Universal Solutions Marketing Guide - Manulife · 2020-04-09 · Account Deduction Methods (ADM) 20 YRT Cost Switch 20 Term Conversions 20 Smoker to Non-Smoker 20 Adding Insureds

Universal SolutionsTM

Marketing Guide

L I F E I N S U R A N C E

T H E M A R I T I M E L I F E A S S U R A N C E C O M P A N Y

Table of Contents

Product Highlights 1

Marketing Overview 2Web Site 2

Product Design 3

Insurance Coverage 4 Issue Limits 4Rate Bands 4Underwriting Classes with Chart 4Smoking Status 4Insurance Ratings 5 Cost of Insurance (COI) 5

Level Guaranteed COI 5Level Guaranteed COI with Capital Adjustment 5Level Guaranteed COI with Coverage EnhancerTM 6YRT Guaranteed COI 6

Capital Adjustment Feature 6Capital Mix 6Capital Mix Investment Accounts/Options 7Coverage Enhancer Feature 7Juvenile Cost of Insurance 7 Guaranteed Administration Fee 7Death Benefit Options 7

Level Coverage 7Coverage Plus 8Minimized Coverage Plus 8Coverage with ROP 9Indexed Coverage 9Coverage with ACB 9

Coverage Types 10Single Life 10MultiLife 10JointLife 10

Investment Accounts 12 Daily Interest Account 12Fixed Interest Accounts 12

FIA Guarantees 12Market Value Adjustment 13

Variable Interest Accounts (VIA) 13 Advisor Portfolios 16Currency Stabilization Factor 16Investment Income Tax (IIT) Rate 16Death Benefit Guarantee 16

Investment Bonus 17Transfers Between Investment Accounts 18StabilizerTM (Stabilization Rate) 18Discontinuation of Investment Accounts 18

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Policy Provisions 19Premium Frequency 19 Deposits for Life Accumulator Only 19 Billed Premium 19 Premium Tax 19 Premium Allocation 19 Minimum Premium 19 Maximum Premium 20 Account Deduction Methods (ADM) 20YRT Cost Switch 20Term Conversions 20Smoker to Non-Smoker 20Adding Insureds 20Coverage Flexibility 21Changes to Death Benefit Options 21Transfer of Coverage 21Substitute Life Provision 21Maintaining Exempt Status 21Carrier Fund 21Partial Withdrawal 22Policy Surrender 22Surrender Charge 22Partial Surrender 23Policy Loans 23Policy Lapse 23Reinstatement 23Disability Payment Benefit 23Advanced Death Benefit 24

Optional Riders & Benefits 25 Term 10, Term 20 Riders 25Joint Term 10 25Additional Life Term Rider 25Accidental Death Benefit (ADB) 26Accidental Death and Dismemberment (AD&D) 26Children's Protection Rider (CPR) 26Joint Legacy Protection Rider (JLP) 26Guaranteed Insurability Option Rider (GIO) 27Disability Waiver of Specified Premium (DWSP) 27Payor Waiver of Specified Premium (PWSP) 28

Compliance Initiatives 29 Compliance Checklist 29Signed Illustrations 29

Appendices 30Appendix A COI Scales by Coverage Type and Death Benefit Option 30Appendix B Term Conversions to Maritime Life Universal Solutions 31

Glossary of Terms 32

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Costs Guaranteed• Choice of four Guaranteed Cost of Insurance (COI)

scales• Level Guaranteed

• Level Guaranteed COI with Capital Adjustment

• Level Guaranteed COI with Coverage Enhancer

• YRT Guaranteed

• Administration Fees Guaranteed

Choice of six Death Benefit Options• Level Coverage• Coverage Plus• Minimized Coverage Plus• Indexed Coverage• Coverage with ROP (Return of Premium)• Coverage with ACB (Adjusted Cost Basis)

Premium Flexibility• Choice of amount and duration• Casual Premiums• Stop and go premiums

Variety of Coverage Types• Single Life• Joint First-to-Die (up to 5 lives)• Joint Last-to-Die with waiver on first death

(on 2 lives)• Joint Last-to-Die (up to 5 lives)• MultiLife (up to 6 lives)

Choice of Investment Accounts• Daily Interest Account (DIA)• 1, 3, 5 and 10 Year Fixed Interest Accounts (FIA)• Index-Linked Accounts

• Canadian Bond• Canadian Equity• U.S. Equity• U.S. Equity (Cdn. $)• U.S. Small Cap (Cdn. $)• U.S. Technology (Cdn. $)• International Equity• European Equity• Japanese Equity• Tactical Portfolio

• Maritime Life Managed Linked Accounts• Growth• All American Portfolio• International Equity• Bond• Balanced

• Mackenzie Managed Linked Accounts• Universal Select Managers Canada• Cundill Value • Universal US Growth Leaders• Ivy Foreign Equity

• Advisor Portfolios

Investment Bonus

Stabilization Rate Feature(on YRT with Minimized Coverage Plus only)

Disability Payment Benefit

Choice of Riders and Benefits• Term 10 Rider (Preferred Classes)• Term 20 Rider (Preferred Classes)• Joint Term 10 Rider• Additional Life Term Rider (T10, T20)• Accidental Death Benefit (ADB)• Accidental Death and Dismemberment (AD&D)• Disability Waiver of Specified Premium (DWSP)• Payor Waiver of Specified Premium (PWSP)• Guaranteed Insurability Option Rider (GIO)• Children's Protection (CPR)• Joint Legacy Protection Rider

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Product Highlights

TM - Universal Solutions and Coverage Enhancer are trademarks of the Maritime Life Assurance Company.Maritime Life, Life Accumulator, and Stabilizer are registered trademarks of the Maritime Life Assurance Company.

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Maritime Life Universal SolutionsTM is a flexibleuniversal life plan that offers an exceptional balance ofinsurance protection and tax-deferred savings. MaritimeLife Universal Solutions utilizes innovative designelements to meet a complete cross-section of insuranceneeds.

It is designed to appeal to your clients in the higherincome categories - families, professionals, businessowners, corporate executives and self employedprofessionals. They will appreciate the truly flexibleplan features and highly competitive pricing. You will appreciate the uncluttered plan structure, fullyfunctional software and our commitment to superior service.

Maritime Life Universal Solutions is accompanied by afull range of value added riders and benefits, that willenable you to custom design a plan to suit the specificinsurance needs of your client.

Web Site• Information on Maritime Life Universal Solutions,

including weekly rate information for investmentaccounts, is available online at our public Web siteat www.maritimelife.ca

• The Advisor Centre is the single source of ourproduct and marketing information - it includesonline materials, weekly rate information, support,software, forms and much more.

• One-stop system for current customer values andpolicy information are also available on InfoDirect atwww.maritimelife.ca/advisor

Marketing Overview

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We have guaranteed the COI rate scales for MaritimeLife Universal Solutions.

Four COI scales are available for insurance coverages:• YRT Guaranteed

• Level Guaranteed

• Level Guaranteed with Capital Adjustment

• Level Guaranteed with Coverage Enhancer

Both Level Guaranteed and YRT Guaranteed COI scalesare available on the same policy (only the YRT COIscale is available on Life Accumulator Concept).

The Cost of Insurance charge is zero when the lifeinsured's attained insurance age or joint attainedinsurance age reaches 100. For YRT Guaranteed COI,the Cost of Insurance is zero after the later of 20 years from the benefit effective date or when theattained insurance age reaches 85.

UL coverage amounts on the same life insured arecombined to determine the rate band.

A monthly administration fee is also guaranteed not toincrease. Combined, the guarantees remove theuncertainty of future increases in charges, a significantselling feature.

The interest or growth earned on the funds accumulatestax sheltered as permitted for tax-exempt policies.

Maritime Life Universal Solutions also offers attractiveinvestment bonuses.

Any amount that would cause the policy to becomenon-exempt will be deposited into an account called theCarrier Fund. The client has the choice of one of theinvestment accounts available for the Carrier Fund. Theinvestment earnings in the Carrier Fund are taxable.

Maritime Life Universal Solutions offers choices ofcompetitive one, three, five, and ten year Fixed InterestAccounts, as well as a Daily Interest Account andseveral Variable Interest Accounts made up of Index-Linked Accounts, Maritime Life Managed LinkedAccounts and Mackenzie Linked Accounts. There arealso three Advisor Portfolios that use a blend of some ofthe above accounts, to create investment mixes that webelieve are specifically suited to the age group of theinvestor, and provide the right balance of growth andsecurity. Maritime Life provides 100% Death BenefitGuarantee on the Variable Interest Accounts, when thefund value is paid out as part of the death benefit.

Product Design

Maritime Life Universal Solutions is a set of fully flexible Universal Life coverage options that combines lowcost life insurance with a tax sheltered investment fund. The cost of insurance (COI) charge comprising mainlyof mortality is deducted from the fund value.

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Issue limitsIssue Ages (based on age nearest birthday)Juveniles 0 - 17Smoker/Non-smoker 18 - 80 *Minimum Sum Insured (ages 0-80) $ 50,000 *** Issue Ages for the Level Guaranteed COI with

Coverage Enhancer are 18 to 60* Issue Ages for Life Accumulator Concept are 18 to 80** Life Accumulator Concept has a annual minimum

premium of $5,000

Rate Bands$ *50,000 to $ 99,999$ 100,000 to $ 499,999$ 500,000 to $ 25,000,000 (Special quote needed above $25,000,000)* The sum Insured can be lower than $50,000 (but not

less than $25,000) subject to a minimum annualpremium of $750 (where the minimum premium isbased on Maritime Life Universal Solutions only).

For Life AccumulatorTM Concept only:• There are no rate bands and the annual minimum

premium is $5,000.• Premiums based on the YRT Guaranteed COI scale

corresponding to the $500,000 to $25,000,000 rateband above, apply to all coverage amounts.

Underwriting Classes For Maritime Life Universal Solutions, Term 10 and Term 20 riders• Preferred underwriting is available for:

Ages 46 to 80 and with coverage amounts $100,000and overAges 18 to 45 and with coverage amounts $250,000and over

• Only standard underwriting class is available tojuveniles (ages 0 to 17).

• These underwriting classifications are based onmeasures of health, lifestyle, build as well as familyhistory, age and face amount.

Insurance Coverage

Underwriting Classes by issue age and smoking status

Sum Insured Issue Ages 0 to 17 Issue Ages 18 to 45 Issue Ages 46 to 80

Non-Smoker Smoker Non-Smoker Smoker Non-Smoker Smoker

Under $100,000 Standard Standard Standard Standard Standard Standard

Preferred Plus

$100,000 to $249,999 Standard Standard Standard Standard Preferred Preferred

Standard Standard

Preferred Plus Preferred Plus

$250,000 and over Standard Standard Preferred Preferred Preferred Preferred

Standard Standard Standard Standard

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Insurance ratings • Substandard lives are those requiring an additional

charge for medical, lifestyle, mortality risk etc. Eachinsurance benefit has its own insurance rating.

• A permanent mortality extra is the most commontype of rating, and is usually assessed for medicalreasons.

• Age Rating tables are used to determine the ratedage of the individual, based on the actual issue ageand the table or percentage rating assessed. ForMaritime Life Universal Solutions, the COI will bebased on the rated age and the Standardunderwriting class will apply to all age ratings.

• Flat Extra premium: The flat dollar ratings may beassessed as permanent or temporary and can applyfor any number of years from issue. It can also applyto any underwriting class, but will most often applyto the Standard underwriting Class. The amount ofthe extra charge will be based on a rate per $1,000 of Sum Insured.

• We will apply the rated age of the insured whereverapplicable. Some examples of the use of the ratedage are for the COI Rate, Minimum Premium andCapital Adjustment Factors.

Cost of Insurance (COI)See Appendix A for a quick reference chart showing COIscales by Coverage Type and Death Benefit Option

The Cost of Insurance rates on Maritime LifeUniversal Solutions are guaranteed.

The insurance costs for each COI rate scale is distinctby rate band, issue age, gender, smoker status andunderwriting class. The underwriting classes for non-smokers are - Preferred Plus, Preferred and Standard,

and for smokers - Preferred and Standard. In addition,the insurance cost for the YRT Guaranteed COI coveragevaries by policy year. • Level Guaranteed COI and YRT Guaranteed COI

scales can be added to the same policy as long as itis not a Life Accumulator Concept and theStabilizerTM feature is not activated.

• The YRT Guaranteed COI scale is the only COI ratescale available on the Life Accumulator Concept.

• Level Guaranteed with Capital Adjustment - otherCOI scales cannot co-exist with this COI scale on thesame policy.

• Maritime Life Universal Solutions offers a choice ofone of four COI rate scales:1. Level Guaranteed COI scale - cost of insurance

rates are guaranteed to attained insurance age100. This structure spreads the insurance costsover the life of the policy and may be preferablefor key policy goals that are long-term.

2. Level Guaranteed COI scale with CapitalAdjustment - cost of insurance rates areguaranteed to age 100. Beginning on the thirdcoverage anniversary and credited annually, theCapital Adjustment has the potential tosignificantly increase long-term cash valuegrowth. In addition, this COI scale also spreadsthe insurance costs over the life of the policy.Clients can link the Capital Adjustment to aCapital Mix of up to ten investment accounts,chosen from our Variable Interest Accounts plustwo additional options—a Portfolio Option and a T-Bill Option. Other COI scales cannot co-exist with this COIscale on the same policy.

Insurance Coverage (continued)

Smoking StatusPreferred Plus

No tobacco products for 12 months and

Preferred Plus Criteria

Preferred Non-smoker Preferred Smoker

No tobacco products for 12 months and Has used cigars, pipes, or chewing tobacco within the last

Preferred Criteria 12 months and qualifies for Preferred Criteria

Standard Non-smoker Standard Smoker

No tobacco products for 12 months and Has used tobacco products within the last 12 months

clients do not qualify for Preferred Plus or Preferred Criteria and does not qualify for Preferred Criteria

3. Level Guaranteed COI with Coverage Enhancer -cost of insurance rates are guaranteed to age 100and support an affordable guaranteed non-renewable and convertible seven year termcoverage. In addition, the insurance costs arespread over the life of the policy. Full or partialconversion of the term coverage to Maritime LifeUniversal Solutions (Level or YRT coverage) canbe exercised at any time during the first sevenyears. The new coverage will be based on theinsured's attained age and then current rate scale.The term coverage expires at either the end ofseven years or on the conversion date. This COI scale is only available with the CoveragePlus death benefit option and with Single Life andMultiLife coverage types.

4. YRT Guaranteed COI scale - cost of insurancerates are guaranteed yearly renewable term to thelater of the 20 years from the Benefit EffectiveDate or the attained insurance age 85, andprovide higher cash value during the early yearsof the policy. This is the only COI rate scaleavailable on the Life Accumulator Concept.For example, cost of insurance charges will bededucted to age 90 for an insured who is age 70 atissue (20 years from issue), and to age 85 for aninsured who is age 50 at issue.

• The COI scale for Maritime Life Universal Solutionsmay not be changed after issue, except as describedin the YRT Cost Switch provision.

Capital Adjustment Feature • This feature is unique to the Level Guaranteed Cost

of Insurance with Capital Adjustment only. • The Capital Adjustment feature is best suited for

clients who like to actively manage their policy andare paying more than the minimum premium.

• This feature enables the policy owner to direct howthe underlying reserves are to be invested, providingan opportunity to significantly increase long-termfund value growth. The Capital Adjustment iscredited annually beginning on the third coverageanniversary date and may be positive or negative,depending on the investment account chosen.

• It is possible to have different Capital Adjustmentfactors on the same policy, when there are multipleinsurance coverages.

• The Capital Adjustment factors vary by age, gender,smoking status, underwriting class and coverageduration.

• The Capital Adjustment factors for joint coverage arebased on the single life age.

• The Capital Adjustment will be credited to the fundvalue of the policy, in the same proportion as thepremium allocation mix.

• The Capital Adjustment is calculated based on theperformance of investment accounts chosen in theCapital Mix.

• A Maritime Life Universal Solutions policy can haveonly one Capital Mix.

• At each applicable policy anniversary the value ofthe Capital Adjustment is equal to the [Basic RiskAmount x Benefit Capital Adjustment Factor x (i% - 3.5%)]

• The Basic Risk Amount is the amount used todetermine the COI charge for the benefit and wouldreduce according to contractual provisions underPartial Withdrawals and Partial Surrenders.

• i% is the 12 month geometric average of theinvestment return at the end of the monthlyprocessing period for each investment account/ optionwithin the Capital Mix multiplied by the percentageallocation of the investment account/option in theCapital Mix. The investment bonus is not included inthis calculation.

Capital Mix• The policy owner selects one Capital Mix for the policy,

from a choice of investment accounts/options thatcould potentially outperform a rate of return of 3.5%.

• Capital Mix choices - (1) use the same investmentaccounts to which the net premiums are allocated(2) create a different investment mix (3) use one ofthe three pre-set mixes based on your risk tolerance(see illustration software).

• The Capital Mix can have any combination of up toten investment accounts, including Variable InterestAccounts, a Portfolio Option and a T-Bill Option.

• Allocations to each investment account/option must be awhole number between 1% and 100% (e.g. not 1.5%).

• The policy owner can request changes to the CapitalMix at any time. A transfer fee will not apply. Thesechanges will take effect on the next monthlyanniversary date of the policy.

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• A change in the allocation of the Portfolio Optionmay be subject to a Market Value Adjustment.

• If the Level Coverage death benefit option is chosen,the Capital Adjustment amount cannot be greaterthan the Level Cost of Insurance charge for that yeardivided by the percentage allocation of PortfolioOption in the Capital Mix. (e.g. Insurance Charge forthat year is $500. Percentage allocation of PortfolioOption in the Capital Mix is 100%. Then, the CapitalAdjustment Amount for the Portfolio Option cannotbe greater than $500).

Capital Mix Investment Accounts/Options• Index-linked Investment Accounts - The descriptions

for these accounts are in the Index-linked InvestmentAccounts section.

• Additional Options in the Capital Mix

Portfolio OptionWe guarantee that the effective annualized rate willnever be less than 90% of Government of CanadaBond yields, on an effective annualized basis, with amaturity of 15 years, less 1.75%, subject to aminimum of 3.5% and a maximum of 7%.

T-Bill OptionWe guarantee that the effective annualized rate will neverbe less than 90% of Government of Canada Bond yields,on an effective annualized basis, with a maturity of 1 year,less 2.25, subject to a minimum of o%.• Market Value Adjustment

Any increase or decrease in allocation to the PortfolioOption may result in a MVA charge, depending on the10 year FIA rate, at the effective date of the change.

Coverage Enhancer Feature• Coverage Enhancer provides non renewable and

convertible seven year term coverage• The base UL coverage amount plus the Coverage

Enhancer amount plus any Term Rider Coverageamount, are used to determine the underwritingrequirements (on the same life insured).

• At issue each individual coverage amount determines itsrate band. That is, the rate band for the base UL cover-age is based solely on the base UL coverage amount.

• Full or partial conversion at any time within the firstseven years, without underwriting and at anequivalent underwriting class.

• Attained age and then current rate scale will apply tothe converted coverage (original age conversions willbe considered on request).

• Conversion can be made to Maritime Life UniversalSolutions - Level Guaranteed and YRT GuaranteedCOI scales.

• At conversion, the total face amount of the base ULcoverage and the converted coverage will be used todetermine the underwriting classification (on thesame life insured).

• At conversion, the combined coverage amount forthe base UL coverage plus the new convertedcoverage will determine the rate band for the ULcoverages (on the same life insured).

Juvenile Cost of Insurance• Preferred underwriting classifications are not

available on juveniles. • For coverages issued on the Juvenile Cost of

Insurance rates (insurance age is less than 18),applicable smoker rates will apply at the coverageanniversary nearest the life insured's 20th birthday. If we receive evidence satisfactory to us that the lifeinsured is a non-smoker, then the applicableinsurance age non-smoker rate will apply.

Guaranteed Administration Fee• The monthly administration fee of $10.00 per policy

is guaranteed not to change for the life of the policy(including the Life Accumulator Concept).

Death Benefit OptionsSee Appendix A for a quick reference chart showing COIscales by Coverage Type and Death Benefit Option

Each policy can have only one death benefit option. Thedeath benefit option may be changed after issue (seeChanges to Death Benefit Option). We offer a choice ofone of the following six death benefit options:

1. Level Coverage

The Basic Death Benefit is equal to the Sum Insuredor the Fund Value if greater. The Sum Insured willbe reduced by the amount of any Partial Withdrawalor Disability Payment Benefit, including anyassociated partial surrender charge. The net amountat risk reduces as the fund value increases. Thisoption is not available on MultiLife policies.


Level Coverage is not available with the Life AccumulatorConcept and Level Guaranteed COI with CoverageEnhancer.

2. Coverage Plus

The Basic Death Benefit is equal to the Sum Insuredplus the Fund Value. As the fund value grows, thisdeath benefit increases and it can be used forsituations of growing estate tax liability or growingbusiness values or concerns with inflation. The netamount at risk for the UL coverage equals the suminsured (i.e. it is level, however changes in suminsured will affect it). Coverage Plus is not available with the LifeAccumulator Concept and it is the only death benefitoption available with the Level Guaranteed COI withCoverage Enhancer.

On MultiLife, the policy owner must select one of thefollowing:a) The Sum Insured is paid on each death with the

fund value paid only at the last death, orb) The Sum Insured plus the fund value is paid at

each death. To ensure that the policy isadequately funded for the remaining lives, we willdeduct an amount to cover all outstandingmonthly deductions, starting from the date theclaim is received to one month after the claim ispaid. Premium payments must be made toprevent the policy from lapsing.

On Joint-Last-to-Die the Sum Insured is only paid onthe last death, but the policy owner can choose tohave the fund value paid at either each death or thelast death.

3. Minimized Coverage PlusThe Basic Death Benefit is equal to the applicableSum Insured plus the Fund Value. For Joint Last toDie and MultiLife, the Fund Value must be paid onlast death. Clients can choose this death benefitoption at issue or after issue, without evidence ofinsurability.

The initial Sum Insured(s) remains fixed until the datewe receive notification that premiums have ceased.From the date that we have received notification thatpremiums have ceased, we will adjust the SumInsured(s) to a minimum level required to maintain itstax exempt status (subject to the Minimum SumInsured as chosen by the policy owner) at each policyanniversary. The initial Sum Insured remains fixed forthe first five policy years (except for Life AccumulatorConcept where it is fixed for the first 3 years). For multiple Maritime Life Universal Solutions on thesame policy, the adjustment will be calculated as aconstant percentage applied to each sum insured. Wewill notify the policy owner of the adjusted coverageeach year. Your client will be able to utilize theStabilization rate feature if all coverages are YRT. If premium payments are made once this option iselected, the Sum Insured adjustments will stop, andthe Death Benefit Option will revert to Sum Insuredplus Fund Value, until we are notified that premiumshave ceased.This is the only death benefit option available with theLife Accumulator Concept. This death benefit option isnot available with Level Guaranteed COI with CoverageEnhancer.

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4. Coverage with ROP (Return of Premium)The death benefit is equal to the Sum Insured or theFund Value if greater, plus the sum of all premiumspaid to date less any Partial Withdrawals or DisabilityPayment Benefit, accumulated with interest (i.e.Additional Sum Insured - see glossary). The policyowner selects an interest rate that can be any wholenumber between 0% and 8% inclusive. CompetitiveYRT rates will apply to the Additional Sum Insured.These YRT rates will vary by issue age, gender,smoker status, underwriting classification and rateband. If the amount of a Partial Withdrawal orDisability Payment Benefit is greater than theAdditional Sum Insured, the Additional Sum Insuredwill be reset to zero and the Sum Insured will bereduced by the balance plus any associated partialsurrender charge. The maximum death benefit is thelesser of five times the initial Sum Insured and ourpublished coverage limits.Coverage with ROP is not available with the LifeAccumulator Concept and Level Guaranteed COI withCoverage Enhancer.

5. Indexed Coverage

The client can select an index factor from 1% to 8%.The death benefit is the Sum Insured or the FundValue if greater, plus the accumulated compoundincreases that have been applied over the years (i.e. Additional Sum Insured). Competitive YRT rates

will apply to the Additional Sum Insured. These YRTrates will vary by issue age, gender, smoker status,underwriting classification and rate band. TheAdditional Sum Insured will be reduced by theamount of any Partial Withdrawal or DisabilityPayment Benefit. If the amount of a PartialWithdrawal or Disability Payment Benefit is greaterthan the Additional Sum Insured, the Additional SumInsured will be reset to zero and the Sum Insured willbe reduced by the balance plus any associated partialsurrender charge. The policy owner may elect to stopthe annual increases by written request to us 60 daysprior to the applicable policy anniversary date. If anautomatic increase is stopped, no future increase willbe made unless the policy owner provides satisfactoryevidence of insurability to us. The maximum death benefit is the lesser of five timesthe initial Sum Insured and our published coveragelimits.Indexed Coverage is not available with the LifeAccumulator Concept and Level Guaranteed COI withCoverage Enhancer.

6. Coverage with ACB (Adjusted Cost Basis)

The death benefit is the Sum Insured or the FundValue if greater, plus the adjusted cost basis (i.e.Additional Sum Insured), which is determinedaccording to the provisions in the Income Tax Act ofCanada in effect at the policy issue date. CompetitiveYRT rates will apply to the Additional Sum Insured.These YRT rates will vary by issue age, gender, smokerstatus, underwriting classification and rate band. Thenon-taxable portion of any Partial Withdrawal willreduce the Additional Sum Insured. The Sum Insuredwill be reduced by any Disability Payment Benefit andthe taxable portion of any Partial Withdrawalincluding any associated partial surrender charge. Coverage with ACB is not available with the Life


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Accumulator Concept and Level Guaranteed COI withCoverage Enhancer.

Coverage TypesSee Appendix A for a quick reference chart showing COIscales by Coverage Type and Death Benefit Option

1. Single LifeSingle life coverage is available with the opportunityto add more lives in the future.

2. MultiLifeUp to six lives can be covered for the same ordifferent coverage amounts, cost of insurance typesand package of riders, on one policy with only oneadministration fee and only one death benefit option.MultiLife is especially well suited for family situations or policies used to fund Buy-Sell or otherbusiness arrangements. The only death benefitoptions available are Coverage Plus, with the fundvalue paid at either each death or last death; orMinimized Coverage Plus, with the fund value paid onlast death.MultiLife is not available with the Life AccumulatorConcept. (Note that the Level Guaranteed COI withCapital Adjustment cannot co-exist with other COIscales on the same policy).

3. Joint LifeJoint lives can be insured under a single policy on eithera first-to-die or last-to-die basis. The illustration softwareautomatically calculates the single life age (SLA).

i) Joint First-to-DieThis coverage is available for up to five lives(including insureds under age 18). All death benefitoptions and COI scales, except Level Guaranteed COIwith Coverage Enhancer, are available on Joint First-

to-Die policies. The Single Life Age is generally higherthan the age of the oldest life insured. The deathbenefit is payable on the first death. The following areadditional features and benefits offered:

Policy Exchange

• During the lifetime of the insureds and before age81 of the oldest insured, a Joint First-to-Die policymay be divided into single life policies withoutunderwriting.

• The joint policy is surrendered when the newpolicies are issued.

• The Cost of Insurance rate on the new policies isbased on the ages of the insureds and the ratescale in effect at the time of the exchange.

• The maximum amount of coverage on each life isthe total death benefit in effect at the time of theexchange less the fund value of the Joint First-to-Die policy.

Survivor Option

• Within 90 days of the first death, the survivor(s)may purchase additional insurance coverage,without underwriting, provided the oldest of thesurviving insureds is age 80 or less.

• If there is one survivor, a new single life policymay be purchased.

• If there is more than one survivor, a new JointFirst-to-Die policy may be purchased on thesurvivors.

• The Cost of Insurance rates are based on theattained age(s) or SLA of the survivors and thencurrent rate scale.

• The maximum amount of life insurance coveragewill be the Basic Risk Amount in effect immediatelyprior to the death of the first insured.

Multiple Benefit

• For each death of one or more of the survivorsthat occurs within 90 days of the first death, wewill pay an additional death benefit equal to thesum insured, (not based on a death benefit option).

ii) Joint Last-to-Die• The Insureds have the advantage of lower costs

with this type of coverage. • Up to five lives can be covered on a last-to-die basis. • All death benefit options and all COI scales except

Level Guaranteed COI with Coverage Enhancer areavailable on Joint Last-to-Die policies.

• The Single Life Age is generally lower than the ageof the youngest life insured.

• The death benefit is payable on the last death andcost of insurance charges will continue until thelast death.

• For Coverage Plus, the policy owner can choose tohave the fund value paid at either each death or atthe last death.

• The insurance age of each insured can be greaterthan 80 (but not greater than 85), providing thatthe SLA is age 80 or less. The standard rate classwill apply to these ages.

iii) Joint Last with Waiver on First Death• Available on two lives only, on a last-to-die basis• Neither of the lives insured can be rated more

than 200%• The policy owner may select at issue to have the

cost of insurance charges and administration feecease at the first death.

• The cost of insurance for riders on the survivorwill continue on the policy.

• All COI scales except Level Guaranteed COI withCoverage Enhancer are available.

• The death benefit options available are LevelCoverage, Coverage Plus, and Minimized CoveragePlus.

• The death benefit is payable on the last death. • For Coverage Plus, the policy owner can choose to

have the fund value paid at either each death or atthe last death.

• This coverage type is not available with the LifeAccumulator Concept.

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Maritime Life Universal Solutions provides a variety ofinvestment accounts that offer a selection of risk andexpected rate of return profiles. Each investment accounthas a different type of guarantee as described below. Thepolicy owner may choose one or a combination ofaccounts. Alternatively, the policy owner may select oneof three Advisor Portfolios, each a dynamic balance ofinvestment accounts (including periodic rebalancing),carefully designed to suit specific risk profiles. Interestearned is tax-sheltered regardless of the account selected.

The policyowner can select to have an investment Bonusfrom issue. See the Investment Bonus section for details.

Daily Interest Account (DIA)• The Daily Interest Account is a short-term investment

account.• The balance of the DIA will earn interest, accrued

daily, at the then current rate as periodicallydetermined by us. Interest rates will be reviewed on aweekly basis.

• We guarantee that the Daily Interest Account willalways be available.

• The annual rate will not be less than 90% of the yieldon 90 day Government of Canada Treasury Bills lessthe Expense Rate.

• There are minimum return guarantees and expenserates depending on whether an Investment Bonus isselected.

Fixed Interest Accounts (FIA)1, 3, 5 and 10 Years

• The Fixed Interest Account is similar to a guaranteedcompound interest GIC.

• Generally the FIA offers a higher interest rate than theDaily Interest Account.

• Each net premium allocated to the FIA will earninterest, accrued daily at the rate in effect at the timeof the deposit. At the end of the term, the maturingFIA balance will renew with the same original term,(unless directed otherwise by the policy owner) at thethen current interest rate.

• We guarantee that the Fixed Interest Accounts willalways be available. If Government of Canada TreasuryBills or Bonds referenced below are not available, wewill use comparable Government of Canada Bondswith the nearest term to maturity.

• The annual rate for the 1 year term will not be lessthan 90% of the yield on 1 year Government ofCanada Treasury Bills less the Expense Rate, subject toa Minimum Guaranteed interest rate.

• The annual rate for the 3 year term will not be lessthan 90% of the yield on 3 year Government ofCanada Bonds less the Expense Rate, subject to aMinimum Guaranteed interest rate.



Investment Accounts

Bonus Selected Bonus Not Selected

ExpenseRate

MinimumGuarantee

ExpenseRate

MinimumGuarantee

2.25% 0.00% 1.75% 0.50%

FixedInterest

Accounts(FIA)

Bonus Selected Bonus Not Selected

ExpenseRate

MinumumGuarantee

ExpenseRate

MinimumGuarantee

1 Year FIA 1.75% 0.00% 1.25% 0.50%

3 Year FIA 1.75% 0.00% 1.25% 0.50%

5 Year FIA 1.75% 2.00% 1.25% 2.50%

10 Year FIA 1.75% 2.50% 1.25% 3.00%

13

Market Value Adjustment (MVA)• A Market Value Adjustment will apply to the with-

drawal of the account value of the Fixed InterestAccounts, if the current interest rate for the term ofthe account value being withdrawn is higher than theactual interest rate on the account value beingwithdrawn.

• The Market Value Adjustment will be determinedseparately for each amount being withdrawn ortransferred. The adjustment is:

Balance Withdrawn

x (Current Interest Rate - Original Interest Rate)

x Months remaining in the investment term

÷ 12

• Note: MVA does not apply to COI deductions from an FIA.

Variable Interest Accounts (VIA)Variable Interest Accounts include Index-Linked Accounts(ILA), Maritime Life Managed Linked Accounts (MLA)and Mackenzie Managed Linked Accounts (MMLA).

• A Variable Interest Account is an investment accountwhose value, depending on the performance of theunderlying portfolio, may increase or decrease.

• If the Bonus Option is selected, an investment bonuswill be credited as described in the Investment Bonussection.

• The 'valuation date' is the end of the business day onwhich we calculate the return of the appropriateaccount

• We reserve the right to add, replace, or remove any ofthe Variable Interest Accounts as described, andsubject to the limitations, in the Discontinuation ofInvestment Accounts section.

• The rate of return for a Variable Interest Account isdetermined based on the percentage change in theunderlying portfolio, since the last valuation date, lessthe Expense Rate. The percentage change for someforeign equity accounts are further adjusted by theCurrency Stabilization Factor described below.

• If the investment environment and insuranceregulations permit, we guarantee to maintain at leastone Index-Linked Account using the same formula asour current Canadian Equity, U.S. Equity andCanadian Bond Index-Linked Accounts including theguaranteed Expense Rate.

Investment Accounts (continued)

14

Index Linked Accounts (ILA)

Index-Linked Account Specified Index

Currency Stabilization

Factor

Expense Rate

Bonus Option No Bonus Option

Canadian Equity Standard & Poor's Toronto Stock Exchange (TSX)60 Index

N/a 3.00% 2.00%

Canadian Bond Scotia Capital Universe Bond Index N/a 3.00% 2.00%

U.S. Equity Standard and Poor's (S&P) 500 Composite Index(including dividends)

yes 3.00% 2.00%

U.S. Equity (Cdn. $) Standard and Poor's (S&P) 500 Composite Index(including dividends) expressed in Canadian dollars

no 3.00% 2.00%

U.S Technology (Cdn. $) Nasdaq 100 Composite Index (includingdividends) expressed in Canadian dollars

no 3.75% 2.75%

U.S. Small Cap (Cdn. $) Russell 2000 Composite Index (including dividends) expressed in Canadian dollars

no 3.75% 2.75%

Japanese Equity Nikkei 225 Index (including dividends) yes 3.75% 2.75%

European Equity Composite of the following indices (includingdividends), whose respective weightings varyfrom time to time:ATX (Austria), Bel-20 (Belgium), KFX 20(Denmark), FOX (Finland), CAC-40 (France), DAX30 (Germany), MIB-30(Italy), AEX (Netherlands),IBEX 35 (Spain), PSI (Portugal), OMX 30(Sweden), SMI (Switzerland), OBX (Norway) andthe FT-SE 100 (United Kingdom)

yes 4.00% 3.00%

International Equity Equity Composite of the following indices(including dividends), whose weightings varyfrom time to time: All Ords (Australia), ATX(Austria), Bel-20 (Belgium), KFX 20 (Denmark),FOX(Finland), CAC-40 (France), DAX 30(Germany), Hang Seng(Hong Kong), MIB-30(Italy), Nikkei 225 (Japan), AEX (Netherlands),OBX (Norway), IBEX 35 (Spain), PSI (Portugal),SIMEX (Singapore), OMX 30 (Sweden), SMI(Switzerland) and the FT-SE 100 (UnitedKingdom)

yes 4.00% 3.00%

Tactical Portfolio Composite change in the following Index-Linked Accounts, whose respective weightingsvary from time to time:Canadian Equity, U.S. Equity, Japanese Equity,International Equity, European Equity andCanadian Bond

per ILAAccount

per ILA AccountExpense Rate +

Additional 0.10%

per ILA AccountExpense Rate +

Additional 0.10%


Maritime Life Managed Linked Accounts (MLA)

Mackenzie Managed Linked Accounts (MMLA)

* The expense rates above are charged in addition to thecorresponding Mutual/Segregated Fund ManagementRatio (MER).

Universal Solutions is not issued, sponsored, sold or promoted

by Mackenzie Financial Corporation. Mackenzie Financial

Corporation does not make any representation or warranty,

expressed or implied whatsoever regarding the advisability of

selecting any Mackenzie Managed Linked Accounts, making any

investment or acquiring the contract. As such, Mackenzie

Financial Corporation does not have any association, liability or

responsibility with respect to the contract.

15


Maritime Life

Managed Linked

Account

Currency

Stabilization

Factor

Expense Rate*

BonusSelected

Bonus NotSelected

Maritime Life Growth No 1.00% 0.00%

Maritime Life AllAmerican Portfolio No 1.00% 0.00%

Maritime LifeInternational Equity No 1.00% 0.00%

Maritime Life Bond No 1.00% 0.00%

Maritime Life Balanced No 1.00% 0.00%

Mackenzie Managed

Linked Account

Currency

Stabilization

Factor

Expense Rate*

BonusSelected

Bonus NotSelected

Mackenzie UniversalSelect ManagersCanada

No 1.50% 0.50%

Mackenzie CundillValue No 1.50% 0.50%

Mackenzie UniversalUS Growth Leaders No 1.50% 0.50%

Mackenzie Ivy ForeignEquity No 1.50% 0.50%

16


Advisor Portfolios• Maritime Life Universal Solutions Advisor Portfolios

offer a premium and asset allocation strategy thatautomatically shifts the investment mix from higherrisk/return holdings to those with less risk/return asthe client ages.

• If there is more than one life insured on the policy,the age of the first insured named in the scheduledetermines the investment mix.

• The Advisor Portfolios are combinations of several ofthe investment accounts previously described.

• As the insured's attained age range changes, newdeposits are automatically directed to the appropriateinvestment profile.

• Existing account values are gradually re-balancedover a two-year period.

• We reserve the right to adjust the investment mix forany segment from time to time depending on generaleconomic conditions.

• Clients have the choice of three Advisor Portfoliomodules offering different risk and return profilesand can switch the Advisor Portfolio option once perpolicy year.

• The Advisor Portfolio is an automatic allocation of100% of the net premium.

• The Advisor Portfolios are not available for use in theCapital Mix. Clients can only have the ProportionateAccount Deduction Method with the Advisor Portfolios.

Currency Stabilization Factor• The currency stabilization factor applicable to certain

Index-Linked accounts will reduce the exposure toforeign currency by keeping the principal investmentin Canadian dollars.

• Currency risk represents the risk of change in thecurrency exchange rate between the time you buy aninvestment and the time you sell it.

• This adjustment can be negative or positive. • It depends on the relative difference between

Canadian and foreign return on the index applied tothe account value at the last valuation date, and alsoon the impact of the change in currency exchangerate applied to the return of the specified index,since the last valuation date.

Investment Income Tax (IIT) RateThe IIT reduction is included in the expense rate.

Death Benefit Guarantee• The Death Benefit Guarantee is in addition to the

basic death benefit guarantee on the policy.• This is a built-in feature of Maritime Life Universal

Solutions that is available with the Coverage Plus andMinimized Coverage Plus death benefit options only.

• We guarantee that the sum of the account value of allVariable Interest Accounts paid on each or last death isthe greater of the Fund Value or the guaranteed deathbenefit amount.

• The guaranteed death benefit amount is equal to thesum of the premium allocations and transfers fromDIA/FIA made to the Variable Interest Accounts, lessaccount deductions from any of the Variable InterestAccounts, less a proportional reduction for partialwithdrawals, transfers to DIA/FIA, disability paymentbenefits paid, and any account value already paid outas a result of a death benefit from any of the VariableInterest Accounts.

• The death benefit guarantee also applies to the CarrierFund, if a Variable Interest Account is selected.

Conservative AdvisorPortfolio

Investment Profile AttainedAge Range

Investment mix To Age 39

Age 40-49

Age 50-59

Age 60+

5 Year Fixed InterestAccount 20% 25% 30% 40%


Canadian Bond ILA 30% 25% 20% 20%

Canadian Equity ILA 30% 25% 20% 10%

Balanced Advisor Portfolio




U.S. Equity ILA 35% 30% 25% 20%

Aggressive Advisor Portfolio



U.S. Equity ILA 35% 30% 25% 20%

International Equity ILA 30% 30% 25% 20%


17

• The death benefit guarantee does not apply to theDaily Interest and Fixed Interest Accounts.

• Transfers between Variable Interest Accounts(withdrawals/deposits) do not change the guaranteeddeath benefit amount since the guarantee structure isat the policy level instead of the fund level.

• Transfers from DIA or FIA to Variable Interest Accountsare considered deposits, and transfers from the VariableInterest Accounts to a DIA or an FIA are consideredwithdrawals, for the purpose of calculating the deathbenefit guarantee.

• The Capital Adjustment is treated as a withdrawal ordeposit, in the calculation of the Death BenefitGuarantee, depending on whether the CapitalAdjustment is negative or positive respectively.

• The VIA Death Benefit Guarantee it is not availableon the Life Accumulator Concept.

Investment BonusFor all policies selecting an Investment Bonus (exceptthe Life Accumulator Concept). Once selected at issue,it cannot be changed.

When the Bonus is selected, an investment bonus iscredited, starting on the 5th policy anniversary andevery policy anniversary thereafter. The investmentbonus is comprised of a Guaranteed Bonus and aPremium Bonus. The investment bonus credited is equalto the Net Account Value multiplied by Guaranteed BonusPercentage plus any applicable Premium Bonus Percentage.

Guaranteed BonusClients are rewarded for their long-term commitmentwith an unconditional Guaranteed Bonus. Starting onthe 5th policy anniversary and every policy anniversarythereafter, the Guaranteed Bonus Percentages are:

Premium BonusIn addition to the Guaranteed Bonus, clients may qualify fora Premium Bonus depending on the total premium made totheir policy (referred to as Qualifying Ratio). On each policyanniversary, the Qualifying Ratio is calculated as:

Total Premiums (excluding riders & benefits) paid since issue — Total Partial Withdrawals

Total Minimum Premiums since issue (excluding riders & benefits)

The Premium Bonus Percentages are:

Premium Bonus GuaranteeAfter the 10th policy anniversary, we guarantee that thePremium Bonus Percentage applied will never decrease,even if premiums are reduced or not paid. For example,if you qualify for a Premium Bonus Percentage of 1%on the 10th Policy Anniversary, it will remain at 1% aslong as the policy is in effect.

If in year 10:• Total Premiums (excluding riders and benefits) paid

less partial withdrawals = $25,000• Total Minimum Premiums (excluding riders and

benefits) since issue = $10,000• The Qualifying Ratio for the Premium Bonus is

($25,000/$10,000) = 2.5• Guaranteed Bonus Percentage = 0.50% • Premium Bonus Percentage = 1%• Total Investment Bonus = Net Fund Value x 1.50%

(0.50% + 1%)

Policy Anniversary Guaranteed Bonus Percentage

5 - 9 0.25%

10+ 0.50%

Qualifying Ratio Premium Bonus Percentage

1.25 - 1.99 0.50%

2.00+ 1.00%

18

Life Accumulator Concept

For policies issued on the Life Accumulator Concept, aninvestment bonus is credited at the end of each policyanniversary, beginning with the first policy year. Theinvestment bonus credited to each investment accountis calculated as a percentage of the net account value asfollows:

Only the Bonus Selected option is available.

Transfers Between Investment Accounts• The policy owner may request in writing, at any

time, to transfer all or a portion of the funds in aninvestment account to another.

• Transfers received in our head office or in one of ourregional offices are processed within five business days.

• We do not charge an administration fee for the first12 transfers in any calendar year. We reserve theright to charge an administration fee of $30 pertransfer, for the 13th and subsequent transfers in anycalendar year.

• Transfers may be restricted if there is an outstandingpolicy loan balance.

• A Market Value Adjustment may apply to transfersfrom a Fixed Interest Account.

• Any transfers to or from an Advisor Portfolio mustinvolve the entire funds of the policy.

• No administration fee is charged for other transfersmade by us in accordance with policy provisions(e.g. Carrier Fund or Advisor Portfolio).

Stabilizer (Stabilization Rate) • The StabilizerTM is an innovative feature of Maritime

Life Universal Solutions, designed to reduce volatilityand enhance the overall performance of the policy,thereby providing an attractive solution to yourclient's investment and income needs.

• The cost of insurance type for each of the MaritimeLife Universal Solutions coverages must be YRTGuaranteed and the death benefit option isMinimized Coverage Plus.

• The policy owner can elect this feature at anytime(even from issue, when premiums are being paid),by notifying us in writing.

• The YRT Cost Switch option may not be exercisedwhile the Stabilizer feature is in effect.

• The Stabilizer stores the portion of the monthlyreturns in excess of 0.8% (excluding any investmentbonus) for use in months of lower returns.

• The excess returns for the month will be credited tothe Stabilizer.

• In addition to reducing the volatility often associatedwith equity investments, this process also facilitatesleveraging against Maritime Life Universal SolutionsVariable Interest Accounts.

• When this feature is elected it possible to borrow upto 75% of the cash value of Variable InterestAccounts (an increase of 25% over a policy notusing the Stabilizer).

• The Stabilizer has no cash value and if the policyowner surrenders or lapses the policy or the deathbenefit is paid, any rates stored for future use underthe Stabilizer are lost.

Discontinuation of Investment Accounts• We reserve the right to discontinue at any time, any

Investment Account or Advisor Portfolio, except theDaily Interest Account, the Fixed Interest Accounts,and the Portfolio and T-Bill Options used for theCapital Mix selection.

• We also provide a conditional guarantee that if theinvestment environment and insurance regulationspermit, we will maintain at least one investmentaccount that links your investment return to each ofthe Canadian Equity, Canadian Bond and U.S. Equitymarkets, although the specific index may change. The investment return of these three accounts willbe calculated using the same formula as theCanadian Equity, Canadian Bond and U.S. EquityIndex-linked accounts described above, including theguaranteed expense rate, although the specifiedindex may change.


Variable Interest Account DIAs and FIAs

1.50% 1.25%

Premium Frequency• Annual• Monthly - PAC, List bill

(no List bill or affinity group discounts)

Deposits for Life Accumulator Concept only• The minimum scheduled premium is $5,000 per year• Premiums are payable within the first 20 years only• A maximum of 20 initial annual premiums can be paid• Premiums in years 2 to 20 cannot exceed the first

year's premium• The minimum total lifetime deposit is three times the

initial annual premium• Alternatively, we offer a Single Pay option using a

special version MLIA to deposit premium over 3 or 5year period into the Life Accumulator Concept

• There is no cost to the policy owner for deposits toand withdrawals from the MLIA policy, howeverMVA’s may apply

• All MLIA investment options are available for theSingle Pay option

Billed Premium• You and your client choose a premium level (to be

paid monthly or annually) and the duration ofpremium payments best suited to your client (subjectto minimum guidelines).

• The premium flexibility allows you to design limited-pay or traditional life-pay plans.

• The policy owner can increase or decrease theirpremiums at any time subject to the MinimumPremium and Maximum Premium described below.

• Policy owners have the freedom to make additionaldeposits at any time.

• This will build the investment accounts and maycreate greater tax-deferred interest earnings.

• The policy owner can elect to take a premiumholiday without penalty, as long as the current cashvalue of the policy is sufficient to prevent the policyfrom lapsing.

Premium Tax• Provincial premium tax is deducted from each

premium deposited to the policy. • The Premium tax rate varies by the province of

current residence of the client and is automaticallycalculated by the illustration software.

• The percentage deducted for premium tax mayincrease if the provincial premium tax increases, or ifthe client takes up residence in another province thathas a higher tax rate.

• If the premium tax rate reduces, or if the clientmoves to a province with a lower tax rate, we willlower the premium tax deducted.

Premium Allocation • The client selects the percentage of premiums to be

deposited in up to ten investment accounts on thepolicy.

• There is no minimum allocation to any investmentaccount.

• The Premium Allocation can be changed at any timewithout a charge.

• Alternatively, the Advisor Portfolio may be chosen.This is an automatic premium allocation of 100% ofthe premium to a preset mix of investment accounts.

Minimum Premium• The annual minimum premium for each Maritime

Life Universal Solutions policy is based on rates per$1,000 of Sum Insured.

• The rates vary by issue age, gender, smoker status,underwriting class, rate band and COI scale.

• The minimum premium varies by the policyowner’sprovince of residence.

• For all COI scales other than the Life AccumulatorConcept: The minimum scheduled (billed) premiummust be equal to or greater than the minimumpremium.

• Life Accumulator Concept: The minimum scheduled(billed) premium is $5,000 per year, or $416.67 permonth.

19

Policy Provisions

Maximum Premium• The Income Tax Act of Canada limits the amount of

funding level a policy can have or is expected tohave, based on the amount of insurance coverageand the level of premium payments.

• Our illustration software can calculate the maximumpremium based on specific assumptions of eachscenario (varies every year).

Account Deduction Methods (ADM)• Maritime Life Universal Solutions incurs monthly

deductions, based on charges for the cost ofinsurance, costs for riders and substandard extras,and the administration fee. Market ValueAdjustments will not apply to monthly deductionsfrom any Fixed Interest Account (FIA).

• The client has the choice of two account deductionmethods:1. Proportionate - monthly charges are deducted

proportionately from the account values of eachof the investment accounts associated with thepolicy.

2. Specified - recognizes that there are two purposesbehind your client's premium payments:(a) to cover insurance charges each month and (b) to build long-term value within the policy. Normally, the specified account is either theDaily Interest Account or a FIA to ensure thatfunds are available to cover insurance charges.The balance of the premium deposit may beallocated to an appropriate investment mix forlong-term growth. The policy owner can specifyany one of the investment accounts as theaccount from which all monthly charges arededucted. If the account value of the specifiedaccount is insufficient to cover the monthlydeduction, the method will automatically bechanged to "Proportionate" and we will notifythe policy owner.

The account deduction method (Proportionate orSpecified) or the specified investment account maybe changed once per year on request at no charge.This method is not available with any of theAdvisor Portfolios.

YRT Cost Switch• From policy year 6 but not beyond age 80, the YRT

Guaranteed COI scale offers an opportunity to switchto Level Guaranteed COI rates, based on the attainedinsurance age at the time of the change.

• The Level Guaranteed COI rates for the switch arethose in effect at the Benefit Effective date for thefirst $5,000,000 of coverage.

• This request for change will take effect on thecurrent monthly anniversary date.

• Once this option has been selected, the policy ownermay not reverse the YRT Cost Switch.

• A switch to the Level Guaranteed COI with CapitalAdjustment and to Level Guaranteed COI withCoverage Enhancer is not allowed.

• The YRT Cost Switch is not available with the LifeAccumulator Concept.

Policy ChangesTerm ConversionsSee Appendix B for a quick reference chart on termconversions

• Any eligible Term insurance coverage issued by uscan be converted within its conversion period toMaritime Life Universal Solutions, without evidenceof insurability.

Smoker to Nonsmoker• A life insured, who has not used any tobacco

product within the past 12 months, including anynicotine products or substitutes, marijuana or hashmay apply for non-smoker rates by providingsatisfactory evidence of good health and non-smoking status.

Adding Insureds• Additional lives may be added after issue subject to

satisfactory evidence of insurability. • The rates will be based on their attained insurance

age and the COI rate scale in effect at that time. • No more than six lives in total may be covered on

one policy.

20

Policy Provisions (continued)

Coverage Flexibility• Additional Maritime Life Universal Solutions (UL)

coverage may be added on an existing life insuredafter issue, subject to satisfactory evidence ofinsurability.

• The COI rate will be based on the insured's attainedinsurance age and the COI rate scale in effect at thetime of change.

• The insured's total sum insured for each of theuniversal life coverages on the policy, will determinethe new rate band for those coverages. (e.g. If an insured had $250,000 of UL coverage andis currently adding $300,000 of UL coverage, then thecost of insurance rates for the $500,000+ rate band,will apply to both UL coverages.)

• The policy owner may decrease the Maritime LifeUniversal Solutions coverage at any time. Thecoverage may not be decreased below the MinimumSum Insured.

Changes to Death Benefit Options• The policy owner can change the death benefit

option at any time, subject to restrictions noted inthe Death Benefit Option section.

• Evidence of insurability will be required if thechange results in an immediate or future increase inthe basic death benefit.

Transfer of Coverage• Any Maritime Life Universal Solutions coverage on

an individual under a MultiLife policy can betransferred to a separate policy of the same type forup to its coverage amount, without evidence ofinsurability.

• A fee will be charged for this change. • We will also transfer a proportional amount of the

fund value to the new policy, unless we are directedotherwise. This amount is based on the proportion ofannual minimum premium for the coverage transferredto the total minimum premium of the existing policy.

• The original insurance age will be used to determinethe applicable premium.

Substitute Life Provision• As insurance needs change, a new insured maybe

substituted for an existing insured on a single,multiple or joint life policy, with underwriting,

providing the new insured was born prior to thepolicy issue date.

• Change is based on attained age, rate scale in effectand subject to our rules and regulations at that time.

• Capital Adjustment factors for the new life insuredare based on the attained age. The policy durationremains unchanged.

Maintaining Exempt Status• Exempt testing is required on each policy

anniversary to ensure that the funding level does notexceed the allowable limits.

• If a policy is in danger of becoming non-exempt, wewill first increase the sum insured up to a maximumof 8% per year (called Additional Sum Insured), thentransfer the refund of any excess premiums paidduring the year and any excess funds to the CarrierFund.

• We will review the Additional Sum Insured at the nextpolicy anniversary, when the next exempt test is done.

• The investment income of the Carrier Fund is subjectto annual accrual taxation.

• Competitive YRT cost of insurance rates will apply toany Additional Sum Insured.

Carrier Fund• The Carrier Fund is a special premium deposit

account that holds funds in excess of the maximumallowable tax-exempt premium.

• We will also credit to the Carrier Fund, anypremiums that exceed the maximum premiumdetermined by us during the year.

• Account Deductions will not be made from theCarrier Fund.

• Premium tax will not be deducted from deposits to theCarrier Fund until they are transferred into the policy.

• The policy owner can select any one of the investmentaccounts for the Carrier Fund basis. If no account isselected, the Daily Interest Account will be used.

• The investment account selected for the Carrier fundwill be subject to the guarantee that applies to thatinvestment account within the policy, including anyinvestment bonus (if Bonus is selected) and theDeath Benefit Guarantee.

• The policy owner can select a different investmentaccount up to two times per year at no charge (acharge will apply thereafter).

21


• The value of the Carrier Fund will not be included inthe calculation of the fund value.

• The value of the Carried Fund will not be includedin the qualifying ratio for the investment bonus.

• We will pay the value of the Carrier Fund to thepolicy owner or the policy owner's estate when thecontract terminates.

• The investment income of the Carrier Fund is subjectto annual accrual taxation.

• Transfers made to or from the Carrier Fund to keepthe maximum amount in the tax-exempt investmentaccounts are not subject to transfer fees.

• Transfers to the Carrier Fund are withdrawn from theinvestment accounts within the policy in proportionto their account values.

• Any change, transfer or partial withdrawal from aFixed Interest Account basis may be subject to aMarket Value Adjustment.

Partial Withdrawal• A policy owner may request a partial withdrawal

from the cash value at any time, subject to aminimum withdrawal of $500.

• Written requests for partial withdrawals received inour head office or in one of our regional offices areprocessed within five business days.

• Except for the Advisor Fund, the policy owner mustspecify the investment account(s) from which the fundsare withdrawn. Otherwise, we will make withdrawals inproportion to the current account values.

• A withdrawal will first be made from the CarrierFund, if there are available funds.

• Withdrawals from any Fixed Interest Account may besubject to a Market Value Adjustment.

• If the death benefit option is Coverage Plus orMinimized Coverage Plus, no partial surrendercharge applies.

• If the death benefit option is other than CoveragePlus or Minimized Coverage Plus, a partialwithdrawal will cause the Sum Insured and/orAdditional Sum Insured to be reduced by the amountof the funds withdrawn and a partial surrendercharge may apply (see Partial Surrender).

• Any partial withdrawal from the fund value will betreated as a disposition under the Income Tax Actand may trigger a taxable gain.

Policy Surrender• A policy may be cancelled for its cash value, which

is equal to the fund value, less any surrender charge,less any outstanding loans, less any Market ValueAdjustment.

Surrender Charge• The policy owner can terminate the policy for its

cash value at any time. • The cash value is equal to the fund value less the

surrender charge, less the outstanding policy loanbalance and less any applicable Market ValueAdjustment.

• A Surrender Charge applies when a policy ownersurrenders or partially surrenders an universal lifecoverage, within the surrender charge period.

• The surrender charge is based on the coverageduration of the universal life coverage.

For all universal life coverages except the LifeAccumulator Concept• The Surrender Charge is equal to a multiple (called

the "Surrender Factor") of the minimum premiumfor each of the universal life coverages.

• Each universal life coverage added after issue, willhave its own surrender charge period starting on itsbenefit effective date.

• The Surrender Factors for all Maritime Life UniversalSolutions coverages, except The Life AccumulatorConcept are as follows:

Coverage Year Surrender Factor

1 - 8 200%

9 100%

10+ 0%

For the Life Accumulator Concept only, the surrendercharge is equal to a multiple of the initial annual premium as follows:

Coverage Surrender Coverage Surrender

Year Factor Year Factor

1 10% 7 4%

2 9% 8 3%

3 8% 9 2%

4 7% 10 1%

5 6% 11+ 0%

6 5%

22


Partial Surrender• A request for reduction in Sum Insured, or removal

of coverage on an insured will be treated as a partialsurrender and a partial surrender charge may apply(includes Sum Insured reductions resulting from aPartial Withdrawal or Disability Payment Benefit).

• The partial surrender charge is equal to thesurrender factor for the applicable policy yearmultiplied by the decrease in the Maritime LifeUniversal Solutions Minimum Premium.For example, the original coverage amount was$100,000 with a Maritime Life Universal SolutionsMinimum Premium of $1250. The coverage is reducedin year 5 to $50,000 and the new Minimum Premiumis $700. The policy owner will be charged $1,100 = [200% x ($1250 - $700)].

• The partial surrender charge does not apply toautomatic reductions under the Minimized CoveragePlus death benefit option.

• The surrender charge will be deducted from theaccount values in proportion to their current values.

Policy Loans• A Policy Loan is available against the cash value of

the policy. • The maximum policy loan is 90% of the portion of

the cash value attributable to the Daily InterestAccount and Fixed Interest Accounts plus 50% of theportion of the cash value attributable to the VariableInterest Accounts (if the StabilizerTM is elected, thepercentage is 75% instead of 50%), less aproportionate surrender charge. There is a furtherrestriction to the maximum loan available, if the COItype is Level Guaranteed with Capital Adjustment.

• The maximum loan value is reduced by theproportion of the Capital Mix allocated to the T-BillOption and Variable Interest Accounts (i.e. if theproportion of T-Bill Option and Variable InterestAccounts in the Capital Mix is 100%, then themaximum loan available is zero).

• The minimum loan amount issued at any time is $500. • The interest rate charged on policy loans will be

determined by us and may change from time to time,but will not be greater than our main bank's primerate plus 2% per annum.

• The rate in effect at each policy anniversary willapply for the following year.

• A policy loan repayment may be made at any time.

Policy LapseThe policy will terminate without value after a graceperiod of 120 days following the lapse start date. Thelapse start date is set whenever:1. the Net Fund Value becomes less than zero. This

condition will not apply if it is due solely to anegative Capital Adjustment, OR

2. the Cash Value is less than zero and the sum of allpremiums paid less Partial Withdrawals since thelast policy anniversary becomes less than the sum of the Total Monthly Premiums due since the lastpolicy anniversary.

• The policy will continue in force during the grace periodand monthly deductions will continue to be deductedfrom the Account Values.

• If sufficient premium is paid during the grace periodthe coverage will remain in force.

• If a life insured dies during the grace period, theamount payable will be reduced by the amount bywhich the Cash Value is less than zero.

Reinstatement• The policy may be reinstated within two years from

the date of lapse, subject to satisfactory evidence ofgood health and insurability, for all lives insured.

• In addition, we require payment of a lump sumequal to the sum of the monthly deductions plusoverdue interest and premium tax, for the lapsedperiod (from the lapse start date to the current date).

Disability Payment BenefitThis is a built in feature of Maritime Life UniversalSolutions. At anytime the insured becomes disabled,subject to a 30 day waiting period, the cash value ofthis policy, less the next Monthly Deduction, may bepaid to the policy owner.• This benefit may be claimed once per occurrence of

disability.• For the purposes of this benefit only, disability

means that the insured is either:(i) occupationally disabled; or (ii) afflicted with acritical disability

• "Occupationally disabled" means that, as a result ofsickness or injury, the Insured satisfies one of thefollowing conditions:a) the Insured is unable to perform the substantial

duties of his or her regular occupation, and is notengaged in any gainful occupation;

23


b) the Insured is employed in a gainful occupation,but he or she has experienced at least a 50% lossof income compared to the earned income from his or her regular occupation;

c) the Insured is employed in his or her regularoccupation, but is unable to perform one or moresubstantial duties of that occupation; or

d) the Insured is employed in his or her regularoccupation, but is unable to perform thatoccupation for at least one-half the amount oftime usually spent at that occupation. To beconsidered occupationally disabled, the Insuredmust be under the regular care and attendance ofa physician.

• "Critical disability" means one of the following:a) a condition which markedly restricts, all or

substantially all of the time, the Insured's abilityto perform any of the activities of daily living,even with therapy and the use of appropriatedevices or medication. Activities of daily livinginclude perceiving, thinking, remembering,feeding or dressing oneself, speaking or hearingin a quiet setting with one other familiar person,so as to be under-stood or understand, normalbodily functions including walking.

b) a condition that has been diagnosed as terminalby a physician, where the prognosis for living isless than 24 months; or

• a condition, which results in the total andpermanent loss of any of the following:a) sight in both eyes,b) hearing in both ears,c) speech, ord) the use of both hands, or both feet, or one

hand and one foot.

• "Regular occupation" means the gainful occupationor occupations in which the Insured was regularlyengaged prior to the onset of sickness or injury. Ifthe Insured was not regularly employed prior to theonset of sickness or injury, he or she will not beconsidered occupationally disabled.

• We require written notification and supportingdocumentation satisfactory to us of the disability. Wereserve the right to request an independent medicalopinion.

• The Account Value of each Investment Account willbe proportionately reduced by the amount of theDisability Payment Benefit.

• A Market Value Adjustment may apply to amounts inany Fixed Interest Account.

• If the death benefit option is other than CoveragePlus or Minimized Coverage Plus, the DisabilityPayment Benefit will result in a correspondingreduction in the Sum Insured and/or Additional SumInsured. Any resultant reduction of Sum Insured willbe treated as a partial surrender.

• If the death benefit option is Minimized CoveragePlus, after the Disability Payment Benefit isprocessed we will not make any further adjustmentsto the Sum Insured until the policy owner notifies usthat premium payments will no longer continue tobe made.

Advanced Death Benefit• This non-contractual feature provides for an

advancement of the death benefit, if the insured issuffering from a terminal illness and has a lifeexpectancy of less than one year.

• We will loan an amount up to 50% of the suminsured (less any existing loan) up to a maximum of$50,000. This is currently offered as an interest freeloan.

• The death benefit will be reduced by the loanamount.

24


Term 10 and Term 20 RidersTerm Riders provide low cost temporary protection andare renewable to age 85 and convertible to age 70. Bothterm riders are also available on individual lives under theJoint Life and MultiLife policies. Both riders are eligible for Preferred Underwriting classifications (seeUnderwriting Classes). The total coverage of theMaritime Life Universal Solutions base coverage and Termriders (on an insured on the same policy) will be used todetermine the qualification for underwriting class.

Issue Ages: (Based on age nearest birthday)Term 10: 18 - 70Term 20: 18 - 65

Rate Bands for Term 10 and Term 20 Riders$ 50,000 - $ 499,999$500,000 - $1,499,999$1,500,000 +

Conversion:

• These riders may be converted without evidence ofinsurability prior to the policy anniversary nearestage 70, to any eligible permanent insurance coveragefor up to the same sum insured but not less than theminimum coverage amount.

• The insured's attained age, an equivalentunderwriting class and current rates in effect on thedate of the conversion will be used.

• If conversion occurs within five years of the benefitdate, the client may instead elect an original ageconversion.

• The premiums for the new benefit would then bebased on the insured's original age on the benefit date. The policy owner must pay the difference inpremiums for the new benefit compared to the Termbenefit, multiplied by the length of time between theTerm benefit date and the effective date of theconversion.

Continuation of Coverage Option

• Within 30 days of the termination of the MaritimeLife Universal Solutions policy due to a death claim,we offer an option for continuation of coverage, ifthe person covered under this term rider is stillliving.

• Coverage will continue as a standalone term policyto age 85 with the same issue date

• The sum insured of the standalone policy will be thesame as on the term rider

• The rates and policy fee for the new term policy areequal to that of an equivalent standalone term policywith the same issue date at the original rate scale.

• Policy owners taking advantage of the continuationof coverage option may exercise their conversionprivilege to any eligible permanent plan, prior to theterm conversion expiry date.

Joint Term 10• If the base (Maritime Life Universal Solutions)

coverage is joint, a Joint Term 10 rider can beselected on the same insureds. The Joint Term 10rider must have the same coverage type as the baseplan (first-to-die or last-to-die), however the SingleLife Age (SLA) may be different.

• Currently not available on a preferred underwritingbasis.

• The Joint Term 10 rider will use the rates in effect forthe Convertible T10. The issue age range availableto joint first-to-die is 18 to 65 (based on age nearestbirthday).

Conversion:

• This rider may be converted without evidence ofinsurability prior to the policy anniversary nearestage 70, to any eligible permanent joint life insuranceplan for up to the same sum insured.

• Conversion is subject to our rules in effect on thedate of conversion.

• The single life age of the joint insureds, based ontheir attained ages and their smoker status andcurrent rates in effect on the date of conversionapplies. Original Age conversion is not available onthe Joint Term 10 rider.

Additional Life Term Rider• The policy owner may also add the Term 10 and

Term 20 (renewable to age 85 and convertible to age70) riders on an additional life insured who is notpresently insured on the policy (see Term 10 andTerm 20 for details), subject to underwriting.

• Preferred underwriting is available on the Term 10and Term 20 riders.

25

Optional Riders and Benefit

Accidental Death Benefit (ADB)• ADB added at or after issue, subject to underwriting

approval, is available on an individual basis. • This rider provides for an additional amount to be

paid if the insured's death results from accidentalbodily injury suffered prior to the policy anniversarynearest age 70.

• The loss must occur within one year of the injury,while the rider is in effect.

• It contains a provision that doubles the amount ofAccident Benefit payable if death is caused by anaccident while the insured was a fare-payingpassenger on a public means of transportation.

• The cost of this benefit is based on our AccidentalDeath Benefit rates. Coverage ends at the policyanniversary nearest age 70 of the life insured.

• Each life insured can have either ABD or AD&D.• Issue ages 15 - 55 (based on age nearest birthday)• Minimum Coverage: $25,000• Maximum Coverage: Lesser of sum insured or

$400,000• Insureds with Joint Life coverage may apply for

separate single life ADB coverage.

Accidental Death & Dismemberment (AD&D)• AD&D can be added at or after issue, subject to

underwriting approval, on an individual basis. • This rider pays an additional amount of insurance if

the insured's death results from accidental bodilyinjury suffered prior to the policy anniversary nearestage 65.

• The loss must occur within one year of the injury,while the rider is in effect. In addition, it pays thefollowing amounts for other accidental losses:• For loss of life caused by an accident while the

insured was a fare-paying passenger on a publicmeans of transportation, the benefit amount paidunder this rider doubles.

• For loss of hands or feet or the sight of both eyes;or the loss of one hand and one foot; or the lossof either hand or foot and the sight of one eye;100% of the benefit amount of the rider is paid.

• For loss of either hand or foot or the loss of sightof one eye, 50% of the benefit amount of therider is paid.

• For loss of thumb or index finger, 25% of thebenefit amount of the rider is paid.

• Coverage ends at the policy anniversary nearest theinsured's age 65.

• Each life insured can have either ABD or AD&D.• Issue ages 15 - 55 (based on age nearest birthday)• Minimum Coverage: $25,000• Maximum Coverage: Lesser of sum insured or $400,000• Insureds with Joint Life coverage may apply for

separate single life AD&D coverage.

Children's Protection Rider (CPR)• This rider added at or after issue, subject to

underwriting approval, is available for any numberof children (natural born, step-child or legallyadopted), who are at least 15 days old and less thanage 19 (age nearest birthday).

• It offers low cost term coverage with a conversionoption of up to 10 times the initial coverage amountwith full or partial amounts taken at any of theoption dates (on each child).

• Option dates are at ages 21,23,25 or marriage prior toage 25. Each child may exchange their CPR coverageon an attained age basis, without evidence ofinsurability, for any eligible plan available at the timeof exchange, subject to policy minimums andequivalent underwriting class.

• Minimum Face Amount: $5,000• Maximum Face Amount: $30,000• Premiums are payable for a maximum of 20 years. • The coverage on each child expires at the policy

anniversary nearest the child's 25th birthday.

Joint Legacy Protection Rider (JLP)• This rider provides the flexibility to adapt an existing

coverage as insurance needs change. • The original need may be to insure a single life, or

for coverage on first death (Joint First-to-Diepolicies). Over the life of the policy, the need canswitch to coverage on last death.

• With this benefit, policy owners can elect Joint Last-to-die (JLTD) coverage at any time after 5 years fromissue and prior to the policy anniversary nearest age69, without further underwriting.

• The rider is available at issue, at which point bothlives are underwritten.

• Issue age range 30 to 63 (based on age nearestbirthday)

26

Optional Riders and Benefit (continued)

• The cost of insurance rates for the JLTD coveragewill be based on the Single Life Age (SLA) calculatedat the time of election, using the initial issue agesand the number of years elapsed since the policyissue date.

Guaranteed Insurability Option Rider (GIO)This rider features a cost effective future insurabilityoption for your clients and is particularly useful in thefollowing situations:

a) parents purchasing coverage on children with theability to significantly increase thecoverage, when the child reaches the age of 21 orgets married at a younger age

b) providing coverage to small business owners whoanticipate significant growth in profits andbusiness values over a short period of time

• Issue Ages 0 to 37 (based on age nearest birthday)• Minimum GIO Coverage: $25,000• Maximum GIO Coverage: Lesser of (10 times the

Maritime Life Universal Solutions base coverage and$500,000) minus the Maritime Life UniversalSolutions coverage.

Option Date

• This rider allows the policy owner to make onepurchase of additional Maritime Life UniversalSolutions coverage, without underwriting.

• The first option date occurs at the later of age 21 orthree years from the coverage issue date.

• Other option dates are offered at three-year intervalsfrom the first option date.

• There is also a special option date at marriageoccurring after the 18th birthday and before theexpiry of the GIO rider.

• The COI rates for the new coverage will be theattained age COI rates in effect at the option date.

GIO Expiry Date

• The GIO rider expires at the last option date (whichwill occur at either age 38, 39 or 40), or at theelection of the option.

Refund of GIO Premium

• We will refund all GIO premiums paid to datewithout interest, if the insured dies prior toexercising the purchase option, and before the GIOexpiry date.

GIO Premium Credit

• The amount of coverage purchased on the GIOoption date determines the amount of premiumcredit that applies.

• If the purchase option is exercised at the firstscheduled option date, the premium credit is equalto 50% of the GIO premiums paid to date (withoutinterest).

• If the option is exercised at the second scheduledoption date, the premium credit is equal to 25% ofthe GIO premiums paid to date (without interest).

• If the option is exercised at marriage (after age 18)between the first and second scheduled option dates,a pro-rata premium credit applies.

• The GIO Premium credit to the new Maritime LifeUniversal Solutions coverage will not be greater thanthe total first year cost of insurance for the newcoverage.

Disability Waiver of Specified Premium (DWSP)• Issue ages: 15 to 55 (based on age nearest birthday) • This benefit can be added at or after issue, subject to

underwriting approval. • The policy owner can select any Benefit Amount

between the total minimum premium and two timesthe billed premium, for the policy.

• In the event of total disability prior to age 60*, we willdeposit the Benefit Amount to the policy during theuninterrupted continuance of the disability, for life.

• If the disability occurs between the policyanniversaries, nearest the 60th and 65th birthdays,we make deposits, during the uninterruptedcontinuance of the disability, until age 65. Thebenefit will then expire.

• The insured must be totally disabled for 6consecutive months to be eligible for this benefit.

• The benefit frequency will depend on the premiumfrequency of the policy (i.e. for monthly PAC/ACSpolicies a benefit amount equal to one twelfth of thebenefit amount will be deposited each month).

• During the first two years, Total Disability meansthat due to sickness or injury, the insured is unableto perform the substantial duties of the regularoccupation.

• After 2 years, Total Disability means that the insuredis unable to engage in any occupation for which theinsured is or may reasonably become qualified.

* see contract

27


Payor Waiver of Specified Premium (PWSP)• Issue ages: 15 to 55 (based on age nearest birthday)• This benefit added at or after issue, is subject to

underwriting approval and replaces the DisabilityWaiver of Specified Premium when the payor issomeone other than the life insured.

• This coverage is of particular benefit when onefamily member is paying the premium for another(such as a parent for child, husband for wife).

• The policy owner can select any Benefit Amountbetween the total minimum premium and two timesthe billed premium, for the policy.

• In the event of total disability of the payor, while thisrider is in effect, we will deposit the Benefit Amountto the policy during the uninterrupted continuance ofthe disability, but not beyond the payor's attainedinsurance age 65*.

• The payor must be totally disabled for 6 consecutivemonths to be eligible for this benefit.

• If the payor dies while this rider is in effect, we willdeposit the benefit amount to the policy, but notbeyond the date on which the payor would haveattained age 65.

• The benefit frequency will depend on the premiumfrequency of the policy (i.e. for monthly PAC/ACSpolicies a benefit amount equal to one twelfth of thebenefit amount will be deposited each month).

• During the first two years, Total Disability meansthat due to sickness or injury, the insured is unableto perform the substantial duties of the regularoccupation.

• After 2 years, Total Disability means that the insuredis unable to engage in any occupation for which theinsured is or may reasonably become qualified.

• This rider terminates on the policy anniversarynearest the insured's 65th birthday.

* see contract

28


Compliance Checklist• Pursuant to the life insurance licensing regulations, a

Compliance Checklist is enclosed in the software forMaritime Life Universal Solutions.

• At this time, the return of the form to Maritime Lifeis mandatory only if your provincial licensing boardrequires it.

• It can be an effective tool to use with your clients,even if it is not mandatory, as it ensures your clientis aware of what he/she is purchasing.

Signed Illustrations• Customer signatures are now a policy requirement

for Maritime Life Universal Solutions to conform tolegislation and industry guidelines.

• Signatures of both the policy owner and financialadvisor are required on the illustration's customersignature page in the space provided.

29

Compliance Initiatives

COI Scales by Coverage Type and Death Benefit Option

This quick reference chart shows the options that are available for Maritime Life Universal Solutions.• The Life Accumulator Concept (LA) is only available with YRT Guaranteed COI scale, Minimized Coverage Plus

DBO, and Single, Joint First-to-Die and Joint Last-to-Die coverage types.• The Level Guaranteed COI with Capital Adjustment cannot co-exist with other COI scales on the same policy.• Level Guaranteed with Coverage Enhancer is only available with Coverage Plus death benefit option

30

Appendix A

CoverageTypes/Death

Benefit Options Single Life Multi-Life Joint Last-to-Die

Joint Last-to-Diewith COI waived

on First Death Joint First-to-Die

Level Coverage YRT Level OR

Level with CA

N/A YRT LevelOR

Level with CA

YRTLevelOR

Level with CA

YRTLevelOR

Level with CA

Coverage Plus YRTLevel

Level with CEOR

Level with CA

YRTLevel

Level with CEOR

Level with CA

YRTLevelOR

Level with CA

YRTLevelOR

Level with CA

YRTLevelOR

Level with CA

MinimizedCoverage Plus

YRT (LA)YRT

LevelOR

Level with CA

YRTLevelOR

Level with CA

YRT (LA)YRT

LevelOR

Level with CA

YRTLevelOR

Level with CA

YRT (LA)YRT

LevelOR

Level with CA

Coverage withReturn ofPremium

YRTLevelOR

Level with CA

N/A YRTLevelOR

Level with CA

N/A YRTLevelOR

Level with CA

Indexed Coverage YRTLevelOR

Level with CA

N/A YRTLevelOR

Level with CA

N/A YRTLevelOR

Level with CA

Coverage withAdjusted CostBasis

YRTLevelOR

Level with CA

N/A YRTLevelOR

Level with CA

N/A YRTLevelOR

Level with CA

Level with CA: Level Guaranteed COI with Capital Adjustment

Level with CE: Level Guaranteed COI with Coverage Enhancer

LA: Life Accumulator Concept

31

Term Conversions to Maritime Life Universal Solutions

The following quick reference chart will aid you in completing term conversions to Maritime Life UniversalSolutions.

For inforce term products with no preferred underwriting classifications, conversions will be made to Standard Non-smoker or Standard Smoker rates as applicable.

Appendix B

From Term Products with PreferredUnderwriting Classifications To Maritime Life Universal Solutions

Maritime Preferred PlusPreferred Non-smokerPreferred SmokerStandard Non-smokerStandard Smoker

Preferred PlusPreferred Non-smokerPreferred SmokerStandard Non-smokerStandard Smoker

Former Financial Life Class IClass IIClass IIISmoker

Preferred PlusPreferredStandardStandard Smoker

Former Royal & Sun Alliance Class 1Class 2Class 3Class 4Class 5Class 6

Preferred PlusPreferred PlusPreferredStandardPreferred SmokerStandard Smoker

The coverage provided by Maritime Life UniversalSolutions is conditional upon payment of sufficient pre-mium to prevent the policy from lapsing.

Premiums are payable at our head office, at one of ourregional offices or by monthly pre-authorizedwithdrawals via any Canadian chartered bank.

Premium Tax is the cost of the government's tax onpremiums.

Net Premium is the premium paid less the premiumtax.

Premium Allocation is the portion (expressed as apercentage) of a net premium directed towards aparticular investment account.

Account Value is the value in an investment accounttaking into consideration all increases and decreases tothe account.

Net Account Value is the value of an investmentaccount less the proportionate policy loan balance. Anaccount proportion is its account value divided by thefund value.

Fund Value is the sum of all the account values.

Net Fund Value is the fund value less the outstandingbalance of all policy loans.

Surrender Charge is used to calculate the cash value.It is charged when a policy is cancelled or if a partialsurrender is made. It is used in the calculation of thelapse start date.

Cash Value is the fund value less the surrender charge,less the outstanding balance of all policy loans and lessany applicable MVA.

Basic Death Benefit The Basic Death Benefit is the amount of insurancecoverage provided by a benefit. It depends on the SumInsured and the Death Benefit Option chosen by thepolicy owner.

Sum Insured The Sum Insured for each benefit is the amount ofinsurance upon which the Basic Death Benefit is based.For example, if the Death Benefit Option is “MinimizedCoverage Plus”, the Sum Insured may change (see theLife Insurance Provisions of the contract).

Additional Sum Insured Additional Sum Insured refers to any increase in theamount of life insurance coverage that is made as aresult of the Exempt Status provision or if the DeathBenefit Option is either “Coverage with ROP”, “IndexedCoverage” or “Coverage with ACB”. The amount, if any,is recalculated periodically (see the Life InsuranceProvisions of the contract)

32

Glossary of Terms

E4700 (02/2004)

The Maritime Life Assurance Company

Head Office7 Maritime PlacePO Box 1030Halifax NS B3J 2X5

HalifaxMontréalTorontoKitchenerCalgaryVancouver

Visit our InfoCentre at www.maritimelife.ca/advisor

TM - Universal Solutions is a trademark of the Maritime Life Assurance Company.Maritime Life is a Registered trademark of the Maritime Life Assurance Company.

Documents

Universal Solutions Marketing Guide - Manulife · 2020-04-09 · Account Deduction Methods (ADM) 20 YRT Cost Switch 20 Term Conversions 20 Smoker to Non-Smoker 20 Adding Insureds