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BMO INSURANCE WHOLE LIFE WEALTH ACCELERATOR

TABLE OF CONTENTS

POLICY TERMS AND CONDITIONS ........................................................................................................... 3WHEN INSURANCE TAKES EFFECT ......................................................................................................... 3BASIC COVERAGE ...................................................................................................................................... 3

Decrease of the Sum Insured of the Basic Coverage ............................................................................... 3LIFE INSURED ............................................................................................................................................. 4JOINT LIFE INSURED .................................................................................................................................. 4PLAN TYPE .................................................................................................................................................. 4JOINT LAST-TO-DIE CONVERSION OPTION ............................................................................................ 4

When You Can Convert ............................................................................................................................. 4Joint Last-to-Die Conversion Coverage Details ........................................................................................ 4

DEATH BENEFIT .......................................................................................................................................... 4Death Benefit ............................................................................................................................................. 4Payment..................................................................................................................................................... 4

EXCLUSION OF BENEFITS IN CASE OF SUICIDE ................................................................................... 5POLICY OWNERSHIP .................................................................................................................................. 5

Policy Owner ............................................................................................................................................. 5You and Your ............................................................................................................................................. 5Policy Owner’s Rights and Privileges ........................................................................................................ 5

BENEFICIARY .............................................................................................................................................. 5Beneficiary ................................................................................................................................................. 5Change of Beneficiary ............................................................................................................................... 5Death of Beneficiary .................................................................................................................................. 5

TAX LAW AND YOUR POLICY .................................................................................................................... 6Exempt Status ........................................................................................................................................... 6When You may have to pay tax ................................................................................................................ 6If Your Status as a Canadian Resident Changes ...................................................................................... 6

PREMIUMS ................................................................................................................................................... 6Premium Payment and Period .................................................................................................................. 6Extending Premium Payment Period ........................................................................................................ 7Smoker Status Changes ............................................................................................................................ 7Grace Period ............................................................................................................................................. 7Non-payment of Premium .......................................................................................................................... 7Premium Adjustment at Death .................................................................................................................. 7

ADDITIONAL PAYMENT OPTION ............................................................................................................... 7Additional Payment .................................................................................................................................... 7Additional Payment Balance...................................................................................................................... 8

ENHANCED SUM INSURED ........................................................................................................................ 8Charges for the Enhanced Sum Insured ................................................................................................... 8How Charges Affect Your Policy ............................................................................................................... 8

JOINT LAST-TO-DIE SPECIAL DEATH BENEFIT OPTION ........................................................................ 9When You can elect this Option ................................................................................................................ 9How much is the Special Death Benefit .................................................................................................... 9When We pay the Special Death Benefit .................................................................................................. 9

POLICY VALUES .......................................................................................................................................... 9Cash Value ................................................................................................................................................ 9Paid-Up Addition Cash Value .................................................................................................................... 9

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Total Cash Value ....................................................................................................................................... 9Performance Bonus ................................................................................................................................. 10Paid-Up Addition ...................................................................................................................................... 10

ACCESSING CASH FROM YOUR POLICY ............................................................................................... 10Cash Withdrawal ..................................................................................................................................... 10Limitations on Cash Withdrawals ............................................................................................................ 11Charges applied on a Cash Withdrawal .................................................................................................. 11How Cash Withdrawals are Deducted ..................................................................................................... 11How Cash Withdrawals Affect the Sum Insured of the Basic Coverage ................................................. 11How Cash Withdrawals Affect Paid-Up Additions ................................................................................... 11How Cash Withdrawals Affect the Enhanced Sum Insured .................................................................... 11

TAKING A POLICY LOAN .......................................................................................................................... 11How Much You can Borrow ..................................................................................................................... 11Limitations on Policy Loans ..................................................................................................................... 12Interest Charged on Policy Loans ........................................................................................................... 12Outstanding Policy Debt .......................................................................................................................... 12

CANCELLING YOUR POLICY ................................................................................................................... 12Limitations when Cancelling Your Policy ................................................................................................. 12

TERMINATION ........................................................................................................................................... 12REINSTATEMENT ...................................................................................................................................... 13

Reinstatement within thirty (30) days ...................................................................................................... 13Reinstatement within two (2) years ......................................................................................................... 13

NON-FORFEITURE OPTIONS ................................................................................................................... 13Automatic Premium Loan ........................................................................................................................ 13Reduced Paid-Up Option......................................................................................................................... 13Limitation on the Reduced Paid-Up Option ............................................................................................. 14

SIDE ACCOUNT ......................................................................................................................................... 14GENERAL PROVISIONS AND DEFINITIONS ........................................................................................... 14

Age .......................................................................................................................................................... 14Assignment .............................................................................................................................................. 14Attained Insurance Age ........................................................................................................................... 14Company, We, Us and Our ..................................................................................................................... 14Conformity with Law ................................................................................................................................ 14Currency .................................................................................................................................................. 15Coverage ................................................................................................................................................. 15Coverage Date ........................................................................................................................................ 15Entire Contract ......................................................................................................................................... 15Changes to the Contract .......................................................................................................................... 15Incontestability ......................................................................................................................................... 15Insurance Age ......................................................................................................................................... 15Limitation of Actions ................................................................................................................................ 15Misstatement of Age or Sex .................................................................................................................... 15Policy ....................................................................................................................................................... 16Policy Anniversary ................................................................................................................................... 16Policy Date .............................................................................................................................................. 16Policy Year .............................................................................................................................................. 16Policy Statements .................................................................................................................................... 16SPECIM

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POLICY TERMS AND CONDITIONS

Your BMO Insurance Whole Life Wealth Accelerator Policy is a permanent life insurance policy that provides lifetime protection for the Life Insured or Joint Life Insured with a benefit that is payable upon death. Your Policy is eligible for a Performance Bonus, which may increase the Death Benefit and Total Cash Value.

As Your Policy is a non-participating policy, You do not participate in Our profits or receive any portion of Our surplus in the form of dividends.

All of the benefits in Your Policy are backed by general assets of the Company.

This Policy is only valid if Policy Information Pages are attached to it.

Policy Information Pages provide details such as the Policy Owner and Life Insured, the Sum Insured and Plan Type, the Policy Date, Premiums and Guaranteed Values on the Policy and on any additional riders.

WHEN INSURANCE TAKES EFFECT

The Policy does not take effect until all of the following conditions have been met:

(a) the Policy has been delivered to the Policy Owner; and (b) the first Premium has been received by Us; and, (c) there has been no change in the insurability of any Life Insured between the time the application

for insurance was completed and the time the Policy was delivered.

In the province of Quebec, the policy does not take effect until all of the following conditions have been met:

(a) the application for insurance has been accepted by Us without modification; and (b) the first premium has been received by Us; and (c) there has been no change in the insurability of any Life Insured between the time the application

for insurance was signed and the time the application for insurance was accepted by Us.

Provided all the above conditions have been met, the Policy will take effect on the later of the date the full amount of the first premium has been received by Us, or the Policy Date. This date is referred to as the Effective Date.

BASIC COVERAGE

The Basic Coverage is shown in the Policy Information Pages. The amount of life insurance for the Life Insured or Joint Life Insured, according to the Plan Type, is called the “Sum Insured of the Basic Coverage”.

Decrease of the Sum Insured of the Basic Coverage

You can request a decrease of Your Sum Insured of the Basic Coverage at any time while this Policy is in force by sending Us Your written request for such a decrease. The decrease of the Sum Insured of the Basic Coverage is subject to the following restrictions:

(a) You cannot decrease the Sum Insured of the Basic Coverage below $25,000, and (b) You cannot decrease the Sum Insured of the Basic Coverage if the resulting Total Cash Value

minus any outstanding Policy Debt is less than zero.

A proportionate adjustment will be made to the Total Paid-Up Additions, the Enhanced Sum Insured and the Additional Payment Balance in order to maintain Policy Exempt Status.

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If We approve Your request, the decrease will take effect in accordance to Our administrative rules at the time of the request.

LIFE INSURED

The Life Insured under the Basic Coverage of this Policy is named in the Policy Information Pages.

JOINT LIFE INSURED

Joint Life Insured means collectively, all of the Life Insured(s) named in the Policy Information Pages whose lives are insured under a Joint Last-to-Die Plan Type of the Basic Coverage.

PLAN TYPE

The Plan Type for the Basic Coverage is shown in the Policy Information Pages and determines when the Death Benefit is payable for that Coverage. The following Plan Types are available:

(a) Single Life means that the Death Benefit will become payable upon the death of the Life Insured. (b) Joint Last-to-Die means the Death Benefit will become payable upon the death of the last Joint

Life Insured.

JOINT LAST-TO-DIE CONVERSION OPTION

If the Plan Type of the Basic Coverage is Single Life, You can apply to convert the coverage to a Joint Last-to-Die Plan Type for the Life Insureds named in the Policy Information Pages.

When You Can Convert You can apply, in writing, to convert the coverage at any time after the 5th Policy Anniversary and before any of the lives insured reach Attained Insurance Age 70.

Joint Last-to-Die Conversion Coverage Details If this policy is converted to a Joint Last-to-Die Plan Type, the premium rates will be based on the equivalent single age determined at the time of the conversion.

DEATH BENEFIT

Death Benefit The Death Benefit is the amount We will pay to the named Beneficiary upon the death of the Life Insured while this Policy is in effect as determined by the Plan Type.

The Death Benefit payable under the terms of this Policy is calculated as of the date of death as:

the sum of: (a) the Sum Insured of the Basic Coverage, (b) the Total Paid-Up Additions, (c) Additional Payment Balance, and (d) Enhanced Sum Insured;

minus: (e) any Outstanding Policy Debt, and (f) any Premium amounts You owe Us.

Payment Depending on the Plan Type shown on the Policy Information pages and provided that death of the Life Insured occurs while this Policy is in effect, We will pay the Death Benefit upon receipt of evidence satisfactory to Us of the cause of death of the Life Insured, the date of birth of the Life Insured, and the

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right of the claimant to be paid. Payment will be made in one lump sum and will be made subject to the rights of any assignee.

Cash Withdrawals and Policy Loans will not be permitted between the date of death of the Life Insured(s) upon whose death a benefit becomes payable and the date such claim is processed.

EXCLUSION OF BENEFITS IN CASE OF SUICIDE

A Death Benefit is not payable if any of the Life Insureds dies by suicide or self-destruction, while sane or insane, within two (2) years from the later of:

(a) the Effective Date of this Policy, or (b) the date of the latest Reinstatement of this Policy.

Our obligation will be to refund the premiums and Additional Payments paid from the later of the Effective Date of this Policy or the date of the latest Reinstatement.

If the first Life Insured dies as a result of suicide and the Basic Coverage is a Joint Last-to-Die Plan Type, then the surviving Life Insured may apply for their coverage to continue according to Our administrative rules in effect at the time.

POLICY OWNERSHIP

Policy Owner The Policy Owner is the individual or entity so named in the application for insurance. All rights and privileges under the provisions of this Policy belong to the Policy Owner.

You and Your When we use the term You and Your, it refers to the Policy Owner(s) named in the Policy Information Pages.

Policy Owner’s Rights and Privileges While this Policy is in force, You may exercise all the rights and privileges under this Policy. These rights and privileges may be limited by statute or by the rights of any assignee, irrevocable Beneficiary or if this Policy has been hypothecated or assigned as collateral security.

BENEFICIARY

Beneficiary The Beneficiary is the person(s) or entity so named in the application for insurance, unless later changed by the Policy Owner, to receive the Death Benefit upon the death of the Life Insured. If no Beneficiary is designated at the time the Death Benefit becomes payable, then the Death Benefit is payable to the Policy Owner or the Policy Owner’s estate.

Change of Beneficiary While the Life Insured under this Policy is living, the Policy Owner has the right to change or revoke a Beneficiary designation, subject to the consent of any irrevocable Beneficiary. We must have received notice of the change of Beneficiary in order to be bound by it. Any new Beneficiary designation may be subject to the terms of any assignment previously filed with Us. A change of Beneficiary will take effect as of the date of the designation, subject to any payment We made or action We took before receiving notice of the change.

Death of Beneficiary If no Beneficiary survives the Life Insured when the Death Benefit becomes payable, the right to the Death Benefit will pass to the Policy Owner. If the Policy Owner is the Life Insured under this Policy, and the Beneficiary predeceases the Life Insured, then the right to the Death Benefit will pass to the Policy

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Owner’s estate. If the Life Insured and the Beneficiary die at the same time or in circumstances where it is uncertain as to which of them died first, the Death Benefit will be paid in accordance with applicable legislation.

TAX LAW AND YOUR POLICY

In this Policy, any reference We make to the Income Tax Act (Canada) (the “Tax Act”) should be considered a reference to any Canadian federal, provincial or territorial tax legislation, Excise Tax Act, provincial and territorial sales tax legislation, and rules and regulations that apply to Your Policy. Your Policy is based on the current provisions of the Tax Act and does not take into account or anticipate any changes in law, whether legislative, governmental or judicial action, nor does it take into account other federal or any provincial or foreign tax legislation or considerations.

Changes to the Tax Act or new legislation created in the future may affect how this Policy is taxed, including how premiums are charged.

Exempt Status The Exempt Status refers to whether a policy is exempt from accrual taxation, as described in the provisions of the Tax Act.

We have issued Your Policy with the intention to maintain its Exempt Status. We reserve the right to make adjustments to Your Policy to preserve the Exempt Status and We will make such adjustments on becoming aware that Your Policy would otherwise fail to maintain its Exempt Status.

When an adjustment is required to maintain the Exempt Status of this policy, We will take action in the following order:

(a) Increase of the amount of life insurance coverage by up to 8% of the Death Benefit at the end of the preceding Policy Year, as permitted under the current Tax Act, subject to maximums set by Us from time to time. Any such increase is referred to in this Policy as the Enhanced Sum Insured.

(b) Decrease the amount of life insurance coverage by up to any Enhanced Sum Insured. (c) If the Total Cash Value exceeds the maximum tax-free amount permitted under the Tax Act, We

will automatically transfer part or all of the Additional Payment Balance and the Paid-Up Addition Cash Value to the Side Account to keep the maximum amount allowed in the tax-exempt Policy.

As described in the Side Account section, the Side Account is not a part of Your Policy and is subject to accrual taxation.

When You may have to pay tax You may have to pay tax as a result of withdrawals, policy loans, or changes You choose to make to Your Policy. Amounts transferred to the Side Account from Your Policy and the interest earned in the Side Account each year will be reported to You for inclusion in Your income for income tax purposes.

If Your Status as a Canadian Resident Changes After the Policy is in effect, if You become a resident of a country other than Canada, non-resident withholding tax rules will apply. You must notify Us if You change Your country of residence while Your Policy is in effect so We can withhold and remit any tax resulting from changes to or withdrawals from Your Policy.

PREMIUMS

The Policy Information Pages show the annual premium and the number of years premiums are payable for the Sum Insured of the Basic Coverage and any additional riders. The premium schedule and expiry date of any additional riders are also shown in the Policy Information Pages.

Premium Payment and Period

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Premiums are payable for the number of years shown on the Policy Information Pages. The initial premium is required in advance to put this Policy in effect, and after that, premiums must be paid on or before the premium due dates which are measured from the Policy Date.

Premium payments can be made annually, semi-annually or monthly. The Policy Owner may change the frequency of payments on any Policy Anniversary by providing a written notice to Us.

Once all the premiums due for the Basic Coverage have been paid for the Number of Years Payable (as shown on the Policy Information Pages) and this Policy is in force, the Basic Coverage will automatically become paid-up and no further premiums for the Basic Coverage will be payable.

Extending Premium Payment Period You may request to extend the number of years that premiums for the Basic Coverage are payable, subject to Our administrative rules at the time of the request. An extension in the number of years that premiums are payable for the Basic Coverage will decrease the premium payment amount and may trigger a policy change that results in a Cash Withdrawal. A Cash Withdrawal will be subject to income tax as stated in the Tax Law and Your Policy provision of the Policy.

Smoker Status Changes You may request to change the smoker status of a Life Insured to non-smoker. If We approve Your request, then non-smoker Premium rates for that Life Insured will be applied going forward. This may trigger a policy change that results in a Cash Withdrawal, which is subject to income tax as stated in Tax Law and Your Policy provision of the Policy.

Grace Period After payment of the first premium, We will allow thirty one (31) days grace from the due dates for payment of subsequent premiums. All insurance coverages and additional riders will continue during this Grace Period unless We receive written notification from the Policy Owner to cancel this Policy.

Non-payment of Premium If any premium has not been paid in full by the end of the Grace Period, we will deduct the amount of Premium due as follows:

(a) We will withdraw any funds from the Side Account, and (b) any remaining unpaid Premium will be paid by an Automatic Premium Loan if there is sufficient

Total Cash Value.

If any Premiums remain unpaid, this Policy, and all insurance coverage provided by it, will lapse and immediately terminate.

Premium Adjustment at Death If the Life Insured dies on a premium due date or during the Grace Period and the Policy Owner has not requested this Policy to be cancelled, We will reduce the Death Benefit by an amount equal to any due and unpaid premiums. Premiums paid before the date of death of the Life Insured, but not yet due, will be refunded.

ADDITIONAL PAYMENT OPTION

Under the Additional Payment Option, You may choose to make additional payments to the Policy over and above the Premiums for the Policy, each of which is called an “Additional Payment”.

By exercising the Additional Payment Option, You have the right to apply for the Joint Last-to-Die Special Death Benefit option if Your Policy Plan Type is Joint Last-to-Die.

Additional Payment

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We will indicate the amount of the Additional Payment you plan to make in addition to the Premium for the Policy on the Policy Information Pages. Scheduled Additional Payments are payable at the same time and from the same source as the Premiums for the Policy. You may choose to stop and restart Additional Payments in accordance with Our administrative rules.

You cannot make Additional Payments to the Policy while premiums are being waived or if You have exercised the Reduced Paid-Up Option.

We will not accept any Additional Payment that is less than our required minimum in accordance with Our administrative rules or that exceeds the yearly maximum for this option as determined by Us in order to maintain the Exempt Status of the Policy.

Additional Payments are not required to keep the Policy in force and are not considered premiums for the Basic Coverage and Waiver of Premium rider. However, Additional Payments are considered premiums for tax purposes.

Additional Payment Administrative Fee We will deduct an administrative fee from each Additional Payment We receive. The fee is calculated as a percentage of each Additional Payment. The rate is not guaranteed and it is indicated on the Policy Information Pages.

Additional Payment Balance The Additional Payment Balance is equal to:

(a) the sum of all Additional Payments We received; minus: (b) the sum of all of the following:

i) Additional Payment administrative fees We deducted, ii) withdrawals You made from the Additional Payment Balance, iii) charges We deducted for the Enhanced Sum Insured, and iv) any amount We paid under the Special Death Benefit Option.

ENHANCED SUM INSURED

The Enhanced Sum Insured is an additional amount of life insurance coverage on the Life Insured or Joint Life Insured of the Basic Coverage, and is added as a result of the Exempt Status provision. It forms part of the calculation of the Death Benefit payable upon death of the Life Insured.

Charges for the Enhanced Sum Insured There is a charge for the Enhanced Sum Insured. On each Policy Anniversary, We will calculate the charge by multiplying:

(a) the weighted average Enhanced Sum Insured, and (b) the applicable Enhanced Sum Insured Charge rate divided by 1,000.

The weighted average of the Enhanced Sum Insured takes into account changes to the Policy and the timing of the changes that You have made during the most recent Policy Year. These include cash withdrawals, decreases in the Sum Insured of the Basic Coverage and exercising the Reduced Paid-Up Option.

The rate We use corresponds to the Attained Insurance Age of the Life Insured(s) or Joint Life Insured(s), smoker status and sex.

The Enhanced Sum Insured Charge rates are shown in the Policy Information Pages and are guaranteed not to change.

How Charges Affect Your Policy

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Charges for the Enhanced Sum Insured, if any, are deducted at each Policy Anniversary in the following order:

(a) first, from any Performance Bonus; (b) then, from the Paid-Up Addition Cash Value, and (c) last, from the Additional Payment Balance.

When deducting the charges from the Paid-Up Addition Cash Value, the Total Paid-Up Additions will be reduced in proportion to the amount deducted from the Paid-Up Addition Cash Value.

JOINT LAST-TO-DIE SPECIAL DEATH BENEFIT OPTION

If you have exercised the Additional Payment Option and Your Policy is a Joint Last-to-Die Plan Type, You may elect the Joint Last-to-Die Special Death Benefit Option. This option provides a Special Death Benefit upon the death of a Joint Life Insured.

When You can elect this Option You can only select this Option when You first apply for the Additional Payment Option. If You have elected this option, it is indicated in the Policy Information Pages.

How much is the Special Death Benefit The Special Death Benefit is equal to the lesser of:

(a) the Additional Payment Balance, and (b) the amount of

i) the Total Cash Value, minus ii) any Outstanding Policy Debt divided by 90%.

We determine the Special Death Benefit on the date of death in accordance with Our administrative rules.

When We pay the Special Death Benefit We will pay the Special Death Benefit upon the death of each Joint Life Insured other than the last surviving Joint Life Insured.

The Special Death Benefit is paid to the designated Beneficiary of the Special Death Benefit. If no beneficiary is named or if the beneficiary has predeceased the Joint Life Insured, the payment will be in accordance with the Beneficiary provision of the Policy.

The conditions for the payment of the Death Benefit set out above also apply to the payment of the Special Death Benefit. We will reduce the Additional Payment Balance by the amount of the Special Death Benefit paid.

POLICY VALUES

Cash Value The Cash Value of the Basic Coverage for each Policy Year is shown in the Policy Information Pages. These amounts are effective on the Policy Date and may change with any policy changes that You request.

Paid-Up Addition Cash Value The Cash Value of the Total Paid-Up Additions is shown on Your most recent Policy Statement. We will not decrease this amount unless You make a policy change that affects Your Paid-Up Additions. The cash values are guaranteed at the time of purchase of a new Paid-Up Addition.

Total Cash Value

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The Total Cash Value is the amount You can withdraw or receive if you cancel this Policy in accordance with the terms and provisions of this Policy. It is the sum of the following:

(a) Cash Value of the Basic Coverage; (b) Paid-Up Addition Cash Value; and (c) Additional Payment Balance, if applicable.

Performance Bonus Your Policy is eligible for a Performance Bonus on the Basic Coverage and Additional Payment Balance, which We determine at the end of each Policy Year.

We calculate the Performance Bonus as the Performance Bonus Rate (as shown on Your Policy Statement) multiplied by the sum of the Cash Value of the Basic Coverage and Additional Payment Balance.

We determine the Performance Bonus Rate annually. We set the Performance Bonus Rate by taking into consideration the net rate of return of a portfolio of designated funds, indices or exchange traded fund(s) as selected by Us from time to time. Our calculation of the Performance Bonus Rate may include, at Our discretion, a smoothing of the rate of return in order to reduce volatility of the declared Performance Bonus Rate. If We provide a minimum Performance Bonus Rate guarantee, We will indicate it in Your Policy Information Pages. The Performance Bonus will never be negative.

We apply any Performance Bonus we declare in the following order:

(a) first, to pay the charges for the Enhanced Sum Insured; (b) then, to purchase Paid-Up Addition insurance, subject to limits outlined in the Paid-Up Addition

section of this Policy.

We will transfer any Performance Bonus amount remaining after the purchase of Paid-Up Addition insurance to the Side Account.

Paid-Up Addition A Paid-Up Addition provides additional insurance protection purchased with the Performance Bonus on the same Plan Type and Life Insured(s) as the Basic Coverage at the end of each Policy Year.

At the end of each Policy Year, We will determine how much Paid-Up Addition can be purchased with the Performance Bonus. Once We have applied the Performance Bonus to the cost of the Paid-Up Addition, there is no further cost to You.

The maximum Paid-Up Addition that can be purchased in each Policy Year is limited to 8% of the Death Benefit at the end of the preceding Policy Year less the increase in the Additional Payment Balance since the preceding Policy Year.

Each Paid-Up Addition has a cash value based on guaranteed Paid-Up Addition Cash Value rates in effect at the time of purchase.

The Total Paid-Up Additions, as shown on Your most recent Policy Statement, may be subject to lifetime maximum amount as indicated in the Policy Information Pages.

ACCESSING CASH FROM YOUR POLICY

While this Policy is in force, You are allowed to access cash from Your Policy in various ways. Certain conditions, limitations, and charges may apply to these transactions.

Cash Withdrawal You have the right to withdraw an amount from Your Policy once it has a Total Cash Value (“Cash Withdrawal”).

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Limitations on Cash Withdrawals The following limitations on Cash Withdrawals apply:

(a) the minimum amount that can be withdrawn is $500, and (b) the minimum remaining Total Cash Value after the withdrawal must be the greater of $500 or any

Outstanding Policy Debt, and (c) Cash Withdrawals will not be permitted after the date of death of a Life Insured, and (d) for Cash Withdrawals over $200,000, We reserve the right to delay the processing of Your

request by up to 30 days.

Charges applied on a Cash Withdrawal An administrative charge may be deducted in accordance with Our administrative rules applicable at the time of the request.

How Cash Withdrawals are Deducted Cash Withdrawals can be made from the Total Cash Value minus Outstanding Policy Debt. We will process the Cash Withdrawal in the following order:

(a) first, from the Additional Payment Balance; (b) then, from the Paid-Up Addition Cash Value; and (c) last, from the Cash Value of the Basic Coverage.

How Cash Withdrawals Affect the Sum Insured of the Basic Coverage The Sum Insured of the Basic Coverage will be reduced in proportion to the amount withdrawn from the Cash Value subject to a minimum imposed by Us from time to time according to Our administrative rules at the time of the request. The Sum Insured of the Basic Coverage will not be reduced to an amount below $25,000.

How Cash Withdrawals Affect Paid-Up Additions The Total Paid-Up Additions will be reduced in proportion to the amount withdrawn from the Paid-Up Addition Cash Value subject to a minimum imposed by Us from time to time according to Our administrative rules at the time of the request.

How Cash Withdrawals Affect the Enhanced Sum Insured The Enhanced Sum Insured will be reduced in proportion to the amount withdrawn from the Additional Payment Balance subject to a minimum imposed by Us from time to time according to Our administrative rules at the time of the request.

The effective date of any Cash Withdrawal will be the business day Your written request is received at Our head office, or later if so indicated by You.

TAKING A POLICY LOAN

Under certain conditions, You may take a loan against the Total Cash Value of Your Policy, which we call a Policy Loan. However, We may choose to defer providing such a loan for up to sixty (60) days.

How Much You can Borrow The Policy Owner may take a Policy Loan from the Policy while it has a Total Cash Value. We will lend an amount that, with interest to the end of the Policy Year, will not exceed:

(a) 90% of the Total Cash Value, minus (b) any Outstanding Policy Debt.

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Limitations on Policy Loans The following limitations on policy loans apply:

(a) the minimum amount that can be taken is $500, and (b) the minimum remaining Total Cash Value after the policy loan must be the greater of $500 or any

Outstanding Policy Debt, and (c) Policy Loans will not be permitted after the date of death of a Life Insured, and (d) for policy loans over $200,000, We reserve the right to delay the processing of Your request by

up to 30 days.

Interest Charged on Policy Loans Policy Loans will accrue interest at a rate determined by Us but not exceeding any limits imposed by law. Interest is payable at the end of the Policy Year and any interest not paid becomes part of the loan and accrues interest at the same rate.

Outstanding Policy Debt An Outstanding Policy Debt is the sum of any Policy Loan (including accrued interest) plus any Automatic Premium Loan (including accrued interest). An Outstanding Policy Debt may be repaid in part or in full at any time while this Policy is in effect during the Life Insured’s lifetime.

If the Outstanding Policy Debt exceeds the Total Cash Value at any time, We will give the Policy Owner thirty one (31) days to reduce the Outstanding Policy Debt to an amount that is no greater than the Total Cash Value minus one year’s interest on the Outstanding Policy Debt. If, at the end of the thirty one (31) days, the Outstanding Policy Debt has not been reduced, the Policy will lapse and immediately terminate without value.

At the Life Insured's death, any Outstanding Policy Debt will be deducted from the Death Benefit as set out in the Death Benefit provision.

CANCELLING YOUR POLICY

You have the right to cancel this Policy at any time for the Total Cash Value reduced by any past due premiums and any Outstanding Policy Debt by providing Us with a written request to do so and surrendering the Policy to Us. The effective date of the cancellation will be the business day Your written request is received at Our head office, or later if so indicated by You.

If You cancel this Policy within thirty (30) days after a Policy Anniversary, the Total Cash Value will not be less than what it would have been on that Policy Anniversary.

Limitations when Cancelling Your Policy For Policy cancellations where the Total Cash Value is over $ 200,000, We reserve the right to delay the processing of Your request by up to 30 days from the date Your written request is received in Our head office.

If this Policy is cancelled for the Total Cash Value, it cannot be reinstated. This Policy and all related insurance coverages will end.

TERMINATION

This Policy and all related insurance coverages will end on the earliest of the following dates, subject to the terms of any additional riders:

(a) the date We receive the Policy Owner’s request in writing to cancel this Policy; (b) the date this Policy lapses; or (c) the date of death of the Life Insured upon whose death the Death Benefit becomes payable.

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No premium or Additional Payment is payable for this Policy after it terminates. If any premium or Additional Payment is paid after termination, Our only liability will be to refund that premium or Additional Payment.

REINSTATEMENT

Reinstatement within thirty (30) days If this Policy lapsed due to non-payment of Premium, it may be reinstated within thirty (30) days after the effective date of the lapse, without further evidence of insurability, subject to the following:

(a) all past due premiums have been paid, and (b) all Life Insured(s) of this Policy, including those on any additional riders, are living at the time of

the Reinstatement.

Reinstatement within two (2) years If this Policy lapsed for any reason, it may be reinstated within two (2) years after the effective date of the lapse, subject to the following:

(a) evidence of insurability, satisfactory to Us, including proof of non-smoking status (if applicable); (b) payment of all past due premiums and any Outstanding Policy Debt; and (c) payment of all compound interest on past due premiums and Outstanding Policy Debt, at a rate

determined by Us but not exceeding any limits imposed by law.

Any additional riders attached to this Policy will be reinstated if this Policy is reinstated, subject to the terms of those additional riders and agreements. The Reinstatement is made effective on the date We approve the Reinstatement. The Suicide and Incontestability periods will restart on the date the Reinstatement is made effective.

This Policy will not be reinstated if it has been cancelled for its Total Cash Value.

NON-FORFEITURE OPTIONS

This Policy contains Non-Forfeiture Options which allow the Policy Owner to receive certain benefits while the Life Insured is living. The value of these options is based on the Sum Insured of the Basic Coverage at the time the Non-Forfeiture Option takes effect. The following options are available:

Automatic Premium Loan Once a Total Cash Value is available, We will pay any outstanding premiums at the end of the Grace Period by means of an Automatic Premium Loan. Interest on an Automatic Premium Loan will accrue from the premium due date at a rate determined by Us but not exceeding any limits imposed by law. When the Total Cash Value minus the Outstanding Policy Debt is less than the outstanding premium due, an Automatic Premium Loan will no longer be available for subsequent premium payments.

An Automatic Premium Loan may be repaid, with accrued interest, in part or in full at any time while this Policy is in effect during the Life Insured’s lifetime.

Reduced Paid-Up Option This Policy may be changed to reduced paid-up provided there is no Outstanding Policy Debt. We will then reduce the amount of the Sum Insured of the Basic Coverage. The amount of the reduced paid-up Sum Insured is specified in the Policy Information Pages in the Table of Guaranteed Values for that Policy Year.

When You exercise the Reduced Paid-Up Option: (a) Premiums are no longer payable, (b) any additional riders attached to this Policy will terminate, (c) the Total Paid-Up Additions, the Additional Payment Balance and Enhanced Sum Insured will be

reduced in proportion to the reduction of the Sum Insured of the Basic Coverage; and (d) Your Policy will be eligible for a Performance Bonus.

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After this Policy has been changed to reduced paid-up, You will receive updated Policy Information Pages with new Cash Values of the Basic Coverage shown in the Table of Guaranteed Values.

Once You have exercised the Reduced Paid-Up Option, Your decision cannot be reversed.

Limitation on the Reduced Paid-Up Option If You elect the Reduced Paid-Up Option and We determine that Reduced Paid-Up Option Sum Insured is less than $5,000 at the time of election, We may terminate Your Policy and pay You the Total Cash Value reduced by any past due premiums and any Outstanding Policy Debt.

SIDE ACCOUNT

The Side Account is an account that We establish for the sole purpose of maintaining the tax exempt status of this Policy. It is outside Your Policy. Since the Side Account is outside Your Policy:

(a) it does not form part of the Total Cash Value of Your Policy; (b) it has no protection from creditors; (c) it will not be included in any benefit payable by Us; (d) it is not eligible for the Performance Bonus; and (e) any amount in the Side Account will be paid to You or Your estate when this Policy terminates

(unless such payment is prohibited by law).

We will credit the Side Account with any funds that are transferred from the Policy as a result of the Exempt Test or any Performance Bonus remaining after the purchase of Paid-Up Addition insurance. Funds from the Side Account may be used to pay for the Premium due as stated in the Non-Payment of Premium provision.

The Side Account earns interest at an annual rate that’s guaranteed not to be less than 90% of the annualized yield on 90 day Government of Canada Treasury Bills, minus 2.00%, subject to a minimum of 0.0%. If the 90 day Government of Canada Treasury Bills is no longer available, We will use a comparable Government of Canada instrument with the nearest term as determined by Us. The interest earned in the Side Account each year will be reported to You for inclusion in Your income for income tax purposes.

Cash Withdrawals may be made from the Side Account.

We reserve the right to refuse a deposit to the Side Account.

GENERAL PROVISIONS AND DEFINITIONS

Age The age of a person on any given date means his or her age on their birthday nearest to that date.

Assignment No assignment of this Policy will be binding on Us until notice of such assignment has been filed at Our head office. We are not responsible for the validity or legal effect of any assignment or actions taken by Us before receiving notice of the assignment.

Attained Insurance Age The Attained Insurance Age is equal to the Insurance Age shown in the Policy Information Pages plus the number of completed Policy Years that have passed since the Coverage Date.

Company, We, Us and Our In this Policy, the Company, We, Us and Our refers to BMO Life Assurance Company.

Conformity with Law

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This Policy is subject to all applicable laws of Canada, its provinces and territories.

Currency All payments either to or from Us will be in the lawful currency of Canada.

Coverage Coverage refers to a specific insurance coverage issued by Us on a Life Insured.

Coverage Date The date from which We measure years, months and anniversaries of a specific Coverage is referred to as the Coverage Date and is shown on the Policy Information Pages.

Entire Contract Your entire contract consists of the Policy Information Pages, this Policy, any additional riders, endorsements or amendments for intended attachment to this Policy, the application for insurance and any application for Reinstatement, along with any medical evidence, written statements and answers provided as evidence of insurability.

Changes to the Contract Only authorized officers of the Company can change, modify or waive the provisions of this contract, and then only in writing. No agent, broker or financial advisor is authorized to change this contract.

Incontestability In the absence of fraud, We will not contest this Policy after it has been in force during the lifetime of the Life Insured for two (2) years from the later of:

(a) the Policy Date shown on the Policy Information Pages; (b) the Effective Date; (c) the date of any policy increase, change or addition; or (d) the date of the latest Reinstatement.

In the case of any policy increase, change or addition, Our right of cancellation is only in relation to the policy increase, change or addition.

No premiums will be refunded if this Policy is declared void for fraud.

Insurance Age The Insurance Age as shown in the Policy Information Pages, is used, along with sex, smoking status and risk classification to determine the Premium amount and the number of years premiums are payable:

(a) For a Single Life Coverage, Insurance Age reflects the Age, and category of risk as determined by Us on the Coverage Date.

(b) For a Joint Life Coverage, Insurance Age is a combined or equivalent single age, taking into account the Age, and category of risk, for each Life Insured, as determined by Us on the Coverage Date.

Limitation of Actions Every action or proceeding against an insurer for the recovery of insurance money payable under the contract is absolutely barred unless commenced within the time set out in the Insurance Act (or applicable legislation).

Misstatement of Age or Sex The premium rates for this Policy depend in part on the Age and sex of the Life Insured as stated in the application for insurance. If the date of birth or sex of the Life Insured has been misstated, We will recalculate the Sum Insured of the Basic Coverage and the Total Paid-Up Additions based on the premiums paid and the correct Age and sex of the Life Insured(s). The recalculated Sum Insured of the Basic Coverage and lifetime maximum for the Total Paid-Up Additions shall not exceed Our limits in effect

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at the time the Policy was issued. If a date in the Policy Information Pages is based on an Age that is not correct, We will change the date to reflect the correct Age.

We will also recalculate the yearly maximum Additional Payment based on the correct Age and sex of the Life Insured(s). The Additional Payment Balance may be reduced in order to maintain the Exempt Status of the Policy.

If, because of the misstatement, We accept a premium for a period or periods beyond the date coverage would have ceased according to the correct Age or sex, Our liability will be limited to the refund of all premiums paid for the period during which coverage would not have been in effect.

If, at the correct Age or sex, the coverage would not have become effective, We can declare the Policy void, within the period allowed by law. If this Policy is declared void for Misstatement of Age and Sex, We will refund all premiums paid.

Policy The Policy means this document that the Company has issued as written evidence of a contract of insurance. The Policy also includes any amendment, rider or endorsement that the Company issues for intended attachment to this document.

Policy Anniversary Policy Anniversary occurs each year on the same day and month as the Policy Date.

Policy Date The date from which We measure years, months and anniversaries of the Policy is referred to as the Policy Date and is shown on the Policy Information Pages.

Policy Year Policy Year is the period of time between two Policy Anniversaries. Policy Year 1 begins on the Policy Date and ends one day before the first Policy Anniversary.

Policy Statements We will send You statements annually that show important information about Your Policy. Please contact Us if You notice any errors in Your statements.

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