Class Plus 2 Information Folder and Contract Provisions - Empire Life

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2) if you have selected the Joint Tiered LWA Option, afterDecember 31st of the year the older of the Annuitant andthe Joint Life turns 80 years old or would have turned 80had he/she survived; and3) during the Guaranteed Payment Phase (See Section 6.10Guaranteed Payment Phase).Deposits to the contract can be made on a regular scheduledbasis or as subsequent lump sum deposits. The minimumscheduled deposit amount is $100 per Fund. Subsequent lumpsum deposits must be at least $500 per Fund and can be madeat any time while your contract is in force except for anylimitations described in this Folder.We may require medical evidence of the health of an Annuitantand reserve the right to refuse to accept a deposit or to return adeposit should incomplete or unsatisfactory evidence be provided.Cheques must be payable to The Empire Life InsuranceCompany or, if your contract is in a Nominee or Intermediaryname, to a third party in trust. All payments must be made inCanadian dollars.We will apply your deposit towards the purchase of Fund ClassUnits in the Fund(s) you have selected at the Fund Class Unitvalue in effect on the Valuation Date (See Section 10.3 ValuationDate and Fund Class Unit Values).3.2 Rescission RightsYou have the right to change your mind about purchasing thecontract. You must provide written notice of your desire torescind the contract to us within two business days of receivingthe confirmation notice. You will be deemed to have received theconfirmation notice five business days after we have mailed it.You will receive the lesser of:1) the market value of the Fund Class Units at the credit ofyour contract on the Valuation Date following the day wereceive your request plus any sales charges applicable to thedeposit; or2) the amount of your deposit.You can also change your mind about subsequent deposits tothe contract on the same conditions as outlined above exceptas follows:1) in the event you elect to rescind a subsequent deposit,the right to rescind the purchase will only apply to thatdeposit; and2) the right to rescind a subsequent deposit does not apply toregular scheduled deposits for which confirmation noticesare not issued at the time of deposit.We reserve the right to defer payment of any value under therescission right for 30 days following the date we receive yournotice to rescind.Any deposit allocated to a Segregated Fund is invested at the riskof the Contract Owner and may increase or decrease in value.4. SWITCHES4.1 General InformationA switch shall mean transferring funds within your contract bycancelling Fund Class Units of one Fund for their market valueand acquiring Fund Class Units in another Fund.Switches must be between Funds purchased with the samePurchase Fee Options (e.g. Fund Class Units purchased underthe DSC Option can only be switched to other Fund Class Unitsunder the DSC Option).When you make a switch the market value of the Fund ClassUnits acquired by deposits that have been in the Fund thelongest are switched first.If your contract is non-registered, switches may result in a gainor a loss since they are considered a taxable disposition fromthe applicable Fund.The minimum amount for a switch is currently $250. Wereserve the right to refuse a switch request in accordance withour rules.Frequent switches may result in an excessive short-termtrading fee (See Section 8.4 Excessive Short-Term Trading Fee).4.2 Scheduled SwitchesYou may, by providing notice to us, make scheduled switchesin accordance with our rules. If the date selected falls on aweekend or holiday, the switch will be processed on theprevious Valuation Date. We reserve the right to cancel yourscheduled switches at any time or to direct your scheduledswitches to a similar fund in accordance with our rules.The market value of Fund Class Units cancelled and acquired inaccordance with a switch is not guaranteed but will fluctuatewith the market value of the assets of the Funds.5. WITHDRAWALS5.1 General InformationWithdrawals could significantly reduce or eliminate the valueof the GWB. Withdrawals will proportionately reduce thepreviously established Maturity and Death Benefit Guaranteesand the Income Base (See Section 6.6 Income Base Reset,Section 7.4 Maturity Benefit Guarantee, and Section 7.9 DeathBenefit Guarantee).5
You may, by providing notice to us and while your contractis in force, request a withdrawal on an unscheduled orscheduled basis. The minimum withdrawal amount is $250per Fund. You must indicate in your notice to us the Fund(s)you wish to withdraw Fund Class Units from. The contract willautomatically terminate when all Fund Class Units have beenwithdrawn except during the Guaranteed Payment Phase (SeeSection 6.10 Guaranteed Payment Phase).Any applicable withdrawal fees and withholding taxes payableare deducted from the amount withdrawn (See Section 8.2Purchase Fee Options). The minimum withdrawal amountsare calculated before withdrawal fees and withholding taxesare deducted. If the market value of the Fund Class Units ona Valuation Date (See Section 10.3 Valuation Date and FundClass Unit Value) is not sufficient for us to make the requestedwithdrawal, we will make the withdrawal in accordance withour rules.We reserve the right to refuse your request for a withdrawalor to require that your contract be cancelled if the minimumbalance requirements are not met (See Section 5.4 MinimumBalance Requirements).Withdrawals from a non-registered contract may result in again or a loss as this is a taxable disposition. Withdrawals froma registered contract may be subject to withholding taxes (SeeSection 9 Taxation).5.2 Scheduled WithdrawalsScheduled withdrawals are the automatic withdrawal of someof the market value of the Fund Class Units at the credit of yourcontract at regular periodic intervals. We will withdraw theamount you have requested on the date as selected by you. Ifthe date selected falls on a weekend or holiday, the withdrawalwill be processed on the previous Valuation Date. The proceedsfrom a scheduled withdrawal will be deposited directly intoyour bank account.You may, by providing notice to us, request that scheduledwithdrawals be made if your contract is non-registered,a TFSA, or a RRIF. If your contract is a RRIF scheduledwithdrawals will be referred to as retirement incomepayments.5.3 Free Withdrawal LimitFor deposits that have been made with a Deferred Sales ChargeOption (“DSC Option”) or Low-Load Option (“LL Option”),withdrawal fees apply to any withdrawals that occur beforethe end of the withdrawal fee schedule (See Section 8.2Purchase Fee Options). However, a withdrawal of some of themarket value of Fund Class Units at the credit of your contracteach calendar year up to specified limits will not be chargeda withdrawal fee. Withdrawals in excess of the LWA for thecalendar year will be an Excess Withdrawal (See Section 6.8Excess Withdrawals).The free withdrawal limit is calculated as:1) a percentage of the market value of the Fund Class Unitspurchased under the DSC or LL Option at the credit of yourcontract on December 31st of the previous calendar year;plus2) a percentage of any deposits made in the currentcalendar year.The free withdrawal limits are specified in the following chart:Contract TypeNon-registered,RRSPs and TFSAs% of Market Valueof Fund Class Unitsas of December 31stof previous year*% of deposits madein current year10% 10%RRIFs 20% 20%*Only applies to Fund Class Units purchased under the DSC orLL Option.We reserve the right to change the free withdrawal limit,the conditions under which this provision is applied and thecalculation of the limits in accordance with our rules.For amounts in excess of the 10% or 20% respectively, normalwithdrawal fees will apply. The free withdrawal limit isdetermined each calendar year and cannot be carried over tothe next calendar year.5.4 Minimum Balance RequirementsThe market value of the Fund Class Units in a Fund at the creditof your contract at any time must be at least $250.The market value of the Fund Class Units at the credit of yourcontract must be at least $500.If the minimum balance requirements are not met we reservethe right to terminate your contract and pay the market valueof the Fund Class Units at the credit of your contract, less anyapplicable withdrawal fees and withholding taxes, to you. Wereserve the right to change the minimum balance requirementsat any time.Minimum balance requirements do not apply during theGuaranteed Payment Phase.The market value of Fund Class Units cancelled in accordancewith a withdrawal is not guaranteed but will fluctuate with themarket value of the assets of the Fund(s).6
Page 3 and 4: KEY FACTS FOR THE CLASS PLUS 2 CONT
Page 5 and 6: TABLE OF CONTENTS1. GENERAL INFORMA
Page 7 and 8: INTRODUCTIONThe Empire Life Insuran
Page 9 and 10: or, if applicable, the life of the
Page 11: certain transactions otherwise perm
Page 15 and 16: Example - calculation of the LWA (w
Page 17 and 18: Example - calculation of the LWA (w
Page 19 and 20: 6.6 Income Base ResetCommencing on
Page 21 and 22: We will notify you that the withdra
Page 23 and 24: On the death of the Annuitant:1) a
Page 25 and 26: The fee you pay for the Maturity an
Page 27 and 28: 8.3.3 Collection of the Class Plus
Page 29 and 30: Retirement income payments that con
Page 31 and 32: 11.7 Fees and Expenses Paid by the
Page 33 and 34: 11.15.1 Portfolio FundsWe currently
Page 35 and 36: The portfolio’s curve positioning
Page 37 and 38: Principal RisksRisks of investing i
Page 39 and 40: the foreign currency, the currency
Page 41 and 42: APPENDIX TO INFORMATION FOLDER34
Page 43 and 44: Income Now - Down Market ScenarioAs
Page 45 and 46: Income Later - Down Market Scenario
Page 47 and 48: John and Mary are guaranteed an LWA
Page 49 and 50: Income Later - Down Market Scenario
Page 51 and 52: 1. GENERAL INFORMATION1.1 Definitio
Page 53 and 54: and a Senior Vice-President of Empi
Page 55 and 56: You may, by providing notice to us
Page 57 and 58: 1) the current LWA; and2) a new LWA
Page 59 and 60: 6.3 Maturity BenefitThe Maturity Be
Page 61 and 62: 6.11.1 Death Benefit GuaranteeThe D
Page 63 and 64:
8.3 Valuation Date and Fund Class U
Page 65 and 66:
2) “Spouse” or “common-law pa
Page 68:
The Empire Life Insurance Company (
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Class Plus 2 Information Folder and Contract Provisions - Empire Life

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