Manulife Bank Creditor Insurance

Name, DESIGNATIONJob title, Company Name

Agenda

Why mortgage protection

Creditor vs. personal insurance

Manulife One creditor insurance

Application process

Administration

Questions

Why mortgage protection?

If your clients didn’t have an income, would they still have a home?

Manulife One is a cornerstone of financial planningMany customers are underinsured = unprotectedDiscussing creditor insurance gets clients and advisors thinking about their needsSimple, easy opportunity to put protection in place – to keep the account working even when your client can’t

Creditor vs. Personal insurance

Some advisors may believe that “personal” insurance is always better – but this isn’t always true.

Advantages of Personal insurance:

Client can select their beneficiary

Individual underwriting makes the premium more applicable to the individual and potentially more affordable

Coverage is portable

Coverage may be a level or decreasing amount

Creditor vs. Personal insurance

Advantages of Creditor insurance:

Provides coverage where it was intended to be

Easier application process -- typically three medical questions

May not require any detailed underwriting1

Blended rates, may be cheaper than personal insurance for some clients

Can be applied for as part of the mortgage process

May include benefits not available elsewhere, such as job loss coverage

Can provide an inexpensive start to a full insurance program – some insurance is better than no insurance

1 If the borrowing limit is >$250,000, detailed underwriting will be required.

Unique features that only Manulife One creditor insurance offers

Covers all the debt in the account, up to the prescribed borrowing limit

Clients only pay for the coverage they need

Coverage does not terminate when the Manulife One account is in a positive balance

Option of adding job loss and disability coverage

30 days to cancel insurance and receive a refund

What does Manulife One Creditor Insurance cover?

Reduces/pays off debts in the Manulife One account if insured dies

Pays the interest costs in the Manulife One account if insured becomes disabled or unemployed through no fault of their own

Available to all new and existing Manulife One account holders

Life Insurance

Eligibility – account holders between 18 and 64, if approved continues to age 70

Single or Joint coverage

Benefits – lesser of:

average 12-month balance, and

outstanding balance at death

Minimum benefit at issue is $50,000 and the maximum benefit is $500,000

Note: This product is also available for Manulife Bank Select, but is not available for Preferred Rate Mortgages

Disability and job loss rider

Eligibility – account holders between 18 and 64, if approved continues to age 65

Single or Joint coverage

Benefits – covers monthly interest up to $3,500/month 24 months for Disability

6 months for job Loss

Elimination Period

Note: Disability and job loss rider must be applied for at the same time as the life product.

Life Insurance Premiums

Monthly Rates per $1,000 Outstanding Balance

Attained Age Blended Rate

18-25 $0.08

26-30 $0.09

31-35 $0.11

36-40 $0.18

41-45 $0.27

46-50 $0.39

51-55 $0.49

56-60 $0.70

61-65 $1.04

66-69 $1.60

Monthly premiums are based on:

Clients attained age Clients rate will

automatically adjust with age bands

Outstanding balance at month end

Joint premiums are 1.4 times the posted rate

Job loss and disability rider premiums

Monthly Rates per $1,000 Outstanding Balance

Attained Age Blended Rate

18-25 $0.14

26-30 $0.14

31-35 $0.15

36-40 $0.17

41-45 $0.19

46-50 $0.22

51-55 $0.28

56-60 $0.38

61-65 $0.62

Monthly premiums are based on:

Clients attained age Clients rate will

automatically adjust with age bands

Outstanding balance at month end

Joint premiums are 1.9 times the posted rate

Competitive comparison

Based on $100,000 of Joint Life Coverage

Age RBC Scotia TD BMO National Bank

Manulife Bank

33 $22.00 $20.80 $21.00 $22.00 $23.87 $15.40

43 $49.00 $46.40 $45.00 $48.00 $53.24 $37.80

53 $88.00 $88.00 $81.00 $90.00 $100.98 $68.60

Rates current as of November 2014

Competitive comparisons

Based on $100,000 of Joint Life Coverage

Age Non-Smoker Blended Smoker

T-10 T-20 Manulife Bank

T-10 T-20

25 152.76 189.24 $134.40 214.68 270.60

35 174.60 229.80 $184.80 263.76 430.32

45 279.60 425.64 $453.60 589.08 1,024.32

55 585.84 1,129.56 $823.20 1,439.64 2,372.04

Rates current as of November 2014

Important Notes to Advisors

Banking Consultant is required to advise the client that Manulife Bank offers creditor insurance

Banking Consultant does all the work and you get compensated

Gets clients thinking about all their insurance needs

Insurance can be cancelled at anytime

Application process Completed by the Banking Consultant

Waiver of insurance

3 Medical Questions

Additional underwriting is required if: Client answers ‘yes’ to any question

Borrowing limit is >$250,000

Application Process

Submitting an application

Fax completed application to Affinity Markets, then mail original

Underwriting occurs after the application is submitted – clients cannot be pre-approved

Applications should only be submitted to Affinity Markets once the client has been approved for a Manulife One account

Application Process

Once the application has been received:

If no additional underwriting is required you will be notified of the status of the application by email

If additional underwriting is required you will receive status updates via email

—Upon initial underwriting

—When requirements arrive (e.g. laboratory analysis)

— If client is contacted for additional requirements (e.g. Doctor’s report has been requested)

—When a final decision has been made on the file

Common Questions

When does the clients coverage start? Coverage begins the first day of the month following approval and

the first premium being paid

What happens to the clients policy if they apply for an increase or switch on their Manulife One account? If credit limit remains < $250,000 no action is required by the client

If the credit limit is > $250,000 the client will need to re-apply for coverage as the policy will require full underwriting

If the client fails to re-apply they will only have coverage up to $250,000

Can clients apply for a specific amount of coverage? No, coverage is based on the clients borrowing limit.

Compensation

Life Insurance Job loss & disability

Advisor 5% of monthly premium 5% of monthly premium

Paid on active cases Compensation is paid approximately 2 months after the policy

becomes active

Note: Compensation is subject to change without notice.

Administration

It’s important to remember that this coverage is provided by Manulife Financial (life and disability) First North American Insurance Company (job loss)

and NOT Manulife Bank Bank client information cannot be shared with the insurance

company – except as required on the app (e.g. account #)

Clients are covered under a Group Policy that Manulife Bank has with The Manufacturers Life Insurance Company (Manulife Financial) and they are issued certificates that specify the terms, conditions and details of their coverage

All Manulife One clients/applicants must be given the Creditor Insurance brochure and must acknowledge receipt in the Manulife One Operating Agreement if they decline the coverage

Questions

If you have questions regarding the Manulife One Creditor Insurance product please contact Affinity Markets

phone: 1-866-388-7095email: am_service@manulife.com

Manulife One Creditor Insurance is administered and underwritten by The Manufacturers Life Insurance Company (life and disability insurance) and First North American Insurance Company (job loss).

Manulife One is offered through Manulife Bank of Canada.

Manulife One, Manulife, Manulife Bank, and the Manulife Bank For Your Future logo and the block design are trademarks of The Manufacturers Life Insurance Company, and are used by it, and by its affiliates, including Manulife Bank under license.

Important Notes

Thank you