. 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

  26. 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

  27. 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)

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

  29. Spring into business with LifeAdvance One of Canada’s leading products now reflecting market adjustments

  30. Delivering Value • Leading product features • Company strength and stability • Flexible plan designs • Competitive rates

  31. 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

  32. 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

  33. If the insured received a critical illness benefit before his or her 65th birthday for: Heart Attack or Stroke Life-Threatening Cancer Life-Threatening Cancer Heart Attack The second event coverage will be the lesser of 50% of the benefit amount selected for the basic policy and $50,000. Second Event Rider

  34. Exclusion Period 12 months Second Event Rider Example 1st Event Life-Threatening Cancer 2nd Event Heart Attack Policy becomes fully paid up $250,000 $50,000 30 days

  35. Leading Product Features Customize Premium Paybacks (PPB) to your client’s needs • Affluent • Middle-Income • Up-and-Coming

  36. A 50% 100% 75% 100% B 50% 100% C Timeline 10 15 20 25 Permanent T100 Plan Premium Payback Options

  37. Permanent T100 Plan Affluent A 100% Middle-Income 100% Up & Coming B 100% C Timeline 10 15 20 25

  38. A 50% 100% Timeline 10 15 20 25 60% 70% 80% 90% Premium Payback Rider Markets • Option A • Need for earlier PPB option date • Limited insurance coverage needs Affluent

  39. 75% 100% B 80% 85% 90% 95% Timeline 10 15 20 25 Premium Payback Rider Markets • Option B • Need for balance between PPB option dates and insurance coverage needs Middle-Income

  40. 50% 100% C Timeline 10 15 20 25 55% 60% 65% 70% 75% 80% 85% 90% 95% Up and Coming Market • Option C • Need for extended PPB option dates • Need for extended insurance coverage Up & Coming

  41. 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

  42. 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 Company A Company B Canada Life $250,000 $250,000 $275,000 10% to max $25,000 10% to max $15,000 25% to max $50,000 $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

  43. New Surgery Advance Example $250,000 lump-sum benefit Company A Company B Canada Life Not Applicable 10% to max $10,000 10% to max $15,000 Illness Assist CI Lump-sum CI Lump-sum CI Lump-sum Advance Benefit Surgery Advance Illness Assist Illness Assist

  44. 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.

  45. Company Strength & Stability • Over 60 years Living Benefits experience • LB Underwriting & Claims • Life Underwriting & Claims

  46. The Business of Claims Breakdown of Claims Munich Re CI Survey 2004

  47. Female Non-Smoker 41% Male Smoker 7% Female Smoker 5% Male Non-Smoker 47% 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

  48. 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

  49. 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

  50. Disability InsuranceBusiness Products Keyperson Plan • Purpose • Provides benefits in the event of a key employee’s Total Disability