A new outlook on life.

Transcription

1 A new outlook on life. Opportunities for a new era in life insurance.

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3 What s New? 4 Policy Holder Tax changes 5 Universal Life Insurance 6 Life Dimensions and Life Dimensions (Low Fees) 7 Changes at a glance 7 Key features that are NOT changing 7 What s no longer available 7 Wealth Dimensions 8 Plan highlights 8 Table of contents Universal Life Investment Options 10 Preferred List of Indexed Accounts 10 The No UL Fee List 12 LifeProvider (Low Fees) 16 Changes at a glance 16 Key features that are NOT changing 16 What s no longer available 16 LifeProvider Investment Options 17 Improvements to Universal Life Benefits 18 Joint Last to Die Conversion Option 19 Disability Benefit 19 Term Life Insurance 20 Whole Life Insurance 20 BMO Insurance Health Advocate Plan 21 Appendix: Universal Life Commission Summary Fall Launch 3

4 What s New? The new rules for life insurance taxation have prompted all of us to look at how we re going to continue to grow our businesses going forward. We ve updated our life insurance portfolio The good news is that life insurance and many of the financial planning ideas that you ve been using will continue to play an important role in planning your clients financial futures. At BMO Insurance, we ve aligned our portfolio with the new tax rules and have made enhancements in several key areas. Take a look at what s new and don t forget to download the latest version of The Wave illustration software to see the difference We ve aligned all of our plans with the new life insurance tax rules, simplified our portfolio and are introducing several enhancements Our updated life insurance portfolio will continue to include: Universal Life Insurance Life Dimensions Life Dimensions (Low Fees) Wealth Dimensions The InvestorMaximizer (will continue to be available on Life Dimensions (Low Fees) and Wealth Dimensions only) 1 LifeProvider (Low Fees) 2 Term Life Insurance Term 10 Term 20 Term 30 Whole Life Insurance 20 Pay Life Pure T100 This streamlined portfolio includes several enhancements including the NEW BMO Insurance Health Advocate Plan which will be available on all new life insurance plans (see page 21 for details). As we previously communicated, the transition to this new portfolio will mean that certain features and plan options will no longer be available. Life Dimensions or Life Dimensions (Low Fees) with the following options: > MaximizerSelect > MaximizerElite > The Fund Accelerator Bonus InvestorMaximizer on Life Dimensions (However, the InvestorMaximizer will still be available on Life Dimensions (Low Fees), as noted above) Life Dimensions PRESTIGE or Life Dimensions PRESTIGE (Low Fees) LifeProvider (However, LifeProvider (Low Fees) will still be available, as noted above) Don t forget to download the latest version of The Wave (version 33.0) by visiting the Resource Center at bmoinsurance.com/advisor 1 YRT COI only 2 Level COI only 4 BMO Insurance

5 Policy Holder Tax changes Life insurance will continue to be a valuable planning tool, even in the new tax environment. When it comes to tax-deferred investment opportunities with universal life, you will still be able to show your clients that the long term cash values of BMO Insurance s new UL portfolio can provide an advantage over alternative taxable investments. This is especially true on maximum funded strategies using our YRT plans (such as the Insured Retirement or Asset Transfer Plans). Take a look at our updated UL plans with YRT COI along with the financial concepts illustrations on The Wave (version 33.0) to see how Given the new tax rules, maximum funding on Level COI plans will be diminished but this should not be considered an issue for any of your clients who are looking to pay the minimum premium on a Level COI UL policy. What s more, you ll notice that the Level COI rates on all of our UL plans have not changed and will still offer superior value for face amounts of $250,000+. What s more, if you have business owner clients, life insurance will continue to be a tax efficient and cost effective way to help them manage some of the financial risk within their companies despite the changes to the Adjusted Cost Basis and Net Cost of Pure Insurance (and the resulting impact of tax planning strategies that involve the Capital Dividend Account). You can feel confident that with life insurance plans from BMO Insurance, your clients will continue to get competitive rates on plans with value from one of Canada s most recognized financial institutions. For more information on the impact of changes on any in force policy from BMO Insurance or to learn more about the new tax rules, refer to: Changes to the Tax Exempt Test (701E) Changes to the ACB and NCPI (702E) Changes to the CDA (703E) Grandfathering Rules for In Force Life Insurance Policies (707E) All of these files can be found in the marketing materials section of The Wave Fall Launch 5

6 Universal Life Insurance We ve simplified our universal life portfolio, enhanced certain features and are introducing a brand new plan. Life Dimensions and Life Dimensions (Low Fees) will continue to be our flagship UL plan for those of your clients who are looking for competitive YRT, YRT 85/20 or Level COI rates along with the option to invest in the widest selection of investment options on any UL plan in Canada including an expanded list of low cost BMO ETF Indexed Accounts. Wealth Dimensions is a NEW Low Fees UL plan for high net worth individuals and business owners who are looking to take full advantage of the tax-deferred opportunity of universal life and have an initial investment of at least $25,000. This plan offers a super-charged Cumulative Fund Bonus which can effectively offset the cost of UL Fees and help boost returns LifeProvider (Low Fees) will continue to be a Level COI only UL plan offering permanent protection with a variety of riders and a simplified selection of investment options. Take a look at Wealth Dimensions, including its super charged Cumulative Fund Bonus and find out how it can be an ideal plan for your fee sensitive clients in the high net worth and corporate markets 6 BMO Insurance

7 Life Dimensions and Life Dimensions (Low Fees) If you re looking for a competitive Level COI plan or ways to show your clients how they can maximize their wealth through a tax-deferred UL investment portfolio, take a look at the NEW Life Dimensions and Life Dimensions (Low Fees): Changes at a glance New and improved YRT and YRT 85/20 COI rates offering more value at higher face amounts A Preferred List of Indexed Accounts which includes: > Over 200 Indexed Accounts > Returns linked to 12 brand name fund managers > An expanded list of BMO ETF Indexed Accounts Enhancements on policy loans: > Maximum policy loan increased to 90% (up from 85%) of the cash value > Also available using the GMIA as collateral A Cumulative Fund Bonus (CFB) of 0.25% payable on balances of $25,000+ in the GIA and Indexed Accounts 3 starting in the 5 th year Up to 4 FREE transfers between investment options per year (up from 3) on all new and in force UL plans Updated surrender charge factors Updated cash withdrawal redemption charge for withdrawals made during the surrender charge period Additional Sum Insured (i.e. MTAR increases) will now be available for term conversions Increase in the ESA on some Joint Last-to-Die scenarios with YRT COI What s no longer available MaximizerSelect MaximizerElite The InvestorMaximizer on Life Dimensions (although this feature will still be available on Life Dimensions (Low Fees), as mentioned above) Life Dimensions PRESTIGE or Life Dimensions PRESTIGE (Low Fees) Plans with the Fund Accelerator Bonus The Sum Insured plus Total Fund Value death benefit option Highlights of the NEW Life Dimensions Includes both Bonus and Low Fees options New YRT and YRT 85/20 rates Same highly competitive Level COI rates Includes an InvestorMaximizer option on Life Dimensions (Low Fees) only 12 Preferred Fund Managers 200+ Indexed Accounts to choose from An expanded list of BMO ETF Indexed Accounts 32 Indexed Accounts without a UL Fee on Life Dimensions (Low Fees) Key features that are NOT changing Our highly competitive Level COI rates InvestorMaximizer: still ideal for quick pays (e.g. 5-8 pays) but now available on Life Dimensions (Low Fees) only Minimum guaranteed rates on the DIA as well as the 5 and 10 Year GIA Our new Life Dimensions and Life Dimensions (Low Fees) plans will continue to provide you with excellent planning opportunities for your clients More information available on The Wave: Life Dimensions Product Overview (217E) Life Dimensions Product Guide (182E) 3 Provided that the total in those accounts is at least 200% of Cumulative Annual Minimum Premium at the end of that policy year. Not available on the DIA or GMIA. See the Life Dimensions Product Guide (182E) for details. Universal Life Insurance 7

8 Wealth Dimensions If your target market is high net worth individuals or business owners, take a look at the NEW Wealth Dimensions It s a Low Fee UL plan designed specifically for this market and offers an opportunity for clients to super-charge the cash accumulation of the plan through a low cost structure on the investment component. A NEW Super Charged Cumulative Fund Bonus: available on Wealth Dimensions starting in the first year and payable from first dollar on Account Values in Indexed Accounts, GIAs and GMIAs Plan highlights Competitive and guaranteed YRT 100, YRT 85/20 and Level COI rates A Preferred List of Indexed Accounts which includes: > Over 200 Indexed Accounts > Returns linked to 12 brand name fund managers > An expanded list of BMO ETF Indexed Accounts A super-charged Cumulative Fund Bonus (up to 0.50%) starting in the first policy year and payable from first dollar on Indexed Accounts, GIAs and GMIAs $25,000 first year premium requirement InvestorMaximizer: for quick pays (e.g. 5-8 pays) More information available on The Wave: Wealth Dimensions Product Overview (712E) Wealth Dimensions Product Guide (709E) A Super-charged Cumulative Fund Bonus On every Wealth Dimensions policy, starting at the end of the first policy year, a Cumulative Fund Bonus is payable on all Indexed Accounts, GIAs and GMIAs 4, provided the total in those accounts is at least 200% of the Cumulative Annual Minimum Premium at the end of that policy year. Fund Value Annual Bonus Rate $0-$199, % $200, % 4 Not available on the DIA or the Side Account. See the Wealth Dimensions Product Guide (709E) for details. 8 BMO Insurance

9 9Universal Life Insurance BMO Insurance 9

10 Universal Life Investment Options Available on the NEW Life Dimensions, Life Dimensions (Low Fees) & Wealth Dimensions With the new Life Dimensions, Life Dimensions (Low Fees) and the NEW Wealth Dimensions, you ll still be able to offer your clients a wide selection of UL investment options which includes: The Daily Interest Account The 5 and 10 Year Guaranteed Interest Accounts Guaranteed Market Indexed Accounts A Preferred List of 200+ Indexed Accounts Preferred List of Indexed Accounts We ve worked with the following 12 brand name fund managers and have come up with a Preferred List of over 200 Indexed Accounts with a broad range of asset classes: BMO Asset Management Inc. AGF Investments Inc. CI Investments Inc. Dynamic Mutual Funds Fidelity Investments Canada ULC Franklin Templeton Investments Corp. Invesco Canada Ltd. Mackenzie Financial Corporation Northwest & Ethical Investments L.P. SEI Investments Canada Company Sentry Investments Inc. Trez Capital Fund Management L.P. This list also includes an expanded list of ETF Indexed Accounts from BMO Asset Management Inc. BMO ETF Indexed Accounts A wide selection of options to choose from Low underlying fund MERs UL Fees ranging from 0.75% % on Life Dimensions (Low Fees) and Wealth Dimensions (or 2.00% % on Life Dimensions) About BMO Asset Management BMO Asset Management is one of Canada s leading and fastest growing issuers of ETFs with over $24 billion 5 in ETF managed assets. TOP 20 ETF providers worldwide 42 % of industry AUM growth in Fiscal Year 2015 #1 in new assets 5 years in a row #2 in market share in just 6 years (27%) Number of Indexed Accounts RETURN 21 Fixed Income Accounts 58 Equity Balanced Accounts 113 Equity Accounts 24 Sector Accounts RISK 5 As of December, BMO Insurance

11 Indexed Accounts and Associated UL Fees On Life Dimensions (Low Fees) and Wealth Dimensions, the list also includes UL Fees of 1.75% on all Market Indexed Accounts and 0.75% on Managed Indexed Accounts under the fixed income category. 6 These UL Fees are an additional 1.25% on Life Dimensions Life Dimensions (Low Fees) and Wealth Dimensions Accounts 20 Accounts fee 0.25% fee Accounts 52 Accounts 0.50% fee 0.75% fee Accounts 5 Accounts 1.75% fee 1.25% fee Accounts 1.00% fee TOTAL: 216 Indexed Accounts Life Dimensions Accounts 11 Accounts 39 Accounts 1.25% fee 1.50% fee 1.75% fee 56 Accounts 2.00% fee Accounts 17 Accounts 2.25% fee 2.50% fee Accounts 3.00% fee TOTAL: 216 Indexed Accounts 6 The only exceptions are the Mac Corp Bond Indexed Account which will have a UL Fee of /2.50% and accounts linked to Trez Capital and two BMO ETFS (ZAG and ZEL) which are all at 1.75%/3.00%. Universal Life Insurance 11

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13 The No UL Fee List Available on the NEW Life Dimensions (Low Fees) and Wealth Dimensions We re excited to offer 32 Indexed Accounts without a UL Fee on the NEW Life Dimensions (Low Fees) and Wealth Dimensions. You ll notice a broad range of options from different asset classes with returns linked to several of our Preferred Fund Managers. The No UL Fee List (on the NEW Life Dimensions (Low Fees) and Wealth Dimensions) Asset Class Indexed Account UL Fee Canadian Equity Canadian Equity Balanced European Equity Global Equity Global Equity Balanced BMO Dividend Fund BMO Monthly High Income Fund II Dynamic Canadian Dividend Fund Dynamic Power Canadian Growth Fund Dynamic Power Small Cap Fund Dynamic Small Business Fund Dynamic Value Fund of Canada Fidelity Canadian Large Cap Fund Fidelity True North Fund Franklin Bissett Canadian Equity Fund Invesco Canadian Premier Growth Fund Trimark Canadian Fund Mackenzie Canadian Large Cap Dividend & Growth Fund Sentry Diversified Equity Fund BMO Canadian Diversified Monthly Income Fund Dynamic Power Balanced Fund Invesco Canadian Balanced Fund Invesco European Growth Class Trimark Europlus Fund Dynamic Global Discovery Fund Trimark Fund Trimark Global Fundamental Equity Fund Sentry Global Infrastructure Fund AGF Diversified Income Fund Mackenzie Ivy Global Balanced Fund Global Fixed Income Mackenzie Corporate Bond Fund Sector U.S. Equity Dynamic Financial Services Fund Mackenzie Global Resource Class Sentry Global REIT Fund Trimark U.S. Companies Fund Trimark U.S. Small Companies Class Fund Sentry U.S. Growth and Income Fund Universal Life Insurance 13

14 How the Cumulative Fund Bonus can offset the cost of UL Fees If UL fees are a concern for your clients, take a look at how the Cumulative Fund Bonus on Life Dimensions and Wealth Dimensions can help offset the cost of these fees. For example, if your clients are sensitive about paying an additional UL Fee, show them the extra value they can get from the 32 Indexed Accounts on 0% UL Fee list that are found on Life Dimensions (Low Fees) and Wealth Dimensions Here s a sample of some of these accounts and their associated All-in Cost : Net returns on Indexed Accounts are a result of the underlying fund s gross return less the fund s MER and UL Fee. This All-in Cost for the investment component of the policy can have an impact on the long term growth of the cash value. With the Cumulative Fund Bonus, you can help offset this total All-in Cost. Examples of the Impact of the Cumulative Fund Bonus on the 0% UL Fee List Asset Class Indexed Account 2015 Fund MER 7 UL Fee All-in Cost with 0.25% CFB 8 Canadian Equity BMO Monthly High Income Fund II Fidelity True North Fund Series A 2.20% 2.50% 1.95% 2.25% Canadian Equity Balanced Invesco Canadian Balanced Fund Series A 2.50% 2.34% European Equity Trimark Europlus Fund Series A 2.75% 2.50% Global Equity Trimark Fund Series A Sentry Global Infrastructure Fund Series A 2.81% 2.73% 2.56% 2.48% Global Equity Balanced Mackenzie Ivy Global Balanced Fund Series A 2.41% 2.16% Global Fixed Income Mackenzie Corporate Bond Fund Series A 1.71% 1.46% Sector Dynamic Financial Services Fund Series A 2.74% 2.49% U.S. Equity Sentry U.S. Growth and Income Fund Series A 2.68% 2.43% 7 Source: Fundata and bmoinvestpro.ca, July The underlying fund MER can change over time and would have an impact on the illustrated All-in Cost. 8 Based on a Cumulative Fund Bonus of 0.25% (With a Cumulative Fund Bonus of 0.50% on Wealth Dimensions, the All-in Cost would be 0.25% lower). The approx. All-in Cost is for illustrative purposes and can vary depending on the underlying fund MER and UL Fee which can change over time. 14 BMO Insurance

15 Plus, with the new super-charged Cumulative Fund Bonus on Wealth Dimensions, your clients can have access to 56 Indexed Accounts with an All-in Cost of 2% or less Here s a sample of these accounts: Visit bmoinvestpro.ca for a complete listing of investment options on the new and in force plans. Sample of Indexed Accounts With an All-in Cost of 2% or Under Asset Class Indexed Account 2015 Fund MER 7 UL Fee All-in Cost with 0.50% CFB 9 Asia Pacific Equity BMO China Equity Index ETF (ZCH) 0.74% 1.75% 1.99% Canadian Equity BMO Low Volatility Canadian Equity ETF (ZLB) 0.40% 1.75% 1.65% Canadian Equity Balanced Dynamic Power Balanced Fund Series A 2.15% 1.65% Canadian Fixed Income CI Signature Canadian Bond Fund Class A 1.69% 0.75% 1.94% Emerging Markets Equity BMO MSCI Emerging Markets Index ETF (ZEM) 0.46% 1.75% 1.71% European Equity BMO MSCI Europe High Quality Hgd to CAD ETF (ZEQ) 0.45% 1.75% 1.70% Global Equity BMO MSCI EAFE Hedged to CAD Index ETF (ZDM) 0.29% 1.75% 1.54% Global Fixed Income Invesco Advantage Bond Fund 1.44% 0.75% 1.69% Sector BMO Equal Weight Utilities Index ETF (ZUT) 0.62% 1.75% 1.87% U.S. Equity BMO S&P 500 Hedged to CAD Index ETF (ZUE) 0.11% 1.75% 1.36% 9 Based on a Cumulative Fund Bonus of 0.50% (a CFB of 0.25% would increase this figure). The approx. All-in Cost is for illustrative purposes and can vary depending on the underlying fund MER and UL Fee which can change over time. Universal Life Insurance 15

16 LifeProvider (Low Fees) If your clients are looking for a simple UL plan with competitive Level COI rates, take a look at the NEW LifeProvider (Low Fees) We ve simplified the plan with features that continue to focus on the family market. Changes at a glance A new short list of BMO ETF Portfolio Indexed Accounts Enhancements on policy loans: > Maximum policy loan increased to 90% (up from 85%) of the cash value Up to 4 FREE transfers between investment options per year (up from 3) on all new and in force UL plans Updated cash withdrawal redemption charge for cash withdrawals made during the surrender charge period Key features that are NOT changing Level COI rates Minimum guaranteed rates on the DIA as well as the 5 and 10 Year GIA What s no longer available LifeProvider with the Guaranteed Investment Bonus The Sum Insured plus Total Fund Value death benefit option What investment options make sense for your clients? Have your clients complete the Investor Profile Questionnaire (358E) to gauge their tolerance to investment risk and help them pick investment options that are appropriate for their financial objectives. 16 BMO Insurance

17 LifeProvider Investment Options Available on the NEW LifeProvider (Low Fees) In addition to the DIA and GIA, the following actively managed BMO ETF Portfolio Indexed Accounts will be available on the NEW LifeProvider (Low Fees): Indexed Account UL Fee BMO Fixed Income ETF Portfolio 0.75% BMO Income ETF Portfolio 1.00% BMO Conservative ETF Portfolio 1.00% BMO Balanced ETF Portfolio 1.00% BMO Growth ETF Portfolio 1.00% BMO Equity Growth ETF Portfolio 1.00% Highlights of the NEW LifeProvider (Low Fees) Only the Low Fees option will be available No changes to Level COI rates A choice of 6 BMO ETF Portfolio Indexed Accounts More information available on The Wave: LifeProvider Product Overview (363E) This choice of portfolios brings expert fund management from BMO Asset Management Inc. along with automatic re-balancing of your clients UL portfolio based on their tolerance to investment risk. BMO ETF Portfolio Indexed Accounts All in one investment solution that allows investors to target a specific risk level based on their investment goals. Higher Return Fixed Income Income Conservative Balanced Growth Equity Growth 0-5% 15-20% % 0-5% 20-25% 75-80% 60-65% 35-40% % 55-60% 80-85% % Lower Return Lower Risk 10 Higher Risk 10 Equity Fixed Income 10 Risk Ratings are determined based on the historical volatility of a Fund as measured by the standard deviation of its performance against its mean. The risk categorization of a Fund may change over time and historical volatility is not indicative of future volatility. Risk Ratings are not intended for use as a substitute for undertaking a proper and complete suitability or financial assessment. Universal Life Insurance 17

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19 Improvements to Universal Life Benefits On all of our universal life plans, you ll have access to a variety of riders to help you package a more comprehensive solution for your clients We ve fine-tuned two of the benefits on all our universal life plans: Joint Last to Die Conversion Option Available at no extra cost This no cost option benefit can provide your clients with the flexibility to convert a single life or JFTD coverage to JLTD coverage without further evidence of insurability at the time of the switch. The option is available only when both lives are underwritten at time of application for the policy. Disability Benefit 60 day waiting period On all our universal life plans, a lump sum Disability Benefit for an amount up to the Cash Surrender Value minus one Total Annual Minimum Premium can be paid upon receipt of acceptable evidence of an impairment that arises from certain conditions specified in the policy. The minimum Disability Benefit Payout will be the lesser of the Cash Surrender Value or $2,500 at the time of the request. That s not all Find out about the BMO Insurance Health Advocate Plan (on page 21) that s available on all our new UL plans at no additional cost Universal Life Insurance 19

20 Term Life Insurance Now includes an enhanced Term 10 Exchange Program On any new Term 10 policy OR rider, your clients will now be able to exchange the full or partial amount of the Sum Insured to a Term 20 or Term 30 policy. Any partial exchange must meet the plan minimum for both the remaining Term 10 and the new Term 20 or Term 30 Plan. The new plan will still maintain the conversion to a permanent plan privilege. You ll also notice that we ve changed the name of our term plans from Preferred Term to Term. It s a simpler way of looking at the same great product. Note: there are no other product or rate changes to our term base plans or riders apart from the new BMO Insurance Health Advocate Plan (see page 21). The Term 10 Exchange Program can be beneficial for clients who want to: Exchange their Term 10 coverage for another 20 or 30 years without additional underwriting Lock-in premium rates for another 20 or 30 years without having to submit a new application Reduce the overall cost of their premiums over the long term Whole Life Insurance Both our 20 Pay Life and Pure T100 plans will now have a consistent set of riders which are also available across all of our term and whole life plans: Waiver of Premium Accidental Death Benefit Children s Term Insurance Benefit Term 10, 20 and 30 Riders Note: there are no other product or rate changes to the base plans or riders apart from the new BMO Insurance Health Advocate Plan (see page 21). 20 BMO Insurance

21 BMO Insurance Health Advocate Plan Available at no extra cost As an extra added value to the following plans, we are pleased to offer medical information and personal assistance program at no additional cost on ALL eligible Universal Life, Whole Life and Critical Illness plans and riders at NO EXTRA cost This program includes: Medical Information and Services This component of the BMO Insurance Health Advocate Plan offers your clients unlimited access to medical information and services from Best Doctors a leader when it comes to delivering world class medical advice and support. Personal Assistance Services The BMO Insurance Health Advocate Plan will be available on the following NEW Wave 33.0 plans: Life Dimensions Life Dimensions (Low Fees) Wealth Dimensions LifeProvider (Low Fees) 20 Pay Life Pure T100 Term 10, 20 and 30 (as long as the policy includes a critical illness rider) insurenow Plus Living Benefit 10, 20, 75, 100 and 15-Pay LB100 This component of the BMO Insurance Health Advocate Plan offers your clients personal assistance services provided by Morneau Shepell, one of Canada s leading providers of these programs. The BMO Insurance Health Advocate Plan helps your clients find the right type of care for many of the personal and health challenges that they could be faced with. Best Doctors is a registered trademark of Best Doctors, Inc. Expenses associated with medical treatment, travel and lodging relating to these services are the responsibility of the member. BMO Insurance offers the services on a referral basis only and will not charge you for the services provided. Morneau Shepell and Best Doctors will not charge you for the services they provide. You may however, incur additional costs for services or for providers that may be referred to you by Morneau Shepell or Best Doctors. These additional charges are incurred at your sole discretion and BMO Insurance will not be liable for their payment. BMO Insurance reserves the right to change the service provider, the nature of services or cancel access to these services at any time without notice, unless otherwise stated. Health Advocate Plan 21

22 Appendix: Universal Life Commission Summary Life Dimensions and Life Dimensions (Low Fees) First Year Commission Rates Renewal Commission Rates Years 2-5 Service Commission Rates Up to Target Premium First Year Target to First Year Maximum Premium Above First Year Maximum Premium Up to First Year Target Premium First Year Target to First Year Maximum Premium Above First Year Maximum Premium Asset Based Compensation (Years 6+) Indexed Accounts & GMIA DIA & GIA YRT/YRT85/20 & InvestorMaximizer 65% 5% Level 60% 5% 0.3% 5% 4% 0.3% 0.25% 0% Wealth Dimensions First Year Commission Rates Renewal Commission Rates Years 2-5 Service Commission Rates Up to Target Premium First Year Target to First Year Maximum Premium Above First Year Maximum Premium Up to First Year Target Premium First Year Target to First Year Maximum Premium Above First Year Maximum Premium Asset Based Compensation (Years 1+) Indexed Accounts DIA, GIA & GMIA YRT/YRT85/20 & InvestorMaximizer 65% 0% Level 60% 0% 0.3% 5% 0% 0.3% 0.50% 0.25% LifeProvider (Low Fees) First Year Commission Rates Renewal Commission Rates Years 2-5 Service Commission Rates Up to Target Premium First Year Target to First Year Maximum Premium Above First Year Maximum Premium Up to First Year Target Premium First Year Target to First Year Maximum Premium Above First Year Maximum Premium Asset Based Compensation (Years 6+) Indexed Accounts DIA & GIA Level 60% 5% 0.3% 5% 4% 0.3% 0.25% 0% Please refer to our Schedule of Commissions (425E) for complete details and The Wave illustration System for First Year Target, Maximum, Minimum and Maximum Premiums. 22 BMO Insurance

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24 Let s connect To find out more about BMO Insurance products, please call your MGA, contact the BMO Insurance regional sales office in your area or call BMO Life Assurance Company, 60 Yonge Street, Toronto, ON M5E 1H5 Ontario Region Quebec Atlantic Region Western Region bmoinsurance.com/advisor FOR ADVISOR USE ONLY. Information contained in this document is for illustrative purposes and is subject to change without notice. The information in this publication is intended as a summary of our products and/or services.. Please consult the appropriate policy contract for details on the terms, conditions, benefits, guarantees, exclusions and limitations. The actual policy issued governs. Each policyholder s financial circumstances are unique and they must obtain and rely upon independent tax, accounting, legal and other advice concerning the structure of their insurance, as they deem appropriate for their particular circumstances. BMO Life Assurance Company does not provide any such advice to the policyholder or to the insurance advisor. 08/ Insurer: BMO Life Assurance Company. / Trademarks of Bank of Montreal. 710E (2016/10/01)