Life Insurance Options Intrepid II...Maritime Life’s Intrepid II is a universal life policy that...

Intrepid IIMarketing Guide

Life Insurance Options

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OOvveerrvviieeww .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 11IInnvveessttmmeenntt OOppppoorrttuunniittiieess . . 22

General Account Investment Options 2

Fixed Interest Options . . . . . . . . . . . . 2

Investment Guarantees . . . . . . . . . . . 3

Investment Expense Reduction . . . . . 4

Interest Bonus . . . . . . . . . . . . . . . . . . 5

Capital Bonus . . . . . . . . . . . . . . . . . . . 6

PPrrootteeccttiioonn .. .. .. .. .. .. .. .. .. .. .. .. .. .. 77

Death Benefit Options . . . . . . . . . . . . 7

Coverage Plus . . . . . . . . . . . . . . . 7

Level . . . . . . . . . . . . . . . . . . . . . . . 7

Indexed Coverage . . . . . . . . . . . . . 7

Cost Recovery . . . . . . . . . . . . . . . . 7

Disability Payment Benefit . . . . . . . . 7

Risk Classes . . . . . . . . . . . . . . . . . . . . 8

Single Life . . . . . . . . . . . . . . . . . . . 8

Joint Life . . . . . . . . . . . . . . . . . . . . 8

Contingent Life . . . . . . . . . . . . . . . 8

MultiLife . . . . . . . . . . . . . . . . . . . . 9

Riders . . . . . . . . . . . . . . . . . . . . . . . . . 9

Disability Waiver. . . . . . . . . . . . . . 9

Waiver on Death or Disability

of the Applicant (WDDA). . . . . . . . 9

Children’s Coverage . . . . . . . . . . . 10

Term 10 R&C &

Term 20 R&C . . . . . . . . . . . . . . . 10

Accidental Death. . . . . . . . . . . . . . 10

Dismemberment . . . . . . . . . . . . . . 10

Joint Legacy Protection. . . . . . . . . 11

PPllaann SSeettuupp && PPoolliiccyyAAddmmiinniissttrraattiioonn.. .. .. .. .. .. .. .. .. .. .. 1111

Issue Ages . . . . . . . . . . . . . . . . . . . . . 11

Rate Bands . . . . . . . . . . . . . . . . . . . . . 11

Coverage Limits . . . . . . . . . . . . . . . . . 12

Premium Payments . . . . . . . . . . . . . . 12

Payment Frequency . . . . . . . . . . . . . . 12

Deposit Account . . . . . . . . . . . . . . . . . 12

Working Capital & Cash Values . . . . . 13

Tax-Exempt Status . . . . . . . . . . . . . . . 13

Charges to the Plan . . . . . . . . . . . . . . 13

Premium Tax . . . . . . . . . . . . . . . . . 13

Mortality Charge . . . . . . . . . . . . . . 14

Policy Charge . . . . . . . . . . . . . . . . 14

Rider Premiums . . . . . . . . . . . . . . 14

Transfer Fee . . . . . . . . . . . . . . . . . 14

Partial Withdrawal Fee . . . . . . . . . 14

Market Value Adjustment. . . . . . . 14

Plan Changes . . . . . . . . . . . . . . . . . . . 15

Term Conversions . . . . . . . . . . . . . 15

Smoker to Non-Smoker . . . . . . . . 15

Changes to Death

Benefit Options. . . . . . . . . . . . . . . 15

Face Amount Changes . . . . . . . . . 15

Substitute Life . . . . . . . . . . . . . . . 15

Rules for Plan

Changes to Intrepid II. . . . . . . . . . . . . 15

Allowable Plans . . . . . . . . . . . . . . 15

Additional Benefits

and Riders . . . . . . . . . . . . . . . . 16

Coverage Restrictions. . . . . . . . . . 16

Coverage Increases. . . . . . . . . . . . 16

Specific Rules . . . . . . . . . . . . . . . . 16

Compliance Initiatives . . . . . . . . . . . . 16

Compliance Checklist . . . . . . . . . . 16

Signed Illustrations. . . . . . . . . . . . 16

MMaarrkkeettiinngg MMaatteerriiaall.. .. .. .. .. .. .. .. .. 1177Appendix 1 - Intrepid II Rates . . . . . . . 18Appendix 2 - Term 10 Renewable

and Convertible Riders . . . . . . . . . . 19

Appendix 3 - Term 20 Renewable and Convertible Riders . . . . . . . . . . 20

Appendix 4 - Waiver of Premium on Death or Disability of Applicant. . . . . . . . . 21

Notes . . . . . . . . . . . . . . . . . . . . . . . . . 22

Table of Contents

OverviewIInnttrreeppiidd IIII -- IInnssuurraannccee PPrrootteeccttiioonn WWiitthhUUnniiqquuee IInnvveessttmmeenntt OOppppoorrttuunniittiieessMaritime Life’s Intrepid II is a universallife policy that provides a powerful combi-nation of life insurance protection and tax-advantaged investment opportunities.With flexible death benefits and a fullrange of investment choices, Intrepid IIcan be customized to suit any individual’slong-term financial goals and is easilymodified to meet changing needs.

IInnvveessttmmeenntt OOppppoorrttuunniittiieessChoose from fixed interest options toequity options that link your policy’s cred-ited return to markets around the world -the choice is yours.

• Tax-advantaged Growth: Investmentincome earned within an exemptIntrepid II policy will grow tax-sheltered,maximizing the net worth of the capitalinvested.

• Investment Expense Reductions: Forthe index-linked investment options,Intrepid II provides an InvestmentExpense Reduction that is guaranteed tolower investment costs and enhancelong-term returns, starting in the 6thpolicy year.

• Interest Bonus: For the interest-relatedoptions, Intrepid II guarantees an inter-est bonus will be credited to the Incomeoption and all new and renewing FixedInterest Options, starting in the 6th pol-icy year.

• Unique Capital Bonus Opportunities:Intrepid II provides your clients with anumber of unique opportunities to sig-nificantly reduce the cost of insuranceand maximize long-term cash valuegrowth. Starting in the 3rd policy year, abonus is paid based on the growing cap-ital in the Intrepid II policy reserve.With a choice between a Fixed Bonuslinked to yields on long-term bonds anda Variable Bonus linked to the underly-ing investment options chosen by yourclient, or a Capital Mix combination ofthe two, Intrepid II provides you withthe flexibility to custom-design theCapital Bonus opportunities providedwithin your clients’ policy.

AAcccceessssiibbllee CCaasshh VVaalluueessYour clients can withdraw a portion oftheir cash values built up within the policyat any time. Convenient withdrawal andloan methods are available.

CCrreeddiittoorr PPrrootteeccttiioonnProvided certain members of a family classare named as beneficiary or that a benefi-ciary designation is made irrevocable,Maritime Life's Intrepid II policies may beprotected from claims of creditors of thepolicyholder.

PPrroobbaattee BByyppaassssThe proceeds from Intrepid II can be paiddirectly to a named beneficiary, bypassingthe estate and the delays and expenses sur-rounding probate.

11 IInnttrreeppiidd IIII MMaarrkkeettiinngg GGuuiiddee

DDeeaatthh && DDiissaabbiilliittyy BBeenneeffiittssWhether you are using it as a way to pro-tect your clients’ beneficiaries with sur-vivor income benefits, as a means to offsetdebt obligations or for its powerful estateplanning and business continuation strate-gies, Intrepid II provides a flexible array ofdeath and disability benefit options.

• Flexible insurance benefits: The insur-ance proceeds of an exempt Intrepid IIpolicy are paid tax-free to your clients’named beneficiaries. Choose from theCoverage Plus, Level, Indexed or CostRecovery options.

• MultiLife option: Intrepid II providesyou with an opportunity to insure up tosix different individuals under one poli-cy. This can be especially useful in thebusiness market to fund buy/sell agree-ments and in the family market whendifferent levels of coverage are needed foreach family member.

• Joint Legacy Protection: Your clients canelect to change their policy’s strategydown the road from income protectionto estate preservation, by purchasing thisrider at issue.

• Disability Payment Benefit: In theevent of the life insured’s disability,Intrepid II provides the opportunity fora tax-free payment to the policyownerfor an amount up to the total cash value.

• Disability Waiver: Intrepid II providesthe option to purchase a DisabilityWaiver Benefit that ensures your clients’policies are continuously funded at a cer-tain level.

InvestmentOpportunitiesIntrepid II provides a wide range of invest-ment options providing you with the flex-ibility to customize the policy to meetyour clients’ long-term financial goals.

GGeenneerraall AAccccoouunntt IInnvveessttmmeenntt OOppttiioonnssAll premiums paid are deposited to theGeneral Account.

The client has the opportunity to link theGeneral Account's investment return to avariety of options, including an incomeoption, six different index-linked options,and a tactical asset allocation option.

• TSE 300 Option: Provides a returnlinked to the growth of the Canadianstock market as measured by the TSE300.

• S&P 500 Option: Reflects the growth ofthe U.S. stock market by providing areturn linked to the S&P 500 Index.

• Japanese Equity Option: Provides areturn linked to the growth of theJapanese stock market as measured bythe Nikkei 225.

• International Equity Option: Provides areturn linked to the performance ofstock markets in Europe and Asia.

• European Equity Option: Provides areturn linked to a broad selection ofindices for equity markets in Europe.

• Canadian Bond Option: Provides areturn linked to the performance of theScotia Capital Markets Universe Index.

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• Tactical Portfolio Option: Provides areturn linked to a tactical asset allocationmix of equity and fixed income indices,in accordance with TAL Global AssetManagement.

• Income Option: Return is linked to a 60month rolling average of 3-5 yearGovernment of Canada Bonds.

Your clients may choose any combinationof the above options.

We guarantee the availability of at leastthree index-related options. As long asconditions permit, we will offer aCanadian equity, a US equity and aCanadian bond index-linked option, withthe investment expense guaranteed to beno higher than 2.75%.

Changes can be made to the investmentmix at any time without charge.

FFiixxeedd IInntteerreesstt OOppttiioonnss ((FFIIOOss))In addition to the General Account invest-ments, Intrepid II has the following fixedinterest options:

• T-Bill Account• 3 Year FIO• 5 Year FIO.• 10 Year FIO

Funds may be transferred from theGeneral Account to one or more of theFIOs. Amounts of $500 or more can betransferred to the 3, 5 and 10 Year FIOs tolock-in high interest rates. Interest is tax-sheltered and credited to the GeneralAccount.

Maturing funds will be reinvested in thecurrent option unless instructed otherwise.An amount equal to 12 months’ chargesmust remain in the General Accountand/or T-Bill Account when investing orreinvesting in the FIOs.

Investment GuaranteesThe rate of return on each investmentoption is fully guaranteed in the policy andis tied to outside indices for greateraccountability.

The guaranteed minimum returns arereduced by an amount equal to theInvestment Income Tax (IIT), a chargelevied by the Federal Government againstinsurers on the funds in insurance policies.The deduction for IIT is based on currenttax legislation. Maritime Life guaranteesthis deduction will never exceed 12.5% ofthe credited Income Option rate (includ-ing the Investment Bonus described belowwhere applicable). Regardless of the above,the minimum guaranteed interest rates areas follows:

Income Option 2.00%5 Year FIO 2.00%10 Year FIO 2.50%

These investment guarantees are increasedby the Interest Bonus.


General Account

TSE 300, S&P 500,Japanese Equity,

International Equity,European Equity,

Canadian Bond, TacticalPortfolio, Income

T-Bill

3 Year FIO

5 Year FIO

10 Year FIO

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1 For all non-Canadian equity options, prior to deduction of any investment expense, the indexreturn is adjusted (up or down) to reflect the currency and short term interest rate differencesbetween the foreign country and Canada.2 Investment Expense Reduction is reflected in the percent calculation of each index-linkedoption in the Tactical Portfolio return.3 Returns are reduced by an amount based on the Investment Income Tax (IIT), levied by the FederalGovernment against insurers on the funds in insurance policies. Maritime Life guarantees this deduc-tion will never exceed 12.5% of the credited Income Option rate (including the Interest Bonus whereapplicable).

Investment

Expense Reduction

For the index-linked options, Intrepid IIprovides an Investment ExpenseReduction, guaranteed to lower invest-ment costs and enhance long-termreturns. Beginning in the 6th policy year,

the reduction is 1.0%, with a secondreduction of an additional 0.5% begin-ning in the 16th policy year. This meansthat the investment expense on someGeneral Account options are guaranteednot to be higher than 1.25% from year 16onwards.

IInnddeexx--LLiinnkkeedd EExxppeennsseess EExxppeennsseess EExxppeennsseessOOppttiioonn RReettuurrnn yyeeaarrss 11 -- 55 yyeeaarrss 66 -- 1155 yyeeaarrss 1166++ TTaaxxeess3

TSE 300 100% of TSE 300 Index 2.75% 1.75% 1.25% IITreturns + dividends

S&P 5001 100% of S&P 500 Index 2.75% 1.75% 1.25% IIT+ dividends

Japanese Equity1 100% of Nikkei 225 3.00% 2.00% 1.50% IITIndex returns + dividends

International Equity1 100% of appropriate 3.75% 2.75% 2.25% IITindices returns +dividends

European Equity 1 100% of appropriate 3.75% 2.75% 2.25% IITindices + dividends

Canadian Bond Option 100% of Scotia Capital 2.75% 1.75% 1.25% IITMarket Universe Index returns

Tactical Portfolio2 percent mix of 0.20%2 0.20%2 0.20 %2 IITappropriate Index-Linked Options returns

Interest BonusStarting in the 6th policy year, the interest-related options receive an Interest Bonus.The bonus is credited every year, regardlessof premiums paid, and is designed toenhance long-term policy growth. TheInterest Bonus increases the credited ratewhich, in turn, is applicable to the accu-mulating fund of the policy.

For the T-Bill Account, 3, 5 and 10 yearFIOs, and the Income Option,

the Interest Bonus is available beginning inthe 6th policy year onwards and is the less-er of:

• 1.0%, and

• 15% of the Income Option rate.

For example, if the average IncomeOption rate credited was 6.0%, theInterest Bonus would be 0.9%.

This bonus applies to the FIOs on thereinvestment (or investment) immediatelyfollowing the 5th policy anniversary.


IInntteerreesstt--RReellaatteedd IInntteerreesstt BBoonnuussOOppttiioonn** RReettuurrnn EExxppeennsseess yyeeaarrss 66++ TTaaxxeess****

Income Greater of 90% of 60 0.90% lesser of 1% or 15% IITmonth rolling average of income rate3-5 yr GOC bonds

Treasury-Bill 90% of T-Bills 0.90% lesser of 1% or 15% IITof income rate

3 Year Fixed 90% of 1-3 yr GOC bonds 0.90% lesser of 1% or 15% IITInterest of income rate

5 year Fixed greater of 90% of 3-5 yr 0.90% lesser of 1% or 15% IITInterest GOC bonds of income rate

10 year Fixed greater of 90% of 5-10 yr 0.90% lesser of 1% or 15% IITInterest GOC bonds of income rate

* Regardless of the above, the minimum guaranteed interest rates are as follows:Income Option 2.00%, 5 Year FIO 2.00%, 10 Year FIO 2.50%These investment guarantees are increased by the Interest Bonus.

** Returns are reduced by an amount based on the Investment Income Tax (IIT), levied by the FederalGovernment against insurers on the funds in insurance policies. Maritime Life guarantees this deductionwill never exceed 12.5% of the credited Income Option rate (including the Interest Bonus where applicable).

Capital BonusA major feature of Intrepid II is its uniqueCapital Bonus. Credited annually begin-ning in the third policy year, Intrepid II’sCapital Bonus provides the potential tosignificantly reduce the cost of insuranceand maximize long-term cash valuegrowth. The Capital Bonus is independentof the amount of accumulated cash valueand does not require premiums to havebeen paid according to a specific fundingcriteria.

The Capital Bonus can be linked to a fixedoption, to the return generated by theGeneral Account investments or a combi-nation of the two.

AA.. FFiixxeedd OOppttiioonnSelecting the Fixed Option allows policy-holders to benefit when the credited fixedoption rate exceeds 3.5%. The CapitalBonus provided under this option is guar-anteed not to fall below $0. If a LevelDeath Benefit option is chosen, the FixedBonus, in any year, will not exceed thelevel cost of insurance.

It is calculated as follows:

Bonus: (i* - 3.5%) X Bonus Factor

* i is a portfolio average return calculated using rates guar-anteed never to be less than 90% of Government ofCanada Bond Yields, on an effective annualized basis,with durations to maturity of 10-15 years, less 1% less

IIT.

The Bonus Factor in the above formula isincluded in the contract and reflects thepolicy reserve for the level mortalitycharge.

Maritime Life reserves the right to limitthe Fixed Capital Bonus to 5.5% X BonusFactor.

BB.. VVaarriiaabbllee OOppttiioonnSelecting the Variable Option allows poli-cyholders to benefit when the credited rateof the General Account investmentsexceeds 4.5%. The Variable CapitalBonus can be positive or negative.

It is calculated as follows:

Bonus = (Credited Rate of GeneralAccount* - 4.5%) X Bonus Factor

* The 52 week credited return earned bythe General Account including any invest-ment bonuses.

The Bonus Factor in the above formula isincluded in the contract and reflects thepolicy reserve for the level mortalitycharge.

CC.. CCaappiittaall MMiixxAlternatively, policyholders can choose tolink their Capital Bonus to a combinationof the Fixed and Variable options. The rateused to calculate the Capital Bonus is asdescribed above using the proportion youhave selected for each option (e.g. 40%Fixed and 60% Variable).

The Capital Mix is elected at issue and isindicated on the Benefit Information page.The default is 100% Fixed, unless other-wise indicated. The Capital Mix can bealtered at any time with changes takingeffect immediately following the next pol-icy anniversary. Depending on the level ofinterest rates at the time of change aMarket Value Adjustment may apply asdefined in the contract.

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ProtectionDeath Benefit OptionsIntrepid II offers the following death ben-efit options to suit most estate planningneeds:

CCoovveerraaggee PPlluussThe initial coverage and Working Capitalare returned at the time of death. This cov-erage option is particularly suited to situa-tions where future withdrawals or lev-ereged loans are planned, or in corporatepolicies where the account value will bekept on the company’s balance sheet.

LLeevveellUnder this option the death benefitremains level. This means the cost to pro-vide the coverage reduces as the cash valueincreases. This can result in lower premi-um levels, or fewer premium depositsoverall.

IInnddeexxeedd CCoovveerraaggee The death benefit increases annuallyaccording to the rate of change in theConsumer Price Index (CPI). This pro-tects the death benefit from inflation.Alternatively, a rate of annual increase maybe specified (up to 10%) to provide forincreasing needs. Coverage adjustmentsare made at the beginning of each policyyear. The maximum insurance amountunder this option is limited to three timesthe initial amount of insurance. Increases(decreases) in the net amount at risk willresult in a mortality charge (credit) basedon a YRT mortality factor. Underwritingrequirements for the indexed coverageoption will be based on twice the initialcoverage amount.

CCoosstt RReeccoovveerryyUnder the Cost Recovery option, all costsincurred in obtaining the insurance cover-age are returned to the beneficiary as anadditional death benefit. At any point, thecoverage amount will never be less thanthe original face amount plus all premiumsaccumulated after-tax at the chosen inter-est rate (less any withdrawals). Effectively,at death the coverage becomes free!

The interest rate selected for the costrecovery portion of the total death benefitis compared at issue to the current 5 yearGIC rates. The difference between the tworates becomes a set increment which isthen used to adjust rates on future anniver-saries.

The Cost Recovery option cannot be com-bined with any other death benefit option.

Disability Payment Benefit At anytime the life insured becomes dis-abled, subject to a 30 day waiting period,the Cash Value of this policy, or a portionthereof, may be paid to the policyowner.This benefit may be exercised as a lumpsum withdrawal, once per occurrence ofdisability.

For the purposes of this benefit, disabilitymeans the insured is either:

i) occupationally disabled; or,

ii) afflicted with a critical condi-tion.

“Occupationally Disabled” means:

• the life insured is unable, due to sicknessor injury, to perform the substantialduties of his or her regular occupation,and is not engaged in that occupation oranother gainful occupation; or,


88

• the life insured is employed in his or herregular occupation or another gainfuloccupation, and as a result of sickness orinjury, the life insured’s current monthlyincome is 25% or less of the prior aver-age monthly earned income at the startof the occupational disability; or,

• the life insured is employed in his or herregular occupation, and as a result ofsickness or injury, is unable to performone or more substantial duties of thatoccupation; or,

• the life insured is employed in his or herregular occupation, and as a result ofsickness or injury, is unable to performthat occupation for at least one-half theamount of time usually spent at thatoccupation.

To qualify as an occupational disability,the condition must continue for the full30 day period, during which time theinsured must be under the care and atten-dance of a physician.

“Critical Condition” means:

i) a condition that markedly restricts all orsubstantially all of the time, the lifeinsured’s ability to perform any of theActivities of Daily Living, even withtherapy and the use of appropriatedevices or medication; or,

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

iii) a condition that results in the total per-manent loss of any of the following:

• sight in both eyes• hearing in both ears• speech• the ordinary use of both

hands• the ordinary use of both feet• the ordinary use of one hand and

one foot.

“Activities of Daily Living” include per-ceiving, thinking, remembering, feedingor dressing oneself, speaking or hearing ina quiet setting with one other familiar per-son, so as to be understood or understand,or normal bodily functions, includingwalking.

We require written notification and sup-porting documentation of the disability. Inaddition, the policyowner must advise usof the amount of cash value to be with-drawn from his/her policy under this pro-vision.

A reduction in both the InsuranceAmount and the Working Capital will bemade reflecting the net value withdrawn.A Market Value Adjustment or aSurrender Charge may apply on thisamount.

Risk Classes

SSiinnggllee LLiiffee

JJooiinntt LLiiffee• Joint-First-to-Die

• Joint-Last-to-Die

CCoonnttiinnggeenntt LLiiffee• Contingent Life is similar to Joint-First-

to-Die coverage, but has differentamounts of insurance on the two livesinsured. Cost is reduced by tailoring the


coverage to your clients’ specific needs.Contingent Life is available only withthe Level and Coverage Plus options.Actual rates are available in the illustra-tion software.

The Survivor’s Option is automaticallyincluded in all Joint-First-to-Die andContingent Life policies. This optionguarantees the survivor’s ability to pur-chase new coverage at the attained age upto the previous amount at risk if he/she isunder age 80. This must be exercised with-in 90 days of the first death. (If the sur-vivor dies within 90 days of the first death,a second death benefit will also be paid.)

MMuullttiiLLiiffeeThe MultiLife option allows multipleinsureds under one policy. Each individuallife insured can have his/her own deathbenefit. The death benefit option must beCoverage Plus. It is possible to elect atissue whether to have the working capitalpaid as a death benefit at the last deathonly, or on the first death.

The maximum number of lives insurableunder this option is 6 lives. MultiLife isespecially well-suited to policies used tofund Buy-Sell or other business arrange-ments. The monthly policy charge for eachof the 3rd and subsequent lives insuredunder this policy will be reduced from$10.00 to $6.00.

Riders

DDiissaabbiilliittyy WWaaiivveerrIf the life insured becomes disabled priorto age 60, premiums will be waived for theduration of the disability. At the time ofpurchase, the policyowner may elect towaive either the initial scheduled premi-

um, the minimum premium, or the LevelMaximum premium. If the initial sched-uled premium is elected to be waived andthe scheduled premium is later increased,the policyowner can request an increase inthe waiver coverage to reflect the new pre-mium. Satisfactory evidence of insurabili-ty will be required before the increase inwaiver coverage can take effect.

If the life insured is self-employed or heav-ily reliant on RRSPs for future retirementincome, the Disability Waiver can be animportant benefit. If the policyownerbecomes disabled and has no earnedincome, he/she will be unable to con-tribute to an RRSP. However, withIntrepid II’s Disability Waiver provision,we will deposit the amount the policy-owner has chosen to waive into a tax-shel-tered accumulation fund for as long as thedisability continues. This benefit will helpreplace the RRSP contributions and tax-sheltered growth your client would other-wise lose.

A life insured is deemed disabled when,after a period of 17 weeks, he/she is pre-vented from doing his/her own occupa-tion for a period of two years, and anyoccupation thereafter.

Issue ages are from 18 to 55. The rates are8% for males and 12% for females and arebased on the amount of premium waived.

WWaaiivveerr oonn DDeeaatthh oorr DDiissaabbiilliittyy ooff tthheeAApppplliiccaanntt ((WWDDDDAA))

Designed mainly for policies issued onfinancial dependents, this benefit protectsthe policy if premiums can no longer bepaid due to the death or disability of theapplicant (usually a parent) prior to age60. The scheduled premium is waived

until the applicant recovers, the applicantreaches age 60, or the 21st policy year,whichever comes first. If the primary lifeinsured is a juvenile, the maximum dura-tion is the lesser of the above and the peri-od until the life insured’s age 25. The min-imum duration for WDDA is ten years(eight years if the primary insured is ajuvenile).

This rider is available for life insureds age0 to 70 and to applicants age 18 to 50.Rates can be found in Appendix 4 or theIllustration Software.

CChhiillddrreenn’’ss CCoovveerraaggeeChildren’s Coverage, insuring childrenaged 0-17 at issue, is sold in units of$5,000 of Term insurance to age 25 with amaximum of six units. The premium foreach unit is $48 per year ($4 per month).Each unit contains a GuaranteedInsurability Option of $50,000 whichmay be exercised on the benefit anniver-sary following each child’s 21st birthday orthe applicant’s 65th birthday, whichever isearlier. This option may be extended toeach insured child’s 25th birthday by writ-ten request to Maritime Life.

All children adopted or born after thisbenefit’s effective date are automaticallycovered. A newborn’s coverage is effective15 days after birth.

This benefit expires on the benefitanniversary date following the lifeinsured’s 25th birthday, the applicant’s65th birthday, or the date the GuaranteedInsurability Option is exercised, whicheveris earliest.

TTeerrmm 1100 RR&&CC aanndd TTeerrmm 2200 RR&&CCProvides additional temporary protectionand can be converted to permanent insur-ance at a later date. A $25 fee is chargedfor each term rider. Refer to Appendices 2and 3, or the illustration software for pre-mium rates. Issue ages for Term 10 R&Care 18 to 65. Issue ages for Term 20 R&Care 18 to 55.

Term riders are available on individuallives under Joint Life, Contingent Life andMultiLife policies.

AAcccciiddeennttaall DDeeaatthhThis benefit is paid in the event of deathby accidental means. “Death by accidentalmeans” includes death within 90 days afteran accidental injury has occurred (assum-ing the injury is the immediate cause ofdeath).

Accidental Death coverage must be at least$25,000 and may not exceed the lesser of$200,000 or the insurance amount of thepolicy. Coverage expires on the benefitanniversary date following the lifeinsured’s 65th birthday. The cost of thisrider is $1.00 per $1,000 per year and isavailable for issue ages 18 to 55.

DDiissmmeemmbbeerrmmeennttThe Dismemberment benefit provides abenefit if a life insured suffers any of thefollowing losses within 180 days from thedate of an accidental injury. The followingamounts will be payable to the life insured(per $1,000 of Dismemberment Benefit):

1100

LLoossss** AAmmoouunnttTwo limbs $1,000One limb & sight

of one eye $1,000Sight of both eyes $1,000One limb $ 500Sight of one eye $ 500Thumb & index finger $ 250either hand

* loss of limb includes total and irrecoverable loss of use

Dismemberment Coverage may notexceed the lesser of $100,000 or theamount of Accidental Death coverage.The maximum amount of coverage forAccidental Death and DismembermentCoverage combined is $200,000.Coverage expires on the benefit anniver-sary following the life insured’s 65th birth-day. Available for issue ages 18 - 55.Premium rates are as follows:

IIssssuuee AAggee

JJooiinntt LLeeggaaccyy PPrrootteeccttiioonnThis rider can provide your clients withthe flexibility to adapt their coverage astheir insurance needs change. The originalneed may be to insure a single life, or forcoverage on first death. Over the life of thepolicy, the need can switch to coverage onlast death. With this benefit, policyholderscan elect JLTD coverage when they wish,without further underwriting.

The rider is available at issue, at whichpoint both lives are underwritten. The costof insurance for the JLTD coverage will be

based on the Single life age calculated atthe time of election, using the initial issueages.

Minimum issue age is 30 for both lives,and maximum issue age is 63 for bothlives. Election of the option can be madeafter 5 years from issue. The option toelect JLTD coverage expires on theanniversary following age 69 for the olderof the covered lives.

Joint Legacy Protection is available onpolicies insuring a single life, contingentlife or on JFTD policies. The rates are$0.60 per thousand of coverage.

Plan Setup & PolicyAdministrationIssue Ages• Issue Ages: 0-75

• A life insured who is under age 18 atissue must provide satisfactory non-smoker evidence on the first policyanniversary following the attainment ofage 20 to retain non-smoker status.

• Smoking status and gender distinctrates.

Rate BandsBand 1: $50,000 – $199,999Band 2: $200,000 +

*The minimum annual premium is $250.


MM FF RRaattee ppeerr $$11,,00000018-24 18-29 $ 0.4025-47 30-52 0.3548 53 0.4549 54 0.5050-55 55 0.55

Coverage LimitsThe minimum Intrepid II face amount isthe lower of $50,000 or the face amountcorresponding to an annual minimumpremium of $750.

Premium PaymentsIntrepid II can be funded at a wide rangeof levels. Any premium between the basiccost of the policy and the maximum allow-able to remain tax-exempt can be paid.Premiums can be deposited as follows:

• premiums can be increased on an ongo-ing or flexible basis subject to maintain-ing the policy’s tax exempt status undercurrent Income Tax Act regulations.

• premiums above Level Maximum can bepaid as scheduled or as flexible premi-ums: Level MTAR premiums can bescheduled; Variable MTAR premium isthe maximum flexible deposit (includingany scheduled premium) that can bemade in one year. Please include aninforce illustration when makingdeposits above Level Maximum.

• premiums can be decreased subject tobeing sufficient, along with funds in theGeneral Account and T-Bill Account, tomaintain the coverage in force for a peri-od of one month. (subject to a minimumof $20).

• premiums can be skipped completely aslong as the policy’s cash value is sufficientto maintain the coverage in force for onemonth. No evidence of insurability isrequired to resume premiums if there hasbeen no lapse in coverage.

Payment Frequency

• Annually

• Semi-annually

• Quarterly

• Monthly (ACS, Pay Assignment,Regular Billing)

Premiums are credited to the GeneralAccount when paid.

Deposit AccountThe Deposit Account allows the policy-owner to prepay all or part of future LevelMaximum annual premiums. Each year,the Level Maximum annual premium willbe automatically paid from this account.

If the policyowner is already paying ascheduled premium, the amount trans-ferred from the Deposit Account will bethe difference between the LevelMaximum premium and the scheduledpremium for that year.

Amounts above Level Maximum can betransferred into the plan, up to theVariable MTAR premium. Please includean inforce illustration with each request.

This account also holds amounts tem-porarily withdrawn from the policy tomaintain its tax-exempt status. Theseforced withdrawals are taxable disposi-tions. Funds will be transferred back intothe policy as soon as possible within therules governing its tax-exempt status.

The investment options of the DepositAccount will be identical to those chosenfor the General Account. All incomeearned in the Deposit Account, regardlessof the investment option, is considered

1122

taxable interest income and will be report-ed to your client at the end of every year.Prescribed tax treatment is not available.

There will be no Market ValueAdjustment (MVA) on transfers from theDeposit Account to Intrepid II. An MVAwill apply for partial refunds from theDeposit Account for amounts invested inthe Income Option.

Special quotes are required for DepositAccount amounts in excess of $250,000.

At the insured’s death, any remaining bal-ance in the Deposit Account is paid inaddition to the Intrepid II death benefit.

Working Capital &

Cash Values

WWoorrkkiinngg CCaappiittaallA policy’s working capital is the sum of alldeposits and investment growth, lesscharges, in the General Account, T-BillAccount and FIOs.

CCaasshh VVaalluueeThe Cash Value is equal to the workingcapital less any applicable Market ValueAdjustment, surrender charges and anyoutstanding loan balance.

The surrender charge for this policy is apercentage of the Minimum Premiumindicated on the policy contract’s BenefitInformation Page.

The following table reflects the percentagewhich will apply in policy years 1 through 8:

% of Policy Year Minimum Premium

1 75%2 75%3 75%4 75%5 50%6 50%7 50%8 50%

From the ninth policy year onward, nosurrender charge will apply.

A proportionate surrender charge willapply on any partial withdrawals.

Tax-Exempt StatusIf necessary, we will increase the coveragein order to maintain the policy’s tax-exempt status. In situations where cover-age increases are not sufficient to maintainthe exempt status, we will transfer excesscash value to the Deposit Account.

Charges to the PlanAll charges and expenses are deductedfrom the General Account of the policy.

PPrreemmiiuumm TTaaxx1. Applies to all premiums paid.

2. Charges may change if provincial taxrates change.


MMoorrttaalliittyy CChhaarrggeeA mortality charge will be deducted at thebeginning of every month. The chargesdeducted will be level to age 100 except forincreases in the net amount at risk whichwill be subject to YRT rates.

PPoolliiccyy CChhaarrggee$10.00 policy charge per month ($6.00charge per life for lives 3-6 underMultiLife).

RRiiddeerr PPrreemmiiuummssRider premiums are charged monthly tothe policy’s General Account. As the poli-cy’s fund pays for the riders, they will notbe dropped when the policy goes onExtended Coverage. Each term riderincurs a $25 annual fee which is includedin the monthly deduction for the rider.

TTrraannssffeerr FFeeeeA $30 transfer fee may be charged to theGeneral Account when transferring fundsfrom the General Account to any of theFixed Interest Options, including the T-Bill Account. The $30 transfer fee willapply for the third and subsequent trans-fers requested in a calendar year. There areno fees charged for changes made to theGeneral Account investment mix.

PPaarrttiiaall WWiitthhddrraawwaall FFeeeeThere are no fees for partial withdrawals(although a surrender charge and MarketValue Adjustment may apply). The mini-mum withdrawal amount is $1,000.

MMaarrkkeett VVaalluuee AAddjjuussttmmeenntt ((MMVVAA))

Market Value Adjustments are calculatedseparately for each active deposit (in the 3, 5 and 10 year FIOs and Income

Option) affected by the surrender, partialwithdrawal or transfer. The Market ValueAdjustment applicable is the greater of $0and the sum of the independent amountscalculated for each active deposit.

The generalized formula for MarketValue Adjustments is:

The maximum of $0 and (A x (j% -i% - 1%) x Duration) when j - i is apositive value; and

The minimum of $0 and (A x (j% -i% + 1%) x Duration) when j - i is anegative value.

Where:

A: is the capital amount of thedeposit affected by the transac-tion.

j: is the current Government ofCanada 3 - 5 year bond yield forthe Income Option, and is thecurrent declared rate for 3 Year, 5Year and 10 Year Option deposits.

i: is the 60 month Government ofCanada 3 - 5 year Bond yields forthe Income Option and is the actu-al credited rate for the 3, 5 and 10Year FIO deposits affected by thetransaction.

Duration: is 2.5 for the Income Optionand actual number of completemonths to maturity divided by12 for any 3 Year, 5 Year and 10Year Fixed Interest Options.

We reserve the right to charge aMarket Value Adjustment on the por-tion of the index-linked Optionsaffected by surrender, partial with-drawal or transfer if your client has

1144

changed their investment mix in thepast six months to increase theamount invested in these optionswhile decreasing the amounts invest-ed in the Income Option. The MarketValue Adjustment will be calculated asif the funds were in the IncomeOption at the time of surrender, par-tial withdrawal or transfer.

Plan Changes

TTeerrmm CCoonnvveerrssiioonnss• All Term insurance polices issued by

Maritime Life can be converted withintheir conversion periods to Intrepid II(Level or Coverage Plus) without evi-dence of insurability.

• Evidence of insurability will be requiredfor conversions to the Indexed Coverageand Cost Recovery Options.

• Original Age Conversions, where applic-able, are available within a policy’s con-version period during the first five policyyears.

SSmmookkeerr ttoo NNoonnssmmookkeerrA life insured who was unable to qualify asa non-smoker at issue may qualify as anon-smoker at any time by providing sat-isfactory evidence of non-smoking status.

CChhaannggeess ttoo DDeeaatthh BBeenneeffiitt OOppttiioonnssThe policyowner can change the deathbenefit option at any time. Evidence ofinsurability will be required if the changeresults in an immediate or future increasein the death benefit.

FFaaccee AAmmoouunntt CChhaannggeessThe policyowner can also request faceamount changes at any time. Increases toface amounts will be issued as a new poli-cy. Satisfactory evidence of insurability willbe required for increases.

SSuubbssttiittuuttee LLiiffeeThe policyowner may substitute a newlife insured upon providing satisfactoryevidence of insurability of the proposednew life insured.

The Company may charge a fee for planchanges depending on its rules at the timea change is made.

Rules for Plan Changes to

Intrepid II

AAlllloowwaabbllee PPllaannss The following contractual premium plansare eligible to change to Intrepid II, pro-viding all other requirements are met:

• Executive Lifetime Term (ELTT)

• ExtraOrdinary Plus

• Five Year Adjustable Ordinary Life(5YAOL)

• Accelerated Term

• Performance Plan

• Capital Opportunity Program

• Flexlife (including Protector)

• Guaranteed Lifetime Term (GLTT)

• Life Builder

• Life Enhancer

• Lifeterm (including Protector and FSP)

• Lifetime Term (LTT)

• Lifetime Term G20 (G20)

• Lifetime Term G100 (G100)

• Preferred Lifetime Term (PLTT)

• Ultimate Life


1166

AAddddiittiioonnaall BBeenneeffiittss aanndd RRiiddeerrssAdditional benefits can be carried over tothe new Intrepid II but benefits on addi-tional lives on the original plan must eitherbe canceled or kept as stand-alone policies.

CCoovveerraaggee RReessttrriiccttiioonnssCoverage restrictions on new issues ofIntrepid II also apply to plan changes toIntrepid II, that is, no changes foramounts under $50,000.

CCoovveerraaggee IInnccrreeaasseessAll increases to coverage will requireunderwriting with the exception of arequested change to Coverage Plus wherethe Working Capital is less than $10,000or where partial withdrawal of less than$10,000 is made at the time of change.

SSppeecciiffiicc RRuulleessSpecific plan change rules have been incor-porated in the software and can be foundin various bulletins previously issued, espe-cially Agent Bulletin 96-16.

Compliance Initiatives

CCoommpplliiaannccee CChheecckklliissttPursuant to changes in life insurancelicensing regulations, a ComplianceChecklist is enclosed in the Windows soft-ware for Intrepid II. At this time, thereturn of the form to Maritime Life ismandatory only if your provincial licens-ing board requires it. It can be an effectivetool to use with your clients, even if it isnot mandatory, as it ensures your client isaware of what he/she is purchasing.

SSiiggnneedd IIlllluussttrraattiioonnssCustomer signatures are now a policyrequirement for Intrepid II to conform tolegislation and industry guidelines.Signatures of both the policyowner andfinancial advisor are required on the illus-tration’s customer signature page in thespace provided


Marketing MaterialThe following marketing material is availablefrom the stockroom:

Life Insurance Options Kit Folder(E1447)

Life Insurance Options(E1440)A tool to help you identify clients’ personaland business insurance needs

Product Overview(E1444)A technical explanation of product features

Understanding your Insurance Policy(E1463)A client's guide to Intrepid II features andbenefits

MultiLife(E1469)Insure up to six lives under one policy

Disability Payment (E1470)Tax-free income at disability

Own Your Own Cash Values(E1442)Explains how Intrepid II’s unique designallows your clients to truly own their owncash values

Joint Legacy Protection(E4442)Elect Joint Last-to-Die Coverage when needed

Investment Allocation Questionnaire(E1476)

Investment Options:

TSE 300 (E1438)S&P 500 (E1439)Japanese Equity (E1434)International Equity (E1437)European Equity (E1430)Canadian Bond (E1435)Tactical Portfolio (E1429)Income (E1432)

1188

MALE FEMALENon-Smoker Smoker Non-Smoker Smoker

Age Level Max* Level Max* Level Max* Level Max*0 4.35 - 3.10 - 1 4.42 - 3.11 - 2 4.46 - 3.16 - 3 4.53 - 3.17 - 4 4.61 - 3.22 - 5 4.64 - 3.23 - 6 4.81 - 3.35 - 7 4.99 - 3.49 - 8 5.20 - 3.61 - 9 5.40 - 3.72 - 10 5.60 - 3.86 - 11 5.87 - 4.07 - 12 6.20 - 4.28 - 13 6.52 - 4.52 - 14 6.84 - 4.75 - 15 7.22 - 5.01 - 16 7.56 - 5.34 - 17 7.92 - 5.69 - 18 8.31 11.28 6.07 8.51 19 8.67 11.44 6.43 8.64 20 8.73 11.55 6.59 8.77 21 9.14 12.13 6.91 9.20 22 9.57 12.72 7.18 9.64 23 10.02 13.34 7.53 10.13 24 10.50 14.00 7.87 10.62 25 10.99 14.69 8.19 11.12 26 11.49 15.28 8.56 11.30 27 12.02 15.89 8.93 11.49 28 12.56 16.52 9.37 11.67 29 13.13 17.18 9.78 11.86 30 13.74 17.87 10.19 12.05 31 14.38 18.55 10.66 12.59 32 15.04 19.25 11.19 13.11 33 15.74 19.98 11.69 13.68 34 16.47 20.75 12.22 14.23 35 17.24 21.53 12.79 14.85 36 18.24 22.37 13.49 15.32 37 19.29 23.23 14.27 15.81 38 20.41 24.13 15.04 16.31 39 21.59 25.06 15.85 16.84 40 22.84 26.03 16.76 17.36 41 23.89 27.04 17.56 18.01 42 25.00 28.09 18.36 18.67 43 26.14 29.18 19.24 19.37 44 27.34 30.30 20.15 20.06 45 28.61 31.48 21.11 20.82 46 29.66 32.70 22.12 21.64 47 30.76 33.96 23.20 22.50 48 31.89 35.27 24.30 23.43 49 33.08 36.64 25.49 24.35 50 34.30 38.05 26.70 25.33 51 35.90 39.72 27.89 26.41 52 37.57 41.46 29.12 27.56 53 39.31 43.27 30.42 28.72 54 41.15 45.16 31.77 29.95 55 43.95 48.11 33.86 31.88 56 45.05 49.56 34.98 32.98 57 46.18 51.05 36.13 34.12 58 47.34 52.59 37.34 35.31 59 48.53 54.17 38.59 36.54 60 51.18 57.41 41.03 38.88 61 54.17 60.51 43.34 41.07 62 57.34 63.77 45.80 43.38 63 60.69 67.56 48.40 46.06 64 64.24 72.66 51.16 49.65 65 67.99 78.14 54.06 53.50 66 71.20 83.12 56.94 57.32 67 74.56 88.42 60.01 61.42 68 78.07 94.06 63.24 65.81 69 81.77 100.08 66.67 70.53 70 85.62 106.46 70.26 75.56 71 90.70 112.57 74.94 80.70 72 96.10 119.05 79.95 86.21 73 101.80 125.88 85.28 92.07 74 107.84 133.11 90.99 98.35 75 114.25 140.75 97.07 105.02

MALE FEMALE

Non Smoker Smoker Non Smoker Smoker

Min Min Min Min

Age Band I Band II Band I Band II Band I Band II Band I Band II0 2.08 1.09 - - 1.48 0.78 - - 1 2.10 1.11 - - 1.49 0.79 - - 2 2.12 1.14 - - 1.50 0.81 - - 3 2.14 1.17 - - 1.51 0.82 - - 4 2.16 1.19 - - 1.52 0.84 - - 5 2.18 1.22 - - 1.53 0.85 - - 6 2.25 1.27 - - 1.58 0.89 - - 7 2.32 1.33 - - 1.63 0.92 - - 8 2.38 1.40 - - 1.67 0.97 - - 9 2.46 1.46 - - 1.72 1.02 - - 10 2.53 1.53 - - 1.77 1.06 - - 11 2.60 1.63 - - 1.84 1.12 - - 12 2.69 1.73 - - 1.89 1.20 - - 13 2.77 1.84 - - 1.95 1.27 - - 14 2.86 1.95 - - 2.03 1.35 - - 15 2.94 2.07 - - 2.09 1.44 - - 16 3.02 2.18 - - 2.19 1.54 - - 17 3.12 2.32 - - 2.30 1.66 - - 18 3.20 2.45 4.89 3.91 2.42 1.79 3.83 2.95 19 3.30 2.59 5.00 4.01 2.53 1.92 3.92 3.03 20 3.33 2.66 5.10 4.12 2.58 2.01 4.00 3.12 21 3.40 2.74 5.22 4.22 2.66 2.07 4.10 3.20 22 3.47 2.84 5.34 4.33 2.73 2.13 4.19 3.29 23 3.54 2.93 5.47 4.45 2.81 2.19 4.29 3.37 24 3.61 3.02 5.59 4.56 2.89 2.26 4.39 3.45 25 3.69 3.13 5.72 4.68 2.97 2.33 4.49 3.55 26 3.82 3.27 5.98 4.97 3.08 2.44 4.64 3.68 27 3.96 3.41 6.26 5.27 3.18 2.54 4.79 3.81 28 4.11 3.56 6.54 5.60 3.30 2.65 4.94 3.96 29 4.26 3.72 6.84 5.94 3.41 2.76 5.09 4.11 30 4.42 3.89 7.15 6.30 3.53 2.89 5.26 4.25 31 4.63 4.11 7.57 6.69 3.70 3.05 5.54 4.54 32 4.85 4.33 8.02 7.11 3.86 3.21 5.85 4.84 33 5.08 4.57 8.49 7.55 4.04 3.39 6.17 5.16 34 5.33 4.82 8.99 8.02 4.22 3.58 6.51 5.50 35 5.59 5.09 9.51 8.52 4.42 3.78 6.87 5.87 36 5.95 5.43 10.11 9.08 4.67 4.02 7.21 6.22 37 6.33 5.79 10.75 9.67 4.94 4.27 7.58 6.58 38 6.75 6.17 11.42 10.31 5.22 4.55 7.96 6.96 39 7.18 6.58 12.14 10.99 5.52 4.83 8.36 7.37 40 7.65 7.01 12.90 11.71 5.84 5.13 8.78 7.81 41 8.22 7.52 13.86 12.55 6.24 5.52 9.35 8.36 42 8.84 8.06 14.89 13.46 6.68 5.92 9.95 8.95 43 9.50 8.64 15.99 14.43 7.14 6.36 10.59 9.58 44 10.21 9.26 17.18 15.47 7.64 6.83 11.28 10.25 45 10.97 9.93 18.45 16.59 8.18 7.33 12.00 10.97 46 11.74 10.63 19.67 17.74 8.83 7.93 12.85 11.75 47 12.57 11.37 20.98 18.96 9.52 8.57 13.74 12.58 48 13.44 12.16 22.37 20.27 10.29 9.27 14.71 13.46 49 14.39 13.01 23.85 21.68 11.10 10.02 15.74 14.41 50 15.39 13.92 25.43 23.17 11.98 10.84 16.84 15.42 51 16.56 14.98 27.37 24.87 12.80 11.64 18.08 16.54 52 17.82 16.13 29.45 26.68 13.68 12.51 19.40 17.73 53 19.16 17.37 31.69 28.63 14.62 13.43 20.83 19.01 54 20.61 18.69 34.10 30.73 15.61 14.43 22.35 20.38 55 21.96 19.92 36.70 32.97 16.52 15.34 23.99 21.84 56 23.33 21.09 38.62 34.83 17.55 16.37 25.46 23.18 57 24.80 22.34 40.64 36.80 18.64 17.48 27.01 24.60 58 26.36 23.66 42.76 38.88 19.79 18.66 28.67 26.10 59 28.01 25.05 45.00 41.08 21.03 19.93 30.42 27.70 60 29.77 26.53 47.36 43.40 22.34 21.27 32.28 29.40 61 31.97 28.50 50.23 46.04 24.05 22.81 34.32 31.26 62 34.34 30.61 53.29 48.84 25.88 24.45 36.49 33.22 63 36.88 32.88 56.53 51.82 27.84 26.22 38.80 35.33 64 39.61 35.31 59.96 54.97 29.96 28.11 41.23 37.56 65 42.54 37.93 63.61 58.32 32.25 30.16 43.84 39.93 66 44.90 40.29 66.84 61.18 34.41 32.22 46.19 42.19 67 47.39 42.79 70.23 64.18 36.74 34.45 48.67 44.58 68 50.02 45.44 73.79 67.33 39.21 36.82 51.27 47.10 69 52.80 48.27 77.54 70.63 41.84 39.35 54.02 49.78 70 55.73 51.27 81.47 74.10 44.67 42.06 56.92 52.58 71 58.96 54.22 85.09 77.22 47.95 44.80 59.93 55.37 72 62.36 57.34 88.87 80.48 51.48 47.71 63.12 58.28 73 65.96 60.65 92.82 83.87 55.28 50.82 66.45 61.35 74 69.77 64.13 96.94 87.41 59.35 54.12 69.97 64.58 75 73.80 67.83 101.25 91.10 63.71 57.63 73.69 67.98

Appendix 1 - Intrepid II Rates

Per $1,000 of initial coverage. Add $130 for minimum premium calcula-tion. For Monthly equivalent, divide by 12.DDiissaabbiilliittyy WWaaiivveerr ccaallccuullaattiioonn::Male: Add 8% of minimum/initial/level maximum premiumFemale: Add 12% of minimum/initial/level maximum premium

*Level maximum is based on assumed conditions and may not be themaximum premium deposit, whether flexible or scheduled. Intrepid IIsoftware and inforce software will illustrate Level MTAR and VariableMTAR premiums.


Male Female Band 1 Band 2 Band 3

Age Age Issue Renewal Issue Renewal Issue Renewal18 18-23 1.14 0.94 0.9019 24 1.14 0.94 0.9020 25 1.14 0.94 0.9021 26 1.14 0.94 0.9022 27 1.14 0.94 0.9023 28 1.14 0.94 0.9024 29 1.14 0.94 0.9025 30 1.14 0.94 0.9026 31 1.14 0.95 0.9027 32 1.14 0.95 0.9028 33 1.16 1.46 0.96 1.25 0.91 1.1829 34 1.16 1.46 0.97 1.25 0.91 1.1830 35 1.16 1.46 0.98 1.25 0.92 1.1831 36 1.17 1.48 0.98 1.25 0.93 1.1832 37 1.17 1.50 0.98 1.26 0.93 1.2033 38 1.18 1.51 0.99 1.30 0.95 1.2334 39 1.20 1.53 1.00 1.34 0.97 1.2735 40 1.23 1.56 1.04 1.39 1.00 1.3436 41 1.29 1.64 1.09 1.46 1.06 1.4137 42 1.35 1.76 1.14 1.54 1.11 1.4938 43 1.43 1.89 1.22 1.64 1.19 1.5939 44 1.51 2.04 1.31 1.76 1.27 1.7240 45 1.62 2.19 1.41 1.90 1.38 1.8641 46 1.73 2.35 1.53 2.07 1.50 2.0342 47 1.86 2.52 1.66 2.27 1.63 2.2243 48 2.00 2.69 1.80 2.48 1.77 2.4344 49 2.15 2.91 1.97 2.72 1.93 2.6845 50 2.33 3.14 2.15 2.99 2.12 2.9446 51 2.53 3.41 2.35 3.27 2.31 3.2247 52 2.74 3.68 2.56 3.57 2.53 3.5148 53 2.98 4.01 2.80 3.90 2.75 3.8249 54 3.25 4.38 3.07 4.27 3.02 4.1950 55 3.59 4.84 3.38 4.70 3.33 4.6251 56 3.97 5.39 3.74 5.18 3.67 5.1152 57 4.43 6.00 4.13 5.72 4.06 5.6653 58 4.91 6.69 4.55 6.31 4.47 6.2454 59 5.43 7.42 5.01 6.96 4.92 6.8955 60 5.97 8.19 5.51 7.66 5.41 7.5756 61 6.49 8.93 6.03 8.39 5.90 8.2657 62 7.00 9.66 6.56 9.15 6.39 8.9558 63 7.56 10.47 7.14 9.97 6.93 9.7159 64 8.24 11.42 7.81 10.92 7.57 10.5960 65 9.09 12.61 8.61 12.04 8.35 11.6961 66R 10.13 14.09 9.54 13.33 9.27 12.9962 67R 11.31 15.79 10.57 14.74 10.29 14.4963 68R 12.63 17.65 11.72 16.30 11.43 16.1264 69R 14.08 19.61 12.96 18.00 12.67 17.8565 70R 15.67 21.62 14.31 19.88 14.03 19.6566R 71R 23.67 21.92 21.4967R 72R 25.81 24.13 23.4368R 73R 28.03 26.48 25.4469R 74R 30.33 29.00 27.5470R 32.71 31.67 29.7371R 36.17 35.05 33.2072R 40.00 38.80 37.0573R 44.24 42.96 41.3774R 48.91 47.55 46.19


Age Age Issue Renewal Issue Renewal Issue Renewal18 18-23 1.57 1.48 1.3919 24 1.57 1.48 1.3920 25 1.57 1.48 1.3921 26 1.59 1.49 1.3922 27 1.60 1.51 1.4023 28 1.62 1.52 1.4024 29 1.63 1.53 1.4125 30 1.64 1.54 1.4326 31 1.64 1.56 1.4327 32 1.64 1.56 1.4328 33 1.65 2.20 1.56 2.06 1.44 1.7929 34 1.66 2.20 1.57 2.06 1.45 1.7930 35 1.67 2.20 1.60 2.06 1.49 1.7931 36 1.73 2.24 1.65 2.13 1.54 1.8432 37 1.79 2.31 1.72 2.22 1.62 1.9133 38 1.88 2.42 1.79 2.33 1.71 2.0134 39 1.99 2.56 1.90 2.47 1.81 2.1435 40 2.12 2.73 2.03 2.64 1.94 2.3036 41 2.27 2.94 2.18 2.81 2.10 2.4837 42 2.43 3.16 2.35 2.98 2.27 2.6838 43 2.62 3.43 2.56 3.19 2.46 2.9239 44 2.86 3.76 2.80 3.45 2.69 3.2140 45 3.14 4.15 3.08 3.79 2.97 3.5541 46 3.47 4.59 3.39 4.20 3.28 3.9542 47 3.82 5.07 3.74 4.67 3.63 4.4143 48 4.23 5.62 4.13 5.19 4.02 4.9144 49 4.70 6.24 4.57 5.81 4.47 5.5045 50 5.26 6.97 5.10 6.51 4.99 6.1946 51 5.90 7.79 5.70 7.29 5.58 6.9747 52 6.62 8.68 6.37 8.15 6.24 7.8248 53 7.41 9.68 7.12 9.09 6.97 8.7749 54 8.26 10.77 7.93 10.14 7.75 9.8150 55 9.18 11.97 8.80 11.30 8.60 10.9651 56 10.18 13.33 9.76 12.60 9.53 12.2652 57 11.28 14.83 10.82 14.05 10.52 13.6753 58 12.42 16.42 11.93 15.57 11.58 15.1854 59 13.59 18.03 13.07 17.15 12.67 16.7455 60 14.74 19.59 14.19 18.71 13.77 18.3156 61 15.80 21.01 15.24 20.19 14.84 19.8257 62 16.79 22.30 16.22 21.61 15.88 21.3158 63 17.83 23.66 17.26 23.09 16.98 22.8559 64 19.03 25.26 18.42 24.74 18.19 24.5560 65 20.52 27.27 19.82 26.65 19.60 26.4661 66R 22.29 29.68 21.45 28.78 21.21 28.5862 67R 24.26 32.38 23.24 31.04 22.96 30.8363 68R 26.44 35.38 25.21 33.52 24.86 33.2664 69R 28.83 38.70 27.33 36.33 26.91 35.9265 70R 31.41 42.34 29.64 39.56 29.11 38.8466R 71R 46.31 43.20 42.0067R 72R 50.61 47.21 45.4068R 73R 55.22 51.56 49.0369R 74R 60.16 56.26 52.8970R 65.42 61.32 56.9871R 72.75 67.85 61.9672R 80.89 75.08 67.3773R 89.96 83.07 73.2674R 100.04 91.92 79.66

Appendix 2Term 10 Renewable and Convertible Riders

NNoonn--SSmmookkeerr SSmmookkeerr

R = Renewal OnlyBand 1 = $50,000 - $249,999Band 2 = $250,000 - $999,999Band 3 = $1,000,000 or more

2200

Appendix 3 - Term 20 Renewable and Convertible Riders

NNoonn--SSmmookkeerr SSmmookkeerr


Age Age Issue Renewal Issue Renewal Issue Renewal18 18-23 2.11 1.91 1.7619 24 2.11 1.91 1.7620 25 2.11 1.91 1.7621 26 2.12 1.91 1.7622 27 2.13 1.92 1.7723 28 2.14 1.92 1.7724 29 2.16 1.92 1.7725 30 2.18 1.93 1.7826 31 2.24 1.98 1.8327 32 2.29 2.04 1.8828 33 2.37 2.12 1.9429 34 2.45 2.21 2.0330 35 2.57 2.32 2.1431 36 2.70 2.44 2.2632 37 2.83 2.56 2.3933 38 2.99 2.70 2.5434 39 3.19 2.87 2.7335 40 3.45 3.11 2.9636 41 3.76 3.40 3.2637 42 4.13 3.74 3.6238 43 4.55 3.43 4.13 3.19 3.99 2.9239 44 4.99 3.76 4.54 3.45 4.41 3.2140 45 5.45 4.15 4.97 3.79 4.83 3.5541 46 6.03 4.59 5.53 4.20 5.38 3.9542 47 6.61 5.07 6.11 4.67 5.94 4.4143 48 7.25 5.62 6.76 5.19 6.53 4.9144 49 7.96 6.24 7.50 5.81 7.26 5.5045 50 8.75 6.97 8.32 6.51 8.12 6.1946 51 9.64 7.79 9.22 7.29 8.99 6.9747 52 10.63 8.68 10.24 8.15 9.98 7.8248 53 11.70 9.68 11.33 9.09 11.06 8.7749 54 12.84 10.77 12.50 10.14 12.19 9.8150 55 14.02 11.97 13.67 11.30 13.34 10.9651 56R 15.02 13.33 14.70 12.60 14.45 12.2652 57R 15.87 14.83 15.58 14.05 15.50 13.6753 58R 16.87 16.42 16.60 15.57 16.64 15.1854 59R 18.35 18.03 18.05 17.15 18.11 16.7455 60R 20.63 19.59 20.25 18.71 20.09 18.3156R 61R 21.01 20.19 19.8257R 62R 22.30 21.61 21.3158R 63R 23.66 23.09 22.8559R 64R 25.26 24.74 24.5560R 65R 27.27 26.65 26.4661R 66R 29.68 28.78 28.5862R 67R 32.38 31.04 30.8363R 68R 35.38 33.52 33.2664R 69R 38.70 36.33 35.9265R 70R 42.34 39.56 38.8466R 71R 46.31 43.20 42.0067R 72R 50.61 47.21 45.4068R 73R 55.22 51.56 49.0369R 74R 60.16 56.26 52.8970R 65.42 61.32 56.9871R 72.75 67.85 61.9672R 80.89 75.08 67.3773R 89.96 83.07 73.2674R 100.04 91.92 79.66


Age Age Issue Renewal Issue Renewal Issue Renewal18 18-23 1.36 1.23 1.1419 24 1.36 1.23 1.1420 25 1.36 1.23 1.1421 26 1.36 1.23 1.1422 27 1.36 1.23 1.1423 28 1.37 1.24 1.1624 29 1.37 1.24 1.1625 30 1.37 1.24 1.1626 31 1.38 1.25 1.1727 32 1.39 1.25 1.1728 33 1.40 1.27 1.1929 34 1.43 1.30 1.2030 35 1.45 1.33 1.2331 36 1.51 1.38 1.3032 37 1.59 1.46 1.3633 38 1.68 1.53 1.4434 39 1.79 1.63 1.5235 40 1.91 1.73 1.6336 41 2.04 1.85 1.7637 42 2.19 1.98 1.8838 43 2.35 1.89 2.12 1.64 2.03 1.5939 44 2.54 2.04 2.28 1.76 2.18 1.7240 45 2.74 2.19 2.45 1.90 2.37 1.8641 46 2.97 2.35 2.68 2.07 2.56 2.0342 47 3.22 2.52 2.92 2.27 2.78 2.2243 48 3.49 2.69 3.19 2.48 3.00 2.4344 49 3.79 2.91 3.49 2.72 3.26 2.6845 50 4.13 3.14 3.83 2.99 3.56 2.9446 51 4.49 3.41 4.19 3.27 3.90 3.2247 52 4.88 3.68 4.58 3.57 4.26 3.5148 53 5.30 4.01 5.00 3.90 4.64 3.8249 54 5.78 4.38 5.48 4.27 5.08 4.1950 55 6.32 4.84 5.99 4.70 5.57 4.6251 56R 6.83 5.39 6.51 5.18 6.10 5.1152 57R 7.29 6.00 7.01 5.72 6.66 5.6653 58R 7.86 6.69 7.59 6.31 7.28 6.2454 59R 8.66 7.42 8.34 6.96 7.98 6.8955 60R 9.85 8.19 9.34 7.66 8.79 7.5756R 61R 8.93 8.39 8.2657R 62R 9.66 9.15 8.9558R 63R 10.47 9.97 9.7159R 64R 11.42 10.92 10.5960R 65R 12.61 12.04 11.6961R 66R 14.09 13.33 12.9962R 67R 15.79 14.74 14.4963R 68R 17.65 16.30 16.1264R 69R 19.61 18.00 17.8565R 70R 21.62 19.88 19.6566R 71R 23.67 21.92 21.4967R 72R 25.81 24.13 23.4368R 73R 28.03 26.48 25.4469R 74R 30.33 29.00 27.5470R 32.71 31.67 29.7371R 36.17 35.05 33.2072R 40.00 38.80 37.0573R 44.24 42.96 41.3774R 48.91 47.55 46.19

R = Renewal OnlyBand 1 = $50,000 - $249,999Band 2 = $250,000 - $999,999Band 3 = $1,000,000 or more


Duration Duration

8 - 15 16 - 25

years years

Applicant’s Applicant Applicant

Age Male Female Male Female18-20 4.02 6.03 4.98 7.4621 4.04 6.06 5.00 7.5222 4.07 6.11 5.02 7.6023 4.13 6.20 5.07 7.6724 4.20 6.27 5.13 7.7625 4.25 6.37 5.20 7.8326 4.31 6.46 5.26 7.9027 4.36 6.53 5.36 8.0328 4.40 6.60 5.45 8.1829 4.50 6.75 5.64 8.4730 4.59 6.89 5.74 8.6131 4.69 7.04 5.93 8.8932 4.78 7.17 6.12 9.1833 4.88 7.31 6.41 9.6234 4.98 7.46 6.72 10.0435 5.07 7.61 7.08 10.6136 5.26 7.90 7.27 10.9037 5.45 8.18 7.75 11.6238 5.74 8.61 8.22 12.3339 5.93 8.89 8.70 13.0640 6.22 9.33 8.70 13.0641 6.60 9.90 8.70 13.0642 7.08 10.61 8.70 13.0643 7.56 11.34 8.70 13.0644 8.13 12.20 8.70 13.0645-50 8.80 13.20

Per $100 of initial premium

Appendix 4 - Waiver of Premium on Death or Disabilityof Applicant (WDDA)

Where the insured is age 0-17, “duration” is the number of yearsuntil the life insured turns age 25 or the applicant turns age 60,whichever is sooner.

Where the insured is age 18-75, “duration” is the lesser of 21 yearsor the number of years until the applicant turns age 60, whichever isfirst.

NNootteess

2222


NNootteess

E1446 03/2001

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