Essential SolutionsTM

Marketing Guide

L I F E I N S U R A N C E

T H E M A R I T I M E L I F E A S S U R A N C E C O M P A N Y

Product Highlights 1

Marketing Overview 2Web site 2

Product Design 3

Insurance Coverage 4Issue limits 4

Rate Bands 4

Underwriting Classes with Chart 4

Insurance Ratings 5

Cost of Insurance (COI) 5

Juvenile Cost of Insurance 5

Guaranteed Administration Fee 5

Death Benefit Options 5

Level Coverage 5

Coverage Plus 6

Coverage Types 6

Single 6

MultiLife 6

Joint Life 6

Investment Accounts 8Daily Interest Account 8

Fixed Interest Account 8

Investment Bonus 9

Policy Provisions 10Premium Frequency 10

Billed Premium 10

Premium Tax 10

Net Premium 10

Minimum Premium 10

Maximum Premium 10

Conversion Provision 10

Table of Contents

i

Term conversion 11

Smoker and Non-Smoker 11

Adding Insureds 11

Changes to Death Benefit Options 11

Transfer of Coverage 11

Maintaining Exempt Status 11

Carrier Fund 12

Partial Withdrawal 12

Policy Surrender 12

Surrender Charge 13

Partial Surrender 13

Policy Loans 13

Policy Lapse 14

Reinstatement 14

Disability Payment Benefit 14

Advanced Death Benefit 15

Optional Riders and Benefits 16Term 10 and Term 20 Riders (Preferred Classes) 16

Joint Term 10 Rider 16

Additional Life Term Rider 17

Accidental Death Benefit (ADB) 17

Accidental Death and Dismemberment (AD&D) 17

Children's Protection (CPR) 18

Joint Legacy Protection Rider (JLP) 18

Guaranteed Insurability Option Rider (GIO) 19

Disability Waiver of Specified Premium (DWSP) 20

Payor Waiver of Specified Premium (PWSP) 20

Compliance Initiatives 21Compliance Checklist 21

Signed Illustrations 21

Appendices 22Appendix A: Reference Chart of Guarantees and Policy Changes 22

Appendix B: Term Conversions to Essential Solutions 23

Glossary of Terms 24

Table of Contents (continued)

Costs Guaranteed• Cost of Insurance (COI) scale

Level Guaranteed• Administration Fee Guaranteed

Choice of two Death Benefit Options• Level Coverage• Coverage Plus

Premium Flexibility• Choice of amount and duration• Casual Premiums• Stop and go premiums

Variety of Coverage Types• Single Life• Joint First-to-Die (2 lives)• Joint Last-to-Die with waiver on first death

(2 lives)• Joint Last-to-Die (2 lives)• MultiLife (2 lives)

Investment Accounts• Daily Interest Account for the Carrier Fund• 10 Year Fixed Interest Account (FIA)

Investment Bonus

Disability Payment Benefit

Choice of Riders and Benefits• Term 10 Rider (Preferred Classes available)• Term 20 Rider (Preferred Classes available)• Joint Term 10 Rider• Accidental Death Benefit (ADB)• Accidental Death and Dismemberment (AD&D)• Children's Protection Rider (CPR)• Joint Legacy Protection Rider• Guaranteed Insurability Option Rider (GIO)• Disability Waiver of Specified Premium (DWSP)• Payor Waiver of Specified Premium (PWSP)

Product Highlights

1

Maritime Life's Essential Solutions is a simple,guaranteed universal life plan that offers a balance of insurance protection and tax-deferred savings. It isdesigned to appeal to risk-averse investors. It is alsowell suited to clients over age 50 who want to preservetheir estate, without having to worry about activelymanaging the investments within their universal lifeplan. They will appreciate the guaranteed plan featuresalong with the competitive pricing. You will appreciatethe simple plan structure, fully functional software andour commitment to superior service.

Web Site• Information on Essential Solutions, including

weekly rate information for investment accounts,is available online at our public Web site atwww.maritimelife.ca

• The Advisor Centre is the single source of ourproduct and marketing information — includesonline materials, weekly rate information,support, software, forms and much more.

• One-stop system for current customer values andpolicy information are also available on InfoDirectat www.maritimelife.ca/advisor

Marketing Overview

2

Maritime Life's Essential Solutions is a simple,guaranteed universal life plan that combines affordablelife insurance with a tax sheltered investment fund.The cost of insurance (COI) charge comprising mainlyof mortality is deducted from the fund value.

Essential Solutions has a guaranteed Level COI rate.The percentage deducted from premiums isguaranteed to be 2% for the lifetime of the policy.

The Cost of Insurance charge is zero when the lifeinsured's attained insurance age or joint attainedinsurance age reaches 100.

We guarantee an investment return at an annual rate of at least 3% if the bonus option is selected or 3.50% if the bonus option is not selected,determined upon termination of contract.

A monthly administration fee is also guaranteed not toincrease. Combined, the guarantees remove theuncertainty of future increases in charges, a significantselling feature.

The interest or growth earned on the fundaccumulates tax sheltered as permitted for tax-exempt policies.

Essential Solutions also offers attractive investmentbonuses.

Any amount that would cause the policy to becomenon-exempt will be deposited into an account calledthe Carrier Fund. All deposits to the Carrier Fundwill be placed in the Daily Interest Account. Theinvestment earnings in the Carrier Fund are taxable.

Essential Solutions offers a competitive ten yearFixed Interest Account.

Product Design

3

Issue limitsIssue Ages (based on age nearest birthday)Juveniles 0–17Smoker/Non-smoker 18–80Minimum Sum Insured (ages 0–80) $ 50,000

Rate Bands$ *50,000 $ 99,999$ 100,000 $ 499,999$ 500,000 $ 25,000,000 (Special quote needed above $25,000,000)

* The sum insured can be lower than $50,000 (but not less

than $25,000) subject to a minimum annual premium of

$750 (where the minimum premium is based on Essential

Solutions only).

Underwriting Classes For Essential Solutions, Term10 and Term 20 riders• Preferred underwriting is available for:

- Ages 46 to 80 and with coverage amounts$100,000 and over

- Ages 18 to 45 and with coverage amounts$250,000 and over

• Standard underwriting class is available tojuveniles (ages 0 to 17).

• These underwriting classifications are based onmeasures of health, lifestyle, build as well asfamily history, age and face amount.

Insurance Coverage

4

Sum Insured Issue Ages 0-17 Issue Ages 18-45 Issue Ages 46-80

Non-smoker Smoker Non-Smoker Smoker Non-smoker Smoker

$50,000 to $99,999 Standard Standard Standard Standard Standard Standard

$100,000 to $249,999 Standard Standard Standard Standard Preferred Plus

Preferred

Standard

Preferred

Standard

$250,000 and over Standard Standard Preferred Plus

Preferred

Standard

Preferred

Standard

Preferred Plus

Preferred

Standard

Preferred

Standard

Underwriting Classes by issue age and smoking status

Please refer to Life Underwriting Requirements and Criteria #7518 for descriptions of the Preferred Underwriting Classes.

Insurance ratings• Substandard lives are those requiring an

additional charge for medical, lifestyle, mortalityrisk etc. Each insurance benefit has its owninsurance rating.

• A permanent mortality extra is the mostcommon type of rating, and is usually assessedfor medical reasons.

• Age Rating tables are used to determine therated age of the individual, based on the actualissue age and the table or percentage ratingassessed. For Essential Solutions, the COI willbe based on the rated age and the Standardunderwriting class will apply to all age ratings.

• Flat Extra premium: The flat dollar ratings maybe assessed as permanent or temporary and canapply for any number of years from issue. It canalso apply to any underwriting class, but willmost often apply to the Standard underwritingClass. The amount of the extra charge will bebased on a rate per $1,000 of Sum Insured.

• We will apply the rated age of the insuredwherever applicable. Some examples of the useof the rated age are for the COI rate andMinimum Premium.

Cost of Insurance Guarantee (COI)

The Level Cost of Insurance rate on EssentialSolutions is guaranteed.

The insurance costs for the rate scale is distinct byrate band, issue age, gender, smoker status andunderwriting class. The underwriting classes for non-smokers are — Preferred Plus, Preferred andStandard, and for smokers — Preferred and Standard.

• Essential Solutions offers a Level GuaranteedCOI rate scale:The cost of insurance rates are guaranteed toattained insurance age 100. This structurespreads the insurance costs over the life of thepolicy and may be preferable for key policy goalsthat are long-term.

Juvenile Cost of Insurance• Standard underwriting classifications are

available on juveniles.• The juvenile rate scale does not depend on a

smoking status.• At the anniversary nearest the life insured's 20th

birthday, the smoking status will automaticallychange to smoker and the cost of insurance willincrease. If we receive evidence satisfactory to usthat the life insured is a non-smoker, the non-smoker rates will apply.

Guaranteed Administration Fee• The monthly administration fee of $10 per policy

is guaranteed not to change for the life of thepolicy.

Death Benefit OptionsEach policy can have only one death benefit option.Any changes to the death benefit option will behandled as a conversion. We offer a choice of one of the following two death benefit options:

1. Level Coverage

The Basic Death Benefit is equal to the SumInsured or the Fund Value if greater. The SumInsured will be reduced by the amount of anyPartial Withdrawal or Disability Payment Benefit,including any associated partial surrendercharge. The cost to provide the UL coveragereduces as the fund value increases. This optionis not available on MultiLife policies.

Insurance Coverage (continued)

5

2. Coverage Plus

The Basic Death Benefit is equal to the SumInsured plus the Fund Value. As the fund valuegrows, this death benefit increases and it can beused for situations of growing estate tax liabilityor growing business values or concerns withinflation. The net amount at risk for the ULcoverage equals the sum insured (i.e. it is level,however changes in sum insured will affect it).

On MultiLife, the policy owner must select oneof the following:a) The Sum Insured is paid on each death with

the fund value paid only at the last death, orb) The Sum Insured plus the fund value is paid

at each death. To ensure that the policy isadequately funded for the remaining life, wewill deduct an amount to cover alloutstanding monthly deductions, startingfrom the date the claim is received to onemonth after the claim is paid. Premiumpayments must be made to prevent thepolicy from lapsing.

On Joint-Last-to-Die the Sum Insured is paid atthe last death, but the policy owner can choose tohave the fund value paid at either each death orthe last death.

Coverage Types

1. Single Life

Single life coverage is available.

2. MultiLife

At issue, two lives can be covered for the same ordifferent coverage amounts and package of riders,on one policy with only one administration feeand only one death benefit option.

MultiLife is especially well suited for familysituations or policies used to fund Buy-Sell orother business arrangements. The only deathbenefit option available is Coverage Plus, with thefund value paid at either each death or last death.

3. Joint Life

Joint lives are offered either as a first-to-die orlast-to-die basis. The illustration softwareautomatically calculates the single life age (SLA).

i) Joint First-to-DieThis coverage is available on two lives(including insureds under age 18). Both deathbenefit options are available on Joint First-to-Die policies. The Single Life Age is generallyhigher than the age of the oldest life insured.The death benefit is payable at the first death.The following are additional features andbenefits offered:

Policy Exchange Feature• During the lifetime of the insureds and

before attained insurance age 81 of theoldest insured, a Joint First-to-Die policymay be divided into single life policieswithout underwriting.

• The joint policy is surrendered for itscash value (subject to the GuaranteedInvestment Return rate) on the effectivedate of the new policies.

Insurance Coverage (continued)

6

• The Cost of Insurance rate on the newpolicies is based on the attainedinsurance ages of the insureds and therate scale in effect at the time of theexchange.

• The maximum amount of coverage oneach life is the total death benefit ineffect at the time of the exchange lessthe fund value, of the Joint First-to-Diepolicy.

Survivor Option Feature• Within 90 days of the first death, the

survivor may purchase any eligible newsingle life policy, without underwriting,providing the surviving insured is age 80or less.

• The Cost of Insurance rate is based onthe attained age of the survivor andthen current rate scale.

• The maximum amount of life insurancecoverage will be the Basic Risk Amountin effect immediately prior to the deathof the first insured.

Multiple Benefit• If the death of the surviving insured

occurs within 90 days of the first death,we will pay an additional death benefitequal to the sum insured.

ii) Joint Last-to-Die• The Insureds have the advantage of

lower costs with this type of coverage. • No more than two lives can be covered

on a last-to-die basis.• Both death benefit options are available

on Joint Last-to-Die policies.• The Single Life Age is generally lower

than the age of the youngest life insured. • The death benefit is payable at the last

death and cost of insurance charges willcontinue until the last death.

• For Coverage Plus, the policy owner canchoose to have the fund value paid ateither each death or last death.

iii) Joint Last with Waiver on First Death• Available on two lives only, on a last-to-

die basis• Neither of the lives insured can be rated

more than 200%• The policy owner selects at issue to have

the cost of insurance charges andadministration fee cease at the first death.

• The cost of insurance charges for riders onthe survivor will continue on the policy.

• Both death benefit options are available.• The death benefit is payable at the last

death.• For Coverage Plus, the policy owner can

choose to have the fund value paid ateither each death or last death.

Insurance Coverage (continued)

7

Essential Solutions provides a 10 year Fixed InterestAccount for investments. The guarantee for the FixedInterest Account is described below. Interest earned istax sheltered. The policyowner can select to have aninvestment Bonus from issue. See the InvestmentBonus section for details.

Daily Interest Account (DIA) • The Daily Interest Account is a short-term

investment account that is available on theCarrier fund only.

• The balance of the DIA will earn interest, accrueddaily, at the then current rate as periodicallydetermined by us.

• We guarantee that the Daily Interest Account willalways be available.

• The annual rate will not be less than 90% of theyield on 90 day Government of Canada TreasuryBills less the Expense Rate.

• There are minimum return guarantees andexpense rates depending on whether anInvestment Bonus is selected.

Fixed Interest Accounts (FIA) 10 Year• The Fixed Interest Account is similar to a

guaranteed compound interest GIC.• Generally the FIA offers a higher interest rate than

the Daily Interest Account.• Each net premium allocated to the FIA will earn

interest, accrued daily at the rate in effect at thetime of the deposit. At the end of the term, thematuring FIA balance will renew with the sameoriginal term, (unless directed otherwise by thepolicy owner) at the then current interest rate.

• We guarantee that the 10 Year Fixed InterestAccount will always be available. If theGovernment of Canada Bond referenced below isnot available, we will use comparableGovernment of Canada Bonds with the nearestterm to maturity.

• The annual rate for the 10 year term will not beless than 90% of the yield on 10 year Governmentof Canada Bonds less the Expense Rate, subject toa minimum guaranteed interest rate.

Guaranteed Investment Return

We further guarantee that on conversion, death, partialwithdrawal, policy surrender or lapse of the policy, thefund value less any applicable Market ValueAdjustments, will not be less than the fund valuedetermined assuming the Fixed Interest Account hadearned as annual policy rate as follows:

Investment Accounts

8

Daily Interest Account (DIA)

Bonus Selected Bonus Not Selected

Expense Rate

MinimumGuarantee

Expense Rate

MinimumGuarantee

2.25% 0% 1.75% 0.50%

Guaranteed Investment Return

Bonus Selected Bonus Not Selected

3.00% 3.50%

Fixed InterestAccount

(FIA)

Bonus Selected Bonus Not Selected

ExpenseRate

MinimumGuarantee

ExpenseRate

MinimumGuarantee

10 year FIA 1.75% 0% 1.25% 0.50%

Market Value Adjustment (MVA)

• A Market Value Adjustment will apply to thewithdrawal of the fund value of the Fixed InterestAccount, if the current interest rate is higher thanthe original interest rate for the amount beingwithdrawn (based on the same term).

• The Market Value Adjustment will be determinedseparately for each amount being withdrawn.The adjustment is:

Balance Withdrawn X

(Current Interest Rate - Original Interest Rate)

X Months remaining in the investment term

÷ 12

Note: MVA does not apply to COI deductions.

For example:

Amount Withdrawn — $1,000

Original interest rate on net premium — 4%

Current Interest rate — 5%

Number of months remaining in the investment term

— 36 months

1000 x (5% - 4%) x 36 = MVA charge of $30

12

Investment BonusWhen the bonus option is selected, an investmentbonus is credited, starting on the 5th policyanniversary and every policy anniversary thereafter.The investment bonus is comprised of a GuaranteedBonus and a Premium Bonus. The investment bonuscredited is equal to the Account Value multiplied byGuaranteed Bonus Percentage plus any applicablePremium Bonus Percentage. Once selected at issue, itcannot be changed.

Guaranteed BonusClients are rewarded for their long-term commitmentwith an unconditional Guaranteed Bonus. Starting onthe 5th policy anniversary and every policy

anniversary thereafter, the Guaranteed BonusPercentages are:

Premium BonusIn addition to the Guaranteed Bonus, clients mayqualify for a Premium Bonus depending on the totalpremium made to their policy (referred to asQualifying Ratio). On each policy anniversary, theQualifying Ratio is calculated as:

Total Premiums (excluding riders & benefits)

paid since issue — Total Partial Withdrawals

Total Minimum Premium since issue

(excluding riders & benefits)

The Premium Bonus Percentages are:

Premium Bonus GuaranteeAfter the 10thpolicy anniversary, we guarantee thatthe Premium Bonus Percentage applied will neverdecrease, even if premiums are reduced or not paid.For example, if you qualify for a Premium BonusPercentage of 1% on the 10th Policy Anniversary, itwill remain at 1% as long as the policy is in effect.

If in year 10:• Total Premiums (excluding riders and benefits)

paid less partial withdrawals = $25,000• Total Minimum Premiums (excluding riders and

benefits) since issue = $10,000• The Qualifying Ratio for the Premium Bonus is

($25,000/ $10,000) = 2.5• Guaranteed Bonus Percentage = 0.50%

Premium Bonus Percentage = 1%• Total Investment Bonus =

Account Value x 1.50% (0.50% + 1%)

Investment Accounts (continued)

9

Policy Anniversary Guaranteed Bonus Percentage

5 – 9 0.25%

10+ 0.50%

Qualifying Ratio Premium Bonus Percentage

1.25 – 1.99 0.50%

2.00 + 1.00%

Premium Frequency• Annual• Monthly – PAC

(no affinity discounts)

Billed Premium• You and your client choose a premium level (to

be paid monthly or annually) and the durationof premium payments best suited to your client(subject to minimum guidelines).

• The premium flexibility allows you to designlimited-pay or traditional life-pay plans.

• The policy owner(s) can increase or decreasetheir premiums at any time subject to theMinimum Premium and Maximum Premiumdescribed below.

• Policy owner(s) have the freedom to makeadditional deposits at any time. This will buildthe investment account and may create greatertax-deferred interest earnings.

• The policy owner can elect to take a premiumholiday without penalty, as long as the currentcash value of the policy is sufficient to preventthe policy from lapsing.

Premium Tax• Guaranteed fixed rate of 2% is deducted from

each premium deposited to the policy, regardlessof the province of residence.

Net PremiumPremiums paid less any applicable taxes/charges arecredited to the 10 year Fixed Interest Account.

Minimum Premium• The annual minimum premium for each

Essential Solutions coverage is based on ratesper $1,000 of Sum Insured.

• These rates vary by issue age, gender, smokerstatus, underwriting class and rate band.

• The annual minimum premium must be paid toprevent the policy from lapsing prematurely.

• The minimum billed premium (scheduledpremium) must be equal to or greater than theMinimum Premium (based on the modalpremium - annual or PAC).

Maximum Premium• The Income Tax Act of Canada limits the amount

of funding level a policy can have or is expectedto have, based on the amount of insurancecoverage and the level of premium payments.

• Our illustration software can calculate themaximum premium based on specificassumptions of each scenario (varies everyyear).

Conversion Provision• This policy may be converted without evidence

of insurability to any eligible universal life orpermanent plan.

• Conversions are subject to our rules in effect atthe time of conversion.

• The guaranteed fixed rate of 2% (premium tax)will cease on the date of conversion.

• The Guaranteed Investment Return will cease onthe date of conversion.

• The sum insured of the new policy may notexceed the sum insured of the EssentialSolutions policy and may not be less than theminimum for the plan selected.

• The insured's original — issue age, sex, smokingstatus, any premium rating, underwriting classand rates for the new plan will be used.

• Surrender charges will continue based on thecoverage duration.

Policy Provisions

10

Term ConversionsSee Appendix B for a quick reference chart on termconversions

• Any eligible Term insurance coverage issued byus can be converted within its conversion periodto Essential Solutions, without evidence ofinsurability.

Smoker to Nonsmoker• A life insured, who has not used any tobacco

product within the past 12 months, includingany nicotine products or substitutes, marijuanaor hash may apply for non-smoker rates byproviding satisfactory evidence of good healthand non-smoking status. This can only be donethrough a conversion to any eligible universallife plan.

Adding an Insured• Additional lives may not be added to Essential

Solutions.• Any request to add an insured will be handled

through a conversion to any eligible universal life plan.

Changes to Death Benefit Options• The Death Benefit Option may not be changed

within Essential Solutions.• Any request to change the Death Benefit Option

can only be done though a conversion to anyeligible universal life plan.

Transfer of Coverage• Any Essential Solutions coverage on an

individual under a MultiLife policy can betransferred to a separate policy of the same typefor up to its coverage amount, without evidenceof insurability.

• A fee will be charged for this change.• We will also transfer a proportional amount of the

fund value to the new policy, unless we aredirected otherwise.

• This amount is based on the proportion ofannual minimum premium for the coveragetransferred to the total minimum premium of theexisting policy.

• The original insurance age will be used todetermine the applicable premium.

Maintaining Exempt Status• Exempt testing is required on each policy

anniversary to ensure that the funding level doesnot exceed the allowable limits.

• If a policy is in danger of becoming non-exempt,we will first increase the sum insured up to amaximum of 8% per year (called AdditionalSum Insured), then transfer the refund of anyexcess premiums paid during the year and anyexcess funds to the Carrier Fund.

• We will review the Additional Sum Insured atthe next policy anniversary, when the nextexempt test is done.

• The investment income of the Carrier Fund issubject to annual accrual taxation.

• Competitive YRT cost of insurance rates willapply to any Additional Sum Insured.

Policy Provisions (continued)

11

Carrier Fund• The Carrier Fund is a special premium deposit

account that holds funds in excess of themaximum allowable tax-exempt premium.

• We will also transfer any premiums that exceedthe maximum premium, determined by usduring the year, to the Carrier Fund.

• Account Deductions to pay monthly charges willnot be made from the Carrier Fund.

• Premium tax will not be deducted from depositsto the Carrier Fund until they are transferred intothe policy.

• All deposits to the Carrier Fund will be placed ina Daily Interest Account. See the InvestmentAccount section for the description of the DailyInterest Account.

• The Carier Fund will be entitled to anyapplicable investment bonus (if bonus option isselected).

• The value of the Carrier Fund will not beincluded in the calculation of the fund value.

• The value of the Carrier Fund will not beincluded in the qualifying ratio for theinvestment bonus.

• We will pay the value of the Carrier Fund to thepolicy owner or the policy owner's estate whenthe contract terminates.

• The investment income of the Carrier Fund issubject to annual accrual taxation.

• Transfers made to or from the Carrier Fund to keepthe maximum amount in the tax-exemptinvestment account are not subject to transfer fees.

Partial Withdrawal• A policy owner may request a partial withdrawal

from the cash value at any time, subject to aminimum withdrawal of $500.

• Written requests for partial withdrawals receivedat our head office or at one of our regionaloffices are processed within five business days.

• A withdrawal will first be made from the CarrierFund, if there are available funds.

• Withdrawals from the Fixed Interest Accountmay be subject to a Market Value Adjustment.

• If the death benefit option is Coverage Plus, nopartial surrender charge applies.

• If the death benefit option is Level Coverage, apartial withdrawal will cause the Sum Insuredand/or Additional Sum Insured to be reduced bythe amount of the funds withdrawn and a partialsurrender charge will apply (see PartialSurrender).

• Any partial withdrawal from the fund value willbe treated as a disposition under the Income TaxAct and may trigger a taxable gain.

Policy Surrender• A policy may be cancelled for its cash value,

which is equal to the fund value, less anysurrender charge, less any Market ValueAdjustment.

• We guarantee an investment return at an annualrate of at least 3% if the bonus option is selectedor 3.50% if the bonus option is not selected,determined upon termination of contract.

Policy Provisions (continued)

12

Surrender Charge• The policy owner can terminate the policy for its

cash value at any time.• The cash value is equal to the fund value less

the surrender charge and less any applicableMarket Value Adjustment.

• A Surrender Charge applies when a policy ownersurrenders or partially surrenders an universallife coverage, within the surrender charge period.

• The Surrender Factors for all Essential Solutionscoverages are as follows:

For all universal life coverages:• The Surrender Charge is equal to a multiple

(called the "Surrender Factor") of the minimumpremium for each of the universal life coverages.

• The surrender charge is based on each coverageduration, not policy duration.

• The Surrender Factors for all Essential Solutionscoverages are as follows:

Coverage Year Surrender Factor

1 - 8 200%9 100%10+ 0%

Partial Surrender• A request for reduction in Sum Insured, or

removal of coverage on an insured will be treatedas a partial surrender and a partial surrendercharge may apply (includes Sum Insuredreductions resulting from a Partial Withdrawal orDisability Payment Benefit).

• The partial surrender charge is equal to thesurrender factor for the applicable policy yearmultiplied by the decrease in the EssentialSolutions Minimum Premium.

For example, the original coverage amount was$100,000 with an Essential Solutions MinimumPremium of $1250. The coverage is reduced inyear 5 to $50,000 and the new MinimumPremium is $700. The policy owner will becharged $1,100 = [200% x ($1250 - $700].

• The surrender charge will be deducted from theaccount value.

Policy Loans• A Policy Loan is not available against the cash

value of the policy.

Policy Provisions (continued)

13

Policy LapseThe policy will terminate without value after a graceperiod of 120 days following the lapse start date.The lapse start date is set whenever:

1. the Fund Value becomes less than zero.OR

2. the Cash Value is less than zero and the sum ofall premiums paid less Partial Withdrawals sincethe last policy anniversary becomes less than thesum of the Total Monthly Minimum Premiumsdue since the last policy anniversary.

• The policy will continue in force during thegrace period and monthly deductions willcontinue to be deducted from the account value.

• If sufficient premium is paid during the graceperiod the coverage will remain in force.

• If the life insured dies during the grace period, theamount payable will be reduced by the amountby which the Cash Value is less than zero.

Reinstatement• The policy may be reinstated within two years

from the date of lapse, subject to satisfactoryevidence of good health and insurability for alllives insured.

• In addition, we require payment of a lump sumequal to the sum of the monthly deductions plus overdue interest and premium tax, for thelapsed period (from the lapse start date to thecurrent date).

Disability Payment BenefitThis is a built in feature of Essential Solutions. Atanytime the insured becomes disabled, subject to a30 day waiting period, the cash value of this policyless the next Monthly Deduction, may be paid to thepolicy owner.• This benefit may be claimed once per occurrence

of disability.• For the purposes of this benefit only, disability

means that the insured is either:(i) occupationally disabled; or (ii) afflicted witha critical disability

• "Occupationally disabled" means that, as aresult of sickness or injury, the Insured satisfiesone of the following conditions:- the Insured is unable to perform the

substantial duties of his or her regularoccupation, and is not engaged in anygainful occupation;

- the Insured is employed in a gainfuloccupation, but he or she has experienced atleast a 50% loss of income compared to theearned income from his or her regularoccupation;

- the Insured is employed in his or her regularoccupation, but is unable to perform one ormore substantial duties of that occupation;or

- the Insured is employed in his or her regularoccupation, but is unable to perform thatoccupation for at least one-half the amountof time usually spent at that occupation. Tobe considered occupationally disabled, theInsured must be under the regular care andattendance of a physician.

Policy Provisions (continued)

14

• "Critical disability" means one of the following:- a condition which markedly restricts, all or

substantially all of the time, the Insured'sability to perform any of the activities ofdaily living, even with therapy and the useof appropriate devices or medication.Activities of daily living include perceiving,thinking, remembering, feeding or dressingoneself, speaking or hearing in a quietsetting with one other familiar person, so asto be under-stood or understand, normalbodily functions including walking;

- a condition that has been diagnosed asterminal by a physician, where theprognosis for living is less than 24 months;or

- a condition, which results in the total andpermanent loss of any of the following:- sight in both eyes,- hearing in both ears,- speech, or- the use of both hands, or both feet,

or one hand and one foot.

• "Regular occupation" means the gainfuloccupation or occupations in which the Insuredwas regularly engaged prior to the onset ofsickness or injury. If the Insured was notregularly employed prior to the onset of sicknessor injury, he or she will not be consideredoccupationally disabled.

• We require written notification and supportingdocumentation satisfactory to us of thedisability. We reserve the right to request anindependent medical opinion.

• The Account Value of the Investment Accountwill be reduced by the amount of the DisabilityPayment Benefit.

• A Market Value Adjustment may apply toamounts from the Fixed Interest Account.

• If the death benefit option is Level Coverage, theDisability Payment Benefit will result in acorresponding reduction in the Sum Insuredand/or Additional Sum Insured. Any resultantreduction of Sum Insured will be treated as apartial surrender.

Advanced Death Benefit• This non-contractual feature provides for an

advancement of the death benefit, if the insuredis suffering from a terminal illness and has a lifeexpectancy of less than one year.

• We will loan an amount up to 50% of the suminsured up to a maximum of $50,000. This iscurrently offered as an interest free loan.

• The death benefit will be reduced by the loanamount.

Policy Provisions (continued)

15

Optional Riders and Benefits are available at issueonly.

Term 10 and Term 20 RidersTerm Riders provide low cost temporary protectionand are renewable to age 85 and convertible to age70. Both term riders are also available on individuallives under the Joint Life and MultiLife policies.Both riders are eligible for Preferred Underwritingclassifications (see Underwriting Classes). The totalcoverage of the Essential Solutions base coverageand Term riders (on an insured on the same policy)will be used to determine the qualification for theunderwriting class.

Issue Ages: (Based on age nearest birthday)

Term 10: 18–70Term 20: 18–65

Rate Bands for Term 10 and Term 20 Riders

$ 50,000–$ 499,999$500,000–$1,499,999$1,500,000 +

Conversion:

• These riders may be converted without evidenceof insurability prior to the policy anniversarynearest age 70, to any eligible permanentinsurance coverage for up to the same suminsured but not less than the minimum coverageamount.

• The insured's attained age, an equivalentunderwriting class and current rates in effect onthe date of the conversion will be used.

• If conversion occurs within five years of thebenefit date, the client may instead elect anoriginal age conversion (OAC).

• For OAC, the premiums for the new benefit willbe based on the insured's original age on thebenefit effective date. The policy owner mustpay the difference in premiums for the newpolicy compared to the Term benefit, multipliedby the length of time between the Term benefitdate and the effective date of the conversion.

Continuation of Coverage Option

• Within 30 days of the termination of the EssentialSolutions policy due to a death claim, we offer anoption for continuation of coverage, if the personcovered under this term rider is still living.

• Coverage will continue as a standalone termpolicy to age 85 with the same issue date

• The sum insured of the standalone policy will bethe same as on the term rider

• The rates and policy fee for the new term policyare equal to that of an equivalent standaloneterm policy with the same issue date.

• Policy owners taking advantage of thecontinuation of coverage option may exercisetheir conversion privilege to any eligiblepermanent plan, prior to the term conversionexpiry date.

Joint Term 10 (Convertible T10)• If Essential Solutions base coverage is joint, a

Joint Term 10 rider can be selected on the sameinsureds. The Joint Term 10 rider must have thesame coverage type as the base plan (first-to-dieor last-to-die), however the Single Life Age(SLA) may be different.

• Currently not available on a preferredunderwriting basis.

• The Joint Term 10 rider will use the rates ineffect for the Convertible T10. The issue agerange available to joint first-to-die is 18 to 65(based on age nearest birthday).

Conversion:

• This rider may be converted without evidence ofinsurability prior to age 70, to any eligiblepermanent joint life insurance plan for up to thesame sum insured.

• Conversion is subject to our rules in effect onthe date of conversion.

• The single life age of the joint insureds, basedon their attained ages, smoker status and currentrates in effect on the date of conversion applies.Original Age conversion is not available on theJoint Term 10 rider.

Optional Riders and Benefits

16

Additional Life Term Rider• The policy owner may also include the Term 10

and Term 20 (renewable to age 85 andconvertible to age 70) riders on an additional lifeinsured (who does not have Essential Solutionscoverage) on the same policy (see Term 10 andTerm 20 for details), subject to underwriting.

• Preferred underwriting is available on the Term10 and Term 20 riders.

Accidental Death Benefit (ADB)• ADB is available on an individual basis, subject

to underwriting approval.• This rider provides for an additional amount to

be paid if the insured's death results fromaccidental bodily injury suffered prior to thepolicy anniversary nearest age 70.

• The loss must occur within one year of theinjury, while the rider is in effect.

• It contains a provision that doubles the amountof Accident Benefit payable if death is caused byan accident while the insured was a fare-payingpassenger on a public means of transportation.

• The cost of this benefit is based on ourAccidental Death Benefit rates. Coverage ends atthe policy anniversary nearest age 70 of the lifeinsured.

• On any one life you may not add both ADB andAD&D.

• Issue ages 15–55 (based on age nearest birthday)• Minimum Coverage: $25,000• Maximum Coverage: Lesser of sum insured or

$400,000• Insureds with Joint Life coverage may apply for

separate single life ADB coverage.

Accidental Death & Dismemberment (AD&D)• AD&D is available on an individual basis,

subject to underwriting approval.• This rider pays an additional amount of

insurance if the insured's death results fromaccidental bodily injury suffered prior to thepolicy anniversary nearest age 65.

• The loss must occur within one year of theinjury, while the rider is in effect. In addition, itpays the following amounts for other accidentallosses:- For loss of life caused by an accident while

the insured was a fare-paying passenger ona public means of transportation, the benefitamount paid under this rider doubles.

- For loss of hands or feet or the sight of botheyes; or the loss of one hand and one foot;or the loss of either hand or foot and thesight of one eye; 100% of the benefitamount of the rider is paid.

- For loss of either hand or foot or the loss ofsight of one eye, 50% of the benefit amountof the rider is paid.

- For loss of thumb or index finger, 25% ofthe benefit amount of the rider is paid.

• Coverage ends at the policy anniversary nearestthe insured's age 65.

• On any one life you may not add both ADB andAD&D.

• Issue ages 15–55 (based on age nearest birthday)• Minimum Coverage: $25,000• Maximum Coverage: Lesser of sum insured or

$400,000• Insureds with Joint Life coverage may apply for

separate single life AD&D coverage.

Optional Riders and Benefits (continued)

17

Children's Protection Rider (CPR)• This rider, subject to underwriting approval, is

available for any number of children (naturalborn, step-child or legally adopted), who are atleast 15 days old and less than age 19 (agenearest birthday).

• It offers low cost term coverage with aconversion option of up to 10 times the initialcoverage amount with full or partial amountstaken at any of the option dates (on each child).

• Conversion Options are available within 31 daysprior to the policy anniversary nearest attainedinsurance age 21or 23 or 25 or within 30 daysfollowing marriage prior to attained insuranceage 25. Each child may exchange their CPRcoverage on an attained insurance age basis,without evidence of insurability, for any eligibleplan available at the time of exchange, subject topolicy minimums and equivalent underwritingclass.

• Minimum Face Amount: $5,000• Maximum Face Amount: $30,000• Premiums are payable for a maximum of 20

years. • The coverage on each child expires at the policy

anniversary nearest the child's 25th birthday.

Joint Legacy Protection Rider (JLP)• This rider provides the flexibility to adapt an

existing coverage as insurance needs change.• The original need may be to insure a single life,

or for coverage on first death (Joint First-to-Diepolicies). Over the life of the policy, the needcan switch to coverage on last death.

• With this benefit, policy owners can elect JointLast-to-die (JLTD) coverage at any time after 5years from issue and prior to the policyanniversary nearest age 69, without furtherunderwriting.

• The rider is available at issue, at which pointboth lives are underwritten.

• Issue age range 30 to 63• The cost of insurance rates for the JLTD

coverage will be based on the Single Life Age(SLA) calculated at the time of election, usingthe initial issue ages and the number of yearselapsed since the policy issue date.

Optional Riders and Benefits (continued)

18

Guaranteed Insurability Option Rider (GIO)This rider features a cost effective future insurabilityoption for your clients and is particularly useful inthe following situations:a) parents purchasing coverage on children with

the ability to significantly increase the coverage,when the child reaches the age of 21 or getsmarried at a younger age

b) providing coverage to small business ownerswho anticipate significant growth in profits andbusiness values over a short period of time.

• Issue Ages 0 to 37 (based on age nearest birthday)• Minimum GIO Coverage: 25,000• Maximum GIO Coverage: Lesser of (10 times the

Essential Solutions base coverage and $500,000)minus the Essential Solutions coverage.

Option Date

• This rider allows the policy owner to make onepurchase of a separate Essential Solutionscoverage, without underwriting.

• The first option date occurs at the later ofattained insurance age 21 or three years from thecoverage issue date.

• Other option dates are offered at three-yearintervals from the first option date.

• There is also a special option date at marriageoccurring between the 18th birthday and beforethe expiry of the GIO rider.

• The COI rates for the new coverage will be theattained age COI rates in effect at the optiondate.

GIO Expiry Date

• The GIO rider expires at the last option date(which will occur at either age 38, 39 or 40), orat the election of the option.

Refund of GIO Premium

• We will refund all GIO premiums paid to datewithout interest, if the insured dies prior toexercising the purchase option, and before theGIO expiry date.

GIO Premium Credit

• The amount of coverage purchased on the GIOoption date determines the amount of premiumcredit that applies.

• If the purchase option is exercised at the firstscheduled option date, the premium credit isequal to 50% of the GIO premiums paid to date(without interest).

• If the option is exercised at the secondscheduled option date, the premium credit isequal to 25% of the GIO premiums paid to date(without interest).

• If the option is exercised at marriage (after age18) between the first and second scheduledoption dates, a pro-rata premium credit applies.

• The GIO Premium credit to the new EssentialSolutions policy will not be greater than the totalfirst year cost of insurance for the new policy.

Optional Riders and Benefits (continued)

19

Disability Waiver of Specified Premium (DWSP)• Issue ages: 15 to 55 (based on age nearest

birthday)• Addition of this benefit is subject to

underwriting approval.• The policy owner can select any Benefit Amount

between the total annual minimum premium andtwo times the guaranteed premium, for the policy.

• In the event of total disability prior to age 60, wewill deposit the Benefit Amount to the policyduring the uninterrupted continuance of thedisability, for life.

• If the disability occurs between the policyanniversaries, nearest the 60th and 65thbirthdays, we make deposits, during theuninterrupted continuance of the disability, untilage 65. The benefit will then expire.

• The insured must be totally disabled for 6consecutive months to be eligible for thisbenefit.

• The benefit frequency will depend on thepremium frequency of the policy (i.e. formonthly PAC/ACS policies a benefit amountequal to one twelfth of the benefit amount willbe deposited each month).

• During the first two years, Total Disability meansthat due to sickness or injury, the insured isunable to perform the substantial duties of theregular occupation.

• After 2 years, Total Disability means that theinsured is unable to engage in any occupationfor which the insured is or may reasonablybecome qualified.

Payor Waiver of Specified Premium (PWSP)• Issue ages: 15 to 55 (based on age nearest

birthday)• Addition of this benefit is subject to

underwriting approval and replaces theDisability Waiver of Specified Premium when thepayor is someone other than the life insured.

• This coverage is of particular benefit when onefamily member is paying the premium foranother (such as a parent for child, husband forwife).

• The policy owner can select any Benefit Amountbetween the total annual minimum premium andtwo times the guaranteed premium, for the policy.

• In the event of total disability of the payor, whilethis rider is in effect, we will deposit the BenefitAmount to the policy during the uninterruptedcontinuance of the disability, but not beyond thepayor's age 65.

• The payor must be totally disabled for 6consecutive months to be eligible for thisbenefit.

• If the payor dies while this rider is in effect, wewill deposit the benefit amount to the policy, butnot beyond the date on which the payor wouldhave attained age 65.

• The benefit frequency will depend on thepremium frequency of the policy (i.e. formonthly PAC/ACS policies a benefit amountequal to one twelfth of the benefit amount willbe deposited each month).

• During the first two years, Total Disability meansthat due to sickness or injury, the insured isunable to perform the substantial duties of theregular occupation.

• After 2 years, Total Disability means that theinsured is unable to engage in any occupationfor which the insured is or may reasonablybecome qualified.

• This rider terminates on the policy anniversarynearest the insured's 65th birthday.

Optional Riders and Benefits (continued)

20

Compliance Checklist• Pursuant to the life insurance licensing

regulations, a Compliance Checklist is enclosedin the software for Essential Solutions.

• At this time, the return of the form to MaritimeLife is mandatory only if your provinciallicensing board requires it.

• It can be an effective tool to use with yourclients, even if it is not mandatory, as it ensuresyour client is aware of what he/she ispurchasing.

Signed Illustrations• Customer signatures are a policy requirement for

Essential Solutions to conform to legislation andindustry guidelines.

• Signatures of both the policy owner andfinancial advisor are required on theillustration's customer signature page in thespace provided.

Compliance

21

Guarantees• Level Guaranteed Cost of Insurance (COI) rates• Administration Fee of $10 per month• Charge a fixed rate of 2% (Premium Tax)• Exemption from Accrual Taxation• Availability of 10 Year Fixed Interest Account for

preservation of capital• Minimum Investment Return of at least 3% if

the bonus option is selected or 3.50% if thebonus option is not selected, determined upontermination

• Grace period of 120 days• Investment Bonus rate of at least .25% annually

starting from the end of year 5

Essential Solutions Features available at issue• Optional Riders and Benefits• Joint Lives• Multi Lives

22

Appendix A: Reference Chart of Guarantees and Policy Changes

Change Request

Changes allowed tocurrent Essential SolutionsPolicy (may affect original

illustrated guarantees)

Changes that require a conversion to Universal

Solutions

Changes that require a separate Essential Solutions

or Universal SolutionsPolicy

Change Premium Mode �

Change in Premium Paying Period �

Decrease in Sum Insured �

Cancellation of Term Rider �

Cancellation of life coverage �Exercising a Guaranteed InsurabilityOption � ��

Access to Index-Linked Accounts andother Fixed Interest Accounts �

Taking out a Policy Loan �

Change in underwriting class �

Change of Death Benefit Option �

Change Smoking Status �

Substituting a life insured � �

Joint Legacy Protection Rider � �

Increase in Sum Insured � �

Adding a life insured � �

Term Rider Conversion � �

Exercising Survivor Option on JFTD �

Exercising Exchange Option on JFTD �

The following quick reference chart will aid you in completing term conversions to Essential Solutions.

For inforce term products with no preferred underwriting classifications, conversions will be made to StandardNon-smoker or Standard Smoker rates as applicable.

23

Appendix B: Term Conversions to Essential Solutions

From Term Products with PreferredUnderwriting Classifications

To Maritime Life Essential Solutions

Maritime

Preferred Plus

Preferred Non-smoker

Preferred Smoker

Standard Non-smoker

Standard Smoker

Preferred Plus

Preferred Non-smoker

Preferred Smoker

Standard Non-smoker

Standard Smoker

Former Financial Life

Class I

Calss II

Class III

Smoker

Preferred Plus

Preferred

Standard

Standard Smoker

Former Royal & Sun Alliance

Class 1

Class 2

Class 3

Class 4

Class 5

Class 6

Preferred Plus

Preferred Plus

Preferred

Standard

Preferred Smoker

Standard Smoker

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The coverage provided by Essential Solutions isconditional upon payment of sufficient premium toprevent the policy from lapsing.

Premiums are payable at our head office, at one ofour regional offices or by monthly pre-authorizedwithdrawals via any Canadian chartered bank.

Premium Tax is the cost of the government's tax onpremiums.

Net Premium is the premium paid less the premiumtax.

Account Value is the value in an investment accounttaking into consideration all increases and decreasesto the account.

Fund Value is the sum of all the account values.

Surrender Charge is used to calculate the cashvalue. It is charged when a policy is cancelled or if apartial surrender is made. It is used in thecalculation of the lapse start date.

Cash Value is the fund value less the surrendercharge and less any applicable MVA.

Glossary of Terms

E4760 (02/2004)

The Maritime Life Assurance Company

Head Office7 Maritime PlacePO Box 1030Halifax NS B3J 2X5

HalifaxMontréalTorontoKitchenerCalgaryVancouver

Visit our website at www.maritimelife.ca

TM - Essential Solutions is a trademark of the Maritime Life Assurance Company.Maritime Life is a Registered trademark of the Maritime Life Assurance Company.