BMO Life Assurance Company Product Overview November 2, 2015 PN0001E (formerly PN0022E) (2015/11/02)
Product Overview: Universal Life Plans Market leading universal life insurance. Plans for various estate and wealth accumulation needs. Life Dimensions Life Dimensions (Low Fees) Life Dimensions PRESTIGE Life Dimensions PRESTIGE (Low Fees) LifeProvider LifeProvider (Low Fees) 2
Product Overview: Life Dimensions An industry leading universal life plan with Competitive rates Solid guarantees Guaranteed Investment Bonus options and over 400 different investment options PLUS several innovative features to meet insurance and investment needs. 3
Life Dimensions (Low Fees) : It s all in the name It looks and feels like Life Dimensions except your clients have access to over 400 investment options with lower management fees AND Starting from day 1, earn higher guaranteed rates on Guaranteed Investment Accounts 0.75% on the 5 Year GIA 1.50% on the 10 Year GIA 4
Life Dimensions PRESTIGE Zero surrender charge options It looks and feels like Life Dimensions without high surrender charges! Greater flexibility - Access to the full fund value may be beneficial in scenarios where a policy s Cash Value is used as collateral for a third party loan More liquidity - Early termination of the plan results in access to the full Fund Value of a policy Simplicity - No worries about having to explain high surrender charges to your clients, if the plan is terminated. Life Dimensions PRESTIGE (Low Fees) A great option when you are looking for a plan: With low UL fees Without high surrender charges, if the plan is terminated 5
Impact of no surrender charges WITHOUT Surrender Charges Life Dimensions PRESTIGE OR Life Dimensions PRESTIGE (Low Fees) Maximum premium will be lower than a plan with surrender charges- which may mean applying for a higher initial Face Amount to tax defer the same deposit stream Level COI rates are the same as Life Dimensions YRT rates are Level for the first three years then YRT WITH Surrender Charges Life Dimensions OR Life Dimensions (Low Fees) Early termination of the plan results in surrender charges that limit the amount of Cash Value of the policy Access to the full Fund Value may not be possible in the early years when there are surrender charges, and when a policy s Cash Value is used as collateral for a third party loan 6
Life Dimensions Plans : Investment Options UL Management Fees on Indexed Accounts Life Dimensions and Life Dimensions PRESTIGE Life Dimensions (Low Fees) and Life Dimensions PRESTIGE (Low Fees) Guaranteed daily fee Approximate annual fee Range of fees Guaranteed daily fee Approximate annual fee Range of fees Market Indexed Accounts 0.0089% 3.25% 3.00% to 3.25% 0.0062% 2.25% 1.75% to 2.25% Managed Indexed Accounts 0.0068% 2.50% 2.00% to 2.50% 0.0034% 1.25% 0.00% to 1.25% Managed Portfolio Indexed Accounts 0.0068% 2.50% 2.00% to 2.50% 0.0034% 1.25% 0.75% to 1.25% Custom Portfolio Indexed Accounts 0.0075% 2.75% 2.75% 0.0041% 1.50% 1.50% For all Indexed Accounts, policy owners do not purchase units in any index or a legal interest in any security. The daily UL management fees rates stated above, which include provision for Investment Income Tax (IIT), are guaranteed as long as the policy remains in force. 7
Guaranteed Market Indexed Accounts: Offer your clients universal life investment options they ll feel positive about with the growth potential of a market index plus the security of a GIC. 2 GMIA options to choose from: Canadian Equity GMIA S&P/TSX 60 Price Return Index American Equity GMIA S&P 500 Price Return Index, converted to Canadian $ Exposure to the performance of the Reference Market Index, with reduced downside risk! Net rates of return are guaranteed never to be negative. Interest is calculated and credited on specified Interest Crediting Dates according to the terms and conditions for each Series being offered. Flexibility to switch to a Fixed Interest Rate Option or other available GMIAs, on Interest Crediting Dates, without any penalty. Available on all Life Dimensions policies issued after November 18, 2010. (subject to a minimum deposit requirement of $2,000 for each GMIA Series) Full details are available at www.bmoinvestpro.ca. Click through to a Fact Sheet for each GMIA Series to view interest crediting rate factors and actual credited rates. 8
Guaranteed Investment Bonus Life Dimensions and Life Dimensions PRESTIGE Life Dimensions (Low Fees) and Life Dimensions PRESTIGE (Low Fees) All Indexed Accounts* Year 6+ 1.50% Guaranteed Interest Accounts Year 1+ 0.50% Daily Interest Account Year 1+ Lesser of: 1% x average account value during the policy year; or (15% of earned rate) x (average account value during the policy year) None If the Fund Accelerator Bonus option is selected on Life Dimensions or Life Dimensions (Low Fees), an additional 1% investment bonus is calculated and paid in years 1 through 5 on GIA and Indexed Accounts. The Fund Accelerator Bonus is not paid on any Life Dimensions PRESTIGE plan. *Excludes Guaranteed Market Indexed Accounts. 9
Cumulative Fund Bonus Cumulative Fund Bonus Funding Requirements Payable as early as the end of the fifth Policy Year, provided funding requirements are met. Fund Values* of At least $25,000, AND 200% of the cumulative Total Annual Minimum Premium at the end of the Policy Year in order to qualify. Once qualified, the minimum premium requirement is no longer required. *Fund Value refers to the total of all Indexed Accounts (excluding Guaranteed Market Indexed Accounts) plus all Guaranteed Interest Accounts on the Policy Monthly Anniversary. Calculation Fund Value* Annual bonus rate $25,000 to $99,999 0.25% $100,000+ 0.50% A bonus calculation is performed on any monthly anniversary, during or after the 5 th policy year, that the funding requirement(s) are met. Crediting Eligible Plans The bonus is credited at the end of the policy year, for the total of all bonus calculations performed during the policy year. Life Dimensions and Life Dimensions PRESTIGE Life Dimensions (Low Fees) and Life Dimensions PRESTIGE (Low Fees) 10
Maximizer Options Maximize the tax-deferred growth within your client s policy with the minimum amount of insurance Which option should you choose? If your client InvestorMaximizer MaximizerSelect Wishes to maximize the tax deferred growth of the policy Wants the minimum amount of insurance Does not qualify for large amounts of insurance Does not need to access the Cash Value of their policy in the short term Is concerned about high surrender charges 11
LifeProvider: A simpler way to look at universal life A simpler way to look at universal life Issue ages 0 80 $25,000 to $500,000 of total universal life coverage per life Plus up to an additional $10 million of term insurance coverage Package optional benefits and riders Future expansion Flexible Coverage: All-in-one plan Start with Flexible UL coverage options to address permanent insurance needs using competitive Level cost of insurance charges Protect the whole family including children under the same plan with only one policy fee Cover temporary needs such as mortgage debt with industry-leading term rates Term 10, Term 20 and Term 30 Riders To provide various family protection and critical illness or disability needs In the future, add a LifeProvider Additional Coverage Rider when you want to add permanent coverage to an in force LifeProvider plan, subject to maximum issue amounts per life 12
LifeProvider and LifeProvider (Low Fees): UL Investment Portfolios that make sense Easy to manage, ready made diversified UL portfolios with built-in rebalancing. Includes a low fees investment option for fee sensitive clients. Whether your client s investment style is conservative or aggressive, you have a short list of investment options to choose from GIC-style accounts to Managed portfolios linked to the performance of portfolios managed by Canada s leading money managers and Market Portfolios available exclusively on LifeProvider based on the blended returns of well-known stock indices 13
LifeProvider: Easy-to-use tools All you need to make informed recommendations for your client s LifeProvider plan Insurance Needs Analyzer allows you to quickly calculate your client s basic insurance needs in just a few steps. Investor Profile Questionnaire gives your clients an assessment of their investment objectives and tolerance to risk in as little as 10 minutes! Portfolio Selector gives you a quick list of portfolio options matched to your client s investment style. 14
Permanent non-participating plans: Permanent Coverage to meet every lifestyle 20 Pay Life Pure Term 100 Issue Ages 0 to 65 18 to 85 Insurance Coverage $25,000 to $5,000,000 $50,000 to $10,000,000 Guaranteed Premiums payable Level for 20 years, then coverage paid-up Level to age 100, then coverage paid-up Guaranteed Cash and After 10 years None Reduced Paid-Up Joint Coverage Not available Joint first to die Joint last to die - 2 lives only 15
Renewable and Convertible Term plans: Term Coverage to meet every lifestyle Preferred Term 10 Preferred Term 20 Preferred Term 30 Issue Ages 18-75 18-65 18-55 Insurance Coverage $100,000 to $10,000,000 $100,000 to $10,000,000 $100,000 to $10,000,000 Joint lives Guaranteed Premiums Joint First to die 2 lives only. Joint Survivor and Double Benefit provisions Renewable to Attained Insurance Age 85 After yr. 30, renews to level premiums to Age 100. Lifetime coverage. Underwriting Conversion option Refer to Underwriting Guidelines Convert any time prior to Attained Insurance Age 70, to permanent plans regularly issued for conversion purposes, up to full face amount, without evidence of insurability. 16
Renewable and Convertible Term Plans: Preferred Term 10 Exchange Program Introduced May 2014 on Preferred Term 10 base plans issued with The Wave version 28.0 (or later) rates. The policy owner may exchange the full amount or a portion of any eligible Preferred Term 10 plan for a Preferred Term 20 plan. Any partial exchange must meet the plan minimum for both the remaining Preferred Term 10 and new Preferred Term 20 coverages. The new Preferred Term 20 plan will maintain the privilege to convert to a permanent plan. For details on the Preferred Term 10 Exchange Program, please refer to the Term Insurance Product Overview 215E. 17
insurenow and insurenow Plus: Fast. Flexible. Forward thinking. Term to 65 Plans Two simple plans No medical tests to apply Simplified Questionnaire insurenow 11 questions insurenow Plus 12 questions Designed with a younger generation in mind 18
insurenow - Term to 65 Plans Life Insurance only Coverage to age 65* Single life coverage Ages 18-49 $50,000 to $250,000 Guaranteed level premiums to age 65 Smoker and Non-Smoker rates *Policy anniversary nearest to the Life Insured s 65th birthday. 19
insurenow Plus with Accelerated Living Benefit Term to 65 Plans Life Insurance Plus Accelerated Living Benefit provides a one-time payout of a portion of the Sum Insured for either: 4 Critical Illnesses or Total Disability resulting from accidental injury 2 coverage payout options Sum Insured is reduced by the amount of the claim payment, and the remaining premiums are adjusted. Critical Care Assist Benefit and Helpinghands included! 20
insurenow Plans with Extended Life Benefit Term to 65 Plans Select Extended Life Benefit at issue on either insurenow or insurenow Plus plans to provide paid-up permanent life insurance Coverage of 25% of the remaining Sum Insured at age 65 Coverage continues for life Premiums payable to age 65 21
Critical Illness Living Benefit Plans: LB10, LB20, LB75, LB100 and 15-LB100 A lump sum benefit paid on first diagnosis and survival for 30 days of a contractually specified Covered Condition. 25 Covered Conditions Aortic Surgery Aplastic Anaemia Bacterial Meningitis Benign Brain Tumour Blindness Cancer (Life Threatening) Coma Coronary Artery Bypass Surgery Deafness Dementia, including Alzheimer s Disease Heart Attack Heart Valve Replacement or Repair Kidney Failure Loss of Independent Existence Loss of Limbs Loss of Speech Major Organ Failure on Waiting List Major Organ Transplant Motor Neuron Disease Multiple Sclerosis Occupational HIV Infection Paralysis Parkinson s Disease and Specified Atypical Parkinsonian Disorders Severe Burns Stroke 22
Critical Illness Living Benefit Plans: LB10, LB20, LB75, LB100 and 15-LB100 Early Discovery Benefit and Covered Conditions A lump sum benefit paid on first diagnosis and survival for 30 days of a contractually specified Covered Condition. 7 Early Discovery Covered Conditions Payment of 15% up to $50,000 of the sum insured on the date of diagnosis of: Coronary Angioplasty Early Breast Cancer Early Prostate Cancer Early Skin Cancer Early Stage Blood Cancer Early Stage Intestinal Cancer Early Thyroid Cancer 23
Critical Illness Living Benefit Plans: LB10, LB20, LB75, LB100 and 15-LB100 LB10 10 year term renewable and convertible Features LB20 20 year term renewable and convertible LB75 Level premium to age 75 LB100 Level premium to age 100 15-LB100 15 Pay Level premium to age 100 Issue Ages 18 65 18-55 18 65 18 65 18-65 Insurance Coverage $25,000 to $2,000,000 Premiums Guaranteed Guaranteed Guaranteed Guaranteed Guaranteed Policy Fee (commissionable) $50.00 $50.00 $50.00 $50.00 $50.00 Supplemental Benefits Children s Term Rider Accidental Death Benefit Waiver of Premium Waiver of Premium CI Riders on UL and Term Life Dimensions plans LifeProvider plans Preferred Term 10, 20 & 30 Life Dimensions plans LifeProvider plans Preferred Term 20 & 30 Life Dimensions plans LifeProvider plans Life Dimensions plans LifeProvider plans Not available as a rider 24
Critical Illness Living Benefit Plans: LB10, LB20, LB75, LB100 and 15-LB100 Features - Return of Premium Riders Name ROPD ROPS15 ROPS20 ROPS65 ROPX Description LB10 LB20 LB75 LB100 ROPD will return the sum of the eligible premiums* paid from the policy s effective date to the date of death 100% of eligible premium* becomes available on or after the 15 th policy anniversary 100% of eligible premium* becomes available on or after the 20 th policy anniversary 100% of eligible premium* becomes available on or after the insured s attained age 65 100% of eligible premium* becomes available on the insured s attained age 75 (Expiry) 15- LB100 *Eligible Premium(s) includes the policy s annual premium, modal loading, policy fee, medical extras plus any ROP/ROPX or ROPD rider premiums if elected. 25
Critical Illness Living Benefit Plans: LB10, LB20, LB75, LB100 and 15-LB100 Policyholder Assistance Services helpinghands (all plans) Provided by Shepell fgi TM, includes health coaching, nutrition services, smoking cessation programs plus other valuable services. Critical Care Assist Benefit (all plans) Provided by Best Doctors, an exhaustive medical review of relevant medical data by world-class specialists from Best Doctors global database of 50,000 specialists will confirm or modify diagnosis and suggest treatment plans, resulting in a better outcome.** **Available also to immediate and extended family members (some restrictions apply) TM Shepell fgi is a trademark of HRCO Inc., a corporation incorporated under the laws of the province of Ontario. Registered Trademark of Best Doctors, Inc. 26
BMO Guaranteed Investment Funds Up to 100% Maturity Benefit guarantee If the market goes down, up to 100%* of your investment or higher reset Maturity Guarantee Amount is protected for the term you select. Up to 100% Death Benefit guarantee In the event of your death when the market is down, your beneficiary is protected for up to 100%** of your investment, with the possibility of resets of the Death Guarantee Amount at renewal. * At Maturity: 100% on deposits made at least 15 years and 75% on deposits made less than 15 years from the Maturity Date, less a proportionate amount for withdrawals. ** At Death: 100% on deposits made before the Annuitant is age 75 and 75% on deposits made on or after age 75, less a proportionate amount for withdrawals. 27
BMO Guaranteed Investment Funds Secure market gains on a regular basis! Maturity Guarantee Resets: BMO makes it easy for you to take advantage of rising markets by resetting your Maturity Guarantee Amount automatically every month. No action is required by you or your client! Death Guarantee Resets: Optional benefit that offers your clients the opportunity to increase the Death Guarantee amount by providing automatic resets every 3 rd policy anniversary up to including the last policy anniversary before your client s 75 th birthday. ETF-based balanced fund options managed by BMO Asset Management Inc. BMO Brand Issued by BMO Life Assurance Company, a member of the BMO Financial Group, one of Canada s premier financial institutions. Automatic monthly resets of the Maturity Guarantee Amount occur up to and including 10 years from the Maturity Date. Must be selected at time of application. Additional fee applies. 28
BMO Guaranteed Investment Funds: Plus... Prestige Class Lower Management Fees Available to existing and new contract holders, if eligible Eligibility is based on all contracts held by family members living at the same address, where the minimum aggregate holding is $250,000 A full suite of plans are available, including Locked-in Registered Savings Plans, Locked-in Retirement Income Plans, and a new BMO GIF Tax Free Savings Account 29
Single Premium Immediate Annuities BMO Life Assurance Company offers a broad range of SPIAs to provide income security. Our annuities include: Single Life Annuities Provides a series of guaranteed income payments for life Joint Life Annuities Provides a series of guaranteed income payments for as long as one of two spouses live Term Certain Annuities Provides a series of guaranteed income payments for a chosen period An optional Guaranteed Period can be chosen on both Single Life and Joint Life annuities. This ensures that a minimum number of income payments are made, regardless of how long you (or your spouse) live. Minimum Guarantee Period 7 years (Non-Registered), 0 years (Registered) 30
Why choose a SPIA? It s Guaranteed! An annuity provides a series of periodic income payments for a worryfree, dependable source of retirement income. With medical advances and healthier lifestyle choices, people are living longer. Annuities can provide a lifetime income source your clients cannot outlive their income payments ( longevity insurance )! 31
Why choose a SPIA from BMO Insurance? It s Perfect! Broad Product Range includes non-prescribed, non-registered SPIAs for the corporate market Indexed Annuities allows for annual indexing of income payments Rate Guarantees 10 days for non-registered and 45 days for registered funds Annuity Customer Service Centre Providing specialized service and support Easy to Quote SPIA Illustrations Available on both Wave and CANNEX 32
Product Overview To find out more about BMO Insurance products, please call your MGA, contact the BMO Insurance regional sales office in your area, call 1-877-742-5244 or visit www.bmoinsurance.com/advisor. Ontario Region Quebec - Atlantic Region Western Region 1-800-608-7303 1-866-217-0514 1-877-877-1272 The information in this publication is intended as a summary of our products and/or services and may include projected values based on a set of assumptions. Actual results may not be guaranteed and may vary. 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. Insurer: BMO Life Assurance Company. Registered trade-mark of Bank of Montreal, used under licence. 33