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Your guide to

PerspectaUniversal Life Insurancewith Standard Life

Hello.

Standard Life 1

Thanks to the various resources available to keep them well informed, more and more people are actively participating in their own financial planning. They see the opportunities out there and want to take advantage of them to ensure their financial security.

Taking the time to review their options, and the benefits they provide, is important. In addition to protecting their assets, your clients want to build their finances so they’ll have something to fall back on in case of an emergency.

Whether they have a family to protect or own a business, universal life insurance can help your clients with their specific situation.

Perspecta Universal Life Insurance

2 Standard Life


Offer your clients the coverage that best suits their needs

Perspecta universal life insurance is more than just insurance; it provides a complete portfolio with fi nancial security all in one policy. It can be used for traditional protection purposes, or when used to its fullest potential, for investment purposes as well.

With the possibility of a compassionate benefi t and disability benefi t payout, as well as the addition of critical illness insurance riders, Perspecta also offers protection against health risks. All this, while still providing a source of tax-sheltered income that can supplement income already obtained through registered retirement plans.

How Perspecta can be used from an investment perspective

See page 4

Types of coverages

See page 7

Life Profiles Preferred Rates Program

See page 8

Standard Life 3In case of discrepancy between this document and the policy, the policy prevails.

Resources

See page 26


Death benefit options

See page 11

All about the Account Optimizer

See page 15

Investment options

See page 16

All about the Shelter Optimizer

See page 15

Client bonuses

See page 12

4 Standard Life

With the right approach, the goal of maximizing the value of investment accounts during the insured’s lifetime can be reached. In such a situation, the YRT-100 COI is a good choice.

Perspecta Universal Life InsuranceFrom an investment perspective

Buy sell agreement

Philip, age 57, is the main shareholder in a family business that manufactures metal structures. His children, Mark, 37, and Joanne, 35, have received an inheritance from their grandfather. They plan to invest the money to provide suffi cient funds to pay the taxes due on Philip’s shares upon his death. Philip has established an estate freeze in order to pass on the future growth of his business to his children and freeze his tax bill at $500,000.

Solution:Mark and Joanne use their inheritance to buy a Perspecta universal life insurance policy on their father’s life:

YRT-100 COIUse inheritance to make single deposit into policy with Account OptimizerUse Shelter Optimizer to provide the proper combination of fund value and death benefi t

Upon his death, Philip’s children can use the death benefi t to pay the capital gains tax on their father’s shares.

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Leveraging

Jonathan and Mary Ann, aged 50 and 48 respectively, plan to retire in 12 years when Mary Ann is 60 years old. They have paid off their mortgage and have extra cash to invest. They both contribute the maximum permitted to their RRSPs and have no more unused contribution room. They are looking for a way to increase their retirement income on a tax-sheltered basis.

Solution:They buy a Perspecta universal life insurance policy into which they will deposit an amount equal to their monthly mortgage payment of $1,200 plus an additional $500 each month.

Along with their insurance representative, they have decided on the following:

Perspecta Universal Life policyUsing YRT-100 COIAccount Optimizer with quick deposit featureThe policy will be assigned as collateral with the bank

At retirement, Jonathan and Mary Ann will have access to additional retirement funds through a series of loans received from their bank. Upon death, the cash value of their policy will be used to pay back the loans with the balance payable to their heirs on a tax-free basis.

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Here are some typical client scenarios:

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Perspecta Universal Life InsuranceFrom an investment perspective

Mortgage protection

Sophie and Anthony, both in their mid-thirties, want to protect their fi nancial security by insuring their mortgage.

Solution:They buy a Perspecta universal life insurance policy, including:

Joint First To Die coverageYRT-100 COILevel death benefi t

If one of them dies, the surviving spouse can pay off the mortgage. If the mortgage is paid before either of them dies and they no longer need life insurance, or need less coverage, they can surrender the policy, in full or in part. The amount received can be used in any way they want. If they become disabled before the mortgage is paid off, they could receive the cash value as a tax-free disability benefi t.

For more information on the various options available with universal life insurance, please refer to our marketing material on Advisor Source at www.advisors.standardlife.ca in the Perspecta Universal Life Insurance – Sales Concepts section. You can also ask your sales offi ce about our Business Markets Program.

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Key person insurance

Simon, Robert and Kathy are the managers of an IT fi rm. Without them, most projects could not be completed and contracts would probably not be signed. Keeping the same 3 managers until their retirement would be ideal for the fi rm to continue running smoothly. Nonetheless, money should be available in case one of them leaves the fi rm or should die unexpectedly.

Solution:In an effort to encourage the three managers to remain on board with the fi rm throughout their careers, a plan has been put together. A Perspecta universal life insurance coverage is purchased on the life of each manager with the fi rm as the benefi ciary. For each coverage, the following options apply:

YRT-100 COIIncreasing death benefi tAccount Optimizer with quick deposit

Upon their retirement, the cash value for each coverage could be used to provide additional retirement income for Simon, Robert and Kathy.

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6 Standard Life

Type of coverage

Issue Age Minimum sum insured

Maximum sum insured*

Types of COI rates


Single Life 15 days to age 80 $50,000 No maximum YRT 100YRT 85/20Level

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IncreasingLevelHybrid

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Joint First to Die (up to 5 lives)

Equivalent age 18 to 80

$50,000 No maximum YRT 100Level

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Joint Last to Die (paid up on fi rst death)

Equivalent age 18 to 80

$50,000 No maximum Level• Increasing•

Joint Last to Die Age 18 to 80 $50,000 No maximum YRT 100Level

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Multiple Life (up to 5 coverages)

15 days to age 80 $50,000 No maximum YRT 100YRT 85/20Level

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Multiple increasing

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* There is no maximum sum insured. However, for a sum insured greater than $5 million, please contact your Standard Life Regional Centre.

Perspecta Universal Life InsuranceProduct overview

Product overview

Standard Life 7

Single Life

Joint First to DieMaximum of fi ve lives.

Joint Last to DieTwo options are available and may be chosen concurrently:

Joint Last to Die, Paid up on First DeathUpon the fi rst death, the cost of insurance and the fi xed expense charges cease to be deducted. However, the cost of any riders and benefi ts will continue to be deducted.

Joint Last to Die, Fund Payment at First DeathA percentage of the investment account value (IAV) is made to the designated benefi ciary upon the fi rst death. Written instructions are required.

Maximum benefi t amount = IAV – (12 X monthly deductions applicable after death)

Perspecta multiple life policyMaximum of fi ve coverages (excluding Perspecta Joint Last to Die - Paid up on First Death)Addition of new coverages at any time Unlimited number of riders and benefi tsPossibility of substituting new insureds for those originally chosenPossibility of removing coverages or splitting policies

Three options for the allocation of the investment account value at death:

A proportion of the IAV (based on each sum insured) is paid upon each death that terminates a Perspecta coverage.A percentage of the total IAV is paid upon each death (excluding the last) that terminates a Perspecta coverage.The total IAV is paid upon the death that results in the termination of the last Perspecta coverage.

Please see the policy for more details.

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Perspecta Universal Life InsuranceTypes of coverage

Types of coverage

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Perspecta Universal Life InsuranceCost of insurance (COI) optionsLife Profiles Preferred Rates Program

Yearly Renewable Term 100 (YRT-100) COI

The rate changes each year Cost of insurance ceases when the insured reaches age 100Available with the level, increasing, hybrid or multiple increasing death benefi t optionsAvailable with all types of coverage except a Joint Last to Die, Paid up on First Death policy

Yearly Renewable Term 85/20 (YRT-85/20) COI

The rate changes each yearCost of insured ceases when the insured reaches age 85 or at the 20th policy anniversary, whichever is laterAvailable with an increasing or multiple increasing death benefi tAvailable on single life policies

Level COIThe cost of insurance remains constant until the insured reaches age 100Available with an increasing or hybrid death benefi t

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COI based on:Age • LifestyleGender • Medical history

Sums insured of $100,000 and more3 categories of non-smoker rates 2 categories of smoker rates

Sums insured between $50,000 and $99,999 (standard rates)

Non-smokers are classifi ed as profi le 3 Smokers are classifi ed as profi le 5

Profile 1People with healthy lifestyles who have excellent personal, family and medical histories.

Profile 2People with healthy lifestyles who have very good personal, family and medical histories.

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Rate BandingBand 1*: Sum insured of $50,000 to $99,999Band 2: Sum insured of $100,000 to $999,999Band 3: Sum insured of $1 million or more

Cost of insurance (COI) optionsAll cost of insurance rates are guaranteed for the:

Duration of the policyInitial sum insuredInitial death benefi t option chosen

Subject to certain fees, the YRT-100 or YRT-85/20 cost of insurance can be changed to a level cost of insurance before the insured reaches age 85. If a level death benefi t option was chosen, the death benefi t must be changed to increasing before the COI can be changed to level COI. In all cases, changing to level COI is based on the insured’s insurance age at the time the change is made.

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Life Profiles Preferred Rates ProgramProfile 3People with healthy lifestyles who have not smoked in the last 12 months.

Profile 4People with healthy lifestyles who do not smoke cigarettes or use nicotine products (e.g., nicotine patch or gum) but who use any one of the following: cigars, pipes or chewing tobacco on occasional basis.

Profile 5People with healthy lifestyles who smoke cigarettes or use nicotine products and may use cigars but do not qualify for profi le 4.

For more information, please refer to Your Guide to Underwriting With Standard Life.

* Sums insured between $25,000 and $49,999 fall under Band 1 and are only available for voluntary increases after the policy has been issued.

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Maintaining a healthy lifestyle can save your clients money – thanks to our Life Profiles Preferred Rates Program.

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Perspecta Universal Life InsurancePremium paymentMonthly charges

The client decides the amount of each deposit and the frequency of the payments. He can pay them:

AnnuallySemi-annuallyQuarterlyMonthly

The fi rst year minimum premium (necessary to keep the policy in force) varies according to:

The cost of insurance selected The policyholder’s province of residence

In subsequent years, no minimum premium is required and the policy remains in force as long as the investment account value is greater than the monthly deductions.

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If there is not enough money in the selected account at the time the COI charges come due, Method 1 will be employed by default for that month. The owner may switch from one method to the other at any policy anniversary.

Flat Extra ChargesDetermined by the Underwriting Department, these charges may apply temporarily or permanently for an insured whose health is impaired or who engages in activities that increase risk.

Table of provincial premium tax rates

Province Percentage

Newfoundland & Labrador 4%

Northwest Territories 3%

Nunavut 3%

Nova Scotia 3%

Prince Edward Island 3.5%

Quebec 2.35%

Saskatchewan 3%

All other provinces 2%

Note: Provincial Premium Tax rates are determined by legislation and are subject to change.

Premium payment

Total Monthly charges include:The cost of insurance*Provincial tax on premiums$8 per month* per policy $2 per month* for each Perspecta coverageCosts of riders and benefi tsFlat extra charges

* These amounts will no longer be deducted once the Perspecta coverages are paid up.

Monthly charges can be deducted by one of two methods:Proportionate (Method 1)The amount is deducted proportionately according to the value of each investment account. In the case of the Term Investment Accounts (TIAs), charges are withdrawn from the Account closest to maturity. Market value adjustments are not applicable to monthly deductions from the TIAs.

Selected (Method 2)The policyholder selects the account from which the charges will be deducted; he/she may choose any account other than a term investment account with a term of more than one year.

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On each policy anniversary, a yearly maximum premium is calculated. This premium determines the maximum amount that can be deposited into the policy’s investment accounts in a given year in order to maximize the amount invested without losing the policy’s tax-exempt status.

Any amounts exceeding the annual maximum premium will be automatically transferred tothe policy’s transit account. This is a daily interest account where all interest earned is taxable. The funds in the transit account are available to the policyholder at any time and are not included in any death benefi ts paid to the benefi ciaries.

Monthly charges

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Level

The greater of:

the sum insured

MINUS

any disability benefi ts paid out

AND

the investment account value (IAV)

Available with YRT-100 COI.

Increasing

The sum insured

MINUS


PLUS

the IAV

Available with all types of COI.

Hybrid

The sum insured

MINUS


PLUS

the greater of: IAV

AND

the sum of all deposits to IA, without interest,

LESS

any withdrawals and associated charges

Available with YRT 100 or Level COI. The excess of the sum of all deposits in the investment account value is based on a YRT 100 COI.

Sum InsuredInvestm

ent Account Value

Sum Insured

Investment Account Value

Multiple increasing

The sum insured

PLUS

the portion of the investment account value of the portion selected by the policyholder

Available under Multiple Life policies only with all types of COI .

Sum Insured


Sum of all deposits


Perspecta Universal Life InsuranceDeath benefit options

Sum Insured – insured 1

Sum Insured – insured 1


Note: Clients can change the death benefi t option chosen at any time. The Hybrid death benefi t option is the sole option that is offered only at the time the policy is issued. Standard Life may request evidence of insurability at the time the change is made.

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Minimum increase: $25,000Minimum decrease: $10,000No decreases permitted in the first two years

If the option is chosen at issue, all increases, with the exception of automatic Shelter Optimizer increases, are subject to underwriting requirements as well as the COI rates in effect at the time of the request. For automatic increases with the Shelter Optimizer, the rates are those in effect at the time the coverage is issued.

Loyalty bonus

Unconditionally guaranteed as long as the policy remains in force

0.7% of the investment account value at the end of the policy year LESS any outstanding loan balance

Enhanced bonus

Two levelsA percentage of the investment account value

It is paid at the end of the policy year if the following conditions are met:

The premium qualifying for a Tier 1 enhanced bonus of 0.3% is equal to:From the policy issue date to the relevant anniversary, the sum of all deposits made to the investment accounts (less any withdrawals, loans and surrender charges) must be greater than the sum of the Enhanced Bonus Qualifi cation Premium (EBQP) (Tier 1) of all coverages for each year, plus any fl at and/or multiple extra charges.

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EBQP: 1.6 X fi rst year minimum premium* (for each Perspecta coverage, excluding riders, benefi ts and fl at extra charges) PLUS the cost of additional riders and benefi ts and fl at extra charges

The premium qualifying for a Tier 2 enhanced bonus of 0.2% (or 0.5% if certain conditions are met, see following page for details) is equal to:From the policy issue date to the relevant anniversary, the sum of all deposits made to the investment accounts (less any withdrawals, loans and surrender charges) must be greater than the sum of the Enhanced Bonus Qualifi cation Premium (EBQP) (Tier 2) of all coverages for each year, plus any fl at and/or multiple extra charges.

EBQP: 2.35 X fi rst year minimum premium* (for each Perspecta coverage, excluding riders, benefi ts and fl at extra charges) PLUS the cost of additional riders and benefi ts and fl at extra charges.

* The calculations are based on Level cost of insurance.

Perspecta Universal Life InsuranceChange of sum insuredClient bonuses

Change of sum insured

Client bonuses

Standard Life 13

Perspecta Universal Life InsuranceClient bonuses

If the conditions mentioned in the previous page are met and all Perspecta coverages are based on the YRT cost of insurance rate, the Enhanced Bonuses will be determined in accordance with the following scale:

Bonus Type Bonus Rate Tier 1 0.30% Tier 2 0.50%

If all the conditions mentioned in the previous page are met and at least one Perspecta coverage uses the Level cost of insurance rate, or COI is switched from YRT to Level, the Enhanced Bonuses will be determined in accordance with the following scale:

Bonus Type Bonus Rate Tier 1 0.30% Tier 2 0.20%

The bonus rate for Tier 1 is added to the bonus rate for Tier 2 if the second condition is met.

If the conditions applicable to the respective Tier of the enhanced bonuses are met on or after the 10th

policy anniversary, the bonus will be paid for the duration of the policy.

The initial Enhanced Bonus Qualifi cation Premiums for Tiers 1 and 2 are shown on the Annual Statement. The Enhanced Bonus Qualifi cation will change if the sum insured is increased, if a new coverage is added or if monthly deductions for riders and benefi ts change.

Standard Life 13

Summary of bonuses

14 Standard Life

Perspecta Universal Life InsuranceShelter Optimizer

This option, selected by the policyholder at issue, allows the sum insured under the Perspecta coverage to be adjusted to take full advantage of the tax-exempt room available to life insurance policies.

The Shelter Optimizer is available with all Perspecta policies, excluding Paid up on First Death policies. For Multiple Life policies, the option must apply to all coverages. The cost of this coverage is based on YRT-100 COI.

At issue, the policyholder must select one of the following options:1. Increase only2. Increase and decrease3. No increase and No decrease

In the absence of specifi c instructions, the “No Increase and No Decrease” option will be exercised.

Shelter Optimizer

Increase only and increase and decrease options

Under these options, if the policy fails the tax-exempt test, or if the policyholder has deposited the yearly maximum premium shown on his/her most recent Perspecta statement, the sum insured of all Perspecta coverages then in force under the policy will automatically be increased by a percentage not exceeding 8% per year.

A Perspecta coverage will no longer be subject to these automatic increases when:

the total sum insured for that coverage equals four times the initial sum insured,the total sum insured for an insured reaches $20 million, or the insured reaches age 85, whichever comes fi rst.

However, for Multiple Life policies, the Shelter Optimizer option may continue to generate automatic increases for remaining Perspecta coverages.

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Following an increase due to the Shelter Optimizer option, there are three coverage decrease limits available. The owner may reduce the sum insured until it reaches:

the value of the initial sum insured,an amount specifi ed by the owner (which could be lower than the initial sum insured if the policy has been in force for at least 5 years)the minimum sum insured available for a Perspecta coverage.

For a decrease in the sum insured, a written request must be sent to Standard Life. The amount of the decrease could be equal to or less than the amount indicated on the Perspecta statement. Any decrease larger than that indicated on the Perspecta statement will cause the policy to fail the tax-exempt test, making a withdrawal or transfer to the Transit Account necessary. Decreases will be made on the monthly deduction date following the receipt of the owner’s instructions.

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Standard Life 15

Perspecta Universal Life InsuranceShelter OptimizerAccount Optimizer

When combined with the Shelter Optimizer, this “solve-for” in our Wealthcare Illustration System allows the client’s investment accounts to be maximized while minimizing the sum insured under the policy thus reducing the cost of insurance. At the later of age 85 and duration 10, the sum insured may be $0, meaning the net cost of pure insurance is zero. This means that only the value of the investment accounts remains.

There are two ways to make deposits: a single deposit using the transit account or by “quick deposit”.

No Increase and No Decrease option

If this option is chosen, no automatic adjustment will be made to the sum insured of the Perspecta coverages and the owner will not be advised of the possible decreases.

If the owner refuses an automatic increase in writing within 30 days after the policy anniversary, the Shelter Optimizer option will become No Increase and No Decrease.

Account OptimizerFor single deposits, we suggest using the transit account for a period of 3 to 10 years. As a general rule, clients should use the transit account for a period of 3 to 5 years for insureds of 45 years or younger and 5 to 10 years for insureds of 45 years or older.

For “quick deposits”, the investment account is optimized through a series of deposits made over a given period. The client is free to choose the amount of the deposit and the payment period. In the Wealthcare Illustration System, use the Account Optimizer with quick deposit option to determine the period and amount that best suits your client’s situation.

After issue, the owner may select the Increase and Decrease or the Increase Only options, but all insureds under all Perspecta coverages will be subject to underwriting requirements.

16 Standard Life

The policyholder may choose how deposits are to be allocated among the investment accounts. However, the minimum deposit allocated to any single investment account is 5% of each deposit. If the policyholder selects more than one term investment account, a minimum deposit of $50 per account is required. The maximum number of accounts per policy is 10.

Our investment options meet the needs of all types of investors, including those who are more familiar with investment accounts as well as those who prefer to leave the management of their investment accounts to the professionals. We offer the following accounts:

Perspecta Universal Life InsuranceInvestment options

Active Management

Fixed IncomeStandard Life Canadian Bond AccountStandard Life Corporate High Yield Bond AccountStandard Life International Bond Account

BalancedStandard Life Monthly Income AccountStandard Life Balanced Account

Canadian EquityStandard Life Canadian Dividend Growth AccountStandard Life Canadian Equity AccountStandard Life Canadian Small Cap Account

U.S. EquityStandard Life U.S. Equity AccountStandard Life U.S. Mid Cap Account

Investment options

International EquityStandard Life Global Dividend Growth AccountStandard Life International Equity AccountStandard Life Global Equity AccountStandard Life European Equity Account

Predetermined Portfolio AccountsStandard Life Conservative Portfolio AccountStandard Life Moderate Portfolio AccountStandard Life Growth Portfolio AccountStandard Life Aggressive Portfolio Account

Standard Life 17

Perspecta Universal Life InsuranceInvestment options

Passive Management

Indexed AccountsMoney Market Index AccountCanadian Bond Index Account IIICanadian Equity Index Account IIIU.S. Equity Index Account IIEuropean Equity Index Account IIEuroAsia Plus Equity Index Account IIScience and Technology Equity Index Account

Strategic Asset Allocation AccountsConservative Asset Allocation AccountModerate Asset Allocation AccountGrowth Asset Allocation AccountAggressive Asset Allocation Account

Term Investment AccountsTerm Investment Account of 1 yearTerm Investment Account of 3 yearsTerm Investment Account of 5 yearsTerm Investment Account of 10 yearsTerm Investment Account of 15 yearsTerm Investment Account of 20 years

The minimum Term Investment Account interest rate for each term is guaranteed to equal the greater of 90% of the Government of Canada Bond rate for the same term, less 1.75%, and the percentage minimum for that term, as shown below:

0% for 1- and 3-Year Term Investment Accounts1% for 5-Year Term Investment Account2% for 10-, 15- and 20-Year Term Investment Accounts

These guarantees apply to each Term Investment Account mentioned above, as long as the account is available. We also guarantee to offer, as long as the policy is in force, at least one Term Investment Account.

Daily Interest AccountAs long as the account is available, we guarantee the interest rate will never be less than zero.

For more information on the accounts available, please see the Marketing Materials section of Advisor Source at: www.advisors.standardlife.ca.

Change to or Termination of an Investment OptionIf an index is no longer published, Standard Life will endeavor to replace it with another Investment Option, which we judge similar to the original investment. Standard Life also reserves the right to switch the investment from the Investment Option that has been terminated to the Investment Option that we judge comparable at that time. Standard Life also reserves the right to change or terminate an Investment Option for such other reasons as Standard Life may in its sole discretion deem reasonable.

18 Standard Life

Perspecta Universal Life InsuranceCash value

The policyholder can access the cash value of his Perspecta policy through a cash withdrawal (full or partial).

The cash value is equal to the total investment accounts, less surrender charges, outstanding policy loans and, in the case of term investment accounts, market value adjustments.

Cash value

Full surrender

The policyholder may elect to surrender the entire policy at any time, in which case the cash value and, if applicable, the value of the transit account will be paid to the policyholder. A full surrender will terminate the policy.

Partial surrender

A partial surrender is the withdrawal of a portion of the cash value. The maximum allowed is the cash value less any outstanding policy loans and three times the monthly deductions. The minimum for a partial surrender is $500. Partial surrenders may be subject to income tax and, in the case of term investment accounts, to market value adjustments.

Withdrawals are taken from the policy’s investment funds according to the owner’s instructions. In the absence of instructions all withdrawals are fi rst taken from the transit account. Withdrawals from the TIAs are made from the fund segment closest to maturity.

Any withdrawals will reduce the Investment Fund Value by the amount of that withdrawal. In the case of the Level Death Benefi t option, withdrawals will reduce the sum insured while, in the case of the Hybrid Death Benefi t option, withdrawals will reduce the return of premiums component.

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Policy loans may be granted at any time after the fi rst policy year The minimum loan amount is $500 After the third policy year, the maximum loan amount is 85% of the cash value Policy loans can be made in policy year two, but the maximum amount may vary

Contact our head offi ce for more information if needed.

The annual interest rate charged on the loan = the interest rate of the daily interest account, PLUS 2%.

The policy will remain in force as long as the loan balance (loan amounts plus accrued interest) is less than the cash value.

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Perspecta Universal Life InsuranceCash valuePolicy loans

Full Surrender Charge × Withdrawal Amount

Investment Account Value Net of Policy Loans

Policy loans

In addition, surrender charges corresponding to a percentage of the fi rst year minimum premium, calculated using Level cost of insurance, apply for the nine years following the issuance of Perspecta coverage or an increase to the sum insured requested by the client.

Full Surrender Charges are calculated as follows:

Policy Year Surrender Charge (% First Year Minimum Premium1)1 125%

2 175%

3 225%

4 275%

5 275%

6 275%

7 200%

8 150%

9 75%

10 and over 0%1 Calculated using Level COI.

Only a portion of the surrender charge applies when the client is withdrawing only a portion of the investment accounts. The surrender charges for partial withdrawals are equal to:

20 Standard Life20 Standard Life

With the addition of a CI rider to their policy, your clients can have complete protection.

Standard Life 21

Perspecta Universal Life InsuranceRiders and additional benefits

Guaranteed Insurability Benefit (GIB)Available at the time of issue for insureds aged 40 or lessChoice of sum insured between $10,000 and the lesser of $100,000 and twice the sum insured of the policy to which the GIB is attachedBenefi t may be exercised on any of the occasions specifi ed in the policy

Accidental Death BenefitAdditional amount of insurance paid to the benefi ciary if the insured dies as a result of an accidentMinimum coverage of $10,000Maximum coverage for insureds 15 days to 25 years of age is the lesser of $100,000 and the sum insured under the Perspecta policyMaximum coverage for insureds between age 25 and 65 is the lesser of $300,000 and the sum insured under the Perspecta policyBenefi t ceases at age 70

Waiver of costs on disabilityWaiver of premiums during the disability of the policyholder or the insured before age 60, up to date of recovery or death of the policyholder or the insuredCovers waiver of premiums related to future increases in sum insured under the Shelter Optimizer option.The benefi t expires upon recovery or death of the person insured

In addition, any voluntary increases in the sum insured may also be waived, provided a new waiver is issued for the voluntary increase. To obtain the new waiver, the insureds will be subject to the then current underwriting requirements, waiver costs and administrative rules.

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10 year and 20 year renewable and convertible term insurance riders

10- or 20-year termsAutomatic renewalCoverage to age 85Change in premium every 10 years or 20 years (premium guaranteed at issue)Convertible to any permanent insurance plan before age 65

Protecta critical illness insurance riders (4 or 24 illnesses)Protecta 10Protecta 65Protecta 65 – joint coverage Protecta 75Protecta 100 Protecta Child (13 illnesses)

Children’s protection riderSum insured between $2,000 and $20,000, level insuranceCovers only one childAge at issue: 15 days to 17 yearsCoverage to age 25 or wedding date, whichever is fi rstConvertible to any available insurance coverage 31 days before expiry date

Children’s enhanced protection riderProvides the same sum insured as children’s protection rider, but includes guaranteed insurability. This permits the life insured to purchase additional insurance at specifi ed option dates as long as the sum insured for the new coverage is no greater than 5 times that of the rider.

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Riders and additional benefits

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Perspecta Universal Life InsuranceRiders and additional benefits

Enhanced waiver on disabilityWaiver of an amount selected by the policyholder, subject to certain conditions, in the event the insured under this coverage becomes disabled (please refer to the policy)The waiver period is also selected by the policyholder, and is subject to certain conditions

The minimum amount is $1,800 per year and the maximum is the lesser of:

$18,000 and200% of the First Year Minimum Premium (or $1,800 whichever is greater)

Issue Age Period1

18 to 50 10 Years

18 to 40 20 Years

18 to 44 To Age 50

18 to 54 To Age 60

• The benefi t expires upon recovery or death of the person insured

1 Corresponds to coverage period and maximum waiver period set by the company. In all cases, the minimum waiver period is 10 years.

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Death and disability waiverAvailable for policies where only children are coveredWaiver of an amount selected by the policyholder in the event he/she dies or becomes disabled on the earlier of the following: before the insured reaches age 25 or before the policyholder reaches age 60The amount selected by the policyholder at issue may not exceed $1,500 per month or $18,000 per year

The amount to be waived may be changed (subject to underwriting requirements) after the issue date. This benefi t is not available for policies containing more than one juvenile Perspecta coverage.

Survivor’s insurance benefit 65 or 70Survivors of Joint First to Die policies have the option of purchasing any insurance plan, without evidence of insurabilitySum insured under the new policy must be the same as under the original coverageRight may be exercised by survivors under 65 years of age or 70 years of age, depending on the benefi t selected

If there is more than one survivor, they can each elect to take out a Single Life Policy or a Joint First to Die policy among them.

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Perspecta Universal Life InsuranceDisability benefit payoutCompassionate benefit

If the insured suffers from a terminal illness, we can help in our own way by offering him an advance payment on the policy’s death benefi t.

This non-contractual compassionate benefi t is offered at no additional charge. The cash advance can be as high as 50% of the death benefi t to a maximum of $100,000. In addition to helping the insured cover costs related to his condition, this benefi t could allow a signifi cant other, a family member, or someone close to the insured to take a leave of absence from work to be with him when he needs them most.

Certain requirements must be met to be eligible for the benefi t:

For any Perspecta policy with only one coverage in force and with a cash value greater than zero, an insured aged 18 or older suffering from a severe physical or mental impairment may receive a disability benefi t, subject to the conditions defi ned in the policy.

The benefi t consists of a portion of the cash surrender value and the amount paid out is based on the following conditions:

a) One lump sum disability benefi t payment will be permitted in any policy year.

b) The minimum amount of each payment must be the lesser of $2,500 and the maximum amount allowed, as defi ned in c) below.

c) The maximum amount allowed for each payment will be determined on the effective date of the claim. It equals the cash value minus the equivalent of one year’s monthly deductions and any outstanding loan balance.

d) Surrender charges do not apply.

Currently, disability benefi ts are not subject to income tax. Please refer to the policy for a defi nition of disability and information about conditions and exclusions.

Disability benefit payout

Compassionate benefit

The settlement takes the form of a collateral policy loan.

The interest on the loan is based on the rate then applicable for policy loans and remains fi xed afterwards.

Upon the death of the insured, the initial death benefi t, less the policy loan and the accrued interest on the loan, is paid to the benefi ciary.

Since it is a non-contractual benefi t, the cash advance received is tax-free.

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If the insured suffers from a terminal illness with a life expectancy of 12 months or less, the policyholder can draw against his life insurance policy while the insured is still alive.

The insured must provide a medical certifi cate, issued in writing by a physician regarding his or her state of health. Such certifi cate must meet Standard Life’s criteria, and we reserve the right to require additional information.

The policy must have been in force for at least two years.

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24 Standard Life

Perspecta Universal Life InsuranceTaxation

Standard Life tests the Perspecta policy regularly to ensure it retains its tax-exempt status.If the Perspecta policy fails the tax-exempt test, Standard Life will automatically restore the policy’s tax-exempt status, according to the owner’s instructions, by:

1. transferring the excess money to the Transit Account, OR2. sending the excess money directly to the owner.

Both cases constitute a partial withdrawal and, therefore, may be subject to taxation. In the absence of instructions from the owner, the excess amount will be transferred to the Transit Account.

As tax-exempt room becomes available, the funds will be transferred back into the investment funds and allocated according to your instructions.

All interest earned in the Transit Account is taxable and the appropriate tax receipts will be forwarded to the owner.

Taxation on Surrender

A portion of any withdrawal will be taxable when the value of the investment funds is greater than the policy’s Adjusted Cost Base (ACB). For the purposes of this document, the ACB is the deposits made into the tax-sheltered accounts less the net cost of pure insurance, less the cost of any riders, benefi ts and extra premiums.

To help you better understand tax matters related to our protection solutions, we have developed a publication called Taxing Issues, which can be found on Advisor Source at www.advisor.standardlife.ca. For more information on the taxation of universal life insurance, you can consult the documents listed below.

The Tax Implications of Corporate-Owned Life Insurance PC 5675-04-2006

Savings Available Where Corporate Dollars are Used to Acquire Life Insurance PC 5676-04-2006

Life Insurance: Corporate vs. Personal Ownership PC 5707-04-2006

Corporate vs. Personal Ownership Checklist PC 5718A-05-2006

The Intergenerational Wealth Transfer of Life Insurance Policies(Cascading Policies) PC 5850A-05-2006

Taxation

Standard Life 25

Perspecta Universal Life InsuranceResources

Advisor Source Web site

You will fi nd all the marketing material you need, in PDF format, to sell Perspecta in Advisor Source at: www.advisors.standardlife.ca. You can also contact your sales offi ce or general agent for hard copies.

Sales Support

For more information on Perspecta universal life insurance, please contact your sales offi ce or your nearest Standard Life regional centre.

Resources to help you better serve your clients

Eastern [email protected]

Central [email protected]

Western [email protected]

We know you want to provide your clients with the best possible service and we want to do the same for you. You can count on us to give you the support and tools you need to advise your clients.

Standard Life 25

Retirement InvestmentsInsurance

The Standard Life Assurance Company of Canada

2546S-10-2006

www.standardlife.ca

Talk soon.

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