The year at a glance

Term Insurance

Increased compensation in AprilMarket Leading

Premiums Smoking Definition Smoker Incentive Program – Cheque

to Client option Conversion credit

Increased compensation in September

Equation Generation III

Launched in May 2003 Added 5 new Performance Fund Interest Options Reduced YRT COI Increased Level COI Increased YRT and YRT to 85 Comp Increased maximum premium for compensation and

increased the comp to 10% between minimum and maximum

Added more Calibrator flexibility Increased exempt room on Joint Last-to Die policies

(with youngest life instead of equivalent single age) Added Joint-Last-to-Die Account Value Payout on First

Death

EquiLiving

Effective September 2003: Increased first year compensation for all three plan

types to 45% Renewal commission set at 2% for the life of the

plan Return of Premium on Expiry rider made “reinstate-

able” along with the EquiLiving policy within one year of lapse

If Change Privilege elected on a 10 Year Renewable to Age 75 plan with a Return of Premium on Expiry rider, changed Level to Age 75 plan will now automatically include the Return of Premium on Expiry rider

Removed the “pre-existing conditions” clause in June

CI Training Program

Comprehensive introduction to the CI marketplace

Modular Design (2 days)Available from your MGA end of

the 1st quarter 2004

How to make more money during the

RRSP season!

Insure your RRSP with EquiLiving Critical Illness Insurance

WILL YOUR CLIENTS SAVINGS SURVIVE?

New cases of cancer, heart attack and stroke are on the rise in Canada

With medical improvements the chances of surviving a critical illness are greater than ever before

The question remains: If your clients survive a critical illness, WILL THEIR RETIREMENT SAVINGS SURVIVE AS WELL

• Potential time away from work• Increased medical costs• Continued financial obligations

Insure your RRSP with EquiLiving Critical Illness Insurance

Market Potential – While CI is rapidly gaining popularity and acceptance in Canada, less than 1% of Canadians own a policy, leaving a huge untapped market

Protect your business – The full benefits of a CI policy are not understood by most. Talk to your clients about the necessity of Critical Illness Insurance to protect their retirement savings before someone else does

Income Potential – Increased commissions

Insure your RRSP with EquiLiving Critical Illness Insurance

The Scenario It is RRSP season and Terry is about to meet with his

clients, John and Jill Smith to arrange their annual Equitable Life RRSP loans for the year

While the Smiths are comfortable about their plans for retirement, Terry is concerned that their RRSPs may be at risk should one or both die or be diagnosed with a covered critical illness

A close friend of John’s was diagnosed with cancer earlier this year and has been off work for the last eight months for treatment. While his prognosis is excellent John sees the financial impact that this illness has had on his family. He is concerned that the same might happen to him someday.

Insure your RRSP with EquiLiving Critical Illness Insurance

The Vital Statistics John Smith, age 38, earns $55,000 as a

computer consultant Jill Smith, age 39, earns $57,000 as a systems

analyst They currently have a $250,000 home with a

$150,000 mortgage For the last 5 years the Smiths have each made

$5,000 contributions to their RRSPs through Equitable Life’s loan program

Insure your RRSP with EquiLiving Critical Illness Insurance

The AnalysisTerry reviews his clients’ situation..- The Smiths have a few month’s worth

of emergency savings. Prolonged time off work will severely hamper their lifestyle putting their retirement savings at risk

- Should one of them die the other would be responsible for the mortgage.

Insure your RRSP with EquiLiving Critical Illness Insurance

The Solution- The Smiths will continue their annual

RRSP loans generating a tax refund of approximately $1,550 each.

- This $1,550 can then be used to fund a $100,000 Level to Age 75 EquiLiving policy for each of them complete with the following riders- Return of Premium on Expiry- $150,000 of T20 life coverage

Insure your RRSP with EquiLiving Critical Illness Insurance

The Results

The Smiths will have available $100,000 should either one be diagnosed with and survive the waiting period for a covered critical illness

This reduces the reliance on their retirement savings which can continue to grow uninterrupted

They will have sufficient funds to cover their mortgage should one of them die unexpectedly

The Return of Premium rider will provide them with additional funds to enhance their retirement savings

Loan payments can continue with no impact on their monthly cash flow

Insure your RRSP with EquiLiving Critical Illness Insurance

Premiums for this coverage are as follows:

-For JohnBase CI Plan $817 per yearROP on Expiry $203 per yearT20 Life $220.50 per year

TOTAL $1,240.50

Based on John’s tax refund he will have approximately $259.50 remaining

Insure your RRSP with EquiLiving Critical Illness Insurance

For Jill- CI $741 per year- ROP on expiry $179 per year- T20 Life $177 per yearTOTAL $1097 annuallyBased on Jill’s tax refund she will

have approximately $403 remaining

Insure your RRSP with EquiLiving Critical Illness Insurance

Annual Premium

First Year Commissio

n

CI John 1020 453

Life T20 John 220 88

CI Jill 920 408

Life T20 Jill 177 71

RRSPs Both 10000 360

TOTAL FIRST YEAR COMP 1380

Insure your client’s RRSP with EquiLiving Critical Illness Insurance

Terry’s commission will see an increase of 283% over last year with the addition of the CI and Term Life Rider

Should the Smiths not need to make a claim and keep their policies until age 75 they will receive a return of premium of $70,860. The Return of Premium Rider will cost them a total of $13,955 from now until they reach age 75.

Terry will receive additional trailers on the Segregated Fund investments and the insurance policies

Leader’s Conference 2005

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Thank you!