Release February 6

th

, 2014

Desjardins Insurance refers to Desjardins Financial Security Life Assurance Company.

February 6

th

, 2014 content

News in: • Health Insurance • Life Insurance • Underwriting • Fusion DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY 2/34

Long-term Care Advance

Traditional

Life 20 Life at 65

Universal Life

Precision 20 Precision at 65 Foundation (T00) Commission: Same as the life insurance coverage to which it is associated .

DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY 3/34

What you need to know…

1. It is now offered up to the age 59 in Fusion.

2. Clients between 56 and 59 individual consideration 3. 10-year minimum before to receive the monthly benefit DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY 4/34

You want to know the LTC Advance price?

DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY 5/34

You want to know the LTC Advance price?

Look at the tree view!

DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY 6/34

And the price of CI Advance?

Same thing!

DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY 7/34

Success measure

From the launch up to end of December: DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY 8/34

A new VIA – Life with LTC Advance in 3 easy steps

DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY 9/34

Financing the LTC Advance with the MCD!

With LTC Advance, if a applies the client keeps it!

DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY 10/34

Just an example

Female, age 35

Recommendation

Life 20 – $100,000 Term 20 – $400,000

Without MCD

$132.30

With MCD

$121.95

DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY 11/34

(Traditional)

• Twin of Precision at 65 • Best guaranteed cash surrender value • Multi-Coverage Discount available – Remains when LTC Advance is added • Rate Reduction Program available DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY 12/34

Rate Reduction Program

Products Life 10 and Precision 10 Life Start 15 Life 20 and Precision 20 Life at 65 and Precision at 65 Issue ages: 0 - 44 45 - 49 50 - 65 Guaranteed Whole Life and Precision Examples Substandard premium reduced by… 50% 45% 40% If substandard premium of 100% If substandard premium of 150% + 50% + 55% + 60% + 75% + 82.5% + 90% 35% 40% 45% 30% + 65% + 60% + 55% + 70% + 97.5% + 90% + 82.5% + 105% MAXLife and Foundation 20% + 80% + 120% 13/34 DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY

• Commissions

(Traditional) - cont'd

DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY 14/34

Male NS, Age 35, $100,000 -

Rank Company

7 8 9 5

6 1

2 3 4

Desjardins (UL)

La Capitale (Trad) La Capitale (UL) Sun Life (UL) Equitable Life (UL)

Desjardins (Trad)

Industrial-Alliance (Trad) UL Mutual (Adj. Trad) Co-Operators Life (Par)

Monthly premium 88.58

89.67

89.80

90.75

92.08

95.22

95.40

97.47

137.43

CSV (Age 65) 30 years 35,880

23,684 23,684 30,149 20,624

39,000

26,600 40,000 Div.

CSV (Age 80) 45 years 60,520

50,765 50,765 45,655 48,355

68,000

62,450 57,500 Div.

15/34 DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY

T30 (Trad) and Flex 30 (UL)

• Rate reduction of 7% in average – Regular and Preferred rate – #1 with MCD / between 1-4 without MCD-in Life Guide • Consistant with T10 and T20 rates

Top 3 in LifeGuide



Even more competitive with the Multi-Coverage Discount

DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY 16/34

T30 – Competitive analysis

• Male NS, Age 30 for $250,000 7 8 9

3

4 5 6

Rank

1 2

Company

SSQ Assurance Western

Desjardins

Industrial-Alliance La Capitale Wawanesa Life Transamerica Life BMO Insurance Primerica Life

Monthly premium

30.38

31.03

31.28

31.50

32.71

32.85

35.33

35.78

38.95

DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY 17/34

Business Insurability Option (BI Option)

Markets • Growth business • Businesses currently lacking the financial capacity to cover the potential business need Needs • Buy-sell agreement • Capital gains taxes • Business debts 18/34 DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY

BI Option – cont'd

• Allows to purchase additional life insurance for the first 10 years of the contract – Based on the growth of the business Fair Market Value • Issue age: 18 to 65 • BI Option amount at issue: – Min: $100K – Max: the lesser of : • $3.33M • Insured's share of the Fair Market Value of the Business (at issue) – Allows to exercise up to 3 time the BI Option amount DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY 19/34

BI Option – cont'd

• At time to exercise the option – No medical evidence – Financial statement for the company's last three fiscal year to justify the business growth • Maximum amount to purchase at time of the option – The lesser of • The increased value of the owner's share in the business • 3 times the option amount (less any amounts previously exercised) DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY 20/34

BI Option – cont'd

• Products available when option is exercised – All products available for conversion – + All term products (except Enhanced T10) • Offer on all life insurance coverages (Traditional and Pace UL)

Commissions

Trad and UL

FYC

35%

Years 2 to 5

4% (incl. deposits at 3% in UL)

Years 6 to 10

2% DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY 21/34

BI Option – Case study

Company ABC with 2 owners

– Owner A, male NS, 35 years old, owning 50% of shares – Owner B, female NS, 30 years old, owning 50% of shares • Value of the business: $1.5M

– Owner A's value of the share: $750,000 – Owner B's value of the share: $750,000 DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY 22/34

BI Option – Case study

• A buys T10 of $750,000 + BI Option for $750,000 (maximum cumulative of $2.25 million) – T10 annual premiums of $440 + BI Option of $157.50

• B buys T10 of $750,000 + BI Option for $750,000 (maximum cumulative of $2.25 million) – T10 annual premiums of $280 + BI Option of $75 2 years from now, FMV = $2.5M ($1.25M each owner) • A exercises $500,000 ($1.25M – 750K) in a new T10 • B exercises $500,000 ($1.25M – 750K) in a new T10 New balance of the BI Option on each insured is $1.75M ($2.25M–500K) DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY 23/34

BI Option – Marketing Tools

• Calculator in Fusion and Webi – Help you to calculate the FMV and then the amount to enter in Fusion – Any other relevant methods are also accepted by the underwriting • One-pager (with product description) • Client brochure with case study • CRM alert at the policy anniversary DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY 24/34

Multi-Coverage Discount

• Light change in the permanent life insurance • No change in the Term life insurance 

Always as competitive, #1 or #2

What is changing?

• No longer discount for the 10K rate band for permanent insurance – When sold with another eligible product, the other products still get a discount – Low level of sales in the 10K rate band (often for conversion) • Discount on permanent product is now limited for certain situations DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY 25/34

Preferred Offer

• Available on T10, T20 & T30 (Trad and UL) – $250,000 and $750,000 • When an insured is accepted P1, P2 or R1 – Contract issue with an higher face amount, when box is checked

in Fusion

• No additional medical evidence to provide Very simple in Fusion, let's see… DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY 26/34

Fusion – Preferred Offer



Excellent way to respect the budget and increase the legacy

DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY 27/34

Underwriting Requirements

• More relaxed underwriting requirements for: – Life insurance amount higher than $2M (ex.: no Financial Questionnaire for amount between $2M to $3M) Then, updated Financial Underwriting Guide – For Life insurance and Critical Illness Insurance: • More relaxed requirements and increased the maximum amount limit DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY 28/34

Fusion

• New icon for the Investor Profile • After February 21, 2014, only illustrations produced with the Fusion illustration software version 15.2.0 will be accepted DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY 29/34

Transition Rule

• Contracts will be issued based on the old conditions, if Head Office receives the application and illustration on or before February 21, 2014 by mail, fax or e-mail.

• A contract issued with the old conditions must be settled within 40 days following the approval date from the underwriting department.

• If you are already submitted an application for T30 or Flex 30, the new lower rates may be applied if the contract has not been issued.

30/34 DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY

Summary

• New  Competitive commissions   Best CSV Multi-Coverage Discount  LTC Option • Reduced rates for T30 (Trad) and Flex 30 (UL)  Reduced by 7%  Top 3 in LifeGuide DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY 31/34

Summary - cont'd

• Business Insurance Option  Additional life insurance for the first 10 years, based on the increased Fair Market Value of the business   Very competitive premiums Competitive commissions • Multi-Coverage Discount  Slight change for Permanent products • Still very competitive • Still #1 or #2  No change for the Term products DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY 32/34

Summary – cont'd

• Preferred Offer for Term Insurance  Increase the amount of insurance when P1, P2 or R1 if box checked in Fusion • More relaxed underwriting requirements  For Life insurance greater than $2M • No financial questionnaire  Updated Financial guide DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY 33/34

Questions?

Thanks!

Desjardins Insurance refers to Desjardins Financial Security Life Assurance Company.

DESJARDINS INSURANCE | FOR REPRESENTATIVES' USE ONLY 34/34