sul product guide - manulife · 2020-02-28 · • total disability waiver rider (tdw). additional...

FOR ADVISOR USE ONLY

Individual Insurance

November 6, 2018

Security UL

Product Guide

Table of contents About this guide .....................................................................................................................................................1

Special notes ...........................................................................................................................................................1

Product overview ...................................................................................................................................................3

Coverage types ................................................................................................................................................................. 3 Cost Types ........................................................................................................................................................................ 3 Death benefit type ............................................................................................................................................................ 3 Additional protection ....................................................................................................................................................... 3 Additional benefits and features....................................................................................................................................... 3 Investment accounts ......................................................................................................................................................... 3 Side Account .................................................................................................................................................................... 4

Issuing policies ........................................................................................................................................................5

Currency ........................................................................................................................................................................... 5 Ownership ........................................................................................................................................................................ 5 Policy Date ....................................................................................................................................................................... 5 Coverage Date .................................................................................................................................................................. 5 Coverage Issue Date ......................................................................................................................................................... 5 Beneficiaries ..................................................................................................................................................................... 5 Misstated age or sex ......................................................................................................................................................... 6 Initial deposit .................................................................................................................................................................... 6 COD policies (cash on delivery) ...................................................................................................................................... 7 Illustrations and product pages ......................................................................................................................................... 7 Compensation ................................................................................................................................................................... 7

Healthstyles .............................................................................................................................................................8

Healthstyle underwriting .................................................................................................................................................. 8 Healthstyle availability ..................................................................................................................................................... 9 Healthstyle issue ages ....................................................................................................................................................... 9

Plan details ............................................................................................................................................................10

Coverage types ............................................................................................................................................................... 10 Cost Type ....................................................................................................................................................................... 10 Issue ages ........................................................................................................................................................................ 11 Amount of insurance limits ............................................................................................................................................ 11 Rate banding ................................................................................................................................................................... 12 Guaranteed rates ............................................................................................................................................................. 12 Insurance ratings............................................................................................................................................................. 12 Age 100 .......................................................................................................................................................................... 13

Additional protection ...........................................................................................................................................14

General information ....................................................................................................................................................... 14 Business Value Protector Rider (BVP) .......................................................................................................................... 14 Child Protection Rider (CPR) ........................................................................................................................................ 17 Guaranteed Insurability Option Rider (GIO) ................................................................................................................. 20 Term Insurance Rider (TIR) ........................................................................................................................................... 24 Total Disability Waiver Rider (TDW) ........................................................................................................................... 29

Additional benefits and features .........................................................................................................................32

Disability Benefit ........................................................................................................................................................... 32 Compassionate Assistance Program (CAP) ................................................................................................................... 33

InnoVision Advantage Option ............................................................................................................................34

When this Option can be exercised ................................................................................................................................ 34 How to exercise the InnoVision Advantage Option ....................................................................................................... 35 How the InnoVision Advantage Option works .............................................................................................................. 35

Joint Legacy Protector .........................................................................................................................................43

When this feature can be exercised ................................................................................................................................ 43 How to apply for the change .......................................................................................................................................... 43 How the change is processed ......................................................................................................................................... 44 Joint Legacy Protector and the rate guarantee ............................................................................................................... 46 Compensation and the Joint Legacy Protector ............................................................................................................... 47

Survivor’s Benefit ................................................................................................................................................48

Investment accounts .............................................................................................................................................49

Investment overview ...................................................................................................................................................... 49 Investment choices ......................................................................................................................................................... 49 Where to find investment account information .............................................................................................................. 50 Savings Account ............................................................................................................................................................. 50 Average GIA Account .................................................................................................................................................... 50 Balanced Index accounts ................................................................................................................................................ 51 Guaranteed Account Value when the last death benefit is payable ............................................................................... 53 Bonus .............................................................................................................................................................................. 53

Side Account .........................................................................................................................................................54

Side Account overview .................................................................................................................................................. 54 Side Account investments .............................................................................................................................................. 54 The balance of the Side Account ................................................................................................................................... 54 The value of the Side Account ....................................................................................................................................... 55 When amounts are placed in the Side Account .............................................................................................................. 55 How amounts are placed in the Side Account ................................................................................................................ 55 How amounts are deposited into the policy ................................................................................................................... 55 Amounts transferred within the Side Account ............................................................................................................... 55 Withdrawals from the Side Account .............................................................................................................................. 56 Side Account order of withdrawal ................................................................................................................................. 56 When the Side Account ends ......................................................................................................................................... 56 Side Account assignment and ownership ....................................................................................................................... 56 Side Account deposit commissions ................................................................................................................................ 56 Side Account and taxation.............................................................................................................................................. 57

How the policy works ..........................................................................................................................................58

Death benefit .................................................................................................................................................................. 58 Suicide ............................................................................................................................................................................ 59 Account Value ................................................................................................................................................................ 59 Cash Value ..................................................................................................................................................................... 60 Deposits .......................................................................................................................................................................... 60 Our right to delay crediting deposits and processing transactions ................................................................................. 62 Transfers between investment accounts ......................................................................................................................... 62 Withdrawals ................................................................................................................................................................... 63 Monthly deduction ......................................................................................................................................................... 64 Policy loans .................................................................................................................................................................... 65 Line of credit .................................................................................................................................................................. 65

Policy changes .......................................................................................................................................................66

Increases in coverage ...................................................................................................................................................... 66 Decreases in coverage .................................................................................................................................................... 68

Requested coverage cancellations .................................................................................................................................. 69 Changes in Healthstyle ................................................................................................................................................... 69 Changes in insurance rating ........................................................................................................................................... 71 Policy splitting ................................................................................................................................................................ 72 Substitute life ................................................................................................................................................................. 75 Transferring ownership of a policy ................................................................................................................................ 75 Using the policy as security for a loan ........................................................................................................................... 76

Plan changes to or from Security UL .................................................................................................................76

When a policy ends ..............................................................................................................................................77

Requested policy cancellation ........................................................................................................................................ 77 Grace Period ................................................................................................................................................................... 77 Compensation impact when a policy ends ..................................................................................................................... 78 Policy termination notices .............................................................................................................................................. 78

Policy reinstatement .............................................................................................................................................80

Taxation ................................................................................................................................................................81

Exempt policies .............................................................................................................................................................. 81 Non-exempt policies ....................................................................................................................................................... 82

Product history .....................................................................................................................................................83

APPENDIX 1 ........................................................................................................................................................87

Healthstyles ...........................................................................................................................................................87

Healthstyle underwriting ................................................................................................................................................ 87 Healthstyle availability ................................................................................................................................................... 87 Healthstyle issue ages ..................................................................................................................................................... 87

Plan details ............................................................................................................................................................89

Coverage types ............................................................................................................................................................... 89 Amount of insurance limits ............................................................................................................................................ 89

Additional Protection ...........................................................................................................................................90

Child Protection Rider (CPR) ........................................................................................................................................ 90 Term Insurance Rider ..................................................................................................................................................... 91

InnoVision Advantage Option ............................................................................................................................95

Investment accounts .............................................................................................................................................95

Average GIA Account .................................................................................................................................................... 95 Average GIA Account .................................................................................................................................................... 96

Policy changes .......................................................................................................................................................96

Policy splitting ................................................................................................................................................................ 96

APPENDIX 2 ........................................................................................................................................................98

Product overview .................................................................................................................................................98

Coverage types ............................................................................................................................................................... 98 Coverage options ............................................................................................................................................................ 98 Additional protection ..................................................................................................................................................... 98 Additional benefits and features..................................................................................................................................... 98

Healthstyles ...........................................................................................................................................................98

Smoker/non-smoker........................................................................................................................................................ 98

Plan details ............................................................................................................................................................99

Coverage types ............................................................................................................................................................... 99 Coverage options ............................................................................................................................................................ 99 Issue limits .................................................................................................................................................................... 100 Rate banding ................................................................................................................................................................. 100

Additional protection .........................................................................................................................................101

Total Disability Waiver Rider (TDW) ......................................................................................................................... 101

Additional benefits and features .......................................................................................................................101

Bereavement counselling assistance ............................................................................................................................ 101

Investment accounts ...........................................................................................................................................102

Balanced Index Accounts ............................................................................................................................................. 102 Guaranteed value of the Balanced Index Accounts when the last death benefit is payable ........................................ 102 Bonus ............................................................................................................................................................................ 102

How the policy works ........................................................................................................................................103

Death Benefit ................................................................................................................................................................ 103 Suicide .......................................................................................................................................................................... 103 Account Value .............................................................................................................................................................. 103 Cash Value ................................................................................................................................................................... 104 Transfers between investment accounts ....................................................................................................................... 104 The monthly cost of running the policy ....................................................................................................................... 104

When a policy ends ............................................................................................................................................104

Grace Period ................................................................................................................................................................. 104

Policy reinstatement ...........................................................................................................................................104

Policy changes .....................................................................................................................................................105

Changing coverage options .......................................................................................................................................... 105 Increases in coverage .................................................................................................................................................... 106 Decreases in coverage .................................................................................................................................................. 107 Requested coverage cancellations ................................................................................................................................ 107 Changes in Healthstyle ................................................................................................................................................. 107 Changes from smoker to non-smoker ........................................................................................................................... 108 Policy splitting .............................................................................................................................................................. 108

Security UL Individual Insurance

Product Guide 1 November 6, 2018

Security UL refers to the version of the product launched September 25, 2004; Security UniversalLife refers to the previous version.

About this guide This guide contains product information and administrative rules for both Security UL and Security

UniversalLife policies. (Refer to the Special notes section below for a definition of these products.)

The main body of this guide applies to policies dated on or after November 6, 2018. For policies dated

before this date, if the product information or administrative rules differ from those listed, the

appropriate information and rules are contained:

• in Appendix 1, if they apply to all policies; or

• in Appendix 2, if they apply only to Security UniversalLife policies.

This guide is effective November 6, 2018, and replaces any existing Security UL and Security

UniversalLife administrative rules and product guides.

Special notes The following terms are used in this guide:

Term: Refers to:

Accelerated Underwriting

Underwriting where the only routine requirement is a non-

medical questionnaire. Accelerated underwriting is available

to ages 18-50 with an amount to underwrite $100,000 to

$1,000,000 inclusive. Healthstyle 2 is not routinely available

for ages 18-45.

Amount to underwrite

The amount to underwrite when used to determine

Healthstyle is equal to:

• the amount of life insurance applied for on a particular

insured person, plus

• the amount of any other life insurance issued, on the life

of that insured person, with Manulife in the past 12

months.

Biometric testing

An insurance blood profile (IBP), micro urinalysis and blood

pressure taken by a paramed nurse and measured height and

weight recorded by a paramed nurse.

Coverage(s) dated Coverage(s) with a Coverage Date

Healthstyle All 5 Healthstyle categories and includes smoking status

(smoker or non-smoker), unless specifically excluded.

Insurance coverage

On Security UL, this refers to the Level Cost coverages only.

On Security UniversalLife, this refers to both the Level Cost

and 10-Year Cost coverages. It does not include Term

Insurance Rider coverages or any other rider coverages.

Policy(s) dated Policy(s) with a Policy Date

Security UL The most recent version of the product, launched September

25, 2004. Security UL does not have Partial Cost Refund

product feature; it does have life fees, the InnoVision




Advantage Option, the Joint Legacy Protector, etc..

Security UniversalLife The previous version of the product, which has the Partial

Cost Refund product feature.

‘we’, ‘our’, ‘us’ or Manulife The Manufacturers Life Insurance Company




Product overview Following is an overview of the coverages offered and some of the key options and features available

with those coverages. For Security UniversalLife policies – please refer to the Product overview section

in Appendix 2.

Coverage types The following coverage types are available:

• Single Life;

• Joint first-to-die; and

• Joint last-to-die.

Cost Types • Level Cost is the only Cost Type currently available on Security UL insurance coverages.

Death benefit type The death benefit type for all Security UL policies is Face Plus.

Additional protection The following riders are available on Security UL policies:

• Business Value Protector Rider (BVP);

• Child Protection Rider (CPR);

• Guaranteed Insurability Option Rider (GIO);

• Term Insurance Rider (TIR); and

• Total Disability Waiver Rider (TDW).

Additional benefits and features • Compassionate Assistance Program

• Disability Benefit

• InnoVision Advantage Option

• Joint Legacy Protector

• Survivor’s Benefit

Investment accounts The following investment accounts are currently available to all policy owners:

• Savings Account

• Average GIA Account

• Three Balanced Index Accounts, offering different levels of risk:

• Conservative

• Moderate

• Growth




Side Account The following accounts are currently available within the Side Account to all policy owners:

• Savings Side Account

• Average GIA Side Account

• Three Balanced Index Holding Side Accounts:

• Conservative

• Moderate

• Growth




Issuing policies

Currency • Only Canadian dollar policies will be allowed.

• All deposits must be in Canadian funds drawn from an account at a Canadian financial institution.

Ownership • There can be more than one policy owner of a policy.

• When a policy is first issued, the policy owner must be resident in Canada for tax purposes and also

file a Canadian tax return; and

• have a Canadian address; and either:

• have a social insurance number (if the policy owner is an individual); or

• be a Canadian corporation or partnership, or a trust resident in Canada.

• The policy owner will always be the policy owner of the Side Account.

Policy Date • The Policy Date is the date from which anniversaries are measured from and determines the

Monthly Processing Day (e.g. 15th of each month). In this guide, ‘Policy Date’ is also expressed as

‘policy dated’.

• Policies are generally current-dated.

• Exceptions to backdate a newly underwritten policy up to twelve months before the date we issue it,

to save age may be permitted. A backdated policy must be approved, issued and placed prior to its

first policy anniversary.

• For backdated policies, the minimum initial deposit must be an amount equal to the Minimum

Monthly Deposit for each month the policy is backdated. Please refer to the Initial deposit section

for more details on how the initial deposit is applied to the policy.

Coverage Date • The Coverage Date is the date used to determine:

• age,

• effective date to determine the cost of insurance rates, and

• premium renewal dates for Term insurance rider coverages.

• If we backdate a coverage to save age, the Coverage Date is backdated. In this guide, ‘Coverage

Date’ is also expressed as ‘coverage dated’.

Coverage Issue Date • The date the coverage is issued. This may be different from the Coverage Date; e.g. backdated

coverages.

• If a policy is reinstated, the Coverage Issue Date is updated to be the date the policy was last

reinstated.

Beneficiaries • The policy owner can select the beneficiary.

• Different beneficiaries can be selected for each coverage and rider.

• The policy owner can change a beneficiary at any time, so far as the law allows.

• If the designation is irrevocable, the policy owner cannot change the beneficiary:




• without the beneficiary’s consent, or

• while the beneficiary is a minor.

• To change a beneficiary, complete the Beneficiary Designation at a Coverage Level (NN0772)

form.

Misstated age or sex • If the age or sex of any insured person has been stated incorrectly, any death benefit payable on any

insurance or rider coverage for that insured person will be adjusted.

• This adjustment will result in an increase or decrease in the amount payable.

• The adjustment is calculated based on the last cost of insurance charge deducted (or waived) for the

coverage and the amount of insurance it would have purchased according to the insured person’s

correct age or sex.

• If we would not have issued the coverage because the correct age does not meet our rules regarding

the minimum and maximum age or Joint age, we can declare the coverage void.

Initial deposit • The initial deposit is due on the Policy Date and must be received by us before the insurance

becomes effective.

• Deposits may be accepted with the application or on delivery of the contract. Deposits will not be

accepted during the underwriting period.

• Deposits received with the application may entitle the policy owner to temporary insurance. No

interest is paid on the deposit until the Policy Date.

• The initial deposit must be at least one Minimum Monthly Deposit. For backdated policies, the

minimum initial deposit must be an amount equal to the Minimum Monthly Deposit for each month

the policy is backdated.

• If the Policy Date is before the date the initial deposit was received:

• a portion of the deposit sufficient to cover the Minimum Monthly Deposits will be backdated,

• each Minimum Monthly Deposit will be applied to the Savings Account on each Monthly

Processing Day before the date the initial deposit was received,

• the balance will be applied to the Savings Account as of the date the initial deposit was

received,

• any balance in the Savings Account on the Policy Issue Date will be allocated to the investment

accounts specified by the policy owner.

• If the Policy Date is on or after the date the initial deposit was received:

• the initial deposit will be applied to the Savings Account as of the Policy Date (i.e. no interest is

paid on the deposit until the Policy Date), and

• any balance in the Savings Account on the Policy Issue Date will be allocated to the investment

accounts specified by the policy owner.




COD policies (cash on delivery) • For COD policies, the policy is issued under the following conditions:

• the policy is current-dated or back-dated to save age;

• the advisor delivers the policy contract and collects the initial deposit;

• the deposit is applied to the Savings Account as of the Policy Date;

• then, as of the effective date of the initial deposit, any balance in the Savings Account will

be allocated to investment accounts designated by the policy owner; and

• any funds placed in the Side Account will be applied as of the deposit date.

• If we do not receive the initial deposit within the required timeframe, we will request the policy

contract be returned.

• The policy is not in effect until:

• the policy is delivered and any outstanding amendments have been agreed to and signed,

• the policy owner agrees the information on the application is correct and there has been no

change in insurability by signing the delivery receipt, and

• we receive the initial deposit.

Illustrations and product pages • A signed illustration signature page must be included with each application.

• If the application is not submitted electronically, a fully completed and signed Security UL Product

Page (NN0902) must be submitted with the application.

Compensation • We may withhold compensation until all requirements are met and the policy is in effect.




Healthstyles

Healthstyle underwriting • Healthstyles is an underwriting process that recognizes each individual’s health and lifestyle to

provide a more accurate prediction of life expectancy. Insurance costs for each insured person are

based on this assessment.

• For information on Healthstyles, refer to the Advisor’s Guide to Healthstyles (MK0954) on

Repsource.

• Healthstyles was introduced for Security UniversalLife on July 8, 2000.

• For coverages dated on or after July 8, 2000, an insured person’s risk classification will be

based on Healthstyles underwriting.

• Coverages dated before July 8, 2000 are based on smoker and non-smoker classifications. For

more information on the smoker/non-smoker classification, please refer to the Smoker/non-

smoker section in Appendix 2.

• Regardless of the Coverage Date, coverages will have a Healthstyle category – either 1, 2, 3, 4,

5, smoker or non-smoker.

• Refer to the Healthstyle availability chart by age and amount to underwrite under the

Healthstyle issue ages section for further details.

• Healthstyles 1 and 2 will become Healthstyle 3 if one of the following changes is made after the

Healthstyle has been in effect for 15 years:

• conversion of a Term Insurance Rider coverage;

• buying new insurance under the Survivor’s Benefit on a Joint first-to-die coverage;

• a change in coverage under the policy splitting provision; or

• for Security UniversalLife 10-Year Cost insurance coverages, a coverage option change to

Level Cost (refer to the Changing coverage options section in Appendix 2 for more details).

For coverages dated before September 23, 2017, refer to the section called Healthstyle underwriting

in Appendix 1 and Changing coverage options in Appendix 2.




Healthstyle availability • Healthstyle rates are available on all coverages except the Child Protection Rider and the Total

Disability Waiver Rider.

• The Guaranteed Insurability Option Riders only have Healthstyle 3 and 5 rates.

• To qualify for Healthstyle 1 or 2, the insured person cannot be considered a substandard risk.

Therefore, they must have a 100% insurance rating and no flat extras.

• Healthstyles 3, 4 and 5 may have insurance ratings.

• For Healthstyle availability by issue age and amount, refer to the section below called Healthstyle

issue ages.

• For Healthstyle availability on coverages dated before November 26, 2016, refer to the section

called Healthstyle availability in Appendix 1.

Healthstyle issue ages • Juveniles (ages 0 – 15) are classified as Healthstyle 5 until age 16 at which time they become

eligible for Healthstyle 3. Please refer to the Juveniles and changes in Healthstyle section for more

details.

• Joint coverages are based on a joint age approach (equivalent single life age - ESLA). The joint age

reflects the Healthstyle of each individual insured person.

• For coverages dated before July 29, 2017, refer to Healthstyle issue ages in Appendix 1.

Issue age Amount to underwrite Healthstyle availability

0 to 15 • Any • The insured person’s Healthstyle is shown as

‘Juvenile’ in the policy contract.

• Healthstyle 5 only

16 to 17 • Less than $100,000 • Healthstyles 3, 4 or 5 1,2

• $100,000 or more • Healthstyles 1 – 5

18 to 45 • Less than $100,000 • Healthstyles 3, 4 or 51,2

• $100,000 up to and

including $1,000,000

• Healthstyles 1, 3, 4 or 51,2

• $1,000,001 or more • Healthstyles 1 – 5

Over age 45 • Less than $100,000 • Healthstyles 3, 4 or 51,2


• Healthstyle 2 not available over age 70

• Healthstyle 2 rates are equal to Healthstyle 1

rates for ages over 70

1 We will underwrite for Healthstyle 1 or 2, where not routinely offered (as described above) if the

insured person qualified for Healthstyle 1 or 2 rates on another Manulife life insurance product

within the last 12 months, and the coverage being applied for is not entirely TIR coverage.

2 For 10-Year or 20–Year Renewable (TIR) coverage, Healthstyle 1 or 2 rates are not available if the

amount of insurance is less than $100,000.




Plan details

Coverage types Three coverage types are available:

• Single Life;

• Joint first-to-die (available for two to five lives); and

• Joint last-to-die (available for two to five lives).

Combinations of single and joint coverages are allowed within the same policy. This type of policy is

often referred to as ‘multi-life’.

Single Life coverage

• Single Life coverages insure only one person and provide a death benefit when that person dies.

Joint coverage

• Joint first-to-die coverages provide a death benefit when the first person insured under the joint

coverage dies.

• Joint last-to-die coverages provide a death benefit when the last person insured under the joint

coverage dies. Monthly deductions for the Joint last-to-die coverage continue until the death of the

last insured person.

• Joint coverage is based on a Joint Age approach (equivalent single life age - ESLA). The Joint Age

reflects the individual insureds’ Healthstyles. For coverages dated before December 4, 2010, refer

to the section called Joint coverage in Appendix 1.

• Joint age on a Joint last-to-die coverage is generally less than the age of the youngest insured

person. Joint age on a Joint first-to-die coverage is generally higher than the age of the oldest

insured person.

• The illustration system automatically calculates the joint age (equivalent single life age) for joint

coverages.

• Survivor’s benefit is only available on Joint-first-to-die coverages that insure only two lives when

the coverage is issued. Please refer to the Survivor’s Benefit section for more information.

• Changes in the Healthstyle or insurance rating of any of the insured people on a joint coverage

cannot be made after the death of an insured person on that coverage.

Cost Type • Only one Cost Type is currently available for insurance coverages under Security UL. It is:

• Level Cost.

• Security UniversalLife policies have two Cost Types (previously known as coverage options),

please refer to the Coverage options section in Appendix 2 for more details.

Level Cost

• For Level Cost, a level cost of insurance rate is charged for as long as the coverage remains in effect

(but not beyond age 100). The rate charged is based on the insured person’s issue age (or joint issue

age) for the Level Cost rates.

• Level Cost insurance coverages do not expire. Coverage continues until the policy lapses, is

cancelled or the death benefit is paid.

• The Level Cost rates vary by the issue age (or joint issue age) and amount of insurance (band) for

the coverage, and the sex and Healthstyle of the insured person/people.




Issue ages

Insurance Coverage Issue Age Limits

Cost Type Coverage Type Age of Each Insured Person Joint Age

Minimum Maximum Minimum Maximum

Level Cost Single Life 0 85 N/A N/A

Joint first-to-die 25 85 16 85

Joint last-to-die 25 90 16 85

• Issue age is the insured person’s age on their birthday nearest the Coverage Date of the applicable

coverage.

• For joint coverages:

• The joint age is based on the issue age, sex and Healthstyle of each insured person and the type

of joint coverage.

• All of the individual issue ages and the joint age of the insured people must fall within the limits

specified above.

Amount of insurance limits For coverages dated before July 29, 2017, refer to the Amount of insurance limits in Appendix 1.

Guideline Description Amount of Insurance

Overall minimum per insured person,

including Single Life and joint

insurance coverages insuring that

person

All ages

$50,000 during the first 5 years the

person is insured on the policy

$25,000 after the person has been

insured on the policy for 5 or more years

Minimum for Healthstyle 1 Ages 16 and

above

$100,000 (amount to underwrite) 1, 2

Minimum for Healthstyle 2 Ages 16 and 17

Ages 46 to 70

$100,000 (amount to underwrite)1, 2

Ages 18 to 45 $1,000,001 and greater (amount to

underwrite)

Minimum per insurance coverage All ages $25,000

Minimum increase in amount of

insurance

All ages $25,000

Minimum decrease in amount of

insurance

All ages $10,0003

1We will underwrite for Healthstyle 1 or 2, where not routinely offered (as described above) if the



2For 10-Year or 20-Year (TIR) coverage, Healthstyle 1 or 2 rates are not available if the amount of

insurance for the coverage is less than $100,000. 3Insurance coverages cannot be decreased below $25,000.

• There is no maximum amount of insurance for this product, except as determined by Underwriting.

Reinsurance may be required if the total insurance and rider coverage on any insured person exceeds

Manulife’s retention limit of $20,000,000 ($25,000,000 for joint last-to-die coverages). All




retention limits are based on the ultimate amount, and decrease with older ages and higher

substandard assessments.

Rate banding • Rates for Level Cost insurance coverages vary by the amount of insurance in effect on each Monthly

Processing Day, and are banded as follows:

• Band 1: $ 25,000 - $ 99,999

• Band 2: $ 100,000 - $ 249,999

• Band 3: $ 250,000 - $ 999,999

• Band 4: $1,000,000 and up

• The above rate banding applies to insurance coverages only (Level Cost). It does not apply to rider

coverages; Term Insurance Rider coverages have different rate bands.

• Rate banding applies at the coverage level, not at the life level and not at the total policy level. For

example, Band 3 rates would be charged when the amount of insurance under a specific insurance

coverage is between $250,000 and $999,999. If a coverage decrease causes a change in rate band

for a coverage (e.g. from $260,000 to $200,000), the rate charged for that coverage could increase.

• For Security UniversalLife policies, please refer to the Rate banding section in Appendix 2.

Guaranteed rates • We guarantee that the rates charged for each insurance, Term Insurance Rider, Child Protection

Rider, and Total Disability Waiver Rider coverage will not exceed the rates in effect on the

Coverage Date of that coverage, unless:

• the policy owner makes a change to that coverage, or

• the policy lapses and is subsequently reinstated.

• A change in the coverage type, Cost Type, insurance rating, Healthstyle or rate band will impact the

rate guarantee.

• If the policy owner exercises the Joint Legacy Protector feature or the InnoVision Advantage

Option, the rate guarantee will be impacted. Please refer to the Joint Legacy Protector and

InnoVision Advantage Option sections for more details.

• The Cost of insurance rate tables in Appendix 2 of the policy contract will show the guaranteed

rates for each insurance coverage up to age 100.

• The Rider cost rate tables in Appendix 2 of the policy contract will show the guaranteed rates for

each Term Insurance Rider, Child Protection Rider, and Total Disability Waiver Rider coverage up

to the Coverage Expiry Date.

• The following riders do not have a rate guarantee:

• Business Value Protector Rider

• Guaranteed Insurability Option Rider

• For Security UniversalLife policies, please also refer to the Changing coverage options and the rate

guarantee section in Appendix 2 of this guide.

Insurance ratings • For each insurance and rider coverage, each insured person under that coverage has their own

insurance rating. If it is a joint coverage, the individual insurance ratings and the coverage type are

used to determine a blended rating, called a Joint insurance rating.

• Section 3 of the policy contract shows the insurance rating for each coverage – this is guaranteed

never to increase unless:

• the policy owner changes the coverage type,

• the policy owner exercises the InnoVision Advantage Option, or

• the contract lapses and is subsequently reinstated.




• The individual insurance ratings for each insured person on a coverage are guaranteed never to

increase unless the contract lapses. The rating could increase upon reinstatement depending on the

evidence provided at that time.

• The guaranteed rates in the Cost of insurance rate tables and Rider cost rate tables (found in

Appendix 2 of the policy contract) reflect the insurance rating for each coverage.

• For an insured person to be eligible for Healthstyle 1 or 2, the individual insurance rating for that

person must equal 100%.

• For ages 81 and over, in order to be eligible for insurance the individual insurance rating cannot

exceed:

• 200% (or its equivalent permanent flat extra) for ages 81 – 85,

• 100% for ages 86 – 90.

Age 100 • The cost of insurance rates for insurance coverages change to be $0 per $1,000:

• for Single Life coverages, on the coverage anniversary nearest the insured person’s 100th

birthday.

• for joint coverages, on the coverage anniversary nearest the attained joint age 100.

• This point in time is shown in Appendix 2 of the policy contract for each insurance coverage.

• For joint insurance coverages, this date may change if the policy owner exercised the

InnoVision Advantage Option and/or the Joint Legacy Protector feature. Please refer to these

sections for more information.

• The policy and life fees continue.




Additional protection

General information • A customized protection solution can be built by adding any combination of riders to the insurance

coverage in a policy.

• A policy must have an insurance coverage before a rider coverage can be added.

• The following are available on Security UL policies:

• Business Value Protector Rider (BVP),

• Child Protection Rider (CPR),

• Guaranteed Insurability Option Rider (GIO),

• Term Insurance Rider (TIR),


• The following are available on Security UniversalLife policies:



Business Value Protector Rider (BVP) Provides business owners with the option to purchase additional life insurance coverage on the life of

the BVP insured, without medical evidence of insurability.

• This rider is not available on Security UniversalLife policies.

• Available on a Single Life basis exclusively to business owners insured under an insurance coverage

in effect on the policy.

• Insured people under a joint insurance coverage may apply for separate Single Life BVP coverage.

• Not available to people who are only insured under a Child Protection Rider coverage.

• Not available to insured people who already have a Guaranteed Insurability Option coverage on the

policy.

• BVP is not available on substandard risks.

• Each BVP coverage can cover only one business. If the insured person has more than one business

for which they require BVP coverage, a separate BVP coverage must be taken for each business.

• Only one BVP coverage is allowed per insured person per business.

• If more than one person has a share of the business, there can be multiple BVP coverages on the

policy for that business, provided each BVP coverage insures a different person.

• The business must be at least three years old.

Issue ages1

Single Life 18 – 65

1 Issue age is the BVP insured’s age on their birthday nearest the Coverage Date of the applicable BVP coverage.




Applying for BVP coverage

• BVP can be added at or after issue, subject to Underwriting approval.

• The policy owner must submit the following along with the application for the BVP Rider coverage:

• the company’s financial statements showing financial results for the last three consecutive fiscal

years; and

• documentation that demonstrates the business owner’s equity position in the company at that

time.

• This documentation will be used to determine the maximum BVP amount at issue.

BVP rates

• The Cost Type for the BVP rates is Level.

• BVP rates are Healthstyle-specific. We guarantee the Healthstyle for purchase of new coverage in

the future (provided the same Healthstyle is available on the new coverage2); therefore, Healthstyle

1 rates will be more expensive than Healthstyle 3 rates. This is because there is more risk that the

insured person’s preferred status may change.

• BVP rates are not guaranteed.

BVP Amount

• The BVP Amount may be any amount up to the BVP insured’s share of the Fair Market Value of

their business on the Coverage Date.

• It must be at least $50,000.

• The BVP Amount will remain fixed after issue of the coverage.

• The Fair Market Value of the business is determined by Underwriting using the following formula:

• Ten times the average, over the last three fiscal years, of the business net earnings after tax

adjusted for nonrecurring items and management bonuses.

• When applying for BVP coverage, the policy owner may specify their own method for calculating

the FMV, subject to Underwriting approval. That formula will then be used at subsequent

anniversaries to determine if the business has grown in value.

• The BVP Amount, along with the BVP insured’s share of the Fair Market Value, will be shown on

page 3 of the policy contract.

Maximum Option Amount – at issue

• The Maximum Option Amount at issue of a BVP Rider coverage, is the maximum amount of

insurance that may be purchased over the 10 Option Days for that coverage.

• Maximum Option Amount = 3 x BVP Amount

• This maximum is subject to Underwriting approval, and may be lowered by Underwriting at issue.

• The Maximum Option Amount will be shown on page 3 of the policy contract.

Maximum Option Amount – after issue

• At any point in time after the BVP Rider coverage is issued, the Maximum Option Amount is the

maximum amount of insurance that can be purchased over the remaining Option Days for that

coverage.

• Maximum Option Amount = Maximum Option Amount at issue, reduced by any amounts

previously elected

2 This is what the contract provides for, however, when Healthstyle 2 category is not available in the Accelerated

underwriting age and amount range, we will maintain the Healthstyle 2 as long as there are no other changes that

require evidence of insurability.




• If page 3 of the policy contract is reprinted after issue, this will be shown as the Maximum Option

Amount on page 3 as of the effective date of those pages.

Requested increases or decreases in the BVP Amount

• Increases or decreases are not permitted.

• If the Fair Market Value of the business increases or if a business owner’s share of the business

increases, the policy owner may apply for a new BVP coverage for the new Fair Market Value

(subject to Underwriting approval and the cancellation of the existing BVP Rider coverage). The

existing BVP coverage for that business must be cancelled as of the Coverage Date of the new BVP

coverage.

Exercising a BVP Option

• Option Days – 1st to 10th policy anniversaries following the BVP Coverage Date.

• An Option expires on the Option Day, unless it has been exercised. A reminder will be sent to the

policy owner 45 days before the Option Day.

• An Option may only be exercised if the Fair Market Value of the business has increased or if an

policy owner’s share of the Fair Market Value has increased.

• To determine whether the Fair Market Value of the business has increased, the policy owner must

submit the company’s financial statements showing financial results for the last three consecutive

fiscal years and documentation showing the business owner’s equity position in the company at that

time.

• The new life insurance may be any life insurance policy offered by Manulife on the Option Day or

an additional insurance coverage under an existing life insurance policy (if we allow insurance

coverages to be added to that type of policy).

• Application for the new insurance and the first premium must be received on or before the

Option Day.

• The amount of insurance that may be purchased on any Option Day must be within our minimum

and maximum limits for the new insurance coverage/policy, and cannot be more than the lesser of:

• the Maximum Option Amount on the Option Day; and

• the growth in the BVP insured’s share of the Fair Market Value of their business since the

Coverage Date, reduced by any amounts previously elected.

• If an Option is exercised, the new life insurance will take effect on the Option Day if the BVP

insured is alive on that day.

Adding a disability waiver rider to the new life insurance

When monthly deductions are not being waived

If on an Option Day we are not waiving the monthly deductions under the terms of a Total Disability

Waiver Rider (TDW) in effect on the policy, and none of the people to be insured under a disability

waiver rider added to the new life insurance are totally disabled:

• there are no restrictions on the type of life insurance that can be purchased other than those listed in

the Exercising a BVP Option section above;

• the policy owner may add a disability waiver rider to the new insurance;

• any or all of the TDW insureds can be insured by the disability waiver rider on the new policy at the

policy owner’s request provided they meet our issue limits; and

• we must receive evidence satisfactory to us that none of the people insured by the current Total

Disability Waiver Rider are totally disabled on the effective date of the new insurance.

Additionally, if the new insurance is added to an existing policy that has a disability waiver rider, we

must receive evidence satisfactory to us that any and all insured people to whom that disability waiver




rider applies are not totally disabled on the Option Day. If any of the disability waiver insured people

are disabled, the new insurance cannot be added to that existing policy.

When monthly deductions are being waived

If on an Option Day we are, or will be, waiving the monthly deductions under the terms of a Total

Disability Waiver Rider:

• the policy owner can only buy a Level Cost insurance coverage on the existing policy or a new non-

participating permanent life insurance policy with premiums payable throughout the lifetime of the

BVP insured;

• If the new insurance is a new policy, we will automatically add a disability waiver rider and insure

the TDW insured who is disabled on the existing policy. The TDW insured must be either the payor

or the insured under the new policy;

• any or all of the other TDW insureds can also be insured by the disability waiver rider on the new

policy at the policy owner’s request, provided they meet our issue limits;

• we will remove the condition that the disability must have begun while the rider was in effect; and

• the conditions described in the Total Disability Waiver Rider contract regarding approving a

disability claim will apply in determining when disability benefits begin.

If a BVP insured dies before new life insurance starts

• If we have received an application for new life insurance within the 45-day period before the Option

Day and the insured person under this rider dies before the Option Day, we will:

• cancel the application for the new insurance and refund any payment the policy owner has made

for it, and

• pay a death benefit equal to the amount of new insurance that could have been purchased if the

insured person were still alive.

• We will not pay a death benefit under the BVP Rider if the insured person commits suicide during

the 45 days before the Option Day.

Cancelling a BVP coverage

• The policy owner may cancel a BVP coverage at any time.

• The effective date of this cancellation will be the Monthly Processing Day that coincides with or

next follows the day we receive the written request at Manulife’s Canadian Head Office.

• We will cancel a BVP coverage on the Monthly Processing Day that coincides with or next follows

the day the BVP insured is no longer an insured person under any insurance coverage on the policy.

Note that on Joint first-to-die insurance coverages, the first death would cause BVP coverage on the

survivor to be cancelled if the BVP insured had no other insurance coverage.

Expiry of BVP coverage

• A BVP coverage ends on the earlier of:

• the 10th policy anniversary following the BVP Coverage Date, and

• the day on which the Maximum Option Amount has been exercised.

Child Protection Rider (CPR) Provides life insurance with two important Insurability Benefits for a child of the policy owner or a

child of an insured person under the insurance coverages on the policy.

CPR can be added at or after issue, subject to Underwriting approval.

• Available on a Single Life basis only.

• An insured child can be a child, step-child or legally adopted child.

• A child may be insured under only one children’s rider. Thus, the child cannot be insured under the

Child Protection Rider if they are already insured under a children’s rider coverage on any

individual life policy with Manulife.




• Evidence of insurability is required for each child the policy owner adds to this rider.

• Each insured child will be covered under a separate Child Protection Rider coverage.

• CPR may be available, at the discretion of the Underwriter, on children who are considered

substandard risks.

• The insurance rating of any person whose life is currently insured under an insurance coverage will

not affect the availability of CPR.

Issue ages3

Single Life 0 - 18

• Any insured child must be at least 15 days old on the Coverage Date of the CPR coverage.

CPR rates

• The Cost Type for the CPR rates is Level.

• CPR rates do not vary by Healthstyle.

• CPR rates are guaranteed and shown for each coverage in the Rider cost rate tables in the policy

contract. Please refer to the Guaranteed rates section of this guide for further details.

CPR amount

• The CPR amount for any insured child will be $10,000. CPR coverage is not available in any other

amount.

The Insurability Benefits

• Each CPR coverage provides two Insurability Benefits that allow the policy owner to apply for new

insurance on the insured child:

• The Guaranteed Life Insurability Benefit, and

• The Critical Illness Insurability Benefit.

• The policy owner may apply for a combination of life insurance and critical illness insurance.

• For coverages dated before June 21, 2008 please refer to the Additional protection section in

Appendix 1.

Guaranteed Life Insurability Benefit

• The Guaranteed Life Insurability Benefit allows the policy owner to buy new life insurance without

evidence of insurability.

Critical Illness Insurability Benefit

• The Critical Illness Insurability Benefit allows the policy owner to apply for new insurance on any

critical illness policy we offer on the applicable Option Day.

• When the policy owner applies for the new critical illness insurance, we will ask the insured child to

confirm that:

• they would not qualify for, or start a waiting period for, any benefit under the critical illness

insurance policy. We will not ask for any additional evidence of insurability.

• they do not have or have not applied for a total of $1,900,000 or more of critical illness

insurance with the Manufacturers Life Insurance Company and other insurance companies.

Insurability Benefit Amount

• The amount of insurance for the new insurance must be within our minimum and maximum limits

for the chosen product(s).

• For each CPR coverage:

• the policy owner may buy a combination of life insurance and critical illness insurance,

3 Issue age is the insured child’s age on their birthday nearest the Coverage Date of the applicable CPR coverage.




• the total amount of new insurance cannot be more than $250,000, and

• the critical illness portion of the total insurance cannot be more than $100,000.

Exercising the Insurability Benefit

• Options Days occur on

• the Coverage Expiry Date (policy anniversary nearest the insured child’s 25th birthday),

or when

• the insured child becomes legally married,

• the insured child gives birth to a child,

• the spouse of the insured child gives birth to a child,

• the insured child legally adopts a child under the age of 18.

• The policy owner can apply for new insurance within:

• the option period that begins 60 days before the Coverage Expiry Date or

• the option period that ends 75 days after any other Option Day (as described above).

• This benefit may only be exercised once for a given insured child.

• The application for the new insurance and the first premium must be received before the Option

expires.

• We will send a notice to the policy owner 60 days before the Coverage Expiry Date.

• The new insurance may be any life insurance policy offered by Manulife on the Option Day or an

additional insurance coverage under an existing life insurance policy (if we allow insurance


• The insured child must meet the minimum and maximum age limits for the chosen product.

• The new insurance will be issued with the following rates:

• for a policy that has Healthstyle categories – Healthstyle category 5 unless we approve the

application for improved rates

• for a policy that does not have Healthstyle categories – standard rates for a smoker unless we

approve the application for non-smoker rates.

• The new insurance will take effect on the earlier of:

• the Coverage Expiry Date, and

• for any other Option Day, the Monthly Processing Day that coincides with or next follows the

day we receive the application and first payment.

• If the insured child dies before the new insurance takes effect, the application for new insurance will

be cancelled and we will refund any payments the policy owner has made for it. In this situation,

any death benefit payable would be under the terms of the Child Protection Rider.

CPR and the death of the last insured person

• When the last insured person with an insurance coverage dies, and a death benefit is payable, all

future monthly deductions for all CPR coverages in effect on the policy will be waived.

• All benefits provided by those CPR coverages will continue unchanged.

• A Certificate of Insurance, which describes the coverage amount and Coverage Expiry Date, will be

issued for each insured child.

Cancelling a CPR coverage

• The policy owner may cancel a CPR coverage at any time.



Expiry of CPR coverage

• A CPR coverage ends on the earlier of:

• the policy anniversary nearest the insured child’s 25th birthday, and




• the day before the effective date of new insurance purchased under the Insurability Benefit.

Guaranteed Insurability Option Rider (GIO) Two types of Guaranteed Insurability Option Riders are available:

• GIR (Regular Plan)

• GIS (Special Plan)

Both provide the option to purchase additional life insurance coverage on the life of the GIO insured,

without evidence of insurability.

• These riders are not available on Security UniversalLife policies.

• Both types of GIO can be on the same policy; each insured person can have only one type of GIO

coverage.

• GIO can be added at or after issue, subject to Underwriting approval.

• Available on a Single Life basis only to any insured person who has an insurance coverage in effect

on the policy.

• Insured people under a joint insurance coverage may apply for separate Single Life GIO coverage.

• Not available to people who are only insured under a Child Protection Rider coverage.

• Not available to insured people who already have a Business Value Protector Rider coverage on the

policy.

• GIO is not available on substandard risks.

Issue ages4

GIR Single Life 0 – 45

GIS Single Life 35 - 62

GIO rates

• The Cost Type for the GIO rates is Level.

• The Guaranteed Insurability Option Riders only have Healthstyle 3 and 5 rates. However, for GIR

the Healthstyle 3 and 5 rates are equal.

• GIO rates are not guaranteed.

Regular Plan (GIR)

Minimum and maximum limits

• Minimum GIO Amount $20,000

• Maximum GIO Amount Lesser of:

• $250,000; and

• total amount of insurance provided by all the insurance and Term Insurance Rider coverages

in effect on the policy on the GIO insured.

GIR Option Days

• Age Option Days occur on the policy anniversary nearest the GIO insured’s 21st, 24th, 27th, 30th, 33rd,

36th, 39th, 42nd, 45th and 48th birthdays.

• Event Option Days occur when:

• the GIO insured or their spouse give birth to a child;

• the GIO insured legally adopts a child under the age of 18, or

• the GIO insured is legally married.

• The policy owner is allowed to purchase new life insurance on a maximum of eight Option Days for

each GIO Rider coverage.

4 Issue age is the GIO insured’s age on their birthday nearest the Coverage Date of the applicable GIO coverage.




Special Plan (GIS)

Minimum and maximum limits

• Minimum GIO Amount $250,000

• Maximum GIO Amount Lesser of:

• $2,000,000; and

• 2 x the total amount of insurance provided by all the insurance and Term Insurance Rider

coverages in effect on the policy on the GIO insured.

GIS Option Days

• For each GIS coverage, Anniversary Option Days occur on the policy anniversaries, indicated

below, following the GIS Coverage Date:

Age Anniversary Option Days

35 – 55 2, 4, 6, 8 and 10

56 2, 4, 6, 8 and 9

57 2, 4, 6 and 8

58 2, 4, 6 and 7

59 2, 4 and 6

60 2, 4, and 5

61 2 and 4

62 2 and 3

• There are no Event Option Days for GIS.

• The policy owner is allowed to purchase new life insurance on a maximum of three Anniversary

Option Days.

Option Periods

• An Option Period is:

• the 45 days immediately before and 30 days after an Age or Anniversary Option Day; or

• the 75 days after an Event Option Day.

• An Option expires at the end of the Option Period.

Exercising a GIO Option

• The policy owner can apply for new life insurance on the GIO insured during an Option Period.

• The application for the new life insurance and the first premium must be received before the Option

expires.

• We will send a notice to the policy owner 60 days before an Age or Anniversary Option Day.

• The new life insurance may be any life insurance policy offered by Manulife on the Option Day or

an additional insurance coverage under an existing life insurance policy (if we allow insurance


• The amount of insurance that may be purchased on any Option Day must be within our minimum

and maximum limits for the new insurance coverage/policy, and cannot be more than the amount

shown in the following table.

Type of GIO Amount of new life insurance available

Regular Plan the GIO Amount

Special Plan the lesser of:

• the GIO Amount; and




• two times the GIO Amount less any amounts previously purchased

on Anniversary Option days for that coverage.

• If an Age or Anniversary Option is exercised, the new life insurance will take effect on the Option

Day if the GIO insured is alive on that day.

• If an Event Option is exercised, the new life insurance will take effect on the earlier of:

• the Monthly Processing Day following the day we receive the application and any required

payment, and

• the Monthly Processing Day on or immediately before the end of the 75 day option period.

• If the GIO insured dies before the Option Day, the new insurance will not take effect and we will

refund any payments the policy owner has made for it. Please refer to the If a GIO insured dies

during an Option Period section of this rider description for details on any death benefit that may be

payable.

• If the GIO insured dies on or after the Option Day and if we have received the signed application

and required payment before the Option expires, the new insurance will be considered to have taken

effect on the Option Day.

Adding a disability waiver rider to the new life insurance

When monthly deductions are not being waived

If on an Option Day we are not waiving the monthly deductions under the terms of a Total Disability

Waiver Rider in effect on the policy, and none of the people to be insured under a disability waiver rider

added to the new life insurance are totally disabled:

• there are no restrictions on the type of life insurance that can be purchased other than those listed in

the Exercising a GIO Option section above;

• the policy owner may add a disability waiver rider to the new insurance;

• any or all of the TDW insureds can be insured by the disability waiver rider on the new policy at the

policy owner’s request provided they meet our issue limits; and

• we must receive evidence satisfactory to us that none of the people insured by the current Total

Disability Waiver Rider are totally disabled on the effective date of the new insurance.

Additionally, if the new insurance is added to an existing policy that has a disability waiver rider, we

must receive evidence satisfactory to us that any and all insured people to whom that disability waiver

rider applies are not totally disabled on the Option Day. If any of the disability waiver insured people

are disabled, the new insurance cannot be added to that existing policy.

When monthly deductions are being waived

If on an Option Day we are, or will be, waiving the monthly deductions under the terms of a Total

Disability Waiver Rider:

• the policy owner can only buy a Level Cost insurance coverage on the existing policy or a new non-

participating permanent life insurance policy with premiums payable throughout the lifetime of the

GIO insured;

• if the new insurance is a new policy, we will automatically add a disability waiver rider and insure

the TDW insured who is disabled on the existing policy. The TDW insured must be either the payor

or the insured under the new policy;

• any or all of the other TDW insureds can also be insured by the disability waiver rider on the new

policy at the policy owner’s request, provided they meet our issue limits;

• we will remove the condition that the disability must have begun while the rider was in effect; and

• the conditions described in the Total Disability Waiver Rider contract regarding approving a

disability claim will apply in determining when disability benefits begin.




Requested increases and decreases in the GIO Amount

• The policy owner may request an increase in GIO coverage for any GIO insured provided that

person is currently insured under an insurance coverage on the policy.

• If the requested increase satisfies our issue rules and is approved by Underwriting, a new GIO

coverage will be created for the amount of the increase.

• The effective date of the requested increase will be the Monthly Processing Day that coincides with

or next follows the day on which the request is approved.

• The policy owner may request a decrease in the GIO Amount of any GIO coverage. The GIO

Amount remaining after the decrease cannot drop below the minimum GIO Amount.

• The effective date of the decrease will be the Monthly Processing Day that coincides with or next

follows the day we receive the written request at Manulife’s Canadian Head Office.

If a GIO insured dies during an Option Period

• Temporary term insurance will automatically be provided on the life of the GIO insured during an

Option Period.

• This term insurance provides a death benefit equal to the amount of new insurance available (as

defined in the chart in the Exercising a GIO Option section above).

• If the GIO insured dies during an Option Period, we will pay a death benefit under the temporary

term insurance with the following exceptions:

• We will not pay a death benefit under the temporary term insurance if:

• the GIO insured dies on or after the Option Day, and

• we have received the signed application and required payment for the new insurance before

the Option expires.

In this situation, any death benefit would be payable under the new insurance.

• We will not pay a death benefit if the GIO insured commits suicide.

• This temporary term insurance is provided at no extra cost.

Cancelling a GIO coverage

• The policy owner may cancel a GIO coverage at any time.



• We will cancel a GIO coverage on the Monthly Processing Day that coincides with or next follows

the day the GIO insured is no longer an insured person under any insurance coverage on the policy.

Note that on Joint first-to-die coverages, the first death would cause GIO coverage on the survivor

to be cancelled if the GIO insured had no other insurance coverage.

Expiry of GIO coverage

Regular (GIR)

• A GIR coverage will end on the earlier of:

• the policy anniversary nearest the GIO insured’s 48th birthday; and

• the day on which eight options have been exercised.

Special (GIS)

• A GIS coverage will end on the earliest of:

• the day on which 3 options have been exercised;

• the day on which 2 x the GIO Amount has been purchased; and

• the last Option Day (see chart above).




Term Insurance Rider (TIR) The Term Insurance Rider provides renewable and convertible term coverage suitable for meeting

temporary insurance needs.

• This rider is not available on Security UniversalLife policies.

• TIR may be added at or after issue, subject to Underwriting approval.

• The insured person on a TIR coverage must also be insured under an insurance coverage on the

policy.

• An insured person may have more than one TIR coverage and may have different coverage types.

• TIR is available on substandard risks at the discretion of the Underwriter.

Cost Type

Three Cost Types are available on TIR coverages:

• Yearly Increasing,

• 10-Year Renewable, and

• 20-Year Renewable.

• Yearly Increasing TIR is available on a Single Life and joint life basis.

• 10-Year and 20-Year Renewable TIR are available on a Single Life basis only.

• The policy owner must select the Cost Type for each TIR coverage. If the policy has multiple TIR

coverages, more than one Cost Type is allowed on a policy.

Issue ages

Cost Type Coverage Type Issue Age of Each Insured Person Joint Age

Minimum Maximum Minimum Maximum

Yearly

Increasing

Single Life 0 71 N/A N/A

Joint first-to-die 25 71 16 71

Joint last-to-die 25 71 16 71

10-Year

Renewable


20-Year

Renewable


• Issue age is the insured person’s age on their birthday nearest the Coverage Date of the applicable

coverage.

• For joint coverages:

• The joint age is based on the issue age, sex and Healthstyle of each insured person and the type

of joint coverage.

• All of the individual issue ages and the joint age of the insured people must fall within the limits

specified above.

TIR rates

• The TIR rates are based on the Cost Type and are Healthstyle specific.

• Unique Healthstyle 1 and 2 rates are not available for 10-Year and 20-Year Renewable TIR

coverages with an amount of insurance below $100,000.

• For Yearly Increasing TIR coverages, a rate is charged for 1 year beginning at the Coverage Date based

on the insured person’s issue age for that coverage. At the 1st and each subsequent coverage

anniversary, the default will be to renew to another one year term, charging a rate based on the insured

person’s attained age at that time.




• For 10-Year Renewable coverages, a “select” rate is charged for 10 years beginning at the Coverage

Date based on the insured person’s issue age for that coverage. At the 10th coverage anniversary and

each subsequent 10th coverage anniversary, the default will be to renew to another 10 year term,

charging an “ultimate” rate based on the insured person’s attained age at that time.

• For 20-Year Renewable coverages, a “select” rate is charged for 20 years beginning at the Coverage

Date based on the insured person’s issue age for that coverage. At the 20th coverage anniversary and

each subsequent 20th coverage anniversary, the default will be to renew to another 20 year term,

charging an “ultimate” rate based on the insured person’s attained age at that time.

• TIR rates are guaranteed and shown for each coverage in the Rider cost rate tables in the policy

contract. Please refer to the Guaranteed rates section of this guide for further details.

• For 10-Year Renewable TIR coverages dated before December 4, 2004, please refer to the Term

Insurance Rider – TIR rates section in Appendix 1.

Amount of insurance limits:

For TIR coverages dated before July 29, 2017, refer to the Amount of insurance limits in Appendix 1.

Guideline Description Yearly Increasing 10-Year and 20-

Year Renewable

Minimum initial TIR amount All ages $50,000 $100,000

Overall minimum for each unique

combination of insured person and

TIR Cost Type (may include

Single Life and joint TIR

coverages insuring that person)

All ages $50,000 during the

first 5 years the

person is insured on

the policy

$100,000 during the

first 5 years the


the policy

All ages $25,000 after the person has been insured

on the policy for 5 or more years

Minimum for Healthstyle 1 All ages $100,000 (amount to underwrite) 1,2


Ages 46 to 70

$100,000 (amount to underwrite) 1,2

Ages 18 to 45 $1,000,001 and greater

(amount to underwrite)

Minimum increase in TIR amount All ages $50,0001

Minimum decrease in TIR amount All ages $10,0003

1For a Yearly Increasing TIR coverage, Healthstyle 1 and 2 rates may still apply if the amount of

insurance being applied for is less than $100,000 and the insured person qualified for Healthstyle 1 or

2 rates on another Manulife life insurance product within the last 12 months. 2 For a 10-Year or 20-Year Renewable TIR coverages, we will underwrite for Healthstyle 1 or 2 rates

only if the amount of insurance for the coverage being applied for is $100,000 or more. 3Term Insurance Rider coverages cannot be decreased below $25,000.

Rate banding

• Rates for Yearly Increasing Term Insurance Rider coverages are not banded.

• Rates for 10-Year and 20-Year Renewable Term Insurance Rider coverages vary by the amount of

insurance in effect on each Monthly Processing Day, and are banded as follows:

• Band 1: $ 25,000 - $ 99,999 (Only for reductions in the amount of insurance after five years)

• Band 2: $ 100,000 - $ 249,999

• Band 3: $ 250,000 - $ 499,999

• Band 4: $ 500,000 - $ 999,999

• Band 5: $1,000,000 - $9,999,999

• Band 6: $10,000,000 and up




• Rate banding applies at the coverage level, not at the life level and not at the total policy level. For

example, Band 3 rates would be charged when the amount of insurance under a specific 10-Year

Renewable Term Insurance Rider coverage is between $250,000 and $499,999. If a coverage

decrease causes a change in rate band for a coverage (e.g. from $260,000 to $200,000), the rate

charged for that coverage could increase.

• For 10-Year Renewable TIR coverages dated before December 4, 2004, please refer to the Term

Insurance Rider – Rate banding section in Appendix 1.

Changing the Cost Type for a TIR coverage

• The Cost Type for a TIR coverage may be changed, without evidence of insurability.

• The minimum and maximum issue age and amount of insurance requirements for the new TIR

coverage must be met.

• The request must be received by us before the 5th coverage anniversary.

• For TIR coverages dated before December 4, 2004, please refer to the Term Insurance Rider –

Changing the Cost Type for a TIR coverage section in Appendix 1.

Cost Type Coverage Type When the change in Cost

Type is allowed Original New Original New

Yearly

Increasing

10-Year

Renewable Single Life Single Life

Until the 5th coverage

anniversary

Joint first-to-die Single Life

20-Year

Renewable Single Life Single Life

Joint first-to-die Single Life

10-Year

Renewable

20-Year

Renewable

Single Life Single Life

• Changes in the Cost Type are not permitted on Joint last-to-die TIR coverages.

• The existing TIR coverage must be in effect.

• For Cost Type changes on Joint first-to-die TIR coverages:

• each insured person must change to Single Life TIR coverage or choose to cancel their TIR

coverage, and

• the amount of insurance for each insured person cannot exceed the amount of insurance under

the Joint coverage.

• The effective date of a Cost Type change will be the Monthly Processing Day that coincides with or

next follows the day on which we approve the change.

• The new TIR coverage will have a Coverage Date equal to the effective date of the change.

• If an insured person under the TIR coverage dies before the effective date of the change, the new

TIR coverage(s) will not take effect.

• A Cost Type change will always initiate a new term beginning on the effective date of the change.

• The rates for the new coverage will be based on:

• the rates in effect on the new Coverage Date for the new Cost Type;

• the insured person’s sex;

• the insured person’s age on their birthday nearest the Coverage Date of the new TIR coverage;

• the insurance rating applicable to the insured person under the original TIR coverage; and

• the Healthstyle category applicable to the insured person, determined as follows. Refer to the

Healthstyle availability section for further details.




Insured Person’s Healthstyle

Original TIR coverage New TIR coverage resulting from the Cost Type change

Healthstyle 1 • Healthstyle 1, or

• Healthstyle 3 if Healthstyle 1 category is not available given the

amount of insurance or the insured person’s attained age.

• This is what the contract provides for, however, when

Healthstyle 1 category is not available we will maintain that

category.


• Healthstyle 3 if Healthstyle 2 category is not available given the


• This is what the contract provides for, however, when

Healthstyle 2 category is not available in the Accelerated

underwriting age and amount range, we will maintain that

category.

Healthstyle 3 Healthstyle 3



• For TIR coverages dated before December 4, 2004, please refer to the Healthstyle chart in the Term

Insurance Rider – Changing the Cost Type for a TIR coverage section in Appendix 1.

• Complete a Request for Change form (NN0739).

• Any restrictions on benefits in the existing TIR coverage will apply to the new TIR coverage.

• The suicide and contestability provisions will apply from the Coverage Issue Date of the original

TIR coverage.

Changing the Cost Type and the rate guarantee

• If the Cost Type for a TIR coverage is changed, the existing guaranteed rates will no longer apply.

• The new TIR coverage will have its own guaranteed rates based on the rates in effect for the new

Cost Type as of the new Coverage Date.

Compensation and Cost Type changes

• There will not be a commission chargeback as a result of a Cost Type change. There may be a

commission adjustment if the Cost Type change occurs in the first coverage year.

• New commission will be generated for the new insurance coverage, but a reduced commission rate

may apply in the first coverage year. Please refer to the Schedule of Commissions and Override

Credits for the commission rates.

Requested increases in the TIR coverage

• A policy owner may request that the amount of TIR coverage be increased, subject to Underwriting

approval and our minimum and maximum limits for TIR coverages. Use the Application for Change

(NN7001).

• For Yearly Increasing, the increase will be handled by adding a new TIR coverage for the amount of

the increase based on the insured person’s then current issue age, Healthstyle and insurance rating.

• For 10-Year or 20-Year Renewable, there are two options available:

• Replace the existing coverage with a new current-dated coverage on the existing policy for the

total amount of insurance, or

• Add a new coverage for the amount of the increase.




• A review of the Healthstyle availability should be one of the factors to consider when determining

the option to proceed with for the increase. For details, refer to the Healthstyle availability section.

• The change will take effect on the Monthly Processing Day coinciding with or next following the

day the request is approved.

• For further information, please refer to the Increases in coverage section under Policy changes.

Requested decreases in the TIR coverage

• A policy owner may request that the amount of TIR coverage be decreased at any time, subject to

our rules for the minimum amount of insurance.

• The policy owner must submit a written request or a Request for Change (NN0739) to Manulife’s

Canadian Head Office.

• TIR coverage will be decreased on a “last on-first off” basis for TIR coverages with the same

coverage type, Cost Type and insuring the same people.


day the request is received at Manulife’s Canadian Head Office.

• For further information, please refer to the Decreases in coverage section under Policy changes.

TIR and conversions

• All or part of a TIR coverage may be converted, without evidence of insurability, to new permanent

life insurance.

• All conversions are on an ‘attained age basis’, which means each insured person’s issue age for the

new life insurance will be based on their insurance age calculated as of the effective date of the new

insurance.

• The new life insurance may be a new policy offered by Manulife on the conversion day or a new

coverage added to an existing life insurance policy (if we allow insurance coverages to be added to

that type of policy).

• The policy owner may convert a TIR coverage at any time on or before the Conversion Expiry Date

stated in the policy contract.

• Single Life TIR coverages are convertible until the policy anniversary nearest the insured

person’s 75th birthday.

• Joint TIR coverages are convertible until the policy anniversary that either coincides with or

immediately follows the coverage anniversary on which the attained joint age is 75.

• We will send a Conversion Expiry Notice to the policy owner 60 days before the Conversion Expiry

Date for each TIR coverage.

• The coverage or portion of coverage being converted ends at 11:59 P.M. on the day before the new

insurance takes effect. If the insured person dies before that day, the new insurance will not go into

effect and we will refund any payment the policy owner has made for it.

• Any restrictions on benefits in the existing TIR coverage will apply to the new insurance.

• Please refer to the Conversion Administrative Rules for further details.

Conversions when monthly deductions are being waived

• If we are waiving the monthly deductions on the Conversion Expiry Date under the terms of a Total

Disability Waiver Rider, we will convert the Term Insurance Rider coverage to a new Level Cost

insurance coverage on the existing policy. Policy costs, including those for the new insurance

coverage, will continue to be waived on the policy.

• If the Term Insurance Rider coverage being converted is a Single Life coverage, the new insurance

coverage will also be Single life coverage insuring the same person as the original TIR coverage;

• If the Term Insurance Rider coverage being converted is a Joint first-to-die coverage, the new

insurance coverage will also be Joint first-to-die, insuring the same people as the original TIR

coverage; or




• If the Term Insurance Rider coverage being converted is a Joint last-to-die coverage, the new

insurance coverage will also be Joint last-to-die, insuring all insured people under the original TIR

coverage who are alive on the Conversion Expiry Date.

• This conversion will take effect on the Conversion Expiry Date of the original coverage.

• Commission for the new insurance will be paid at renewal commission rates, not first year

commission rates.

Cancelling a TIR coverage

• The policy owner may cancel a TIR coverage at any time.



• We will cancel a TIR coverage on the Monthly Processing Day that coincides with or next follows

the day any insured person under the rider coverage is no longer an insured person under any

insurance coverage on the policy.

Expiry of TIR coverage

• TIR coverages end on:

• for Single Life coverage, the policy anniversary nearest the insured person’s 80th birthday, and

• for joint coverage, the policy anniversary coinciding with or next following the coverage

anniversary on which the attained joint age is 80.

• We will send a notice of expiry to the policy owner 60 days before the Coverage Expiry Date.

Total Disability Waiver Rider (TDW) This rider is designed to cover the policy’s monthly deductions while the TDW insured is totally

disabled.

• TDW can be added at or after issue, subject to Underwriting approval.

• The total amount that would be waived (including the annual premium for any other life insurance

policy already in effect)5 if the TDW insured person became totally disabled must not exceed

$60,000 per 12 month period.

• Available on a Single Life basis only to:

• any person insured under a Single Life or joint first-to-die insurance coverage that is in effect on

the policy; and

• the payor for the policy. (The payor is not required to be insured under the policy in order to be

eligible for TDW coverage.)

• Insured people under a Joint first-to-die insurance coverage may apply for separate Single Life

TDW coverage.

• Not available to people insured under a Child Protection Rider coverage.

• TDW is available on substandard risks at the discretion of the Underwriter.

• TDW is not available on corporate-owned policies. Underwriting may permit the principal of a

business to elect TDW; such exceptions will be considered on a case-by-case basis by Underwriting.

• For Security UniversalLife policies – please refer to the Total Disability Waiver Rider section in

Appendix 2.

Issue ages6

Single Life 15 – 59

5 Note that the total amount that would be waived includes the cost of the TDW rider(s). 6 Issue age is the TDW insured’s age on their birthday nearest the Coverage Date of the applicable TDW coverage.




TDW rates

• The Cost Type for the TDW rates is Level.

• The rate is multiplied by the total monthly deduction for the policy, therefore the cost for this rider

can increase or decrease (e.g. when a Term Insurance Rider coverage renews).

• TDW rates do not vary by Healthstyle.

• TDW rates are guaranteed not to change unless the policy owner makes a change to their policy

(e.g. adding an insurance or rider coverage, or exercising the InnoVision Advantage Option). The

guaranteed rates are shown for each coverage in the Rider cost rate tables in the policy contract.

Please refer to the Guaranteed rates section of this guide for further details.

How it works

• Total disability means:

• For people with a regular job – that an insured person, because of sickness or injury, is

prevented from doing substantially all of the material duties of their regular job;

• For people without a regular job – that an insured person, because of sickness or injury, is

prevented from working for pay at any job for which they are reasonably suited by education,

training or experience.

Please refer to the policy contract for a more complete and detailed description.

• The amount waived is the monthly deduction, which includes the monthly policy and life fees, all

cost of insurance charges and all rider costs for the policy.

• TDW will not waive the equivalent of the regular deposit amount.

• Monthly deductions will be waived when total disability occurs before the policy anniversary

nearest the TDW insured’s 65th birthday, and continues for at least six months.

• If total disability begins during a grace period, we will not waive any monthly deductions that apply

during that period.

• Only one Disability Benefit payment may be requested during any 12 month period. The insured

person must be disabled at the time of the request.

• Monthly deductions will be waived from the Monthly Processing Day coinciding with or next

following the onset of disability. Any monthly deduction which has been deducted and is later

waived will be retroactively reapplied to the investment account(s) from which it was deducted.

• While monthly deductions are being waived:

• The Minimum Monthly Deposit for the policy will be set to zero.

• The policy owner may continue to make deposits into the policy or Side Account.

Compensation and waiver of monthly deductions

Commissions will continue to be earned on any monthly deductions waived under a Total Disability

Waiver Rider.

Making changes to the policy while on waiver

• The policy owner can not make changes to the policy while monthly deductions are being waived.

Some examples of such changes are:

• adding insurance or rider coverages,

• changing the amount of any insurance or rider coverage,

• exercising the InnoVision Advantage Option or Joint Legacy Protector feature, and

• changing the Cost Type on a TIR coverage.

• For Security UniversalLife policies – please refer to the Total Disability Waiver Rider – Making

changes to the policy while on waiver section in Appendix 2.

How long we will waive monthly deductions

• We will continue to waive the monthly deductions until any one of the following occurs:




• the TDW insured is no longer totally disabled;

• the TDW insured is working at any job for pay or profit;

• the policy anniversary nearest the TDW insured’s 65th birthday, if total disability began on or

after the policy anniversary nearest the TDW insured’s 60th birthday; or

• the TDW insured dies.

Resuming deposits

• Once we stop waiving monthly deductions, the policy owner must resume deposits unless the policy

has sufficient Account Value to cover the monthly deductions.

Adding new insurance and/or rider coverages

• When any new coverage is added to a policy with a TDW Rider, Underwriting will require

satisfactory evidence of insurability for all the insured people under the TDW Rider.

• If, as a result of changes in health, a TDW insured would no longer be eligible for TDW, then the

additional coverage cannot be added to the policy. If the TDW insured could be issued TDW, but at

a different rating than before, a combined rating for that TDW coverage will be calculated by

Underwriting.

Cancelling a TDW coverage

• The policy owner may cancel a TDW coverage at any time.



• We will cancel a TDW coverage on the Monthly Processing Day that coincides with or next follows

the day on which:

• the TDW insured is no longer an insured person under any insurance coverage on the policy,

• the TDW insured ceases to be the payor for the policy, or

• the TDW insured dies.

• Note that on Joint first-to-die insurance coverages, the first death would cause TDW coverage on

the survivor to be cancelled if he had no other insurance coverage on the policy.

Expiry of TDW coverage

• Each TDW coverage will end on the policy anniversary nearest the TDW insured’s 65th birthday.

• If monthly deductions are being waived as a result of a TDW insured’s disability, waiver of monthly

deductions will continue as described in the How long we will waive monthly deductions section,

unless the disability began on or after the policy anniversary nearest the TDW insured’s 60th

birthday.




Additional benefits and features Security UL has the following additional benefits and features:

• Disability Benefit

• Compassionate Assistance Program


• Special Joint first-to-die benefits and features



Security UniversalLife has the following additional benefits and features:

• Compassionate Assistance Program

• Bereavement Counselling Assistance (for more information please refer to Appendix 2)

Information about the Disability Benefit and the Compassionate Assistance Program can be found

below. Information on the InnoVision Advantage Option and the Special Joint first-to-die features can

be found in the following sections of this guide:




Disability Benefit As of May 13, 2006, the Disability Benefit is included on all new Security UL policies at no additional

cost.

How the benefit works

• If an insured person under an insurance coverage on a Security UL policy becomes disabled, the

policy owner may request the payment of a Disability Benefit, subject to the following conditions.

• The insured person must become disabled and remain disabled for at least 30 consecutive days

while an insurance coverage on that insured person is in effect.

• Only one Disability Benefit payment may be requested during any 12 month period and the

insured person must be disabled at the time of the request.

• We must receive satisfactory evidence of the insured person’s disability

• at our principal place of business in the policy owner’s province of residence or at our

Canadian Head Office,

• while the insured person is living and disabled, and

• within one year of the day the disability occurred. (Complete the Request for UL Disability

Benefit Payment form NN1538.)

• Any total disability must occur:

• on or after the policy anniversary nearest the insured person’s 18th birthday; but

• on or before the policy anniversary nearest the insured person’s 65th birthday.

• Any catastrophic disability must occur:

• on or after the policy anniversary nearest the insured person’s 18th birthday.

• Please refer to the Disability Benefit provision in the policy contract for a complete definition of

‘disability’.

• Under current tax laws as of the effective date of this guide, the payment of a Disability Benefit is

not considered a disposition; however, there may still be tax consequences. For details, refer to the

section called Taxation.




Minimum and maximum payment limits

• The minimum Disability Benefit payment that can be requested is $500.

• The maximum Disability Benefit payment that can be requested is determined as follows:

for PAC policies,

Account Value – Market Value Adjustments – (2 x Monthly Deduction)

= Cash Value – (2 x Monthly Deduction)

for all other policies,

Account Value – Market Value Adjustments – (n x Monthly Deduction)

= Cash Value – (n x Monthly Deduction)

where

n = greater of 2 months and the number of months to next policy anniversary.

• For descriptions of the terms used above in the formulas for the maximum Disability Benefit

payment, please refer to the relevant section of this guide, as follows:

• for “Account Value”, refer to the Account Value section;

• for “Market Value Adjustments”, refer to the Average GIA Account section; and

• for “Monthly Deduction”, refer to the Monthly Deduction section.

Other rules

• Except where described above, a Disability Benefit payment will be administered in accordance

with the applicable rules described in the Withdrawals section of this guide.

Compassionate Assistance Program (CAP) • This benefit is available on insurance coverages, Term Insurance Rider coverages and Child

Protection Rider coverages, at no additional cost. It is not a contractual benefit.

• If any insured person7 on the policy becomes terminally ill, the policy owner may request early

payment of a portion of the death benefit in the form of a collateral loan made by Manulife.

Manulife must approve the request – it is not automatically granted.

• The policy owner must continue to make sufficient deposits to keep the policy in effect.

• The policy owner’s rights under the policy may be limited by the terms of the collateral loan

agreement.

• If the beneficiary is irrevocable or preferred or if there is a collateral assignee on the policy, the

approval of that party is also needed.

• For additional information on the Compassionate Assistance Program, please refer to the

Compassionate Assistance Program brochure available on Repsource.

7 This program is not available on Joint last-to-die coverages where all insured people are living as of the date of

diagnosis. It would be available to the last surviving insured person after the death of all the other insured people

on that coverage.




InnoVision Advantage Option The InnoVision Advantage Option is a contractual provision that gives the policy owner the right to add

InnoVision features and benefits to their policy without providing evidence of insurability. Once

exercised, the InnoVision Advantage Option is a permanent change to the policy and thus, it

cannot be reversed.

This Option is available on Security UL policies. It is not available on Security UniversalLife policies.

In this section the following terms are used:

Term: Refers to:

Comparable coverage

An InnoVision insurance or rider coverage with the same

Coverage Date, personal information, amount of insurance,

coverage type and Cost Type of that coverage on the Security

UL policy.

Comparable InnoVision policy An InnoVision universal life policy with the same Policy

Date as the existing Security UL policy.

Total Net Deposit

The total of all deposits less withdrawals (including Market

Value Adjustments, transfers to the Side Account and any

fees charged for cash withdrawals, but not including

withdrawals made for the payment of a death benefit).

Total Minimum Monthly Deposits

The total of all Minimum Monthly Deposits since the Policy

Date; reflects all the Security UL Minimum Monthly

Deposits until the Option effective date and all Minimum

Monthly Deposits for a comparable InnoVision policy from

that date forward.

When this Option can be exercised The InnoVision Advantage Option can be exercised:

• after the 1st policy anniversary, and

• before the 20th policy anniversary.

The InnoVision Advantage Option cannot be exercised:

• if monthly deductions are being waived under the Total Disability Waiver Rider, or

• if the amount of insurance coverage for each insured person does not meet the InnoVision minimum

requirements.

Effective date of the change

• The effective date of the change, also called the Option effective date, will be the Monthly

Processing Day that coincides with or next follows the day we receive the policy owner’s written

request to exercise the InnoVision Advantage Option. If that day is a policy anniversary, the

effective date of the change will be the first Monthly Processing Day after the policy anniversary.




How to exercise the InnoVision Advantage Option • To exercise the InnoVision Advantage Option, the policy owner must submit the following:

• the Application to Exercise the InnoVision Advantage Option form (NN1524),

• a signed inforce illustration that illustrates the impact of the Option, and

• if the Total Net Deposit is less than the Total Minimum Monthly Deposits for the policy, a

deposit equal to the difference in the two amounts.

How the InnoVision Advantage Option works Once the policy owner has exercised the InnoVision Advantage Option, the Security UL policy will

have numerous features that operate in the same manner as a comparable InnoVision policy. The policy

owner will receive an updated contract, including revised Section 3 and Cost of insurance/Rider cost

tables (Appendix 2).

For additional information on any of the InnoVision features or benefits mentioned in this section,

please refer to the InnoVision Product Guide available on Repsource.

Policy number and dates

• The policy number will not change as we are expanding the existing policy to include InnoVision

benefits and features.

• There is no change in the following dates after the Option effective date:

• Policy Date and Policy Issue Date, and

• Coverage Date and Coverage Issue Date for any existing insurance or rider coverages.

Suicide and contestability

• The suicide and contestability provisions will continue to apply from the Coverage Issue Date of

each existing insurance and rider coverage.

Healthstyle and insurance rating

• When the InnoVision Advantage Option is exercised, the Healthstyle and insurance rating for each

insured person under each coverage remains unchanged.

• The Joint insurance rating for any Joint insurance coverage will change to be the same as the Joint

insurance rating on a comparable coverage on a comparable InnoVision policy, based on each

insured person’s individual insurance rating on that coverage.

Minimum amount of insurance

• In order to exercise the InnoVision Advantage Option, the amount of insurance for each insured

person must meet the following requirements:


Overall minimum amount of Level Cost

insurance coverage per insured person, including

Single Life and joint coverages insuring that

person

$100,000 during the first 5 years the person is

insured on the policy

$25,000 after the person has been insured on the

policy for 5 or more years




• If the amount of insurance for any insured person on the Security UL policy does not meet these

minimums:

• the amount of insurance on that insured person must be increased to meet the minimums; or

• the Option cannot be exercised.

• Any increase in coverage is subject to our administrative rules for increases and satisfactory

evidence of insurability. Please refer to the Increases in coverage section of this guide for further

details.

• The policy owner may increase the amount of insurance above the minimum amount. For any

excess amount, the policy owner may select from the Cost Types available on a comparable

InnoVision policy provided plan minimums are met:

• the Level Cost increase in amount of insurance is the greater of:

• $25,000; and

• the amount required to meet the minimums described above; and

• the Yearly Increasing amount of insurance is at least $50,000.

• The Coverage Date of the new insurance coverage(s) will be the Option effective date.

Death benefit type

• Currently, there are four death benefit types offered on InnoVision:

• Level Face

• Face Plus (Account Value)

• Account Value on First Death Claim

• Account Value on Last Death Claim

• The death benefit type for all Security UL policies at issue is equivalent to Face Plus on a

comparable InnoVision policy.

• On the Option effective date, the policy will remain as the Face Plus death benefit type.

• After the Option effective date, the policy owner may request a change to any of the death benefit

types available under a comparable InnoVision policy; please refer to the InnoVision Product Guide

for the requirements for such a change.

Rate guarantee

• After the policy owner exercises the InnoVision Advantage Option, the rate guarantees will change

to be based on the rates we would charge a comparable coverage on a comparable InnoVision

policy.

• The policy owner will receive new Appendix 2 contract pages which show the new guaranteed

rates.

• The existing TDW rider cost rates will change to be those for a comparable InnoVision WOD

coverage and will not be guaranteed.

• The guaranteed CPR and TIR rates will not change.

Insurance coverages

• As of the Option effective date, the cost of insurance rates for all insurance coverages under the

policy will change to the rates for comparable insurance coverages under a comparable InnoVision

policy.

• An inforce illustration that illustrates the impact of the Option must be requested.




Single Life insurance coverages

• The cost of insurance rates for all Single Life insurance coverages will change from the Security UL

Level Cost rates to the Level Cost rates for a comparable coverage on a comparable InnoVision

policy.

• Thus, the Level Cost rates for a Single Life insurance coverage will be based on the Policy Date and

on the:

• insured person’s issue age and sex,

• insured person’s current Healthstyle and insurance rating,

• amount of insurance, and

• Coverage Date

for that coverage.

Joint insurance coverages

• The cost of insurance rates for all Joint insurance coverages will change from the Security UL Level

Cost rates to the Level Cost rates for a comparable coverage on a comparable InnoVision policy.

• The Joint age will be the same as the Joint age on a comparable coverage on a comparable

InnoVision policy. Therefore, there will be no change in the Joint age, except for Joint last-to-die

insurance coverages dated before December 4, 2004.

• Thus, the Level Cost rates for a Joint insurance coverage will be based on the Policy Date and on:

• each insured person’s issue age and sex,

• each insured person’s current Healthstyle and insurance rating,

• the amount of insurance, and

• the Coverage Date,

for the existing Joint Security UL insurance coverage; and on

• the new Joint age calculation for a comparable coverage on a comparable InnoVision policy.

• Any change in the Joint age for an insurance coverage will change the coverage anniversary on

which the cost of insurance rates for that coverage drop to $0. The new Appendix 2 contract pages

will show the revised date for each Joint insurance coverage.

Rate banding for insurance coverages

• On the Option effective date, the rate banding for all insurance coverages will change to the rate

banding for comparable coverages on a comparable InnoVision policy.

Cost Types

• There is no change to the Cost Type of any insurance coverage on the Option effective date (e.g. all

insurance coverages will continue to have the Level Cost Type).

• Any new insurance coverages added to the policy on or after the Option effective date may have any

of the Cost Types available on a comparable InnoVision policy, subject to the minimum and

maximum amounts of insurance and issue age limits. Please refer to the InnoVision Product Guide

for more information.

Rider coverages

Total Disability Waiver Rider

• The name of the Total Disability Waiver Rider (TDW) will change to be the Waiver of Monthly

Deductions (WOD) Rider on the Option effective date.

• The Cost Type will also change from Level to Yearly Increasing. This means that the monthly rider

cost rates for WOD will change annually on the coverage anniversary, based on the insured person’s

attained age.

• The existing TDW Rider cost rates will no longer apply.

• The existing TDW guaranteed rider cost rates will no longer apply.




• The new WOD rates will not be guaranteed.

• The WOD rates will be the Yearly Increasing WOD rates for a comparable coverage on a


• Thus, the rider cost rates for a disability waiver rider coverage will be based on the Policy Date and

on the:

• insured person’s issue age and sex,

• insured person’s current insurance rating,

• Coverage Date, and

• coverage duration

for that coverage.

Wealth Enhancer Riders

• When the policy owner exercises the InnoVision Advantage Option, each insurance coverage will

have a connected Wealth Enhancer coverage with a maximum Coverage Limit equal to the lesser of:

• 1 X the amount of insurance on the connected insurance coverage; and

• $1,000,000.

• Any new insurance coverages with a Coverage Date equal to the Option effective date where

satisfactory evidence of insurability has been received will qualify, subject to underwriting

approval, for a Wealth Enhancer coverage with a maximum Coverage Limit equal to:

• 3 X the amount of insurance on the connected insurance coverage.

• In order to qualify for Wealth Enhancer, each insured person on the insurance coverage must be

rated:

• Less than or equal to 250% (or its equivalent flat extra), and

• Less than $15 per thousand for temporary flat extras.

• The policy owner can select from either of the following two types of Wealth Enhancer:

• the Wealth Enhancer Increases (WEI); or

• the Wealth Enhancer Increases and Decreases (WED).

• The Coverage Date of the Wealth Enhancer Rider coverage(s) will be equal to the Option effective

date.

• Wealth Enhancer Plus (WEP) is only available if the insured person provides satisfactory evidence

of insurability, and meets our administrative rules for adding WEP after issue. Please refer to the

InnoVision Product Guide for further details.

• The policy owner can choose not to add the Wealth Enhancer Rider coverage when exercising the

Option. If Wealth Enhancer is requested after the Option effective date, it can be added if the

insured person provides satisfactory evidence of insurability and meets our administrative rules for

adding Wealth Enhancer after issue. Please refer to the InnoVision Product Guide for further

details.

Other Rider coverages

• The costs for the following rider coverages will remain unchanged on the Option effective date:

• Business Value Protector Rider (BVP);

• Child Protection Rider (CPR);

• Guaranteed Insurability Option Rider (GIO); and

• Term Insurance Rider (TIR).




Changes to fees and charges

Fee/Charge Before exercising the

Option:

After exercising the Option:

Monthly policy fee $7.00, guaranteed $8.00, guaranteed

Monthly life fee per

insured person $3.00, guaranteed $4.00, guaranteed

Deposit Tax Charge 2%, guaranteed Currently 2%, but this is not guaranteed

Cash withdrawal fee $0, guaranteed. Currently $0, but this is not guaranteed.

Surrender charges $0, guaranteed Amount for a comparable coverage on a

comparable InnoVision policy, guaranteed.

Policy and life fees

• On the Option effective date, the policy fee and the life fee will change.

• The new policy and life fees will be the same fees we charge on a comparable InnoVision policy

and they are guaranteed at that rate.

Deposit Tax Charge

• On the Option effective date, the Deposit Tax Charge percentage will change to be the Deposit Load

percentage on a comparable InnoVision policy.

• The Deposit Tax Charge percentage will no longer be guaranteed.

Cash withdrawals

• On the Option effective date, the withdrawal fee for withdrawing cash from the policy will change

to be the withdrawal fee on a comparable InnoVision policy.

• The withdrawal fee will no longer be guaranteed to be $0.

• Currently, on comparable InnoVision policies, we have the contractual right to apply a withdrawal

fee. The withdrawal fee is currently $0 on comparable InnoVision policies, but this amount is

subject to change and is not guaranteed.

Surrender Charges

• As of the Option effective date, a Surrender Charge may apply to the policy.

• A Surrender Charge:

• reduces the Cash Value of the policy,

• reduces the amount available for withdrawal, and

• affects the lapse processing for the policy.

• The Surrender Charges that apply to all insurance coverages, and any Wealth Enhancer Plus

coverages added after on or after the Option effective date, will be the same as those we would

charge for a comparable coverage on a comparable InnoVision policy.

• Surrender Charges only apply if the policy is cancelled before the end of the Surrender Charge

Period.

• Surrender Charges do not apply to a coverage that ends because of the death of the person insured

for that coverage.

• The policy owner will receive new Appendix 2 contract pages that show the Surrender Charges and

the length of the Surrender Charge Period.

• The total Surrender Charge at any given time is the sum of the Surrender Charges that apply to all

coverages including coverages that have been reduced or cancelled.

• An inforce illustration that illustrates the impact of the Option must be requested.




Investment accounts

If the policy owner exercises the InnoVision Advantage Option,

• the additional investment accounts and Side Accounts on a comparable InnoVision policy will be

available on the existing policy,

• all funds will remain in their current accounts, except for any funds in the Average GIA Account or

Average GIA Side Account. These funds will be transferred, without Market Value Adjustments, to

the Long-Term Portfolio Average Account and/or Long-Term Portfolio Average Side Account as of

the Option effective date.

• No fund transfers will be permitted on the Option effective date. If the policy owner wishes to

transfer funds, they must do so before or after that date. Market Value Adjustments may apply.

• The policy owner may change their Deposit Allocation instructions to include any of the investment

accounts available to them on or after the Option effective date.

• If the policy’s Deposit Allocation instructions include the Average GIA Account on the Option

effective date and the policy owner has not provided new Deposit Allocation instructions on the

InnoVision Advantage Option form, we will change the Deposit Allocation instructions to

deposit the Average GIA Account’s portion into the Long-Term Portfolio Average Account.

Guaranteed Account Value when the last death benefit is payable

• The guaranteed Account Value when the last death benefit is payable will not change and will

reflect all deposits after load, Bonus payments, withdrawals and Market Value Adjustments since

the Security UL Policy Date.

Order of withdrawal

• On the Option effective date the order of withdrawal will change to the order of withdrawal for a


• The order of withdrawal is used for withdrawing money from the investment accounts to fund the

monthly deductions and any withdrawals.

• The policy owner can specify which account(s) they would like any requested cash withdrawals

made from. If that account(s) does not have sufficient value or if no account is specified,

withdrawals will be made in the order described below.

• The order of withdrawal will be:

• Savings Account

• Portfolio Average Accounts

• Simple Interest GIAs

• Compound Interest GIAs

• Balanced Index Accounts

• Indexed Accounts and Managed Accounts

Important notes about the order of withdrawal:

Account types:

Portfolio Average, Balanced Index, Indexed and Managed Accounts

• Funds will be reduced proportionally, based on the balance of each account within the account

type at the time of the withdrawal.

Simple and Compound GIAs

• Funds will be reduced starting with the account with the shortest remaining term to maturity.

Bonus

• Currently, there are two Bonus Options available on a comparable InnoVision policy:

• Valued Client; and




• Investment Accelerator.

• On the Option effective date, the Bonus Option will be upgraded to the Valued Client Bonus, unless

the policy owner selects the Investment Accelerator Bonus on the InnoVision Advantage Option

form.

• The Bonus Option selection must be made on the Option effective date (using the InnoVision

Advantage Option form NN1524E) and cannot be changed after that date.

• If the Investment Accelerator Bonus Option is selected, the effective date of the switch to that

Option will be the day after the Option effective date.

Valued Client Bonus details

• The Average Account Value used in determining any Valued Client Bonus will continue to reflect

monthly Account Values for the policy. For the first Valued Client Bonus following the exercising

of the InnoVision Advantage Option, this will mean that the Average Account Value could reflect

monthly policy Account Values from before, on and after the Option effective date.

• The Total Minimum Monthly Deposits used to determine whether a Deposit Bonus is payable will

reflect all the Security UL Minimum Monthly Deposits until the Option effective date and all

InnoVision Minimum Monthly Deposits from that date forward.

Cash Value

• Starting on the Option effective date, the Cash Value of the policy will be the Account Value, minus

any Market Value Adjustments and Surrender Charges that apply.

Lapse

• Starting on the Option effective date, there will be a lapse test for the policy the same as that for a


• If, on any Monthly Processing Day,:

• the Account Value is less than $0, or

• the Cash Value is less than $0, and the Total Net Deposit is less than the Total Minimum

Monthly Deposits,

the policy will enter the Grace Period.

Compensation and exercising the InnoVision Advantage Option

• There will not be a commission chargeback as a result of a exercising the InnoVision Advantage

Option.

• There will be no new commission generated for the policy. Regular renewal commission will be

payable, based on the commission rates in effect for a comparable InnoVision policy.

• For Deposit and Asset Based commission, the commission rate is based on the duration of the

policy using the Policy Date.

• For policy and life fee commission, the commission rate is based on the duration of the policy

using the Policy Date.

• For Draw commission:

• On the Term Insurance Rider, other riders and Death Benefit Enhancer coverages with the

exception of the Wealth Enhancer Plus (WEP) Rider coverage, the commission rate is based

on the duration of a coverage using the Coverage Date for that coverage.

• On insurance and Wealth Enhancer Plus (WEP) Rider coverages with a Coverage Date:

• on or after August 24, 2009, renewal draw commission is equal to zero,

• before August 24, 2009, please refer to the InnoVision Advantage Option section in

Appendix 1.

• Please refer to the Schedule of Commissions and Override Credits that was in effect on:

• the Policy Date for the applicable InnoVision Deposit, Asset Based and policy and life fee

commission rates;




• the Coverage Date for the applicable InnoVision Draw commission rates.

• Exercising the InnoVision Advantage Option may result in a commission adjustment if the change

occurs in the first coverage year and the first year commission for the comparable coverage is lower

than the Security UL first year commission for that coverage. If the first year commission for the

comparable coverage is higher, the commission earned will reflect that higher amount on each

Monthly Processing Day starting with the Option effective date.




Joint Legacy Protector The Joint Legacy Protector feature is a contractual provision that provides the policy owner with the

flexibility to adapt their Joint first-to-die coverage if their insurance needs change. Through this option,

the policy owner can change all or part of any Joint first-to-die insurance coverage into Joint last-to-die

insurance coverage without providing us with any additional evidence of insurability.

The Joint Legacy Protector feature only applies to Joint first-to-die insurance coverages.

This feature is not available on Security UniversalLife policies.

Exercising the Joint Legacy Protector feature could have tax implications, which may include increasing

the policy owner’s taxable income.

When this feature can be exercised The Joint Legacy Protector feature can be exercised on a Joint first-to-die insurance coverage:

• after the policy anniversary that coincides with or next follows the fifth coverage anniversary of that

coverage,

• before the policy anniversary nearest the 69th birthday of the oldest insured person on that coverage;

and

• for partial changes, if the amount of insurance remaining on the existing Joint first-to-die coverage

and the amount of insurance on the new Joint last-to-die coverage meet our minimum requirements.

The total amount of insurance for these two coverages cannot be more than the original amount of

insurance under the Joint first-to-die coverage.

The Joint Legacy Protector feature cannot be exercised if monthly deductions are being waived under

the Total Disability Waiver Rider.

Effective date of the change

• The effective date of the change will be the first Monthly Processing Day that coincides with or next

follows the day we approve the request. If that day is a policy anniversary, the effective date of the

change will be first Monthly Processing Day after the policy anniversary.

How to apply for the change • To apply for a change to Joint last-to-die under the Joint Legacy Protector feature, the policy owner

must submit a Request for Change form (NN0739).




How the change is processed

Joint Legacy Protector Overview

Changing all of a Joint

first-to-die insurance

coverage

Changing part of a Joint first-to-die

insurance coverage

Original Joint first-

to-die coverage

New Joint last-to-die

coverage

How the change is processed

• Change made to

original coverage

• Amount of

insurance

reduced

• New Joint last-to-

die coverage

issued

Coverage Date • No change • No change • Current dated

Coverage Issue Date • No change • No change • Same as original

Joint age

• Original individual

ages

• Joint age formula as

of original Coverage

Date

• No change

• Original

individual ages

• Current Joint age

formula

Healthstyle • No change • No change • No change

Joint insurance rating

• Original individual

ratings

• Joint rating formula

as of original

Coverage Date

• No change

• Original

individual ratings

• Current joint

rating formula

Cost of insurance rates

• Rates in effect as of

original Coverage

Date

• May change to

reflect new

amount of

insurance

• Current rates

Factors

impacting

allocated

Account Value

Original issue

age • No change • No change

• New, based on

new Coverage

Date

Amount of

insurance • No change • Reduced • New

# of Monthly

Processing

Days

• No change • No change • Starts at one

Suicide and Contestability period • No change • No change • Same as original




Changing all of a Joint first-to-die insurance coverage

If all of a Joint first-to-die insurance coverage is changed to a Joint last-to-die coverage:

• the Coverage Date for the Joint last-to-die coverage will be the same as that for the Joint first-to-die

coverage;

• the Coverage Issue Date for the Joint last-to-die coverage will be the same as that for the Joint first-

to-die coverage;

• the joint age for the Joint last-to-die coverage will be calculated as of the Coverage Date of the

original Joint first-to-die coverage using the personal information for each insured person as shown

in Section 3 for the original Joint first-to-die coverage, and based on the joint age calculation for

similar coverages with the same Coverage Date as the Joint last-to-die insurance coverage; and

• the cost of insurance rates for the Joint last-to-die coverage will be the rates applicable to similar

coverages with the same Coverage Date as that coverage.

Allocated Account Value

• There is no change in the factors used to determine the allocated Account Value.

Changing part of a Joint first-to-die insurance coverage

The policy owner can change part of a Joint first-to-die insurance coverage to Joint last-to-die insurance.

The amount of insurance remaining on the existing Joint first-to-die coverage and the amount of

insurance on the new Joint last-to-die coverage must meet our minimum requirements.

If part of a Joint first-to-die insurance coverage is changed to Joint last-to-die coverage:

• the Coverage Date for the Joint last-to-die coverage will be the Monthly Processing Day that

coincides with or next follows the day on which we approve the request;

• the Coverage Issue Date for the Joint last-to-die coverage will be the same as that for the Joint first-

to-die coverage;

• the joint age for the Joint last-to-die coverage will be calculated as of the Coverage Date of the

original Joint first-to-die coverage using the personal information for each insured person as shown

in Section 3 for the original Joint first-to-die coverage, and based on the joint age calculation for

similar coverages with the same Coverage Date as the Joint last-to-die coverage; and

• the cost of insurance rates for the Joint last-to-die coverage will be the rates applicable to similar

coverages with the same Coverage Date as that coverage.


• The original issue age, amount of insurance and the number of Monthly Processing Days for the

coverage are factors in determining the allocated Account Value. Thus, any change in these values

impact the allocated Account Value for all insurance coverages on the policy.

• The amount of insurance on the existing Joint first-to-die coverage is reduced, therefore the

allocated Account Value for that coverage will be adjusted as of the effective date of the change.

• The new Joint last-to-die coverage is current dated, therefore the number of Monthly Processing

Days for the coverage is one and the allocated Account Value for that coverage will reflect the new

duration.

• As a result, if there were multiple insurance coverages on the policy before the change, the allocated

Account Value for those coverages will change as of that date.

• Any change in the allocated Account Value of an insurance coverage will also change the death

benefit payable for that coverage.

Suicide and contestability

• The suicide and contestability provisions will continue to apply from the original Coverage Issue

Date.




Healthstyle and insurance rating

• The Healthstyle and individual insurance ratings for each insured person remain unchanged.

• The Joint insurance rating will be recalculated based on:

• the Joint last-to-die coverage type,

• the age of each insured person on the original Joint first-to-die Coverage Date,

• the sex of each insured person,

• the individual insurance ratings and Healthstyle for each insured person on the original Joint

first-to-die insurance coverage, and

• the Joint insurance rating calculation for similar coverages with the same Coverage Date as the

Joint last-to-die insurance coverage.

• For information about the Joint last-to-die Coverage Date, please refer to the Joint Legacy Protector

Overview chart above.

Joint Legacy Protector and the rate guarantee

Changing all of a Joint first-to-die insurance coverage

• New guaranteed cost of insurance rates will apply to the Joint last-to-die coverage based on:

• the cost of insurance rates in effect as of the original Coverage Date,

• the new coverage type,

• the new Joint age, and

• if applicable, the new Joint insurance rating.

Changing part of a Joint first-to-die insurance coverage

• New guaranteed cost of insurance rates will apply to the Joint last-to-die coverage based on:

• the current cost of insurance rates (as of the new Coverage Date),

• the new coverage type,

• the new Joint age, and

• if applicable, the new Joint insurance rating.

• The guaranteed cost of insurance rates on the remaining Joint first-to-die coverage could change if

the rate band for that coverage changes as a result of the decrease in the amount of insurance. These

guaranteed rates will be based on the Joint age and the cost of insurance rates in effect on the

Coverage Date.

Age 100

• The cost of insurance rates for insurance coverages change to be $0 on the coverage anniversary

nearest the attained Joint age 100.

• Since the Joint age changes as a result of exercising the Joint Legacy Protector feature, the point in

time at which the rates will change to $0 will also change.

• The new Joint age will be lower than the original Joint age, therefore the duration to attained Joint

age 100 will be longer. Thus, cost of insurance will be charged on that coverage for a longer period

of time.

• This will be reflected in the revised Appendix 2 pages the policy owner receives.

• For partial changes, there will be no change to the Joint age on the remaining Joint first-to-die

coverage. Thus, there will be no change to the date the cost of insurance rates change to $0 for that

coverage.




Compensation and the Joint Legacy Protector • There will not be a commission chargeback as a result of a change to Joint last-to-die.

• There will be no new commission generated for the Joint last-to-die coverage.

• Regular renewal commission will be payable using the commission rate based on the duration of the

coverage using the Coverage Date from the original Joint first-to-die coverage.

• However, since the change is not permitted in the first five coverage years, the renewal commission

rate will be zero.

• Please refer to the Schedule of Commissions and Override Credits for the commission rates.




Survivor’s Benefit • Survivor’s Benefit is only available on Joint first-to-die insurance and Term Insurance Rider

coverages that insure two people.

• Temporary term insurance is automatically provided on the date of the first death to the survivor of

a Joint first-to-die coverage if the survivor is less than 70 years old.

• This temporary term insurance provides a death benefit equal to the amount of insurance under the

joint coverage as of the date of the first death.

• If the survivor has no other insurance coverage in effect on the policy, any rider coverages

applicable to the survivor will be cancelled as of the date of the first death.

• This temporary term insurance may be converted to a new life insurance coverage or policy. Please

refer to the Conversion Administrative Rules for more information.

• The temporary term insurance ends on the earlier of:

• the 31st day following the first death, and

• 11:59 P.M. of the day before the effective date of any new insurance resulting from the

conversion of the temporary term insurance.

• In the event of simultaneous death, two death benefits are payable, one under the Joint first-to-die

coverage and one under the temporary term insurance. Each death benefit would be divided

between the beneficiaries of the people insured under the joint coverage as described in the policy

contract.

• This temporary term insurance is provided at no additional cost.




Investment accounts

Investment overview • All deposits are allocated to the investment accounts using the policy owner’s current deposit

allocation instructions. Please refer to the Deposits section for more details.

• The monthly deductions are withdrawn from the investment accounts each month, based on a

specific order described in the contract. Please refer to the Withdrawals section for more

information.

• The remaining balance in each account earns interest on a tax-deferred basis. Please refer to the

Taxation section for more information.

• The daily interest rate is determined on each day Manulife’s Canadian Head Office is open for

business. This day is called a business day. For Balanced Index Accounts, when our Canadian

Head Office is not open for business, the daily interest rate is zero.

• A policy owner may invest in as many investment accounts as they choose.

• A death benefit guarantee applies to all investment accounts. Please refer to the Guaranteed

Account Value when the last death benefit is payable section for more details.

• For details on how deposits, withdrawals and transfers work, please refer to the How the policy

works section. Note that we reserve the right to delay processing of these transactions; please refer

to the Our right to delay crediting deposits and processing transactions section under How the

policy works.

Investment choices The following investment accounts are available:

INVESTMENT

ACCOUNT CODE8

INVESTMENT ACCOUNT NAME INTERNAL USE

ONLY

SVG Savings SECUL

AVGIA Average GIA SUAVG; or

UAVG

Balanced Index Accounts

CBALI Conservative Balanced Index SUCSR; or

UCSR

MBALI Moderate Balanced Index SUMOD; or

UMOD

GBALI Growth Balanced Index SUGRW; or

UGRW

Changes in investment choices

• We may introduce new investment accounts in the future. We may also change or discontinue any

account we offer.

• If we do change or discontinue an account, we will notify those policy owners with money in that

account before we make the change.

• The policy owner can choose to transfer any money in the account being discontinued or changed to

another account that we offer at the time.

• If the policy owner does not inform us of their choice within the time period we state, we will

transfer the balance to the account we identified when we notified them of the change.

8 as shown on Universal Life Investment Account form




Where to find investment account information • More detailed information on the performance and composition of the investment accounts is

available in the policy contract, on Repsource and on our public website.

• The policy owner will be reminded about the public website on their policy statement.

Savings Account • This account provides daily interest earnings based on Government of Canada 91-day Treasury bills.

Interest that is credited to this account is earned and compounded daily.

• There are no Market Value Adjustments on transfers or withdrawals from the Savings Account.

• If the policy’s Account Value is not sufficient to cover monthly deductions, the Savings Account

will reflect any negative balance and the policy will enter the Grace Period (please refer to the

Grace Period section for more details). We will place all deposits we receive during the Grace

Period into the Savings Account.

• Any Bonus payable will be deposited into the Savings Account on each bonus anniversary.

• If the policy owner does not set up a deposit allocation when the policy is purchased, all deposits

will be placed into the Savings Account.

Interest guarantee

• The rate credited to the Savings Account is set at least once a week.

• We guarantee that the effective annual interest rate for the Savings Account will not be less than the

greater of:

• 90% of the Government of Canada 91-day Treasury Bill rate, minus 2.25%; and

• 0%.

Average GIA Account • The Average GIA Account combines the advantage of a daily interest account with the performance

of a long-term rate and includes a minimum interest rate guarantee.

Interest guarantee

• The rate credited to the Average GIA Account is set at least once a week.

• We guarantee that the effective annual interest rate for the Average GIA Account will not be less

than the greater of:

• 90% of the weighted average on current coupon Government of Canada bonds with terms to

maturity of 10 years or more, minus 2.25%; and

• 1.5%.

• For policies dated before April 2, 2011 please refer to the Investment accounts section in

Appendix 1.

• We weight the average yield over the shorter of two time periods:

• since we started offering Average GIA accounts on our Canadian policies, and

• the past 15 years.

Market Value Adjustments

• Market Value Adjustments may apply to transfers, withdrawals, or Disability Benefit payments

from the Average GIA Account.

• They do not apply if money is withdrawn from the Average GIA Account:

• to pay the monthly deduction,

• to pay a death benefit, or.

• on automatic withdrawals (see the Automatic withdrawals section for more information).

• Appropriate Head Office contact staff can provide the amount of a potential MVA.




• A Market Value Adjustment is calculated by multiplying the amount withdrawn by a Market Value

Adjustment factor.

• The maximum Market Value Adjustment factor for the Average GIA account is equal to:

• A x B, where

• A = 7.5 and

• B = Maximum (0, Current yield on Government of Canada Bonds with terms to maturity of

10 years or more minus the current interest rate for the Average GIA Account).

Balanced Index accounts • The Balanced Index Accounts are daily interest accounts.

• Interest is based on the weighted average of the Government of Canada 91-day Treasury Bill (T-

Bill) rate and the performance of specific market indices as shown below.

• Interest will be credited on the money invested in the Balanced Index Accounts based on the

percentage change in the indices that make up the account

• Daily interest can be either positive or negative, resulting in either an increase or decrease in the

account’s value.

• The daily interest rate is determined on each business day. This is a day on which our Canadian

Head Office is open for business. When our Canadian Head Office is not open for business, the

daily interest rate is zero.

• We calculate our daily interest rate for an index based on the total return of that index with

dividends reinvested. Security UniversalLife policies with a Policy Date before June 23, 2001 use

the price return of each index to calculate the daily interest rate and have different management fees.

Please refer to the Balanced Index Accounts section in Appendix 2 for more information.

• There are no Market Value Adjustments on transfers or withdrawals from any of the Balanced Index

Accounts.

• Only one interest rate is reported for each Balanced Index Account.

Conservative, Moderate and Growth Balanced Index Accounts

• These accounts pay interest based on the weighted average performance of 91-day Treasury Bills

(T-Bill) and the indices shown in the chart below.

Gov’t of Canada DEX S&P/TSX 60 G5

Account 91-day T-Bill rate Universe Bond Index Index Index1

Conservative 40% 40% 20% 0%

Moderate 20% 40% 30% 10%

Growth 10% 20% 40% 30% 1 G5 Index is Cdn$ value




Interest guarantee

• Security UniversalLife policies with a Policy Date before June 23, 2001 use the price return of each

index to calculate the daily interest rate and have different management fees. Please refer to the

Balanced Index Accounts section in Appendix 2 for more information.

Conservative Balanced Index Account

• We guarantee that, on each particular business day, the daily interest rate that applies to the

Conservative Balanced Index Account will not be less than the result of:

• 40% of the current effective daily yield on Gov’t of Canada 91-day T-Bills, plus

• 40% of the percentage daily change in the DEX Universe Bond Index, plus

• 20% of the percentage daily change in the S&P/TSX 60 Index, minus

• a daily management fee of 0.000100 (approximately 2.50% annually).

Moderate Balanced Index Account

• We guarantee that, on each particular business day, the daily interest rate that applies to the

Moderate Balanced Index Account will not be less than the result of:



• 30% of the percentage daily change in the S&P/TSX 60 Index, plus

• 10% of the percentage daily change in the G5 index, minus


Growth Balanced Index Account

• We guarantee that, on each particular business day, the daily interest rate that applies to the Growth

Balanced Index Account will not be less than the result of:



• 40% of the percentage daily change in the S&P/TSX 60 Index, plus

• 30% of the percentage daily change in the G5 index, minus





Guaranteed Account Value when the last death benefit is payable • When the last death benefit is payable for an insurance coverage under a Security UL policy, we

guarantee that the Account Value used to determine that death benefit will be no less than 75% of

the following amount:

Net deposits + Bonus – Withdrawals

Where:

Net deposits are all deposits credited to the policy less Deposit Tax Charges.

Bonus is the amount of any Bonus credited to the policy.

Withdrawals from the policy include:

• all monthly deductions,

• any automatic withdrawals to keep the policy exempt,

• any cash withdrawals, including amounts withdrawn and paid as part of a death benefit on the

policy,

• any Disability Benefit payments, and

• any charges that apply (e.g. Market Value Adjustments).

• This guarantee is often referred to as the death benefit guarantee.

• For the guarantee that applies to Security UniversalLife policies, please refer to the Guaranteed

value of the Balanced Index Accounts when the last death benefit is payable section in Appendix 2.

Bonus • The Bonus rewards policy owners who keep their policies in effect.

• It is a guaranteed interest payment that we credit to the Savings Account on the 5th policy

anniversary and on every policy anniversary after that, as long as the policy is in effect.

• The Bonus does not apply to the balance of the Side Account.

• Each Bonus payment is an amount equal to 0.5% of the Average Account Value for the past 12

months.

• Average Account Value is the sum of the Account Value on each Monthly Processing Day in the 12

months immediately preceding the Bonus payment, divided by 12.

• The Bonus payment will never be less than $0.

• For Security UniversalLife policies, please refer to the Bonus section in Appendix 2 for more

information.

• Expected Bonus payments are taken into consideration when estimating the maximum deposit

amount for a policy. However, it is still possible for a Bonus payment to cause the policy to fail the

exempt test. Please refer to the Taxation section for further details.




Side Account

Side Account overview • The Side Account is an account outside the policy, designed as a convenient account to hold money

that cannot be placed in the policy due to tax limits. Please refer to the Taxation section for further

details.

• The Side Account is not creditor or CompCorp protected.

• The Side Account does not form part of the contract, therefore it will never be paid out as part of a

death benefit to a beneficiary.

• The Side Account is not available on non-exempt policies. If a policy becomes non-exempt, the

Side Account will be cancelled and we will either refund the value in the Side Account or deposit

those funds into the policy.

Side Account investments • Interest earned in the Side Account is taxable on an annual basis.

• The policy owner can invest in more than one account in the Side Account.

• The Side Account contains accounts that match the investment accounts available in the policy.

• The following Side Account investment choices are available:

• Savings Side Account

• Average GIA Side Account

• Three Balanced Index Holding Side Accounts:

• Conservative

• Moderate

• Growth

• With the exception of the Holding Side Accounts, each account within the Side Account:

• operates in the same manner as the matching investment account inside the policy in terms of

interest, crediting of interest, and Market Value Adjustments; and

• earns interest at the same rate as the matching investment account in the policy.

• The Holding Side Accounts:

• operate in the same manner as the Savings Account in terms of interest, crediting of interest, and

Market Value Adjustments; and

• earn interest at the same rate as the Savings Account.

• The death benefit guarantee that applies to the investment accounts within the policy does not apply

to the Side Account.

The balance of the Side Account • The balance of the Side Account is the sum of the balance of each account within the Side Account.

• The balance of each account is the sum of:

• all amounts placed into that account,

• all amounts transferred into that account from other accounts, and

• all interest earned

minus

• all amounts withdrawn from that account, including any Market Value Adjustments, and

• all amounts transferred or deposited to other accounts from that account.




The value of the Side Account • The value of the Side Account at any given time equals the balance of the Side Account minus any

Market Value Adjustments that apply.

When amounts are placed in the Side Account • Amounts can be placed into the Side Account in three ways:

• Any portion of a deposit that exceeds the maximum deposit allowed into the policy will be

placed into the Side Account as of the effective date of that deposit.

• On each policy anniversary, if money must be removed from the policy to keep it exempt, we

will move the money from the policy to the Side Account. For further information, see the

Automatic Withdrawals section under How the policy works.

• The policy owner may pre-pay deposits by placing amounts in the Side Account.

How amounts are placed in the Side Account • Amounts placed into the Side Account will be allocated to the accounts within the Side Account

based on the latest deposit allocation instructions the policy owner has given us. If the minimum

requirement for an account is not met, the amount allocated to that account will be placed into the

Savings Side Account.

• However, when an amount is withdrawn from the policy and placed into the Side Account, it is

moved to an account that matches the account from which it was withdrawn.

• A Market Value Adjustment does not apply to money withdrawn from the Average GIA

Account in the policy provided it is placed into the Average GIA Side Account.

• The Deposit Tax Charge is not deducted from amounts placed into the Side Account until they are

deposited into the policy.

How amounts are deposited into the policy • On each policy anniversary, if money can be withdrawn from the Side Account and deposited into

the policy and still keep the policy exempt, we will move the maximum amount possible.

• Money is also moved from the Side Account to the policy on a Monthly Processing Day if funds are

needed to keep the policy in effect. The amount moved is the lesser of the balance of the Side

Account and the maximum amount allowed in the policy.

• The policy owner may request that an amount be withdrawn from the Side Account and deposited into

the policy, provided the amount does not exceed the maximum allowed. This can be requested by

mailing or faxing the Financial Change form (NN0946) to Manulife’s Canadian Head Office.

• We will use the order shown in the Side Account order of withdrawal section when we withdraw

money from the Side Account to deposit it into the policy and the same order, unless the policy

owner provides different instructions, for policy owner requests.

• When money is withdrawn from the Side Account and deposited into the policy, it is moved to an

account that matches the account from which it was withdrawn.

• A Market Value Adjustment does not apply to money withdrawn from the Average GIA Side

Account provided it is deposited into the Average GIA Account in the policy.

• There is no Deposit Tax Charge deducted from amounts placed into the Side Account. The Deposit

Tax Charge will be deducted when the money is deposited into the policy.

Amounts transferred within the Side Account • The policy owner can transfer money between investment options within the Side Account at any

time. Market Value Adjustments may apply on transfers from the Average GIA Side Account.




• If the policy owner changes the investment mix within the policy, they can make the same change in

mix to the Side Account. A checkbox on the Financial Change Form (NN0946) allows this request

to be made easily.

• Transfer requests can be made by mailing or faxing the Financial Change Form (NN0946) to

Manulife’s Canadian Head Office.

• If the request is received in Manulife’s Canadian Head Office before 4 pm. EST, the effective date

of the transfer will be the next business day. Requests received after 4 pm. EST will be processed

the second business day after the request is received.

Withdrawals from the Side Account • The policy owner can withdraw all or part of the value of the Side Account.

• Market Value Adjustments may apply to money withdrawn from the Average GIA Side Account.

• There is no withdrawal fee.

• We will use the order shown in the Side Account order of withdrawal section when we withdraw

money from the Side Account, unless the policy owner provides different instructions.

• Withdrawal requests received at Manulife’s Canadian Head Office by 4 pm EST are effective that

business day. Withdrawal requests received at Manulife’s Canadian Head Office after 4 pm EST

are effective the next business day after the request is received.

• Withdrawals from the Side Account are not taxable dispositions.

• Since money in the Side Account does not incur a Deposit Tax Charge, and interest earned in the

account is taxable, we recommend that the policy owner withdraw money from the Side Account

before withdrawing it from the policy.

Side Account order of withdrawal • We will use the order shown below when we withdraw money from the Side Account to deposit it

into the policy and the same order, unless the policy owner provides different instructions, to fund a

policy owner requested withdrawal.

1. The Balanced Index Holding Side Accounts will be reduced proportionally, based on the

balance in each account at the time we reduce it, until the balance in all of the Balanced Index

Holding Side Accounts is equal to zero.

2. The Average GIA Side Account will be reduced until its balance is equal to zero.

3. The Savings Side Account will be reduced until its balance is equal to zero.

When the Side Account ends • If the policy owner cancels the policy or if it lapses, the Side Account will also end. We will pay

the value of the Side Account, which reflects any Market Value Adjustments, to the policy owner.

• The Side Account ends on the death of the policy owner or when the last death benefit is payable

under an insurance coverage on the policy. Market value adjustments do not apply if the Side

Account ends for these reasons. The Side Account balance is paid to the policy owner or their

estate.

Side Account assignment and ownership • If the policy is collaterally assigned, the Side Account is also collaterally assigned.

• If the ownership of the policy is transferred, then the ownership of the Side Account is also

transferred. The policy owner is always the owner of the Side Account.

Side Account deposit commissions • Commissions are not paid on deposits until they are applied to the policy.




• Amounts placed into the Side Account from the policy in the first policy year will cause a

commission adjustment to the policy.

Side Account and taxation • Interest earned in the Side Account will be reported to the policy owner annually for inclusion in

their income for tax purposes.

• Funds placed in the Side Account are NOT locked-in and, thus, are not included in the policy’s

accumulating fund for tax purposes (for example, when performing the exempt test or when

calculating the taxable portion of dispositions)




How the policy works

Death benefit

When we pay a death benefit

On Single Life coverages We pay a death benefit when a person whose life is insured by the

insurance coverage dies. We calculate the death benefit as of the

day this insured person dies.

On Joint first-to-die

coverages

We pay a death benefit when the first person insured by the Joint



On Joint last-to-die

coverages

We pay a death benefit when the last person insured by the Joint



Monthly deductions for the Joint last-to-die coverage will continue

to be charged until the death of the last insured person.

How we determine the death benefit amount

• The death benefit amount payable is equal to the sum of:

• the amount of insurance for each applicable insurance coverage,

• the amount of insurance for any applicable rider coverages,

and either

• the allocated Account Value for each applicable insurance coverage, if the Account Value is

positive on the date of death,

or

• the Account Value of the policy, if the Account Value is negative on the date of death.

• Adding a negative Account Value to the death benefit will reduce the amount payable.

• Under certain conditions we will adjust the death benefit. For further details please refer to the

following sections:

• Suicide,

• Misstated age or sex, and

• Guaranteed Account Value when the last death benefit is payable.

• For Security UniversalLife policies, please refer to the Death benefit section in Appendix 2.

Compensation and death claims

• If a coverage ends in the first coverage year due to a death claim, the advisor is deemed to have

earned the full first year’s commission for that coverage.

• If a coverage ends in a subsequent coverage year due to a death claim, the advisor will be entitled to

the monthly commission up to the date of death.

• The advisor will not incur any commission chargeback as a result of the cancellation of riders due to

a death claim. The same commission rules as outlined above will apply to riders automatically

cancelled as a result of a death claim on the policy.

• If a policy ends because the death benefit is payable for the last insurance coverage under that

policy, a chargeback will not apply.

• If a policy ends in the first policy year due to a death claim:

• the advisor is deemed to have earned the full first year’s policy and life fee commission, and




• there will be a commission adjustment for the deposit commission.

Suicide • For Security UniversalLife policies, please also refer to the Suicide section in Appendix 2.

Insurance and Term Insurance Rider coverages

• If an insured person commits suicide within two years after the later of the day we issued or the day

we last reinstated the policy or coverage, we will not pay the death benefit as described in the Death

Benefit section. Instead, we will do the following:

• If the insured person under a Single Life or Joint first-to-die insurance or Term Insurance Rider

coverage commits suicide or if the last insured person under a Joint last-to-die coverage

commits suicide, we will pay a reduced death benefit to the beneficiary(s). The reduced death

benefit will equal the cost of insurance paid for the coverage since the later of the Coverage

Date or the last reinstatement date, plus the Account Value that is allocated to the coverage on

the day the insured person dies.

• If an insured person under a Joint last-to-die insurance or Term Insurance Rider coverage, other

than the last insured person under that coverage, commits suicide, we will refund to the policy

owner the cost of insurance paid for the coverage since the later of the Coverage Date or the last

reinstatement date, plus the Account Value that is allocated to the coverage on the day the

insured person dies.

• If the Account Value is negative on the date of death, no amount is allocated to the insurance

coverages. The total amount payable on suicide will be reduced by the amount needed to

increase the balance of the Savings Account to zero.

• We will then cancel the coverage as of the day the insured person died.

Child Protection Rider coverages

• If an insured child commits suicide within two years after the later of the day we issued or the day

we last reinstated the Child Protection Rider coverage, we will not pay the death benefit. Instead,

we will refund to the policy owner the cost of insurance paid for the coverage since the later of the

Coverage Date or the last reinstatement date.

• We will then cancel that Child Protection Rider coverage as of the day the insured child died.

Account Value • On any specific day, the Account Value of a policy is the total of the balances in all investment

accounts within the policy. It includes any Bonus that is credited to the policy.


• A portion of the Account Value is allocated to each insurance coverage in effect on the policy,

based on:

• the amount of insurance,

• the age or Joint age of the insured people calculated as of the Coverage Date, and

• the number of Monthly Processing Days for that coverage since the Coverage Date.

• The amount allocated to each insurance coverage is used to determine the death benefit payable for

that coverage. It is also used to determine the amount payable in the event of suicide during the

suicide period. Please refer to the Suicide section for further details.

• If the Account Value is positive on the date of death (including suicide), then the balance of the

investment accounts will be reduced by the sum of the allocated Account Value for each

applicable insurance coverage. (The investment accounts will be reduced according to the order

shown in the Withdrawal order section.)




• If the Account Value is negative on the date of death (including suicide), then the balance of the

Savings Account will be increased to zero.

• Exercising the Joint Legacy Protector feature will impact the allocated Account Value for all

insurance coverages. Please refer to the Joint Legacy Protector section for more information.

• Exercising the InnoVision Advantage Option may impact the allocated Account Value for all

insurance coverages for policies with a Joint last-to-die insurance coverage dated before December

4, 2004. Please refer to the InnoVision Advantage Option section for more information.

• For Security UniversalLife policies, please refer to the Allocated Account Value section in

Appendix 2.

Cash Value • The Cash Value of a policy is equal to the Account Value minus any Market Value Adjustments

that apply.

• For Security UniversalLife policies, please refer to the Cash Value section in Appendix 2.

Deposits

Initial deposit

• The initial deposit is due on the Policy Date and must be paid before the insurance becomes

effective. Please refer to the Initial deposit section under Issuing policies for more details.

How deposits work

• Deposits received at Manulife’s Canadian Head Office by 4 pm EST are effective that business day.

Deposits received at Manulife’s Canadian Head Office after 4 pm EST are effective the next

business day after the deposit is received.

• Policy owners will receive confirmation of all non-PAC deposits.

• The deposit is applied to the investment accounts based on the policy owner’s current deposit

allocation instructions. If no deposit allocation instructions have been made, the deposit will be

placed into the Savings Account.

• A 2% Deposit Tax Charge is deducted from the deposit.

Deposit frequency

• The policy owner may choose from the following deposit frequencies:

• monthly (by pre-authorized cheque),

• quarterly,

• semi-annual, or

• annual.

• If deposits are paid by pre-authorized cheque (PAC), the PAC withdrawal date may be selected on

the application. We recommend the PAC date be set to 4 days before the Monthly Processing Day.

We will automatically set the PAC date this way if no PAC date is specified on the application.

• Policy owners paying monthly have the option of paying a fixed dollar amount or paying only the

Minimum Monthly Deposit. Under the minimum payment option, the monthly PAC draw will

change if the Minimum Monthly Deposit changes. Policy owners will receive a notice before any

scheduled increase in their payment.

• For non-PAC deposit frequencies, a reminder is sent to the policy owner 21 days before each

planned deposit date based on the planned frequency and deposit amount indicated on the

application.

• The minimum monthly PAC amount is $10. The minimum amount is $60 for quarterly and semi-

annual deposits, and $120 for annual deposits.




Deposit Tax Charge

• When a deposit is applied to the policy (not the Side Account), a 2% Deposit Tax Charge is

deducted.

• We use this amount to pay all or part of the taxes that are charged on deposits made into insurance

policies.

• The Deposit Tax Charge is guaranteed not to increase, unless the policy owner exercises the

InnoVision Advantage Option. Please refer to the InnoVision Advantage Option section for further

details.

Minimum deposit

• There is no requirement to make deposits if there is a sufficient Account Value in the policy to

cover the monthly deductions.

• The Minimum Monthly Deposit is an amount we calculate as the minimum deposit that would be

required each month to keep the policy in effect. In making this calculation, we assume that all

deposits to the policy earn 0% interest. It reflects the monthly insurance and rider costs, the Deposit

Tax Charge, and the policy and life fees.

• Section 3 of the policy contract shows the Minimum Monthly Deposit that applies to the policy as

of the effective date of that section.

• Each insurance and rider coverage and the policy fee and life fee has its own Minimum Monthly

Deposit. The Minimum Monthly Deposit for an insurance or rider coverage reflects the insurance

rating for that coverage.

• The Minimum Monthly Deposit for the policy is the sum of the Minimum Monthly Deposits for all

insurance and rider coverages and the policy and life fees.

• Coverages with a level Cost Type (such as insurance coverages, CPR, BVP, GIO or TDW riders)

have a Minimum Monthly Deposit based on the issue age.

• Coverages with a renewable Cost Type (e.g. Yearly Increasing, 10-Year Renewable) have a

Minimum Monthly Deposit that changes on each renewal coverage anniversary, based on the

attained age or attained Joint age.

• The Minimum Monthly Deposit is determined each Monthly Processing Day based on the coverages

in effect and the number of insured people on the policy at that time. As these can change from one

Monthly Processing Day to the next, the Minimum Monthly Deposit can also change.

• If an insurance or rider coverage is reduced, changed or cancelled, the Minimum Monthly Deposit

for that coverage will change, as of the effective date of the change in coverage.

• A notice will be sent to the policy owner if there is a scheduled change in the Minimum Monthly

Deposit on the next Monthly Processing Day (e.g. renewal of a TIR coverage).

Maximum deposit

• The maximum deposit allowable for a policy is based on the total death benefit, each insured

person’s personal information and the duration of the policy/coverage.

• In the first year, the maximum deposit is fixed, based on an assumed interest rate, and can be

calculated by the Security UL Illustration system. In subsequent years, an estimate of the maximum

deposit that can be made to the policy without affecting the exempt status is provided to the policy

owner on their statement and Payment Reminder notice. It can also be obtained from the

appropriate Head Office contact. Note that this estimate changes daily due to investment growth in

the policy. The estimate provided is not reduced by planned deposits.

• Additional coverage added during the policy year may not result in an increase in the maximum

deposit allowable until the next policy anniversary. Please refer to the Taxation section for further

details.

• Deposits in excess of the maximum deposit will be placed in the Side Account. Please refer to the

Side Account section for further details.




• We limit deposits on non-exempt policies.

Deposit allocation

• At issue, the policy owner must specify the deposit allocation instructions for the policy. Until

those instructions are received, 100% of all deposits will be placed into the Savings Account.

• The policy owner may allocate deposits in any proportion among the available investment accounts,

using percentages (e.g. 45% into the Savings Account, 55% into the Moderate Balanced Index

Account). Each percentage can be up to 5 decimal places and the total of all percentages must equal

100%.

• The policy owner can change the deposit allocation at any time. The change will take effect on the

day we receive the written request or Financial Change form (NN0946). A Payment Allocation

confirmation will be sent to the policy owner.

• The policy owner may also specify unique deposit allocation instructions for any deposit by sending

in a Financial Change form (NN0946) with the deposit.

Deposits on policies with a negative Account Value

• While a policy has a negative Account Value:

• any deposits received are applied entirely to the Savings Account, and

• monthly deductions are withdrawn from the Savings Account.

• Note that this may result in a statement showing balances and performance for the Savings Account

when the policy owner has not specified that account as part of their deposit allocation instructions.

• Once the policy has a positive Account Value again, the policy owner may transfer money from the

Savings Account to other investment accounts, and all subsequent deposits will be applied based on

the policy’s deposit allocation instructions.

Our right to delay crediting deposits and processing transactions • Manulife reserves the right to delay the effective date of transactions, including:

• crediting of deposits,

• processing of transfer requests, and

• processing of withdrawal requests

to or from any investment account for up to seven days from the day we receive the funds, or the

day we receive the request for transfer or withdrawal.

• We further reserve the right to delay the effective date of transactions in the event of an

unanticipated closure or disruption of financial markets or our offices.

Transfers between investment accounts • At any time, the policy owner may request to transfer funds from one investment account to another,

by sending the request to Manulife’s Canadian Head Office, using the Financial Change Form

(NN0946).

• Transfers from the Average GIA Account may incur Market Value Adjustments.

• Transfer requests received at Manulife’s Canadian Head Office by 4 pm EST are effective the next

business day. Transfer requests received at Manulife’s Canadian Head Office after 4 pm EST are

effective the second business day after the request is received.

• Automatic transfers are not available.

• We reserve the right to delay the effective date of a requested transfer, please refer to the Our right

to delay crediting deposits and processing transactions section above.

• For Security UniversalLife policies, please refer to the Transfers between investment accounts

section in Appendix 2.




Withdrawals

Cash withdrawals

• The policy owner may request a withdrawal at any time.

• We recommend that withdrawals from the Side Account be made before withdrawals from the

policy, as interest earned in the Side Account is taxable, and money placed into the Side Account

does not incur a Deposit Tax Charge.

• There is no withdrawal fee; however, Market Value Adjustments (MVAs) may apply to withdrawals

from the Average GIA Account. Any MVA amount will be added to the amount of the requested

withdrawal; therefore, the total amount withdrawn will be the withdrawal amount requested, plus

any MVA. Please refer to the Average GIA Account - Market Value Adjustments section for further

details.

• Withdrawal requests received at Manulife’s Canadian Head Office by 4 pm EST are effective that

business day. Withdrawal requests received at Manulife’s Canadian Head Office after 4 pm EST

are effective the next business day after the request is received.

• We reserve the right to delay the effective date of a requested withdrawal. Please refer to the Our

right to delay crediting deposits and processing transactions section for further details.

• If a withdrawal is requested and:

• the account(s) is not specified, or

• the balance of the specified account(s) does not provide the amount required,

the withdrawal will be made from the accounts in the order shown in the Withdrawal order section.

Minimum withdrawal amount

• The minimum withdrawal amount is $100.

Maximum withdrawal calculation

Maximum Withdrawal

= Account Value – Market Value Adjustments – (n x Monthly Deduction)

= Cash Value – (n x Monthly Deduction)

‘n’ = 2, for policies with a PAC deposit frequency

OR

greater of 2 months and the number of months to next policy anniversary, for all other policies

• The maximum withdrawal limit is intended to ensure the policy remains in effect until at least its

next scheduled deposit date.

Automatic withdrawals

• In order to maintain the policy’s exempt status, we may be forced to withdraw money from the

policy and place it in the Side Account. This is called an automatic withdrawal. Money will be

withdrawn from the investment accounts in the policy using the same order as shown in the

Withdrawal order section.

• Automatic withdrawals do not cause the reversal of any Deposit Tax Charges previously deducted.

• Automatic withdrawals do not cause reversals of commission, except if they occur during the first

policy year.

• Automatic withdrawals do not incur Market Value Adjustments since money is moved to a

matching account in the Side Account.

• Please refer to the Taxation section for further details.




Withdrawal order

• We will use the order shown below when we withdraw money from the investment accounts to pay

the monthly deduction or fund an automatic withdrawal.

• The Savings Account will be reduced until its balance is equal to zero.

• The Average GIA Account will be reduced until its balance is equal to zero.

• The Balanced Index Accounts will be reduced proportionally, based on the balance in each

account at the time we reduce it, until the balance in all of the Balanced Index Accounts is equal

to zero.

• We will use the same order to fund a cash withdrawal unless the policy owner provides us with

different instructions at the time the withdrawal is requested.

Withdrawals and taxation

• It may be necessary for the policy owner to include an amount in their income for tax purposes as

the result of a withdrawal.

Monthly deduction • On the Policy Date and each Monthly Processing Day that follows, we deduct fees and charges from

the investment accounts within the policy. These include:

• the policy fee,

• the life fee(s),

• the cost of insurance that applies to each insurance coverage, and

• any rider costs.

• The total of these fees and charges is called the monthly deduction.

• If the policy owner exercises the InnoVision Advantage Option, the monthly deductions for the

policy will change on the Option effective date. Please refer to the InnoVision Advantage Option

section for further details.

• If he policy owner exercises the Joint Legacy Protector feature, the cost of insurance charges for any

joint insurance coverage impacted by the request will change on the effective date of the change in

coverage type. Please refer to the Joint Legacy Protector section for further details.

How we withdraw the monthly deduction

• The Withdrawal order section shows the order we use when we withdraw the monthly deduction

from the investment accounts.

• If the balance in the investment accounts is not enough to pay the monthly deductions and if there is

money in the Side Account, we will withdraw money from the Side Account and deposit it into the

matching account in the policy. This deposit will be the maximum amount that we estimate can be

put into the policy without causing it to lose its exempt status. Please refer to the Side Account

section for more details.

• After this deposit, we will repeat the order of withdrawal to deduct any monthly deduction amount

that is still outstanding from the investment accounts.

• After the balance in all of the investment accounts, including the Savings Account, has been reduced

to zero, we will withdraw any remaining deductions from the Savings Account. At this point, the

Savings Account will have a negative balance.

Policy fee

• We charge a monthly policy fee of $7.

• The policy fee is charged as long as the policy is in effect.

• If the policy lapses and is subsequently reinstated, upon reinstatement the policy fee will be charged

for the time period during which the policy was terminated.




• The policy fee is guaranteed never to increase, unless the policy owner exercises the InnoVision

Advantage Option; please refer to the InnoVision Advantage Option section for further details.

• For Security UniversalLife policies, please refer to the Policy fee section in Appendix 2.

Life fee

• We charge a monthly life fee of $3 for each insured person.

• The life fee will be charged each month as long as the person is insured on the policy.

• A life fee is not charged for a Total Disability Waiver insured person who is the payor, and who has

no other coverage on the policy.

• A life fee is not charged for a Child Protection Rider insured child who has no other coverage on the

policy.

• The life fee for an insured person will be reduced to $0 as of the Monthly Processing Day

coinciding with or next following:

• the date the last coverage on that insured person is cancelled, and

• the date of death of an insured person under a joint insurance coverage, if that insured person

has no other insurance coverage on the policy.

• If the policy lapses and is subsequently reinstated, upon reinstatement the life fee will be charged

for the time period during which the policy was terminated.

• The life fee is guaranteed to be calculated at the same rate, unless the policy owner exercises the

InnoVision Advantage Option; please refer to the InnoVision Advantage Option section for further

details.

• For Security UniversalLife policies, please refer to the Life fee section in Appendix 2.

Cost of insurance

• One Cost Type is available for Security UL insurance coverages - Level Cost.

• Please refer to the Cost Types section for more information.

• For Security UniversalLife policies, please refer to Coverage options section in Appendix 2.

Rider costs

• The following riders have a level Cost Type:

• Business Value Protector Rider (BVP)


• Guaranteed Insurability Rider (GIO), and

• Total Disability Waiver Rider (TDW)

• The Term Insurance Rider (TIR) has three Cost Types available:

• Yearly Increasing,

• 10-Year Renewable, and

• 20-Year Renewable.

• Please refer to the Additional protection section for more information.

Policy loans • Policy loans are not available.

• A collateral loan with the Manulife Bank may be available, if the policy has sufficient Cash Value.

A loan application can be obtained from Manulife Bank.

Line of credit • Policies with $10,000 or more in withdrawal value (see Withdrawals section) are automatically

eligible for a line of credit for up to 50% of that value from Manulife Bank.

• The policy must be assigned to the Bank. Please contact Manulife Bank for more information.




Policy changes

Increases in coverage • At any time, the policy owner may request an increase in the amount of insurance on a particular

insured person or add a new insured person to the policy. Evidence of insurability will be required;

see Underwriting for the requested change.

• Two options are available to the policy owner if an increase in the amount of insurance for an

insured person is requested:

• Option #1 Replace the existing coverage with a new current-dated coverage, on the

existing policy, for the new higher amount.

• Option #2 Add a new layer of coverage to the existing policy, for the amount of the

increase.

Note: A review of the Healthstyle availability should be one of the factors to consider when

determining the option to proceed with for the increase. For details, refer to the Healthstyle

availability section. For example, Option #1 could result in a loss of Healthstyle 2, if the original

coverage is Healthstyle 2 and the new current-dated coverage results in an underwriting method that

does not offer Healthstyle 2.

• The advisor should indicate which option the policy owner has requested; otherwise we will process

the increase as an additional layer of coverage (i.e. option #2).

• The option chosen should be the one that results in the lowest monthly deduction for the policy

owner. The insured person’s attained age/Joint age, current Healthstyle and current insurance rating

versus the reduction in rates, due to rate changes and/or moving to a new higher band will be the key

factors in determining which option is better for the policy owner.

• Under either option, the rates for the new coverage added to the policy will be based on:

• the coverage type, Cost Type and rate band,

• the rates in effect on the new Coverage Date, and

• each insured person’s:

• sex,

• age on their birthday nearest the new Coverage Date, and

• current insurance rating and Healthstyle as determined by Underwriting.

• New suicide and contestability periods will apply; please refer to the Increases in Coverage

Overview chart for full details.

• Please refer to the Increases in coverage and changes in Healthstyle section for information on how

a change in Healthstyle can impact existing coverages.

• Please refer to the Increases in coverage and changes in insurance rating section for information on

how a change in the insurance rating can impact existing coverages.

• The effective date of the new coverage will be the Monthly Processing Day that coincides with or

next follows the day we approve the request.

• For Security UniversalLife policies, please refer to the Increases in Coverage section in

Appendix 2.

Minimum increase amount

• The minimum increase in the amount of insurance is:

• $25,000 if the insured person already has insurance coverage on the policy.

• $50,000 if the insured person does not have insurance coverage on the policy.




Underwriting for the requested change

• Full evidence of insurability, satisfactory to us, is required based on the routine requirements for the

age and applicable amount. (Please see the Increases in Coverage Overview chart.)

• We will not approve the coverage increase if:

• A TDW rider coverage is in effect on the policy, and

• The total amount that would be waived (including the annual premium for any other life insurance

policy already in effect)9 if the TDW insured person became totally disabled would increase to an

amount greater than $60,000 per 12 month period.

• Evidence of insurability remains current for a period of 12 months to age 69. For ages 70 and over,

evidence remains current for six months. Evidence must be updated after this period has elapsed for

any increase in insurance.

• Please refer to the Evidence of Insurability Requirements on Repsource for further details.

• We reserve the right to request any requirement deemed necessary by Underwriting regardless of

age or amount.

Compensation and increases in coverage

• An increase in the amount of insurance will generate new commission based on the amount of the

increase.

• Please refer to the Schedule of Commissions and Override Credits for further details.

9 Note that the total amount that would be waived includes the cost of the TDW rider(s).




Increases in Coverage Overview

How an increase in

coverage works

Two options are available:

Option #1 Replace the existing coverage with a new, current-

dated coverage, on the existing policy, for the new

higher amount

Option #2 Add a new layer of coverage, to the existing policy,

for the amount of the increase.

• The advisor should indicate which option the policy owner

has requested; otherwise we will process the increase as an

additional layer of coverage.

• The option chosen should be the one that results in the lowest

total monthly deduction.

• A review of Healthstyle availability should be one of the factors

to consider when determining the option to proceed with for the

increase.

Rates for the new coverage are based on:

• the coverage type, Cost Type and rate band;

• the rates in effect on the new Coverage Date; and

• each insured person’s:

• sex;

• age on their birthday nearest the new Coverage Date; and

• current insurance rating and Healthstyle as determined by

Underwriting.

Basic requirements • Fully completed Application for Change (NN7001)

• Policy Change Details form (NNO787)

• Existing contract

• Option #1 - Replacement forms and an advisor checklist

Underwriting

considerations

• Healthstyle and insurance rating will be determined as part of the

underwriting process.

• If an existing coverage has been in effect for less than one year,

we will underwrite for the total amount of insurance.

• If an existing coverage has been in effect for at least one year, we

will underwrite for the increase only.

Suicide and

contestability

• New suicide and contestability periods will apply to the new

layer of insurance coverage.

Decreases in coverage • At any time, the policy owner may request a decrease in the amount of insurance on a particular

insured person.

• The minimum decrease in the amount of insurance is $10,000. During the first five years that each

insured person is insured on the policy, the total amount of insurance under all Single Life and joint

insurance coverages insuring that person cannot be reduced below $50,000. After the insured




person has been insured on the policy for five or more years, they may reduce their total amount of

insurance coverage to a minimum of $25,000.

• The amount of insurance under any insurance coverage can never be decreased below $25,000.

• Insurance coverages will be reduced on a “last on, first off” basis for coverages with the same:

• Cost Type,

• coverage type, and

• insured person(s).

• For Security UniversalLife policies, please refer to the Decreases in coverage section in Appendix

2.

Compensation and decreases in coverage

• A decrease in the amount of insurance will result in a commission chargeback if it occurs during the

chargeback period. It may also result in a commission adjustment if the decrease occurs in the first

coverage year.


Requested coverage cancellations • At any time, the policy owner may ask us to cancel an insurance or rider coverage.

• If the last insurance coverage in effect under a policy is cancelled, the policy will end.

• For Security UniversalLife policies, please refer to the Requested coverage cancellations section in

Appendix 2 for more information.

Compensation and coverage cancellations

• A coverage cancellation will result in a commission chargeback if it occurs during the chargeback

period. It may also result in a commission adjustment if the cancellation occurs in the first coverage

year.


Changes in Healthstyle • A request for an improved Healthstyle may be submitted at any time. A maximum of one request per

year may be made.

• For Healthstyle changes on Security UniversalLife policies, please refer to the Changes in

Healthstyle section in Appendix 2 for additional information.

• For changes from smoker to non-smoker status (only applicable to Security UniversalLife policies),

please refer to the Changes from smoker to non-smoker section in Appendix 2 for additional

information.

How a change in Healthstyle is processed


day on which the change is approved.

• As of the effective date of the change, the monthly deduction is adjusted, for the applicable

coverage(s), to reflect the change in Healthstyle.

• The cost of insurance rates are based on the Coverage Date of the applicable coverage, not on the

rates for new current dated coverages.

• Any rider rates that are not Healthstyle distinct will not be affected.

Increases in coverage and changes in Healthstyle

• If an insured person is Healthstyle 5 or 4 and qualifies for an improvement to Healthstyle 3 when

adding an insurance coverage, then all existing coverages will change to Healthstyle 3.




• If an insured person is Healthstyle 3 and qualifies for an improvement to Healthstyle 1 or 2 when

adding an insurance coverage, the improved Healthstyle can be applied to an existing coverage,

subject to the following:

• full evidence of insurability based on the total amount of coverage under both the existing and

new coverages is provided, and

• the insured person meets the requirements for the improved Healthstyle that were in effect as of

the original coverage date. In other words, if biometric testing was originally required to qualify

for Healthstyle 1 or 2, then biometric testing must be provided even if the amount of insurance

is less than the current biometric testing limits.

• If the Healthstyle on a new coverage is less favourable, only the new coverage will be given that

Healthstyle. Existing coverages will maintain their original Healthstyle.

• For joint coverages, see the Joint coverages and changes in Healthstyle section for more

information.

Joint coverages and changes in Healthstyle

• All insured people on the joint coverage must be living as of the effective date of the change. As a

result, on Joint last-to-die coverages, changes in Healthstyle will not be allowed after the first death

has occurred.

• A change in Healthstyle of one of the insured people will cause a new Joint age to be calculated.

The new Joint age will be based on:

• the issue age and sex of each insured person,

• the current Healthstyle for each insured person,

• the coverage type, and

• the Joint age calculation for coverages with the same Coverage Date.

• The issue age of each individual insured person used in this calculation will be the insured person’s

age on their birthday nearest the Coverage Date.

• The revised Joint age will be effective on the Monthly Processing Day that coincides with or next

follows the day on which the change in Healthstyle is approved.

• Evidence of insurability will be required for all insured people on Joint last-to-die coverages, even if

only one insured person is applying for a change in Healthstyle.

Juveniles and changes in Healthstyle

• At age 16, a non-smoker declaration can be completed to change to Healthstyle 3 rates.

• For certain issue ages it may not be advantageous to change to Healthstyle 3 rates. A notice will

only be sent to those insured people where it is advantageous to change. The notice will be mailed

to the policy owner 30 days before the coverage anniversary nearest the insured person’s 16th

birthday.

• No evidence of insurability will be required to move to Healthstyle 3 rates if the request is received

within 12 months of the coverage anniversary nearest the insured person’s 16th birthday.

• A request for Healthstyle 1 or 2 will require evidence of insurability.

Changes to Healthstyle 1 or 2

• For coverages dated on or after November 26, 2016, a request to improve to Healthstyle 2 may not

be available. Refer to the Healthstyle availability section for details.

• The advisor must contact Underwriting for a preliminary evaluation to determine if the insured

person might qualify. Provided this is done and the Underwriter feels an improvement might be

possible, we will cover the cost of any required underwriting.

• In the first coverage year, full evidence of insurability may be required.

• After the first coverage year, full evidence of insurability is required.

• Submit a fully completed Application for Change (NN7001) along with satisfactory evidence that:




• the insured person meets the underwriting requirements for the improved Healthstyle that were

in effect as of the original coverage date. In other words, if biometric testing was originally

required to qualify for a Healthstyle 1 or 2, then updated biometric testing is required to be

considered for Healthstyle 1 or 2 (even if the amount of insurance is less than the current

biometric testing limit),

• there has been no material change in the insured person’s health or insurability from the

Coverage Date to the date of the application for improved rates; and

• for joint coverages, all insured people on the joint coverage are living as of the effective date of

the change.



Changes to Healthstyle 3 or 4

• If the insured person meets the ‘tobacco use’ requirements of the new Healthstyle, an initial contact

with Underwriting is not required.

• Submit a fully completed Application for Change (NN7001) along with satisfactory evidence that:

• the insured person meets the underwriting requirements for the improved Healthstyle,

• there has been no material change in the insured person’s health or insurability from the

Coverage Date to the date of the application for improved rates; and

• for joint coverages, all insured people on the joint coverage are living as of the effective date of

the change.



Compensation and changes in Healthstyle

• A change in Healthstyle will not result in a commission chargeback, but may result in a commission

adjustment if the change occurs in the first coverage year.

Changes in insurance rating • Subject to satisfactory evidence of insurability and underwriting approval, the policy owner may

apply for an improvement in the insurance rating for an insured person.

• For Joint last-to-die coverages:

• changes in the insurance rating of any of the insured people cannot be made after the death of an

insured person on that coverage, and

• evidence of insurability will be required for all insured people even if only one insured person is

applying for an improvement in the insurance rating.

Increases in coverage and changes in insurance rating

• If an insured person qualifies for an improved insurance rating when adding an insurance coverage

all existing coverages for that insured person may be given the improved insurance rating;

• Full evidence of insurability based on the total amount of coverage under both the existing and new

coverages must be provided.


only one insured person is applying for an improved insurance rating.

• All insured people on a joint coverage must be living as of the effective date of the change. As a

result, on Joint last-to-die coverages, changes in the insurance rating will not be allowed after the

first death has occurred.

• If the insurance rating on a new coverage is less favourable, only the new coverage will be given

that insurance rating. Existing coverages will maintain their original insurance rating.




Compensation and changes in insurance rating

• A change in insurance rating will not result in a commission chargeback, but may result in a

commission adjustment if the change occurs in the first coverage year.

Policy splitting • Policy splitting is permitted on a policy that insures two or more people where the business

relationship of these insured people is changing or their marriage is ending, subject to the following

requirements:

• The policy owner must specify which coverages should remain on the existing policy and which

coverages will move to the new policy(s).

• The policy must be in effect at the time of the policy split.

• The policy owner can purchase new insurance by:

• adding a new current dated insurance coverage to an existing Security UL or Security

UniversalLife policy, or

• buying a new current dated Security UL policy.

• All issue minimum and maximum requirements for the new policy(s) must be met (e.g. issue

ages, insurance coverage, etc.).

• Any riders in effect on the original policy, which are associated with the insured people splitting

from the policy, may be transferred to the new policy(s) on an attained age basis without

evidence of insurability, provided those riders are available on the new policy.

• The original coverage being moved will end at midnight on the day before the new insurance

becomes effective.

• If the insured person dies before the new insurance becomes effective, the new insurance will

not take effect and the original coverage will not end. We will refund any payments the policy

owner has made for the new insurance.

• Splitting a policy will impact the allocated Account Value for insurance coverages remaining on

the policy. Any change in the allocated Account Value of an insurance coverage will also

change the death benefit payable for that coverage.

• The Account Value remains in the existing policy. The policy owner may request a withdrawal

at the time of the policy split, subject to our rules and requirements for cash withdrawals.

• The suicide and contestability provisions will continue to apply from the original Coverage

Issue Date, unless evidence of insurability was required for the split (please see the following

chart). If evidence was required, new suicide and contestability periods will apply to the new

coverage(s).

• Splitting a policy may have tax implications which may include increasing the policy owner’s

taxable income.

• Contact IIC Client Support and Illustrations for a quotation before submitting the policy split

request.

• For Security UniversalLife policies, please refer to the Policy splitting section in Appendix 2 for

more information.




• For the policy splitting overview applicable to coverages dated before September 23, 2017, refer to

the section called Policy splitting in Appendix 1.

Policy Splitting Overview

Coverage Type New Insurance

Original New Evidence of

insurability

Amount of

insurance

Rates based on:

Single Life Single Life Not required Same • Rates in effect on new Coverage Date.

• Insured person’s sex, age on their birthday nearest

new Coverage Date, and Healthstyle and insurance

rating on the original coverage.

If Healthstyle is 1 or 2 and the original coverage

has been in effect for more than 15 years,

Healthstyle 3 rates will apply.

Joint first-

to-die

Single Life Not required Same for each

insured person

• Rates in effect on new Coverage Date.







Joint first-

to-die

Not required Same • Rates, and Joint age and Joint insurance rating

calculations in effect on new Coverage Date.

• Each insured person’s sex, age on their birthday

nearest new Coverage Date, and Healthstyle and

insurance rating on the original coverage.




Joint last-to-

die

Single Life Required Based on EOI • Rates in effect on new Coverage Date.


new Coverage Date, and their current Healthstyle

(based on current Healthstyle availability rules)

and insurance rating.

Joint last-to-

die












Single Life coverages

• The rates for the new Single Life coverage will be based on:

• the rates in effect on the new Coverage Date,

• the insured person’s sex,

• the insured person’s age on their birthday nearest the new Coverage Date, and

• the insured person’s Healthstyle category and insurance rating on the original coverage, with the

following exception:

• if the insured person’s Healthstyle was 1 or 2, and the new coverage is purchased 15 or

more years after the original Coverage Date, Healthstyle 3 rates will apply to the new

coverage, or

• evidence of insurability is submitted, therefore, the underwriter will determine the

appropriate Healthstyle based on the Healthstyle availability at that time.

• The amount of insurance on the new policy cannot exceed the current amount of insurance on the

original insurance coverage.

Joint first-to-die coverages

• Joint first-to-die coverages may split into individual Single Life coverages or may move to the new

policy as Joint first-to-die coverage without evidence of insurability.

• For new Single Life coverages, the insurance on each insured person can not exceed the amount of

insurance under the original Joint first-to-die coverage.

• For new Joint first-to-die coverages, the joint insurance can not exceed the amount of insurance

under the original Joint first-to-die coverage.

• The rates for new Single Life coverages will be based on:




• the insured person’s Healthstyle category and insurance rating on the original coverage, with the

following exception:



coverage, or



• The rates for new Joint first-to-die coverage will be based on:

• the rates, Joint age and Joint insurance rating calculations in effect on the new Coverage Date,

• each insured person’s sex,

• each insured person’s age on their birthday nearest the new Coverage Date, and

• each insured person’s Healthstyle category and insurance rating on the original coverage, with

the following exception:



coverage, or






Joint last-to-die coverages

• Joint last-to-die coverages may split into individual Single Life coverages or may move to the new

policy as Joint last-to-die coverage.

• All insured people on the Joint last-to-die coverage must be living as of the effective date of the

split.

• We will require satisfactory proof that all insured people are eligible for insurance before we

approve the purchase of new Single Life coverage.

• For new Single Life coverages, the amount of insurance on each insured person will depend on the

evidence provided.

• For new Joint last-to-die coverages, the joint insurance can not exceed the amount of insurance

under the original Joint last-to-die coverage.

• The rates for new Single Life coverages will be based on:




• the insured person’s current Healthstyle (based on current Healthstyle availability rules) and

insurance rating.

• The rates for new Joint last-to-die coverage will be based on:

• the rates, Joint age and Joint insurance rating calculations in effect on the new Coverage Date,

• each insured person’s sex,

• each insured person’s age on their birthday nearest the new Coverage Date, and

• each insured person’s Healthstyle category and insurance rating on the original coverage, with

the following exception:



coverage, or



Substitute life • Substitute life is not available.

Transferring ownership of a policy • The policy owner can transfer ownership of the policy to another person, which is called an absolute

assignment.

• The whole policy must be assigned, not individual coverages.

• If the ownership of the policy is transferred, then the ownership of the Side Account is also

transferred. The policy owner is always the owner of the Side Account.

• We are bound by the assignment when we receive written notice at our Canadian Head Office.

• Transferring ownership of a policy could have tax implications, which may include increasing the

original policy owner’s taxable income.

• Also, there may be tax consequences if the transfer is from a corporation to a shareholder or

employee.

• To transfer ownership of a policy, complete the Transfer of Ownership (NN0687) form.




Using the policy as security for a loan • The policy owner can use the policy contract as security for a loan by assigning it to the lender.

• This type of security is called a collateral assignment or, under the Quebec Civil Code, a hypothec.

• The whole policy must be assigned, not individual coverages.

• Any assignment of the policy includes the Side Account.

• We are bound by the assignment or hypothec when we receive written notice of it at our Canadian

Head Office.

• To use the policy as security for a loan, complete the Collateral Assignment (NN0504) form.

Plan changes to or from Security UL • Plan changes to or from Security UL are allowed for policies in effect for 12 months or longer but

no more than 10 years.

• Plan changes from Security UniversalLife are allowed for policies in effect for 12 months or longer

but no more than 10 years.

• Plan changes are subject to our Plan Change Rules at the time of the change.

• Please refer to the Life Policy Changes Reference Guide on Repsource for details.




When a policy ends A policy ends on the earliest of the following dates:

• 31 days after the policy enters the Grace Period, if the policy owner has not made the deposit

needed to keep the policy in effect,

• the day there is no longer an insurance coverage in effect under the policy, or

• the business day we receive a written request from the policy owner to cancel the policy at

Manulife’s Canadian Head Office, provided it is received before 4:00 p.m. EST. Requests received

after that time will be effective on the next business day.

For Security UniversalLife policies with a Partial Cost Refund amount available, please refer to the

When a policy ends section in Appendix 2.

Requested policy cancellation • The policy owner may ask us to cancel their policy at any time.

• The effective date of cancellation is determined as described above under When a policy ends. No

insurance will be in effect on the policy after the effective date of the cancellation.

• If the policy owner cancels the policy:

• we will pay any Cash Value to the policy owner, and

• the Side Account will also end and we will pay the value of the Side Account, which reflects

any Market Value Adjustments, to the policy owner.

Policy cancellation and taxation

• It may be necessary for the policy owner to include an amount in their income for tax purposes as

the result of a policy cancellation.

Grace Period • It is the responsibility of the policy owner to ensure that there are sufficient funds to pay the

monthly deductions.

• If, on any Monthly Processing Day, the Account Value is less than zero, the policy will lapse.

• The policy owner has 31 days to make the required deposit. This 31-day period is called the Grace

Period.

• Coverage will continue during the Grace Period. However, if an insured person dies during the

Grace Period, any death benefit payable will be reduced by the amount required to increase the

Account Value to zero (not including any interest charged).

• Any deposits received during the Grace Period will be applied to the Savings Account. Please refer

to the Deposits on policies with a negative Account Value section for more information.

• On the last day of the Grace Period, the policy and all coverages under it will automatically

terminate if the policy owner has not made the required deposit. We will refund to the policy owner

any partial payments made to the policy during the Grace Period.

• For Security UniversalLife policies with a Partial Cost Refund amount available, please refer to the

Grace Period section in Appendix 2.

Policy lapse and the Side Account

• Before the Grace Period starts, we will check the Side Account for value, and will withdraw an

amount equal to the lesser of the Side Account balance and the maximum deposit allowed under the

policy, and deposit that amount into the policy. (See the How amounts are deposited into the policy

section under Side Account for further details.)




Effective date of the lapse

• If, on any Monthly Processing Day, there are insufficient funds to pay the monthly deductions, the

policy will enter the Grace Period.

• If, at the end of the Grace Period, the policy owner has not made a sufficient deposit to put the

policy back in effect, the effective date of the lapse will be the date the policy entered the Grace

Period.

• We will extend a period of time after the lapse of the policy where the policy owner may reinstate

without evidence of insurability. The amount required to keep the policy in effect will reflect the

number of months since the policy lapsed.

Compensation impact when a policy ends • A commission chargeback will result if the policy ends during the chargeback period.

• A commission adjustment may occur if the policy ends during the first policy year and/or during the

first coverage year of any coverage on the policy.

• Please refer to the Compensation and death claims section of this guide for additional information

on policies that end during the first policy year due to a death claim.


Policy termination notices

Gross insufficient amount

• The gross insufficient amount is equal to the negative Account Value, grossed up to cover the

Deposit Tax Charge.

• This amount is calculated on the day the policy enters the Grace Period, and is updated each

Monthly Processing Day, when a current dated deposit is made, and on the day the Termination

Warning Notice is produced.

• Any deposits received while the policy is in the Grace Period will reduce the gross insufficient

amount.

Termination Warning Notice

• 12 days after the start of the Grace Period, we will send the policy owner a Termination Warning

Notice, requiring payment of the outstanding amount.

• The outstanding amount shown on the Termination Warning Notice is the gross insufficient amount

calculated as of the date the notice is produced.

• The notice also recommends the policy owner make an additional payment of an amount equal to

two Minimum Monthly Deposits. This is to make sure delays due to mail do not result in the policy

owner paying one amount and receiving an additional notice because another month has gone by.

• The Termination Warning Notice amount will not be updated other than to reflect any partial

payments received while the policy is in the Grace Period.

Late Payment Offer

• If sufficient money is not received by the end of the Grace Period, the policy owner will be sent a

Late Payment Offer (31 days after the policy enters the Grace Period).

• This notice advises the policy owner that the policy is no longer in effect and gives them an

additional 30 days to make a sufficient deposit to reinstate the policy without providing evidence of

insurability.

Termination Notice

• A final notice, the Termination Notice, will be sent 61 days after the start of the Grace Period,

advising the policy owner that the Late Payment Offer has expired.




• The policy may be reinstated at any time within 2 years after the effective date of the lapse, subject

to Underwriting approval, and receipt of all outstanding deposits. Please refer to the Policy

reinstatement section for further details.




Policy reinstatement • A lapsed policy may be reinstated at any time within two years after the end of the Grace Period.

• For Security UL policies, please refer to the Policy Change Reference Guide on Repsource for

further information regarding reinstatement requirements and the reinstatement process.

• For Security UniversalLife policies, please refer to the Policy Reinstatement section in Appendix 2.




Taxation • In this guide, when we refer to the Income Tax Act, we mean any Canadian federal or provincial tax

legislation, rules and regulations that apply to a Security UL or Security UniversalLife policy.

• For more information on the taxation of life insurance, refer to the Tax Topics related to life

insurance, which are available on Repsource.

Exempt policies • Security UL and Security UniversalLife are exempt life insurance plans; however, the policy owner

may request a non-exempt policy. Please refer to the Non-exempt policies section for further

details.

• We review each exempt policy annually on the policy anniversary and adjust it if needed to

maintain its exempt status, as long as the rules of the Income Tax Act allow it to remain exempt.

When there may be tax consequences for the policy owner

• Whether a policy is exempt or non-exempt, some changes and transactions may have tax

consequences, such as:

• increasing the policy owner’s taxable income, and/or

• decreasing the policy’s adjusted cost basis (ACB).

• Examples of such changes and transactions include but are not limited to:

• adjustments made for the purpose of maintaining a policy’s exempt status,

• earning interest in the Side Account,

• receiving a death benefit under a multi-life policy,

• receiving a Disability Benefit,

• receiving an Account Value payment on the death of an insured person, if the policy does not

end,

• withdrawing money from a policy,

• moving money from a policy to the Side Account,

• transferring ownership of a policy,

• changing the policy owner’s country of residence,

• reducing coverage,

• converting a Term Insurance Rider coverage to another policy,

• splitting a policy,

• cancelling a policy, and

• exercising the Joint Legacy Protector feature.

Maintaining exempt status

• We take several measures to ensure that policies issued as exempt stay that way.

• These measures are critical because exempt status cannot be regained once it is lost.

Testing deposits

• Each deposit is tested to determine if it could cause the policy to fail the exempt test on the next

policy anniversary.

• An estimate of the maximum deposit that could be allowed into the policy during the current year is

available at any time by calling the Appropriate Head Office contact or visiting MyClients. It is also

shown on the policy statement and on any deposit reminders that we send.

• As part of the calculation of the maximum deposit, the existing Account Value and the deposit itself

are assumed to grow at a reasonable rate. Planned deposits are not deducted from this estimate;

however, expected Bonus payments are taken into consideration.




• Deposit amounts in excess of the maximum deposit amount are placed directly into the Side

Account. There is no Deposit Tax Charge deducted from money placed directly into the Side

Account. For details on how this money may be moved into the policy at future policy

anniversaries, refer to the section called Side Account.

• This process reduces the risk of unexpected tax consequences due to adjustments made at the

anniversary to maintain the policy’s exempt status.

The exempt test at anniversary

• If the exempt test indicates that adjustments to the policy are required to maintain its exempt status,

we will withdraw money from the policy and place it into the Side Account. See the Automatic

Withdrawals section for further details.

Non-exempt policies • The policy owner may request a non-exempt policy at or after issue.

• This feature is used mainly by charitable organizations that are not taxed.

• Non-exempt policies will be subject to annual accrual taxation.

• The first page of the policy statement will state if the policy is non-exempt.

• A non-exempt tax status provision page is included in the contract.

• The non-exempt provision takes effect on either:

• the Policy Date, if the policy owner requested a non-exempt policy at issue, or

• the day we approved the policy owner’s request to change the policy’s tax status to non-exempt,

if requested after issue.

• The non-exempt provision becomes permanent on either:

• the Policy Date, if the policy owner requested a non-exempt policy at issue, or

• the policy anniversary that coincides with or immediately follows the day we approved the

policy owner’s request for a non-exempt policy, if requested after issue.

• Once the non-exempt provision becomes permanent, it cannot be removed. A policy cannot be

made exempt once it is non-exempt.

• The following apply to a non-exempt policy:

• No exempt test will be performed on the policy anniversary.

• We limit deposits on non-exempt policies.

• The Side Account is not available. If the policy becomes non-exempt after issue, the Side

Account will be terminated as of the date the provision takes effect, and any balance in the Side

Account will be deposited into matching investment accounts in the policy. Alternatively, the

policy owner may request that we refund any value in the Side Account to them.

Compensation and non-exempt policies

• The first year deposit commission payable on a non-exempt policy cannot exceed the deposit

commission payable on the maximum deposit that would have been permitted if the policy was

exempt.




Product history August 28, 1998

• Security UniversalLife is introduced.

July 8, 2000

• Healthstyles underwriting is introduced.

• Maximum amount of insurance for Level Cost coverage is increased from $250,000 to $500,000.

April 1, 2001

• Commission rate changes.

June 23, 2001

• Performance of all Balanced Index Accounts changed to be based on stock market Total return

indices (indices with dividends included) for all policies with Policy Dates on or after June 23,

2001.

• Economic Trends Balanced Index Account is added to both new and existing Security UniversalLife

policies. This account is also based on “total return”.

February 14, 2004

• Security UniversalLife policies issued on or after February 14, 2004, where the total amount of

insurance for all Level Cost and 10-Year Cost insurance coverages is at least $250,000, have a $0

policy fee. This does not apply to Security UL policies.

• Maximum amount of insurance limit for Level Cost coverages is removed.

September 25, 2004

• New Security UL product version is introduced:

• no Policy Cost Refund feature,

• no 10-Year Cost Type,

• new policy and life fees,

• new Bonus,

• compensation change,

• InnoVision Advantage Option,

• Joint Legacy Protector,

• joint insurance coverages,

• Business Value Protector Rider,

• Guaranteed Insurability Option Rider, and

• Term Insurance Riders.

December 4, 2004

• Introduced changes to the Term Insurance Rider:

• New 20-Year Renewable Term Insurance Rider.

• For 10-Year Renewable TIR coverages dated December 4, 2004 or later:

• new select and ultimate rates, and

• new commission rates.

• 10-Year and 20-Year Renewable TIR rates based on the Family & Business Term rates.




• New Joint ages for Joint last-to-die Yearly Increasing TIR coverages dated December 4, 2004 or

later.

• TIR Cost Type changes only permitted in the first 5 coverage years for coverages dated

December 4, 2004 or later.

June 4, 2005

• New 10-Year and 20-Year Renewable Term Insurance Rider rates (based on new Family &

Business Term rates).

• Reduced the chargeback period to two years for:

• policies with a Policy Date on or after June 4, 2005, and

• insurance and rider coverages, added to existing policies, with a Coverage Date on or after

June 4, 2005.

May 13, 2006

• Disability Benefit introduced for all new policies.

June 16, 2007

• New 10 Year and 20 Year Renewable Term Insurance Rider rates (based on new Family & Business

Term rates).

June 21, 2008

• New 10-Year and 20-Year Renewable Term Insurance rates (based on new Family & Business Term

rates).

• Introduced a new version of the Child Protection Rider:

• new Critical Illness Insurability Benefit, and

• increased Child Protection Rider rate.

• Disability Benefit enhanced, changes apply to new and inforce policies dated May 13, 2006 and

later.

September 27, 2008

• Increased rates for Security UL Level Cost insurance rates (this rate change does not apply to rates

for the Security UniversalLife policies.)

August 24, 2009

• New 10-Year and 20-Year Renewable Term Insurance Rider rates (based on new Family &

Business Term rates).

May 1, 2010

• New 20-Year Renewable Term Insurance Rider rates (based on new Family & Business Term rates).

December 4, 2010

• Increased Security UL Level COI rates for new coverages only (this rate change does not apply to

rates for new Security UniversalLife coverages on existing policies).

• Rates for joint coverage are unique and will no longer equal male, Healthstyle 3 rates.




April 2, 2011

• Decreased the minimum interest rate guarantee by 0.5% to 2.5% for the Average GIA Account and

its corresponding side account.

October 15, 2011

• New level COI insurance rates for single and joint last-to-die new coverages only.

• Commission changes:

• Decreased the renewal draw commission rate and extended the renewal draw commission

payment period on:

• Level COI insurance coverages

• Policy and life fees

March 17, 2012

• Minimum interest rate guarantee reduced on the following investment account:

• Average GIA account and corresponding side account have been reduced by 1.00% to 1.50%

June 16, 2012

• Level COI rates increased for Security UL. Some rates remain unchanged.

September 22, 2012

• One Balanced Index Account withdrawn:

• Economic Trends Balanced Index Account

• Default Substitute Account: Growth Balanced Index Account

January 26, 2013

• Most rates increased and some remain unchanged for new Level COI coverages on Security UL.

• This rate change also applies to new Level COI coverages added to existing Security

UniversalLife policies which are not the result of a coverage option change

• First year draw commission reduced for Level COI coverages and varies by age for Security UL.

October 5, 2013

• Decreased most rates for single life issue ages and joint life ESLA issue ages 45 and above for new

level COI insurance coverages on new or existing Security UL policies.

• New 10-Year Renewable Term Insurance Rider entry rates.

• Increased commission on level COI insurance coverages on new or existing Security UL policies.

September 20, 2014

• New 20-Year Renewable Term Insurance Rider entry rates.

• Increased FYC on 20-Year Renewable Term Insurance Rider coverages.

May 9, 2015

• As per Manitoba Insurance Act changes:

• if a life insured dies during the grace period we are not allowed to deduct interest charged on the

overdue cost of insurance and any applicable fees from the death benefit.

• a policy can be reinstated without evidence within 30 days after the end of the grace period.




November 26, 2016

• Introduced Accelerated Underwriting for ages 18-40 with an amount to underwrite $100,000 to

$1,000,000 inclusive;

• Healthstyle 2 is no longer available if the age and amount is within the Accelerated Underwriting

range; and

• Increased Level COI rates as a result of the Tax Legislative Project.

July 29, 2017

• Expanded ages for Accelerated Underwriting (ages 41-45).

September 23, 2017

• Increased Level COI rates

March 24, 2018

• Extended from 10 to 15 years the period during which Healthstyle 1 or 2 may be carried over to the

new insurance resulting from:

• conversion of a Term Insurance Rider coverage,

• conversion of the temporary term insurance issued under the Survivor’s Benefit on a Joint first-

to-die coverage,

• a change in coverage under the policy splitting provision, or

• changing a 10-Year Cost insurance coverage on a Security UniversalLife policy to the Level

Cost coverage option

if the original coverage is dated on or after September 23, 2017.

November 6, 2018

• Expanded ages for Accelerated Underwriting (ages 45-50).

Appendix 1 – Details for earlier versions of Security UL




APPENDIX 1 This appendix contains unique product information and administrative rules that apply to Security UL

policies and coverages dated before March 24, 2018.

Healthstyles

Healthstyle underwriting

For coverages dated before September 23, 2017

• Healthstyles 1 and 2 will become Healthstyle 3 if one of the following changes is made after the

Healthstyle has been in effect for 10 years:

• conversion of a Term Insurance Rider coverage;

• buying new insurance under the Survivor’s Benefit on a Joint first-to-die coverage; or

• a change in coverage under the policy splitting provision.

Healthstyle availability

For coverages dated before November 26, 2016

• To qualify for Healthstyle 1 or 2, the insured person cannot be considered a substandard risk.

Therefore, they must have a 100% insurance rating and no flat extras.

• Healthstyles 3, 4 and 5 may have insurance ratings.

• Healthstyles 1, 2 and 3 may, subject to underwriting approval, include the occasional social use of

cigars.

• Healthstyle rates are available on all coverages except the Child Protection Rider and the Total

Disability Waiver Rider.

• The Guaranteed Insurability Option Riders only have Healthstyle 3 and 5 rates.

Healthstyle issue ages

For coverages dated on or after November 26, 2016 and before July 29, 2017

• Juveniles (ages 0 – 15) are classified as Healthstyle 5 until age 16 at which time they become


details.







16 to 17 • Less than $100,000 • Healthstyles 3, 4 or 5 1,2


18 to 40 • Less than $100,000 • Healthstyles 3, 4 or 51,2





• $100,000 up to and

including $1,000,000

• Healthstyles 1, 3, 4 or 51,2

• $1,000,001 or more • Healthstyles 1 – 5






Chart notes







• Juveniles (ages 0 – 15) are classified as Healthstyle 5 until age 16 at which time they become


details.

• Family history is not used in determining the Healthstyle category of an insured person who is over

age 70.












Chart notes










Plan details

Coverage types

Coverages dated before December 4, 2010

Joint coverage

• Joint coverage is based on male, Healthstyle 3 rates.

Amount of insurance limits



Overall minimum per insured person,

including Single Life and joint

insurance coverages insuring that

person

All ages

$50,000 during the first 5 years the

person is insured on the policy

$25,000 after the person has been

insured on the policy for 5 or more years

Minimum for Healthstyle 1 Ages 16 and

above

$100,000 (amount to underwrite) 1, 2


Ages 41 to 70

$100,000 (amount to underwrite)1, 2

Ages 18 to 40 $1,000,001 and greater (amount to

underwrite)

Minimum per insurance coverage All ages $25,000

Minimum increase in amount of

insurance

All ages $25,000

Minimum decrease in amount of

insurance

All ages $10,0003

Chart notes

1We will underwrite for Healthstyle 1 or 2, where not routinely offered (as described above) if the



2For 10-Year or 20-Year (TIR) coverage, Healthstyle 1 or 2 rates are not available if the amount of

insurance for the coverage is less than $100,000. 3Insurance coverages cannot be decreased below $25,000.







Overall minimum per insured person, including

Single Life and joint insurance coverages

insuring that person

$50,000 during the first 5 years the person is

insured on the policy

$25,000 after the person has been insured on the

policy for 5 or more years

Minimum amount of insurance for Healthstyles 1

and 2

$100,000 (amount to underwrite) 1

Minimum per insurance coverage $25,000

Minimum increase in amount of insurance $25,000

Minimum decrease in amount of insurance $10,0002

Chart notes

1Healthstyle 1 and 2 rates may still apply if the amount of insurance being applied for is less than

$100,000 and the insured person qualified for Healthstyle 1 or 2 rates on another Manulife life

insurance product within the last six months.

For a 10-Year or 20-Year Renewable TIR coverage, we will underwrite for Healthstyle 1 or 2 rates

only if the amount of insurance for the coverage being applied for is $100,000 or more. 2Insurance coverages cannot be decreased below $25,000.

Additional Protection

Child Protection Rider (CPR)

Coverages dated before June 21, 2008

The Insurability Benefit

• Each CPR coverage provides only one Insurability Benefit, the Guaranteed (Life) Insurability

Benefit.

• The Critical Illness Insurability Benefit does not apply to CPR coverages dated before June 21,

2008.

Guaranteed Insurability Benefit

• The Guaranteed Insurability Benefit allows the policy owner to buy new life insurance without

evidence of insurability.

Insurability Benefit Amount

• The amount of insurance for the new insurance must be within our minimum and maximum limits

for the chosen product(s).

• For each CPR coverage the maximum amount of new life insurance cannot be more than $250,000.





Term Insurance Rider

TIR rates

10-Year Renewable TIR coverages dated before December 4, 2004

• Select and ultimate rates do not apply.

• A rate is charged for 10 years beginning at the Coverage Date based on the insured person’s issue age

for that coverage. At the 10th coverage anniversary and each subsequent 10th coverage anniversary, the

default will be to renew to another 10 year term, charging a rate based on the insured person’s attained

age at that time.

• Unique Healthstyle 1 and 2 rates are available for TIR coverages with an amount of insurance below

$100,000.

Amount of insurance limits:


Guideline Description Yearly Increasing 10-Year and 20-

Year Renewable

Minimum initial TIR amount All ages $50,000 $100,000


combination of insured person and

TIR Cost Type (may include

Single Life and joint TIR

coverages insuring that person)

All ages $50,000 during the

first 5 years the


the policy

$100,000 during the

first 5 years the


the policy

All ages $25,000 after the person has been insured

on the policy for 5 or more years

Minimum for Healthstyle 1 All ages $100,000 (amount to underwrite) 1,2


Ages 41 to 70

$100,000 (amount to underwrite) 1,2

Ages 18 to 40 $1,000,001 and greater

(amount to underwrite)

Minimum increase in TIR amount All ages $50,0001

Minimum decrease in TIR amount All ages $10,0003

Chart notes



2 rates on another Manulife life insurance product within the last 12 months. 2 For a 10-Year or 20-Year Renewable TIR coverages, we will underwrite for Healthstyle 1 or 2 rates







Guideline Description Yearly Increasing 10-Year and 20-Year

Renewable

Minimum initial TIR amount $50,000 $100,000


combination of insured person and TIR

Cost Type (may include Single Life and

joint TIR coverages insuring that person)

$50,000 during the first 5

years the person is insured

on the policy

$100,000 during the first 5

years the person is insured

on the policy

$25,000 after the person has been insured on the policy

for 5 or more years

Minimum for each layer of TIR coverage

for Healthstyles 1 and 2

$100,000 (amount to underwrite) 1

Minimum increase in TIR amount $50,0001

Minimum decrease in TIR amount $10,0002

Chart notes



2 rates on another Manulife life insurance product within the last six months.

For a 10-Year or 20-Year Renewable TIR coverage, we will underwrite for Healthstyle 1 or 2 rates


Rate banding

10-Year Renewable TIR coverages dated before December 4, 2004

• Rates for 10-Year Renewable Term Insurance Rider coverages vary by the amount of insurance in

effect on each Monthly Processing Day, and are banded as follows:

• Band 1: $ 100,000 - $ 249,999

• Band 2: $ 250,000 - $ 499,999

• Band 3: $ 500,000 - $1,999,999

• Band 4: $2,000,000 and up

Changing the Cost Type for a TIR coverage

TIR Coverages dated before December 4, 2004

• The following Cost Type changes are permitted without evidence of insurability:

Cost Type Coverage Type When the change in Cost

Type is allowed

Original New Original New

Yearly

Increasing

10-Year and 20-

Year Renewable

Single Life Single Life Until age 70

Joint first-to-die Single Life Until age 70 of the oldest

insured person

10-Year

Renewable

20-Year

Renewable

Single Life Single Life Until age 60

1Age is the insured person’s age on their birthday nearest the Coverage Date of the new TIR coverage.





TIR Coverages dated before November 26, 2016

• The Healthstyle for each insured person on the new TIR coverage is determined as follows:




• Healthstyle 3 if Healthstyle 1 rates are not available given the












TIR Coverages dated before December 4, 2004

• The Healthstyle for each insured person on the new TIR coverage is determined as follows:



Healthstyle 1 • Healthstyle 1 if original TIR coverage has been in effect for 10

years or less.

• Healthstyle 3 if original TIR coverage has been in effect for more

than 10 years.



Healthstyle 2 • Healthstyle 2 if original TIR coverage has been in effect for 10

years or less.

• Healthstyle 3 if original TIR coverage has been in effect for more

than 10 years.










InnoVision Advantage Option Coverages dated before August 24, 2009

Compensation and exercising the InnoVision Advantage Option

• There will not be a commission chargeback as a result of a exercising the InnoVision Advantage

Option

• There will be no new commission generated for the policy. Regular renewal commission will be

payable, based on the commission rates in effect for a comparable InnoVision policy.

• For Deposit and Asset Based commission, the commission rate is based on the duration of the

policy using the Policy Date.

• For policy and life fee commission, the commission rate is based on the duration of the policy

using the Policy Date.

• For Draw commission, the commission rate is based on the duration of a coverage using the

Coverage Date for that coverage.

• Please refer to the Schedule of Commissions and Sales Credits that was in effect on:

• the Policy Date for the applicable InnoVision Deposit, Asset Based and policy and life fee

commission rates;

• the Coverage Date for the applicable InnoVision Draw commission rates.

• Exercising the InnoVision Advantage Option may result in a commission adjustment if the change

occurs in the first coverage year and the first year commission for the comparable coverage is lower

than the Security UL first year commission for that coverage. If the first year commission for the

comparable coverage is higher, the commission earned will reflect that higher amount on each

Monthly Processing Day starting with the Option effective date.

Investment accounts For policies dated on April 2, 2011 up to and including March 16, 2012, the following Minimum

Guaranteed Interest Rate applies:



Interest guarantee






• 2.50%.








For policies dated before April 2, 2011 the following Minimum Guaranteed Interest Rate applies:



Interest guarantee






• 3%.




Policy changes

Policy splitting

Coverages dated before September 23, 2017

Policy Splitting Overview

Coverage Type New Insurance

Original New Evidence of

insurability

Amount of

insurance

Rates based on:

Single Life Single Life Not required Same • Rates in effect on new Coverage Date.







Joint first-

to-die

Single Life Not required Same for each

insured person

• Rates in effect on new Coverage Date.











Joint first-

to-die









Joint last-to-

die

Single Life Required Based on EOI • Rates in effect on new Coverage Date.


new Coverage Date, and their current Healthstyle

(based on current Healthstyle availability rules)

and insurance rating.

Joint last-to-

die









Appendix 2 – Details for Security UniversalLife




APPENDIX 2 This appendix contains unique product information and administrative rules that apply to Security

UniversalLife policies. Any product information and administrative rules that did not change when

Security UL was launched on September 25, 2004 can be found in the appropriate section at the front of

this guide.

Product overview Following is an overview of the coverages offered and some of the key options and features available

with those coverages.

Coverage types The following coverage type is available:

• Single Life.

Coverage options • 10-Year Cost (renewable to age 80, automatically changes to Level Cost at age 80), and

• Level Cost.

Additional protection The following are available on Security UniversalLife policies:

• Child Protection Rider (CPR), and


Additional benefits and features • Compassionate Assistance Program, and

• Bereavement Counselling.

Healthstyles

Smoker/non-smoker Coverages dated before July 8, 2000

• Coverages dated before July 8, 2000 were issued with smoker and non-smoker rates.

• Non-smoker rates are available to any insured person who does not smoke cigarettes and/or

marijuana and has not done so for the preceding 12 months.

• Smoker and non-smoker are considered Healthstyle categories in the policy contract and in this

guide.





Plan details

Coverage types Only one coverage type is available:

• Single Life

• Joint coverage is not available on Security UniversalLife.

• Many people (i.e. multiple single life coverages) can be insured under one Security UniversalLife

policy, this is often referred to as ‘multi-life’

Coverage options • Two coverage options are available on Security UniversalLife:

• 10-Year Cost (renewable to age 80, automatically changes to Level Cost at age 80), and

• Level Cost.

• Coverage option is also referred to as Cost Type.

• One insured person can have more than one coverage option (i.e. Level Cost and 10-Year Cost).

10-Year Cost

• For 10-Year Cost, a rate is charged for 10 years beginning at the Coverage Date and based on the

insured person’s issue age for that coverage. At the 10th coverage anniversary and each subsequent

10th coverage anniversary, the default will be to renew to another 10 year term, a rate based on the

insured person’s attained age at that time.

• The 10-Year Cost rates vary by sex, Healthstyle, attained age, and amount of insurance (band).

• 10-Year Cost rates are based on an ‘attained age’ rate structure, so renewal rates are the same as

those for a newly underwritten sale.

• Renewal costs are guaranteed not to change as long as the coverage remains in effect, provided the

amount of insurance is not decreased to a lower band.

• 10-Year Cost insurance coverages renew until attained age 80, at which time the insurance coverage

is automatically changed to Level Cost. Please refer to the Changing coverage options section in

this Appendix for more details.

Level Cost

• At least one insured person must have a minimum of $25,000 Level Cost insurance coverage for the

first two years.

• The Partial Cost Refund applies to Level Cost insurance coverages. Please refer to the Partial Cost

Refund section below for further details.

• Please refer to the Cost Type – Level Cost section in the main body of this document for further

details.

Partial Cost Refund (PCR)

• Each Level Cost insurance coverage in effect under a Security UniversalLife policy will have its

own Partial Cost Refund. It is a refund of a portion of the cost of insurance paid for a Level Cost

insurance coverage since its effective date.

• The Partial Cost Refund rates vary by sex, issue age, coverage duration, current Healthstyle and

amount of insurance. The PCR rates are guaranteed and are shown in Appendix 5 of the policy

contract.





When a Partial Cost Refund is payable

• A Partial Cost Refund is payable for a Level Cost insurance coverage if the coverage has been in

effect for at least 10 years and:

• the policy owner cancels the policy,

• the policy owner cancels that Level Cost insurance coverage,

• the amount of insurance for that coverage is reduced, or

• the Healthstyle category for the insured person under that coverage is improved.

• On cancellation of the entire policy, the Cash Value, which includes any Partial Cost Refund, is paid

out to the policy owner. It may be necessary for the policy owner to include an amount in their

income for tax purposes as a result of this payment.

• In any of the other situations listed above, any Partial Cost Refund which becomes payable will be

applied directly to the policy’s investment accounts based on the latest investment instructions

provided by the policy owner.

Using the Partial Cost Refund to keep the policy in effect

• We will use the Partial Cost Refund to keep the policy in effect if:

• the Account Value is negative, and

• at least one Level Cost insurance coverage has been in effect for 10 years or more.

• When the Cash Value of the policy is less than zero, the policy will enter the Grace Period.

Allocated Account Value when PCR is used to keep the policy in effect

• The Account Value allocation will change if:

• the Partial Cost Refund is being used to keep the policy in effect, or

• the Cash Value is negative and the policy has a PCR value.

• The revised allocation is based on the ratio of the Partial Cost Refund for an insurance coverage to

the total Partial Cost Refund provided by all insurance coverages in effect at the time of the

calculation.

• If an insured person dies, we will reduce the death benefit payable by the negative Account Value

allocated to that insured person’s insurance coverages.

Issue limits

Issue ages:

Coverage Option Coverage Type Issue Age of Each Insured

Minimum Maximum

Level Cost Single Life 0 85

10-Year Cost Single Life 18 70

Rate banding

Level Cost insurance coverages

• Rates for Level Cost insurance coverages vary by the amount of insurance in effect on each Monthly

Processing Day, and are banded as follows:

• Band 1: $ 25,000 - $ 99,999

• Band 2: $ 100,000 - $ 249,999

• Band 3: $ 250,000 or more





10-Year Cost insurance coverages

• Rates for 10-Year Cost insurance coverages vary by the amount of insurance in effect on each

Monthly Processing Day, and are banded as follows:

• Band 1: $ 25,000 - $ 99,999

• Band 2: $ 100,000 - $ 249,999

• Band 3: $ 250,000 - $ 499,999

• Band 4: $ 500,000 or more

Additional protection

Total Disability Waiver Rider (TDW)

Making changes to the policy while on waiver

• The policy owner can not make changes to the policy while monthly deductions are being waived.

Some examples of such changes are:

• adding insurance or rider coverages,

• changing the amount of any insurance or rider coverage, or

• changing the coverage option on an insurance coverage.

Change to Level Cost at age 80

• Any 10-Year Cost insurance coverage, where the insured person reaches attained age 80 while the

policy is on waiver will be automatically changed to the Level Cost coverage option.

• The change to Level Cost will be effective on the policy anniversary nearest the insured person’s

80th birthday.

• Costs will continue to be waived as defined by the Total Disability Waiver Rider.

Additional benefits and features

Bereavement counselling assistance • Bereavement counselling assistance is available on Security UniversalLife policies, and is included

at no additional cost in the policy contract.

• At any time during the 12 month period following the death of an insured person under an insurance

coverage, including Child Protection Rider coverage, the beneficiary may submit receipts for

counselling expenses. Reimbursement will be subject to:

• a maximum of $1,000, and

• professional accreditation or certification of the counsellor.

• If the death benefit is payable to more than one beneficiary, the $1,000 limit will be divided among

them in the same proportion as the death benefit they receive. If the death benefit is payable to an

estate or trust, the executor, administrator, liquidator of the estate or trustee should submit receipts

for any beneficiaries of the trust or estate, not exceeding a total of $1,000.





Investment accounts

Balanced Index Accounts • Security UniversalLife policies with a Policy Date before June 23, 2001 use the price return of each

index to calculate the daily interest rate and have the following management fees:

Account Daily Fee Approx. Annual Fee

Conservative 0.00009 2.25%

Moderate 0.000085 2.125%

Growth 0.00008 2.00%

Guaranteed value of the Balanced Index Accounts when the last death benefit is payable • When the last death benefit is payable for an insurance coverage under a Security UniversalLife

policy, we guarantee that the balance of all Balanced Index Accounts will be no less than 100% of

the sum of:

• the amount of each net deposit (deposit less Deposit Tax Charge) credited to the Balanced Index

Accounts,

• all Partial Cost Refund amounts applied directly to the Balanced Index Accounts (e.g. due to a

decrease in coverage), and

• transfers to the Balanced Index Accounts from other investment accounts

minus

• any amounts transferred from the Balanced Index Accounts to other investment accounts, and

• all withdrawals from the Balanced Index Accounts, including:

• all monthly deductions,

• any forced withdrawals to keep the policy exempt, and

• any cash withdrawals, including amounts withdrawn and paid as part of a death benefit on

the policy.

Bonus • The Bonus is a guaranteed interest payment that we credit to the Savings Account on the 10th policy

anniversary and on every 5th policy anniversary after that, as long as the policy is in effect.

• Each Bonus payment is an amount equal to 5% of the Average Account Value for the past 60

months.

• Average Account Value is the sum of the Account Value on each Monthly Processing Day in the 60

months immediately preceding the Bonus payment, divided by 60.





How the policy works

Death Benefit

How we determine the death benefit amount

• The death benefit amount payable is based on the Account Value and Partial Cost Refund amount as

of the date of death.

When the Account Value is positive

• The death benefit amount payable is equal to:

• the amount of insurance for all applicable insurance coverages; plus

• the amount of insurance for any applicable rider coverages; plus

• the allocated Account Value for all applicable insurance coverages.

When the Account Value is negative and the PCR amount is zero



• the amount of insurance for any applicable rider coverages; minus

• the amount required to increase the Account Value to zero.

When the Account Value is negative and the PCR amount is greater than zero



• the amount of insurance for any applicable rider coverages; minus

• the amount required to increase the allocated Account Value for the applicable insurance

coverages to zero.

• Please refer to the Allocated Account Value when PCR is used to keep the policy in effect section in

this Appendix.

• Under certain conditions we will adjust the death benefit, for further details please refer to the

following sections:

• Suicide (both in this Appendix and in the front section of this Guide),

• Misstated age or sex (in the front section of this Guide), and

• Guaranteed Value of the Balanced Index Accounts when the last death benefit is payable (in

this Appendix).

Suicide • Suicide provision applies for a period of one year only.

Account Value


• A portion of the Account Value is allocated to each insurance coverage in effect on the policy,

based on the ratio of the amount of insurance under an insurance coverage to the total amount of

insurance provided by all insurance coverages in effect at the time of the calculation.

• For policies with a negative Account Value, please refer to the Allocated Account Value when PCR

is used to keep the policy in effect section in this Appendix.





Cash Value • The Cash Value of the policy is the Account Value, plus any Partial Cost Refund that applies, minus

any Market Value Adjustments that apply.

• The Cash Value is also referred to as the cancellation cash value

Transfers between investment accounts • Currently there is no fee for account transfers, but in the future, a fee may be charged.

The monthly cost of running the policy

Policy fee

• The monthly policy fee is $6.86.

Special $0 policy fee offer

• The policy fee is $0 for Security UniversalLife policies issued on or after February 14, 2004, where

the total amount of insurance, for all Level Cost and 10-Year Cost insurance coverages on the policy

at the time of issue, is at least $250,000.

• The $0 policy fee:

• appears in Section 3 of the policy contract,

• applies as long as the policy is in effect and is guaranteed at issue of the policy never to

increase, and

• continues upon reinstatement, if the policy is cancelled and later reinstated.

• The $0 policy fee does not apply to Security UL policies.

Life fee

• Security UniversalLife policies do not have a monthly life fee. The life fee was introduced with the

Security UL version of the product.

When a policy ends

Grace Period • The policy enters the Grace Period when the Cash Value becomes negative which happens when the

negative Account Value plus the Partial Cost Refund is less than $0.

Policy reinstatement • The policy may be reinstated at any time within two years after the end of the Grace Period.





Policy changes

Changing coverage options • The policy owner may request a change in coverage option from 10-Year Cost to Level Cost.

• Changes from Level Cost to 10-Year Cost are not allowed.

• A 10-Year Cost insurance coverage can be changed to a Level Cost insurance coverage at any time

up to the policy anniversary nearest the insured person’s 80th birthday.

• If the policy owner does not request a change to Level Cost, we will automatically change the

coverage option to Level Cost on the policy anniversary nearest the insured person’s 80th birthday.

• Administratively, this is handled by terminating the 10-Year Cost insurance coverage and issuing a

new Level Cost insurance coverage.

• The effective date of the change will be the Monthly Processing Day that coincides with or next

follows the day on which we approve the change.

• The new Level Cost insurance coverage will have a Coverage Date equal to the effective date of the

change.

• The existing insurance coverage must be in effect.

• Evidence of insurability is not required.

• The rates for the new coverage will be based on:

• the Level Cost rates in effect on the original Coverage Date;

• the insured person’s sex;

• insured person’s age on their birthday nearest the Coverage Date of the new insurance coverage;

• the insurance rating applicable to the insured person under the original insurance coverage; and

• the Healthstyle applicable to the insured person, determined as follows:


Original Insurance

Coverage

New Insurance Coverage Resulting from the Coverage Option

Change

Healthstyle 1 and the

coverage date is on or after

September 23, 2017

• Healthstyle 1 if original insurance coverage has been in effect for

15 years or less.


more than 15 years.




coverage date is before

September 23, 2017


10 years or less.


more than 10 years.








Original Insurance

Coverage

New Insurance Coverage Resulting from the Coverage Option

Change


coverage date is on or after

September 23, 2017


15 years or less.


more than 15 years.




coverage date is before

September 23, 2017


10 years or less.


more than 10 years.






Non-smoker Healthstyle 3

Smoker Healthstyle 5

Changing coverage options and the rate guarantee

• The guaranteed maximum cost of insurance rates for the new Level Cost insurance coverage are the

Level Cost rates in effect on the Coverage Date of the original 10-Year Cost insurance coverage.

These rates are shown in Appendix 4 for the original 10-Year Cost coverage.

Compensation and coverage option changes

• There will not be a commission chargeback as a result of a coverage option change. There may be a

commission adjustment if the coverage option change occurs in the first coverage year.

• For policy owner requested coverage option changes, commission will be generated for the new

insurance coverage, but a reduced commission rate will apply in the first coverage year.

• For automatic coverage option changes at age 80, no commission is payable on the new Level Cost

insurance coverage.

• Please refer to the Schedule of Commissions and Sales Credits for more information

Increases in coverage • Any increase in insurance coverage on a Security UniversalLife policy will be subject to the

following:

• The rates will be those currently in effect for Security UniversalLife insurance coverages (not

the Security UL rates).

• The Partial Cost Refund feature will apply to new Level Cost insurance coverages.

• The 10-Year Cost coverage option is still available for insurance coverages.





Decreases in coverage • During the first two policy years there must be at least one Level Cost insurance coverage with a

minimum amount of $25,000.

• Decreases in coverage will typically reduce any Partial Cost Refund applicable to that coverage.

However, if the decrease means the amount of insurance falls into a lower band, the Partial Cost

Refund rate could increase.

• In the event that the Partial Cost Refund amount is higher after the decrease in coverage, the policy

owner is not required to pay us the difference.

• If the PCR amount is lower after the coverage decrease, the amount of the decrease in PCR will be

applied directly to the policy’s investment accounts based on the latest investment instructions

provided by the policy owner.

• The Deposit Tax Charge will not apply and no deposit commission will be paid.

• If the policy owner wishes to withdraw the amount of the decrease in PCR after it has been applied

to the investment accounts, withdrawal instructions can be provided on the same form used to

request the decrease in coverage (the Request for Change (NN0739)).

• The withdrawal will be subject to normal taxation.

• The entire amount of the decrease in PCR may not be available for withdrawal if the policy’s

Account Value was negative at the time of the coverage decrease.

Requested coverage cancellations • If a Level Cost insurance coverage is cancelled on or after its 10th coverage anniversary, the Partial

Cost Refund for that coverage will be reduced to zero.

• The amount of the PCR for the coverage immediately before the cancellation will be applied

directly to the policy’s investment accounts based on the latest investment instructions provided by

the policy owner.


• If the policy owner wishes to withdraw the amount of the PCR for the cancelled coverage after it

has been applied to the investment accounts, withdrawal instructions can be provided on the same

form used to request the cancellation (the Request for Change (NN0739)).


• The entire amount of the PCR for the cancelled coverage may not be available for withdrawal if

the policy’s Account Value was negative at the time of the cancellation.

Changes in Healthstyle Coverages dated on or after July 8, 2000

Partial Cost Refund and changes in Healthstyle

• If at any time on or after the 10th anniversary of a Level Cost insurance coverage, the Healthstyle

category for the insured person under that coverage is improved, there will be a resulting decrease in

the Partial Cost Refund amount for that coverage.

• The amount of that decrease in PCR will be applied directly to the policy’s investment accounts

based on the latest investment instructions provided by the policy owner.


• If the policy owner wishes to withdraw the amount of the decrease in PCR after it has been applied

to the investment accounts, withdrawal instructions can be provided on the same form used to

request the Healthstyle change (the Application for Change (NN7001)).






• The entire amount of the decrease in PCR may not be available for withdrawal if the policy’s

Account Value was negative at the time of the Healthstyle change.

Changes from smoker to non-smoker Coverages dated before July 8, 2000

• The policy owner may apply for a change to non-smoker rates, for any coverage with a Coverage Date

before July 8, 2000. The request for non-smoker status may be submitted at any time while the

policy is in effect. A maximum of one request per year may be made.

• The change is subject to satisfactory evidence that:

• the insured person does not smoke cigarettes and/or marijuana and has not done so for at least

the preceding 12 months, and

• there has been no material change in the insured person’s health or insurability since the

coverage date.

• A smoker coverage can only change to a non-smoker. Changing from smoker/non-smoker to

Healthstyle rates must be made through the Rate Rewrite Program.

• Submit a fully completed Application for Change (NN7001).


day on which the request is approved.

• As of the effective date of the change, the monthly deduction and Partial Cost Refund are adjusted,

for the applicable coverage(s), to reflect the change to non-smoker.

• The cost of insurance rates are based on the Coverage Date of the applicable coverage, not on the

rates for new current dated coverages.

Partial Cost Refund and changes to non-smoker

• All the provisions of the Partial Cost Refund and changes in Healthstyle section in this Appendix

also apply to changes from smoker to non-smoker.

Policy splitting • If the original coverage being split is a Level Cost insurance coverage, no Partial Cost Refund is

payable for that coverage.

sul product guide - manulife · 2020-02-28 · • total disability waiver rider (tdw). additional...

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