Class Plus 2 Information Folder and Contract Provisions - Empire Life

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The table below tracks the Joint Tiered LWA amount and provides an explanation for the increase.Age Income base Tiered LWA % Tiered LWA Reason for Increased LWA60 500,000 3.00% 15,000 Initial LWA64 564,795 3.00% 16,944 Reset65 547,851 3.50% 19,175 Joint Tiered LWA% Increase67 854,163 3.50% 29,896 Reset70 1,039,082 3.75% 38,96676 1,255,217 4.50% 56,485Reset + Joint Tiered LWA%IncreaseReset + Joint Tiered LWA%IncreaseJohn and Mary’s LWA increased from $15,000 at issue to a maximum of $56,485 as a result of an increase to the Income Base throughtriennial resets and an increase to the Joint Tiered LWA Percentage based on Mary‘s age.CLASS PLUS 2 – JOINT TIERED INCOME LATER SCENARIOBen and Louise are a married couple who will be turning 55 and 51 this year. Ben and Louise are looking for retirement income whenLouise retires at age 65. They currently have $300,000 to invest. They are looking for an investment that will allow them to be in theequities market and are also looking for:• an investment that has the potential to grow for 14 years before Louise retires;• an investment that will be held predominately in equities;• an investment where there are a variety of funds to choose from; and• a Death Benefit Guarantee or the account value (whichever is higher) that would be payable to their beneficiaries.The Income Base Bonus* feature can help Ben and Louise during the accumulation phase by increasing their Income Base by 5%each year assuming no withdrawals are made. If they need to withdraw some money, they can withdraw up to the Joint Tiered LWAamount provided Louise is at least 55 years old.41
Income Later – Down Market ScenarioThe Income Base Bonus contributes to Ben and Louise’s potential future income and protects them against downside market risk.Despite poor market conditions, their Income Base would grow from $300,000 to $510,000, assuming no withdrawals are made.By the time Louise is ready to retire and start withdrawing money, Ben and Louise will have an LWA of $17,850 ($510,000 x 3.50%).Note:For illustrative purposes thefund accumulates at a rateof return of -1.5%. A monthlyClass Plus Fee of 0.092%(1.10% annually) of theIncome Base was charged.LWA (in thousands)$20$18$16$14$12$10$8$6$4$2Market ValueLWA$350$300$250$200$150$100$50Market Value (in thousands)$051 52 53 54 55 56 57 58 59 60 61 62 63 64 65$0AgeIncome Later – Up Market ScenarioUnder strong market conditions, in addition to the 5% Income Base Bonus, Ben and Louise would also benefit from the automatictriennial reset feature. Every third Class Plus Anniversary Date an Income Base Reset may occur. The Income Base Reset occurs whenthe market value of the Fund Class Units at the credit of their contract is greater than the current Income Base, which results in ahigher Income Base.When Louise is ready to retire at age 65, their annual income would be $34,996 (3.50% of their $999,900 Income Base).The following scenario’smarket value is based onhistorical rates of returnusing a blend of 80% S&P/TSX and 20% DEX UniverseBond Index, from December31, 1991 to December 31,2011, with an average rateof return of 11.48%. Themonthly Class Plus Fee is0.092% of the Income Base.LWA (in thousands)$40$35$30$25$20$15$10$5Market ValueLWA$1,400$1,200$1,000$800$600$400$200Market Value (in thousands)$051 52 53 54 55 56 57 58 59 60 61 62 63 64 65$0Age42
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 and 12: certain transactions otherwise perm
Page 13 and 14: You may, by providing notice to us
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: John and Mary are guaranteed an LWA
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 (

Class Plus 2 Information Folder and Contract Provisions - Empire Life

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