April 22, 2010 The terms with capitalized first letters are defined in the Glossary of the Contract and Information Folder.

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1 F REPRESENTATIVES' USE ONLY Q&A Closing the Guaranteed Lifetime Withdrawal Benefit (GLWB) Version 1 Launching the Guaranteed Lifetime Withdrawal Benefit (GLWB) Version 2 New version of the Helios Contract April 22, 2010 The terms with capitalized first letters are defined in the Glossary of the Contract and Information Folder. I) Closing the Guaranteed Lifetime Withdrawal Benefit (GLWB) Version 1 Q1. Up to what date can I submit a Contract Application in which the Guaranteed Lifetime Withdrawal Benefit (GLWB) Version 1 Optional Guarantee is selected? A: Contract Applications in which the Guaranteed Lifetime Withdrawal Benefit (GLWB) Version 1 is selected must be received by DFS no later than the Cut-Off Time on April 30, 2010, 4.00 p.m. (EST). Q2. What measures are in place for clients who currently have a Helios Contract with GLWB Version 1? Additional Deposits in Contracts with GLWB Version 1: Accepted after April 30, 2010, up to $25,000 per calendar year. This measure does not apply to Contracts with the Guaranteed Minimum Withdrawal Benefit (GMWB) Optional Guarantee or Core Guarantee 100/100 r. Why allow additional Deposits in GLWB Version 1? This measure lets you adjust your clients Deposits without having to request a new Contract. For example, a client could add $25 to his PAC to take advantages of increased RRSP contribution limits, while another client with extra cash on hand could make an additional Deposit of up to $25,000 in his Contract. Pending T2033 Forms for Contract Applications that include GLWB Version 1: Provided that the amounts transferred and indicated on the form: - are held in an investment maturing prior to April 30, 2010, and that - DFS receives the Contract Application duly completed and signed by the Cut-Off Time on April 30, 2010, 4.00 p.m. EST, along with a copy of the transfer form, we will process these transactions on receipt of all the required documents. For Contract Applications received after this date, refer to the following question. The amounts related to these transactions must be received by DFS no later than the Cut-Off Time on July 15, 2010, 4.00 p.m. EST. Pre-authorized cheque (PAC) agreements: Please refer to Question 4(D).

2 Q3. The Contract Application, with the selection of the GLWB Version 1, and my client s new Deposit were received by DFS after the Cut-Off Time. What happens in this case? 2 A: A customer service representative will contact you and ask you to get new written instructions from your client. Your client will be able to choose one of the following options, depending on the Application transmission mode: A) Contract Application sent via FundServ: Complete a new Contract Application in which the Guaranteed Lifetime Withdrawal Benefit (GLWB) Version 2 Optional Guarantee is selected. Note that, in this case, DFS will add the GLWB to the Contract on receipt of the new Application; Complete a new Contract Application without selecting an Optional Guarantee; Obtain reimbursement of the Market Value of the Deposit. B) Contract Application sent by mail and accompanied by a cheque: The amount will not be invested in the Funds requested Complete a new Application in which the Guaranteed Lifetime Withdrawal Benefit (GLWB) Version 2 Optional Guarantee is selected. Note that, in this case, DFS will add the GLWB to the Contract on receipt of the new Application; Complete a new Contract Application without selecting an Optional Guarantee; Request that the uncashed cheque be returned. DFS cannot invest an amount in a guarantee that does not correspond to the client s written instructions. Nor can it be held liable for market fluctuations or variations in the protected value which may result from a delay in obtaining these instructions. We reserve the right to return to the representative concerned any cheque and Contract Application received after the Cut-Off Time of April 30, 2010, p.m. EST, unprocessed, if the Guaranteed Lifetime Withdrawal Benefit (GLWB) Version 1 is selected. The representative and the client will have to make a new selection and complete new documents accordingly. If Customer Service does not receive an answer from you within the following five business days, the file will be referred to your Regional Sales Director. Q4. My client, who has an existing Contract with a GLWB Version 1 Optional Guarantee made an additional Deposit exceeding $25,000. What happens in this case? A: After the Cut-Off Time of April 30, 2010, 4.00 p.m. EST, additional Deposits in the GLWB Version 1 Optional Guarantee may not bring the total Deposits for the 2010 calendar year to more than $25,000. Example If your client made Deposits totalling $10,000 in his Helios Contract between January 1 and April 30, 2010, the total of the Deposits he is authorized to make between May 1 and December 31, 2010 may not exceed $15,000. In all of the following cases, DFS cannot invest an amount in a guarantee that does not comply with the client s written instructions. Nor can it be held liable for market fluctuations or variations in the protected value which may result from a delay in obtaining these instructions. F REPRESENTATIVES USE ONLY

3 3 A) If the Statement of Direction was sent via FundServ, the transaction will be automatically refused. You must reverse the transaction and offer your client one of the following three options: Redo the transaction with a Deposit that corresponds to or is lower than the contribution room remaining to reach the limit of $25,000 for the 2010 calendar year (refer to the example on page 2); Complete a new Contract Application in which the Guaranteed Lifetime Withdrawal Benefit (GLWB) Version 2 Optional Guarantee is selected, as it is not subject to the $25,000 limit. Note that, in this case, DFS will add the GLWB on receipt of the new Application; Complete a new Contract Application without selecting an Optional Guarantee. B) If the Statement of Direction was sent by mail and accompanied by a cheque, the amount will not be invested in the Funds requested. A customer service representative will contact you and ask you to get new written instructions from your client, who will be able to choose one of the following options: Complete a Statement of Direction in which the Deposit corresponds to or is lower than the contribution room remaining to reach the limit of $25,000 for the 2010 calendar year (refer to the example on page 2); Complete a new Contract Application in which the Guaranteed Lifetime Withdrawal Benefit (GLWB) Version 2 Optional Guarantee is selected. Note that, in this case, DFS will add the GLWB to the Contract on receipt of the new Application; Complete a new Contract Application without selecting an Optional Guarantee; Request that the uncashed cheque be returned. C) If the funds associated with a T2033 form exceed the $25,000 limit at the time they are sent, a Customer Service representative will contact you. The options offered will be the same as in B) above. D) If the Deposits are made under a pre-authorized cheque (PAC) agreement: Pre-authorized cheque (PAC) programs made prior to the Cut-Off Time of April 30, p.m. EST, will be maintained as is, even if the $25,000 contribution limit for the 2010 calendar year has been reached. However, you have until October 1, 2010, to meet with your clients and to send us new written instructions. Otherwise, payments under these programs will be stopped if the total Deposits under the client s PAC are equal to or exceed $25,000 for the 2010 calendar year (regardless of the Deposits made excluding PAC). A pre-authorized cheque (PAC) program may be entered into for a Contract that includes the GLWB Version 1 as of May 3, 2010, provided the total of the Deposits made under these Contracts between January 1, 2010 and December 31, 2010 are equal to or lower than $25,000 (including Deposits in the Contract made excluding PAC). We reserve the right to return to the representative concerned any cheque and Contract Application received after the Cut-Off Time on April 30, 2010, 4.00 p.m. EST, unprocessed, if the Guaranteed Lifetime Withdrawal Benefit (GLWB) Version 1 is selected. The representative and the client will have to make a new selection and complete new documents accordingly. If Customer Service does not receive an answer from you within the following five business days, the file will be referred to your Regional Sales Director. F REPRESENTATIVES USE ONLY

4 4 Q5. Can current Helios Contract Owners, who have chosen the Guaranteed Lifetime Withdrawal Benefit (GLWB) Version 1 Optional Guarantee, make changes to their Fund portfolio mix after May 3, 2010? A: Yes, provided these are GLWB Eligible Funds. However, they may not add the two new DFS GIF Funds introduced on May 3, 2010 to their portfolio. These operations may be made via FundServ or by regular mail. II) Launching the Guaranteed Lifetime Withdrawal Benefit (GLWB) Version 2 and the new version of the Helios Contract Q6. When will the new version of the Helios Contract be available? A: The Guaranteed Lifetime Withdrawal Benefit (GLWB) Version 2 and the changes to the Helios Contract will take effect May 3, Q7. In addition to launching the GLWB Version 2, what other changes were made to the Helios Contract? A: The following table summarizes the main changes, which will take effect May 3, Consult the new Helios sales material or browse Webi as of that date for further details. Up to April 30, 2010 As of May 3, 2010 Funds offered GLWB Eligible Funds Core Guarantees available 75/75 75/100 i 75/75 75/100 i Optional Guarantee available GLWB Version 1 GLWB Version 2 Age requirement for adding the GLWB Optional Guarantee Age 45 Up to age 80 (no minimum age) Deposits to the Contract Allowed up to age 95 Allowed up to age 85, including all Contracts entered into prior to May 3, The two new Funds are not eligible for Contracts which have Guarantee 100/100 r, the GMWB or the GLWB Version 1. F REPRESENTATIVES USE ONLY

5 GLWB Bonus calculation the year GLWB 2 is added Initial GLWB Amount Up to April 30, 2010 As of May 3, % of bonus, regardless of the date GLWB Version 1 is added. Bonus prorated to the number of months elapsed between the date the GLWB is added and December 31 of the same year. e.g.: GLWB added July 1 = 50% of the bonus GLWB added January 31 = 100% of the bonus Offered as of age 45 Offered as of age 50 Any made before age 50 will be processed as an excess payment. 5 GLWB Payout Percentage Reset on the GLWB Protected Value Age of Annuitant at the time of the first 3 (one Annuitant) (two Annuitants) Age 45 to % 3.5% Age 60 to % 4.0% Age 65 to % 4.5% Age 70 to % 5.0% Age 75 to % 5.5% Age 80 to % 6.0% Age 85 and over 7.0% 6.5% ly Age of Annuitant at the time of the first 4 (one Annuitant) (two Annuitants) Age 50 to % 3.5% Age 55 to % 3.75% Age 60 to % 4.0% Age 65 to % 4.5% Age 70 to % 5.0% Age 75 and over 6.0% 5.5% Every three years GLWB Bonus 7% per year for 10 years, for years in which no is made. 5% per year for life, for years in which no is made. 2 Your client is entitled to the GLWB Bonus as described in this table provided he made no during the year the GLWB was added. 3 The Annuitant must be over age 45 to be able to add the GLWB to his Contract. 4 The Annuitant must be at least age 50 to be able to make eligible s under the GLWB Version 2. F REPRESENTATIVES USE ONLY

6 6 Q8. Why launch a new version of the GLWB Optional Guarantee and the Helios Contract? A: The new version of the Helios Contract offers our clients advantages comparable to, if not greater than, those offered by our competitors, while allowing us to continue to soundly manage our risk exposure. The year 2009 was a year of repositioning in the guaranteed investment fund market in Canada. The recent financial crisis changed the models on which insurers based their projections and prompted them to adopt mechanisms that promote enhanced risk management. Most of our competitors made changes to their products (refer to the comparison table Quick reference guide on Guaranteed Withdrawal Benefits on Webi). The industry is beginning to standardize the features of GIF Contracts. The new version of the Helios Contract reflects this trend. III) Additional Guarantee fees for in-force business Q9. Does the increase in guarantee fees under the new version of the Helios Contract also apply to in-force business? A: Yes. Here are the revised fees for Contracts entered into prior to May 3, 2010 and for new Contracts. Guarantee 75/100 i % Guarantee 100/100 r % to % Guaranteed Lifetime Withdrawal Benefit (GLWB) Version % Guaranteed Minimum Withdrawal Benefit (GMWB) % Management Expense Ratio (MER) No increase Are our MERs competitive? A comparison of MERs (including fees for Guarantee 75/75) with those for investment funds (pooled funds and guaranteed investment funds) for the same class 5, shows that the MERs for more than three quarters of our Funds are 10 basis points from the median MERs for each class. IV) Communications and support Q10. How will you inform clients about these changes? A: A Notice of change will be sent to all clients who own a Helios Contract at the beginning of May Source: Paltrak, January F REPRESENTATIVES USE ONLY

7 7 Q11. I have other questions. Who can I contact? A: For all questions or additional information, please contact your Regional Sales Director or your Investment Consultant: Your Regional Sales Directors Jean-François Ratelle Western Quebec or , ext Daniel Lanteigne Eastern Quebec or , ext Dion Hamman British Columbia George Iovankas Ontario or , ext Maurine Walker Ontario or , ext Djamal Saleh Alberta, Saskatchewan and Manitoba or Jeff Reeves Atlantic Provinces Your Investment Consultants Nathalie Nepveu Quebec or , ext David MacFadyen British Columbia or , ext and South Western Ontario Monica Cidade Alberta, Saskatchewan, Manitoba or , ext and Ontario Sheri Wright Atlantic Provinces or , ext F REPRESENTATIVES USE ONLY