orporate Investment Shelter

Transcription

1 C (a orporate Investment Shelter strategy utilizing exempt life insurance) Sun Life Financial Sales Desk Sun Life Financial 225 King Street West - 9th Floor Toronto, Ontario M5V 3C Option cnosalesdesk@sunlife.com Page 1 of /01/09

2 Sun Life Financial Sales Desk Situation: You are a significant shareholder in a private corporation. Your Company has significant assets in taxable investments. Objective: You plan to draw income from your company over time, but don't expect to use up all of the investments during your lifetime. You plan to transfer the remaining wealth to your children or other beneficiaries after your death. You would like to maximize the after-tax value of corporate investments to your estate. Problem: The rate of return on corporate investments is eroded by corporate taxes. When investments are liquidated, the dividends paid out on your shares are taxable to you or your estate. These taxes will limit the after-tax value of the corporate investments to your estate. Recommendation: The Corporate Investment Shelter strategy is a better way to achieve your objectives. The CIS strategy can increase the after-tax estate value of your shares, compared with using taxable investments in your corporation (Please see the graph below). (in $ 000s) 7000 Comparison of Estate Values Age of Primary Insured Taxable: Estate Value CIS: Estate Value Taxable: Asset Value CIS: Death Benefit Page 2 of /01/09

3 Sun Life Financial Sales Desk Analysis The Corporate Investment Shelter (CIS) strategy uses a Universal Life insurance policy to accumulate funds on a taxdeferred basis during the insured's lifetime, and pay dividends on a tax-preferred basis at death: Your company purchases a Universal Life policy and makes deposits to the policy fund. The cost of insurance is deducted from the policy fund, and the life insurance provides an immediate increase in the estate value of the shares. Growth accumulated in the policy is reinvested without deduction of income tax. On the death of the life insured(s), the insurance face amount and the fund value are paid out tax-free to the corporation. The payment of the death benefit creates a credit in the corporate Capital Dividend Account, if available, which allows part or all of the death benefit to be paid to your estate tax free. Any cash in excess of the Capital Dividend Account balance is paid to the estate as a taxable dividend. The diagram below shows how the CIS strategy differs from a taxable investment on death, and compares the values at age 100. Structure: Taxable Investments Corporation Structure: Corporate Investment Shelter Corporation Taxable Investment Corporate Tax on investment earnings $ $ Universal Life Policy No Corporate Tax on accumulated growth in the policy Corporate Tax on deferred capital gains No Corporate Tax on life insurance death benefit $5,574,567 Liquidated Value available to pay dividends $6,558,923 Death Benefit available to pay dividends Capital Dividend Account Credit $1,663,476 $446,430 Personal Tax on dividends received $3,911,091 After-tax value of dividends to the Estate Personal Tax on taxable dividends received. $6,112,493 After-tax value of dividends to the Estate No Personal Tax on Capital dividends received Should unforeseen circumstances arise, your company could always withdraw or borrow money from the policy's cash value while the insured is living. Income tax may be payable on a portion or all of this money in the year of the transaction. Page 3 of /01/09

4 Sun Life Financial Sales Desk Detailed Analysis: The attached ledger pages compare the values accumulated with the Corporate Investment Shelter strategy, to those accumulated in taxable investments. Details on the insurance policy and taxable investments used in the comparison are specified on the 'Assumptions' page. During the insured's lifetime, the liquidation value of the Corporate Investment Shelter strategy is usually less than the liquidation value of the taxable investments. Since your objectives do not require access to these funds during the insured's lifetime, you are unlikely to need to liquidate. On the death of the insured, the estate value of the Corporate Investment Shelter strategy is usually much higher than the value of the taxable investments. Since your objective is to maximize your estate value, the Corporate Investment Shelter strategy is preferred. Conclusion: The Corporate Investment Shelter strategy fits your objectives better than taxable investments owned by the corporation, since it allows for a larger after-tax value of dividends paid to your estate. Limitations on Values and Guarantees This is a concept illustration only, and NOT a contract. It must be accompanied by a Proposal for Insurance from Sun Life Assurance Company of Canada having the same date. The illustration is subject to some variability based on the investment performance of life insurance policy. This illustration is not an estimate or guarantee of future performance The tax treatment referenced in this concept is based on the current Canadian Federal Income Tax Act. Since tax legislation is subject to change, the tax treatment and the illustrated numbers are not guaranteed. The performance illustrated above is based upon certain assumptions including the future performance of the underlying life insurance policy, the future federal and provincial income tax rules, future provincial premium taxes, the timing and amount of future deposits and withdrawals, the future cost of insurance and interest rates. These factors, especially interest rates, can fluctuate significantly, and thus actual performance WILL vary from those shown in this illustration. Please refer to the accompanying product illustration for limitations on policy values and guarantees of the underlying life insurance policy. 3. The above illustration is general in nature for discussion purposes only, and does not constitute any tax and/or legal advice. For your own specific situation, please consult your own tax and legal advisors. Page 4 of /01/09

5 Sun Life Financial Sales Desk Phone: Option 4 Sun Life Financial Fax: King Street West - 9th Floor Toronto, Ontario cnosalesdesk@sunlife.com M5V 3C5 Plan and Tax Assumptions Corporate Investment Tax Rate: 50.00% Shareholder Dividend Tax Rate: 33.00% Capital Gains Inclusion Rate: 50.00% Life Insured: Coverage Type: Sun Universal Life Face Amount: 1,000,000 UL Interest Rate: 6.00% Premium Funding: Fund from investment Investment Assumptions Investment Balance: 1,000,000 Investment ACB: 750,000 Current RDTOH: 0 Current CDA: 0 Annual Portfolio Turnover: Investment Allocation 25.00% * assumes zero transaction costs Without CIS With CIS Now Age 65 Now Age 65 Cash: 50.0% 50.0% 50.0% 50.0% Bond Can.: 0.0% 0.0% 0.0% 0.0% Bond For.: 0.0% 0.0% 0.0% 0.0% Equity Can.: 50.0% 50.0% 50.0% 50.0% Equity For.: 0.0% 0.0% 0.0% 0.0% Equity US: 0.0% 0.0% 0.0% 0.0% Equity Small Cap: 0.0% 0.0% 0.0% 0.0% Investment Returns Assumed Interest Dividend Capital Realized Return Gains Gains Cash: 7.00% 100% Bond Can.: 7.00% 85% 15% 15% Bond For.: 8.00% 80% 20% 15% Equity Can.: 9.00% 30% 70% 10% Equity For.: 10.00% 5% 95% 5% Equity US: 10.00% 100% 5% Equity Small Cap: 10.00% 100% 5% Page 5 of /01/09

6 Sun Life Financial Sales Desk, Sun Life Financial Taxable Investment CIS Strategy Annual Net Annual Net to Net to Policy Policy Policy Net to Net to Corporate Dividend to Investment Corporation Shareholder Deposit & Surrender Death Investment Corporation Net to Corporation Net to Yr. Age Deposits Shareholder Balance (Liquidation) / Estate S.Acc. Tax Value Benefit Balance (Liquidation) Shareholder (Death) Estate , , , ,890 40,000 27,164 1,034, , , ,324 1,932,843 1,687, , , , ,044 40,000 57,844 1,072, , , ,072 1,944,465 1,698, ,000 1,011, , ,664 40,000 90,790 1,112, , , ,543 1,956,552 1,710, ,000 1,026, , ,896 40, ,217 1,154, , , ,636 1,969,301 1,722, ,000 1,043,508 1,016, ,861 40, ,190 1,199, , , ,721 1,982,864 1,736, ,000 1,062,290 1,037, ,659 40, ,862 1,247, , , ,888 1,997,375 1,750, ,000 1,082,718 1,059, ,381 40, ,393 1,297, , , ,188 2,012,954 1,766, ,000 1,104,685 1,082, ,106 40, ,957 1,351, , , ,696 2,029,715 1,783, ,000 1,128,132 1,106, ,911 40, ,814 1,407, ,706 1,010, ,891 2,047,768 1,801, ,000 1,153,035 1,131, ,868 40, ,288 1,488, ,814 1,033, ,974 2,087,433 1,841, ,000 1,179,397 1,157, , ,824 1,511, ,863 1,047, ,626 2,110,069 1,865, ,000 1,207,240 1,185, , ,686 1,536, ,904 1,058, ,045 2,134,071 1,890, ,000 1,236,602 1,214, , ,041 1,563, ,922 1,069, ,148 2,159,518 1,916, ,000 1,267,533 1,245, , ,977 1,590, ,906 1,080, ,975 2,186,496 1,945, ,000 1,300,094 1,277,207 1,015, ,698 1,652, ,851 1,110, ,136 2,247,209 2,007, ,000 1,334,352 1,310,962 1,047, ,013 1,686, ,751 1,123, ,511 2,279,463 2,042, ,000 1,370,386 1,346,433 1,081, ,328 1,721, ,601 1,137, ,792 2,313,663 2,079, ,000 1,408,276 1,383,709 1,117, ,761 1,758, ,396 1,151, ,015 2,349,922 2,118, ,000 1,448,113 1,422,883 1,155, ,440 1,798, ,133 1,166, ,218 2,388,368 2,160, ,000 1,489,991 1,464,051 1,195, ,724 1,883, ,808 1,205, ,098 2,472,355 2,248, ,000 1,534,013 1,507,317 1,236, ,901 1,930, ,417 1,222,541 1,001,831 2,518,168 2,299, ,000 1,580,284 1,552,788 1,280, ,909 1,980, ,956 1,240,278 1,024,803 2,566,744 2,353, ,000 1,628,918 1,600,576 1,327, ,033,917 2,033, ,421 1,258,650 1,049,087 2,618,245 2,410, ,000 1,680,035 1,650,799 1,375, ,090,106 2,090, ,808 1,277,696 1,074,763 2,672,852 2,472, ,000 1,733,760 1,703,582 1,426, ,208,518 2,208, ,114 1,329,781 1,134,106 2,789,600 2,596, ,000 1,790,225 1,759,056 1,480, ,275,182 2,275, ,334 1,352,067 1,164,709 2,854,515 2,670, ,000 1,849,570 1,817,357 1,536, ,345,847 2,345, ,463 1,375,049 1,197,027 2,923,343 2,748, ,000 1,911,941 1,878,631 1,596, ,420,751 2,420, ,497 1,398,704 1,231,145 2,996,315 2,832, ,000 1,977,493 1,943,028 1,658, ,500,150 2,500, ,430 1,423,052 1,267,168 3,073,684 2,921, ,000 2,046,387 2,010,707 1,724, ,624,724 2,624, ,259 1,470,372 1,327,324 3,196,125 3,057,646 A detailed definition of each column is available on request. Page 6 of /01/09

7 Sun Life Financial Sales Desk, Sun Life Financial Taxable Investment CIS Strategy Annual Net Annual Net to Net to Policy Policy Policy Net to Net to Corporate Dividend to Investment Corporation Shareholder Deposit & Surrender Death Investment Corporation Net to Corporation Net to Yr. Age Deposits Shareholder Balance (Liquidation) / Estate S.Acc. Tax Value Benefit Balance (Liquidation) Shareholder (Death) Estate ,150,920 2,113,282 1,824, ,716,361 2,716, ,020 1,544,536 1,404,556 3,316,898 3,181, ,260,759 2,221,097 1,930, ,813,496 2,813, ,274 1,628,587 1,487,725 3,444,660 3,308, ,376,181 2,334,418 2,041, ,916,460 2,916, ,105 1,717,411 1,575,619 3,579,818 3,443, ,497,478 2,453,524 2,158, ,025,601 3,025, ,596 1,811,279 1,668,506 3,722,799 3,585, ,624,951 2,578,710 2,281, ,195,779 3,195, ,837 1,940,444 1,796,485 3,928,545 3,790, ,758,920 2,710,286 2,410, ,321,679 3,321, ,919 2,047,074 1,902,017 4,091,830 3,953, ,899,717 2,848,576 2,545, ,455,134 3,455, ,938 2,159,769 2,013,554 4,264,579 4,125, ,047,694 2,993,925 2,688, ,596,595 3,596, ,995 2,278,872 2,131,438 4,447,340 4,307, ,203,218 3,146,691 2,837, ,746,544 3,746, ,194 2,404,752 2,256,032 4,640,697 4,499, ,366,674 3,307,252 2,995, ,979,294 3,979, ,645 2,578,389 2,428,104 4,919,071 4,777, ,538,469 3,476,006 3,160, ,152,205 4,152,205 1,005,465 2,721,441 2,569,716 5,139,933 4,997, ,719,029 3,653,372 3,334, ,335,491 4,335,491 1,056,774 2,872,647 2,719,404 5,373,618 5,229, ,908,800 3,839,788 3,517, ,529,774 4,529,774 1,110,701 3,032,474 2,877,630 5,620,872 5,476, ,108,253 4,035,717 3,709, ,735,714 4,735,714 1,167,378 3,201,415 3,044,883 5,882,486 5,736, ,317,883 4,241,643 3,911, ,054,314 5,054,314 1,226,947 3,435,160 3,276,565 6,259,601 6,112,493 A detailed definition of each column is available on request. Page 7 of /01/09

8 Sun Life Financial Sales Desk, Sun Life Financial Taxable Investments Annual Withdrawal Personal Net Annual Net to Personal Net to Corporate to Pay RDTOH Tax on Dividend to Investment Corporate Investment Corporation RDTOH Total Tax on Shareholder Yr. Age Deposits Dividend Refund Dividend Shareholder Income Tax Balance (Liquidation) Refund Dividend Dividend or Estate , ,776 30,000 76,418 41, , ,604 50, , , , ,989 1,082 1,072 30,000 76,782 37, , ,724 66,785 1,025, , , ,958 4,156 4,115 30,000 77,539 35,137 1,011, ,349 80,107 1,057, , , ,942 5,762 5,704 30,000 78,536 33,699 1,026, ,614 92,048 1,088, , , ,931 6,898 6,829 30,000 79,729 32,830 1,043,508 1,016, ,123 1,119, , , ,923 7,692 7,615 30,000 81,087 32,381 1,062,290 1,037, ,710 1,151, , , ,918 8,237 8,155 30,000 82,590 32,244 1,082,718 1,059, ,089 1,183, , , ,914 8,602 8,516 30,000 84,224 32,344 1,104,685 1,082, ,473 1,216, , , ,912 8,835 8,746 30,000 85,982 32,623 1,128,132 1,106, ,020 1,251, , , ,910 8,970 8,880 30,000 87,858 33,044 1,153,035 1,131, ,855 1,287, , , ,910 9,033 8,942 30,000 89,850 33,579 1,179,397 1,157, ,076 1,324, , , ,910 9,042 8,951 30,000 91,959 34,206 1,207,240 1,185, ,764 1,364, , , ,910 9,010 8,920 30,000 94,186 34,914 1,236,602 1,214, ,985 1,405, , , ,911 8,946 8,857 30,000 96,535 35,694 1,267,533 1,245, ,799 1,448, , , ,911 8,858 8,770 30,000 99,010 36,538 1,300,094 1,277, ,260 1,494, ,007 1,015, ,913 8,750 8,662 30, ,614 37,443 1,334,352 1,310, ,416 1,542, ,513 1,047, ,914 8,624 8,538 30, ,355 38,408 1,370,386 1,346, ,315 1,592, ,795 1,081, ,915 8,484 8,399 30, ,238 39,432 1,408,276 1,383, ,004 1,645, ,902 1,117, ,917 8,331 8,247 30, ,269 40,515 1,448,113 1,422, ,530 1,701, ,881 1,155, ,918 8,165 8,083 30, ,456 41,659 1,489,991 1,464, ,940 1,759, ,782 1,195, ,920 7,988 7,908 30, ,806 42,864 1,534,013 1,507, ,282 1,821, ,655 1,236, ,922 7,799 7,721 30, ,327 44,134 1,580,284 1,552, ,607 1,886, ,553 1,280, ,924 7,599 7,523 30, ,029 45,470 1,628,918 1,600, ,966 1,954, ,528 1,327, ,926 7,388 7,314 30, ,919 46,877 1,680,035 1,650, ,413 2,026, ,639 1,375, ,928 7,165 7,093 30, ,009 48,355 1,733,760 1,703, ,005 2,101, ,942 1,426, ,931 6,930 6,861 30, ,306 49,910 1,790,225 1,759, ,801 2,180, ,501 1,480, ,933 6,683 6,616 30, ,823 51,545 1,849,570 1,817, ,862 2,264, ,379 1,536, ,936 6,422 6,358 30, ,571 53,264 1,911,941 1,878, ,254 2,351, ,643 1,596, ,939 6,148 6,087 30, ,560 55,070 1,977,493 1,943, ,045 2,444, ,366 1,658, ,941 5,860 5,801 30, ,804 56,969 2,046,387 2,010, ,305 2,541, ,621 1,724,392 A detailed definition of each column is available on request. Page 8 of /01/09

9 Sun Life Financial Sales Desk, Sun Life Financial Taxable Investments Annual Withdrawal Personal Net Annual Net to Personal Net to Corporate to Pay RDTOH Tax on Dividend to Investment Corporate Investment Corporation RDTOH Total Tax on Shareholder Yr. Age Deposits Dividend Refund Dividend Shareholder Income Tax Balance (Liquidation) Refund Dividend Dividend or Estate ,711 59,178 2,150,920 2,113, ,209 2,680, ,558 1,824, ,074 62,235 2,260,759 2,221, ,997 2,827, ,484 1,930, ,861 65,438 2,376,181 2,334, ,766 2,981, ,500 2,041, ,095 68,798 2,497,478 2,453, ,616 3,143, ,713 2,158, ,798 72,325 2,624,951 2,578, ,654 3,313,364 1,032,233 2,281, ,996 76,027 2,758,920 2,710, ,991 3,492,277 1,082,178 2,410, ,714 79,916 2,899,717 2,848, ,744 3,680,320 1,134,673 2,545, ,977 84,000 3,047,694 2,993, ,035 3,877,960 1,189,847 2,688, ,816 88,292 3,203,218 3,146, ,995 4,085,686 1,247,836 2,837, ,257 92,801 3,366,674 3,307, ,760 4,304,012 1,308,784 2,995, ,334 97,539 3,538,469 3,476,006 1,057,472 4,533,479 1,372,843 3,160, , ,518 3,719,029 3,653,372 1,121,283 4,774,655 1,440,170 3,334, , ,751 3,908,800 3,839,788 1,188,349 5,028,138 1,510,933 3,517, , ,250 4,108,253 4,035,717 1,258,838 5,294,555 1,585,307 3,709, , ,030 4,317,883 4,241,643 1,332,924 5,574,567 1,663,476 3,911,091 A detailed definition of each column is available on request. Page 9 of /01/09

10 Sun Life Financial Sales Desk, Sun Life Financial Insurance deposit funded from taxable investment CIS Strategy (Annual Activity) Annual Withdrawal Tax on Policy Policy Withdrawal Total Personal Net Annual Corporate for Policy Service Surrender Death to Pay RDTOH Annual Tax on Dividend to Investment Corporate Investment Yr. Age Deposits Deposit Account Value Benefit Dividend Refund Dividend Dividend Shareholder Income Tax Balance , ,164 1,034,244 44, ,776 14,776 30,000 73,218 43, , , ,844 1,072,004 30, , ,000 70,003 36, , , ,790 1,112,030 29,971 2,948 32,919 2,919 30,000 67,083 32, , , ,217 1,154,457 29,943 5,683 35,626 5,626 30,000 64,263 29, , , ,190 1,199,430 29,927 7,274 37,201 7,201 30,000 61,474 26, , , ,862 1,247,102 29,916 8,422 38,338 8,338 30,000 58,662 24, , , ,393 1,297,633 29,907 9,264 39,171 9,171 30,000 55,789 22, , , ,957 1,351,197 29,901 9,896 39,797 9,797 30,000 52,826 21, , , ,814 1,407,974 29,896 10,386 40,283 10,283 30,000 49,751 19, , , ,288 1,488,368 29,892 10,782 40,674 10,674 30,000 46,545 18, , ,824 1,511,824 29,889 11,115 41,004 11,004 30,000 46,394 17, , ,686 1,536,686 29,882 11,809 41,691 11,691 30,000 46,318 17, , ,041 1,563,041 29,882 11,836 41,718 11,718 30,000 46,242 17, , ,977 1,590,977 29,881 11,856 41,738 11,738 30,000 46,163 17, , ,698 1,652,698 29,881 11,872 41,754 11,754 30,000 46,082 17, , ,013 1,686,013 29,881 11,885 41,766 11,766 30,000 45,998 17, , ,328 1,721,328 29,881 11,896 41,777 11,777 30,000 45,910 17, , ,761 1,758,761 29,881 11,905 41,786 11,786 30,000 45,818 17, , ,440 1,798,440 29,881 11,913 41,794 11,794 30,000 45,721 17, , ,724 1,883,724 29,881 11,920 41,801 11,801 30,000 45,620 17, , ,901 1,930,901 29,881 11,928 41,808 11,808 30,000 45,514 17, , ,909 1,980,909 29,881 11,935 41,815 11,815 30,000 45,403 16, , ,033,917 2,033,917 29,881 11,942 41,823 11,823 30,000 45,286 16, , ,090,106 2,090,106 29,881 11,949 41,830 11,830 30,000 45,163 16, , ,208,518 2,208,518 29,880 11,957 41,837 11,837 30,000 45,034 16, , ,275,182 2,275,182 29,880 11,964 41,845 11,845 30,000 44,899 16, , ,345,847 2,345,847 29,880 11,972 41,853 11,853 30,000 44,756 16, , ,420,751 2,420,751 29,880 11,981 41,861 11,861 30,000 44,607 16, , ,500,150 2,500,150 29,880 11,990 41,870 11,870 30,000 44,449 16, , ,624,724 2,624,724 29,880 11,999 41,879 11,879 30,000 44,284 16, ,259 A detailed definition of each column is available on request. Page 10 of /01/09

11 Sun Life Financial Sales Desk, Sun Life Financial Insurance deposit funded from taxable investment CIS Strategy (Annual Activity) Annual Withdrawal Tax on Policy Policy Withdrawal Total Personal Net Annual Corporate for Policy Service Surrender Death to Pay RDTOH Annual Tax on Dividend to Investment Corporate Investment Yr. Age Deposits Deposit Account Value Benefit Dividend Refund Dividend Dividend Shareholder Income Tax Balance ,716,361 2,716, ,501 16, , ,813,496 2,813, ,882 17, , ,916,460 2,916, ,382 18, , ,025,601 3,025, ,008 19, , ,195,779 3,195, ,768 20, , ,321,679 3,321, ,667 21, , ,455,134 3,455, ,714 22, , ,596,595 3,596, ,915 23, , ,746,544 3,746, ,280 25, , ,979,294 3,979, ,815 26, , ,152,205 4,152, ,532 27,712 1,005, ,335,491 4,335, ,437 29,128 1,056, ,529,774 4,529, ,542 30,615 1,110, ,735,714 4,735, ,856 32,179 1,167, ,054,314 5,054, ,390 33,822 1,226,947 A detailed definition of each column is available on request. Page 11 of /01/09

12 Sun Life Financial Sales Desk, Sun Life Financial Insurance deposit funded from taxable investment CIS Strategy (Values to Shareholder or Estate) Policy Policy Net to Personal Net to Tax-Free Personal Investment Surrender Death Corporation RDTOH Total Tax on Net to Corporation RDTOH Capital Tax on Net to Yr. Age Balance Benefit Benefit (Liquidation) Refund Dividend Dividend Shareholder (Death) Refund Dividend Dividend Estate ,041 27,164 1,034, ,763 49, , , ,324 1,932,843 49,838 1,088, ,183 1,687, ,503 57,844 1,072, ,305 65, , , ,072 1,944,465 65,618 1,066, ,441 1,698, ,235 90,790 1,112, ,312 77,791 1,013, , ,543 1,956,552 77,791 1,052, ,012 1,710, , ,217 1,154, ,061 86,594 1,034, , ,636 1,969,301 86,594 1,046, ,126 1,722, , ,190 1,199, ,624 93,177 1,054, , ,721 1,982,864 93,177 1,046, ,913 1,736, , ,862 1,247, ,135 97,978 1,074, , ,888 1,997,375 97,978 1,050, ,800 1,750, , ,393 1,297, , ,499 1,091, , ,188 2,012, ,290 1,059, ,065 1,766, , ,957 1,351, , ,902 1,107, , ,696 2,029, ,302 1,072, ,872 1,783, , ,814 1,407,974 1,010, ,988 1,128, , ,891 2,047, ,130 1,090, ,314 1,801, , ,288 1,488,368 1,033, ,395 1,165, , ,974 2,087, ,840 1,132, ,427 1,841, , ,824 1,511,824 1,047, ,073 1,187, , ,626 2,110, ,183 1,158, ,984 1,865, , ,686 1,536,686 1,058, ,703 1,205, , ,045 2,134, ,816 1,188, ,616 1,890, , ,041 1,563,041 1,069, ,875 1,223, , ,148 2,159, ,403 1,220, ,971 1,916, , ,977 1,590,977 1,080, ,632 1,242, , ,975 2,186,496 98,953 1,255, ,038 1,945, , ,698 1,652,698 1,110, ,584 1,288, , ,136 2,247,209 97,468 1,324, ,797 2,007, , ,013 1,686,013 1,123, ,347 1,311, , ,511 2,279,463 95,952 1,366, ,007 2,042, , ,328 1,721,328 1,137, ,903 1,336, , ,792 2,313,663 94,405 1,411, ,826 2,079, , ,761 1,758,761 1,151, ,342 1,361, , ,015 2,349,922 92,828 1,460, ,183 2,118, , ,440 1,798,440 1,166, ,762 1,389, , ,218 2,388,368 91,222 1,512, ,000 2,160, , ,724 1,883,724 1,205, ,779 1,453, , ,098 2,472,355 89,585 1,612, ,208 2,248, , ,901 1,930,901 1,222, ,103 1,485, ,813 1,001,831 2,518,168 87,917 1,676, ,766 2,299, , ,909 1,980,909 1,240, ,678 1,519, ,153 1,024,803 2,566,744 86,217 1,744, ,637 2,353, ,421 1,033,917 2,033,917 1,258, ,576 1,556, ,140 1,049,087 2,618,245 84,483 1,818, ,783 2,410, ,808 1,090,106 2,090,106 1,277, ,881 1,594, ,813 1,074,763 2,672,852 82,714 1,897, ,159 2,472, ,114 1,208,518 2,208,518 1,329, ,395 1,683, ,070 1,134,106 2,789,600 80,909 2,041, ,689 2,596, ,334 1,275,182 2,275,182 1,352, ,813 1,728, ,172 1,164,709 2,854,515 79,066 2,135, ,261 2,670, ,463 1,345,847 2,345,847 1,375, ,097 1,777, ,120 1,197,027 2,923,343 77,182 2,237, ,752 2,748, ,497 1,420,751 2,420,751 1,398, ,397 1,828, ,956 1,231,145 2,996,315 75,256 2,347, ,053 2,832, ,430 1,500,150 2,500,150 1,423, ,847 1,881, ,731 1,267,168 3,073,684 73,286 2,464, ,074 2,921, ,259 1,624,724 2,624,724 1,470, ,346 1,971, ,395 1,327,324 3,196,125 71,270 2,631, ,750 3,057,646 A detailed definition of each column is available on request. Page 12 of /01/09

13 Sun Life Financial Sales Desk, Sun Life Financial Insurance deposit funded from taxable investment CIS Strategy (Values to Shareholder or Estate) Policy Policy Net to Personal Net to Tax-Free Personal Investment Surrender Death Corporation RDTOH Total Tax on Net to Corporation RDTOH Capital Tax on Net to Yr. Age Balance Benefit Benefit (Liquidation) Refund Dividend Dividend Shareholder (Death) Refund Dividend Dividend Estate ,020 1,716,361 2,716,361 1,544, ,449 2,083, ,429 1,404,556 3,316,898 81,752 2,741, ,869 3,181, ,274 1,813,496 2,813,496 1,628, ,370 2,204, ,233 1,487,725 3,444,660 92,771 2,845, ,495 3,308, ,105 1,916,460 2,916,460 1,717, ,410 2,332, ,202 1,575,619 3,579, ,353 2,954, ,716 3,443, ,596 2,025,601 3,025,601 1,811, ,688 2,467, ,461 1,668,506 3,722, ,528 3,070, ,561 3,585, ,837 2,195,779 3,195,779 1,940, ,866 2,655, ,826 1,796,485 3,928, ,324 3,248, ,063 3,790, ,919 2,321,679 3,321,679 2,047, ,889 2,808, ,947 1,902,017 4,091, ,774 3,382, ,254 3,953, ,938 2,455,134 3,455,134 2,159, ,614 2,971, ,829 2,013,554 4,264, ,911 3,524, ,170 4,125, ,995 2,596,595 3,596,595 2,278, ,195 3,143,068 1,011,630 2,131,438 4,447, ,769 3,674, ,847 4,307, ,194 2,746,544 3,746,544 2,404, ,799 3,324,551 1,068,519 2,256,032 4,640, ,386 3,833, ,325 4,499, ,645 2,979,294 3,979,294 2,578, ,279 3,576,667 1,148,563 2,428,104 4,919, ,800 4,075, ,643 4,777, ,005,465 3,152,205 4,152,205 2,721,441 1,061,640 3,783,081 1,213,365 2,569,716 5,139, ,051 4,258, ,846 4,997, ,056,774 3,335,491 4,335,491 2,872,647 1,128,648 4,001,296 1,281,892 2,719,404 5,373, ,183 4,452, ,977 5,229, ,110,701 3,529,774 4,529,774 3,032,474 1,199,514 4,231,988 1,354,359 2,877,630 5,620, ,240 4,657, ,084 5,476, ,167,378 3,735,714 4,735,714 3,201,415 1,274,461 4,475,876 1,430,993 3,044,883 5,882, ,270 4,875, ,218 5,736, ,226,947 4,054,314 5,054,314 3,435,160 1,380,473 4,815,633 1,539,068 3,276,565 6,259, ,322 5,206, ,430 6,112,493 A detailed definition of each column is available on request. Page 13 of /01/09