RBC Insurance Create and Protect Your Wealth

PRESENTED BY: Date: September 12th, 2014

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Agenda

   Why Segregated Funds - Value Proposition The Market Opportunity for You Why RBC GIF/POA – Strength, Value, Advice

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The Uncertain Road – TSX MARKET DOWNTURN

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Enhancing Your Value Proposition

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More opportunities

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Ongoing renewal commission

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Build a fence

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The Market Opportunity for You Segregated Fund Assets (in Billions) $92 $90 $88 $86 $84 $82 $80 $78 $76 $74 $72 Dec.2009

Dec.2010

•

$91.6B

at end of December 2012

Dec.2011

• Expected growth by 2018 to

$160.4B

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Dec.2012

Target Clients

 Age 45+, Pre-retirees and retirees  Saving for retirement  Looking for efficient transfer of wealth  Previously Married   Self Employed Income Splitting 6

WHY RBC GIF/POA

Strength

$300 Billion + AUM

Simplicity

Simple product structure

Trust

RBC, a trusted brand, a Canadian institution 7

Who is RBC Global Asset Management? Manager of over $300B + in AUM

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RBC Guaranteed Investment Funds DSC/LSC/ISC

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RBC Canadian Dividend

 Looking for above average dividend returns of major Canadian companies  Managed by Doug Raymond and Stuart Kedwell since 2007  Mutual fund assets of $17.11B 10

RBC North American Value GIF

A value approach backed by proven management

• Consistency! Just one of many reasons to invest in this fund • Underlying fund providing top-quartile performance for 13 consecutive quarters • Underlying fund Morningstar Rating = 5 star 11

RBC GIF – Competitive Advantage  10 year 75% Maturity Guarantee*  100% Death benefit Guarantee for deposits made before age 80. 80% Death Benefit for deposits made after age 80*  Deposits are accepted to age 90 with no restrictions on investment choices  Resets are available once a year to age 90 on our Portfolio Solutions (Series 2)  Strong fund line –up including RBC Funds and PH&N managed by RBC Global Asset Management Inc.

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RBC Insurance Solutions Case Studies How Can We Help You

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Case Study 1 – Defer Income

    

55 year old male, planning to retire at age 65 Guaranteed income for life $200,000 to invest Risk averse, looking for growth Sensitive to MER’s

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RBC Insurance

Case Study 1: Invest and defer income 10 years

Initial Investment Year 1 Investment in POA in Year 11/RBC GIF Balance Annual guaranteed income starting in year 11 RBC GIF + POA purchased in year 11 RBC POA RBC GIF $200,000 $278,036 $ 181,023 $97,013 $ 13,006 - Guaranteed Income for Life of $13,006 - RBC GIF Portion provides all the benefits of seg funds plus access to cash without affecting guaranteed income

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RBC Insurance

Protecting Your Wealth

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Protecting your “nest egg”

 Insure your paycheque so that you can continue to fund your lifestyle and support your family in the event that you cannot work due to injury or illness.

 Continue to save for retirement – even if your earnings are disrupted for a period of time by injury or illness.

 Secure additional dollars to help subsidize the potential costs associated with being critically ill private care. – such as out of pocket medical expenses, alternative treatments, or 17

RBC Disability Insurance – Recent Enhancements

 Increased issue limits • For individual disability insurance and guaranteed standard issue  New special program for established professionals  New Fundamental Series applications & Feature Summary  New sales tools & resources • www.rbcinsurance.com/salesresourcecentre 18

RBC Critical Illness Insurance – Recent Enhancements

 CI Re-price • Rates on T10 decreased by an average of 12.2% • Rates on level T65 increased by an average of 7.2% • Rates on level T75 increased by an average of 4.7%  Change in definitions to adhere to CLHIA definitions  Changes to Best Doctors eligibility criteria  Increased renewal compensation for T10 19