Class Plus 2 Information Folder and Contract Provisions - Empire Life

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CLASS PLUS 2CONTRACT PROVISIONSIMPORTANT INFORMATIONDelivery of the Contract Provisions does not constitute an acceptance by The Empire Life Insurance Company(“Empire Life”) of a contract purchase. We will send you a confirmation notice as our acceptance of a contractpurchase. The confirmation notice will be issued once we have received all of the required documents andyour initial deposit. Any applicable endorsements or amendments will be sent to you with the confirmationnotice and will form part of your contract.Any part of the deposit or other amount that is allocated to a Segregated Fund is invested at the risk of theContract Owner and may increase or decrease in value.Empire Life is the issuer of this non-participating deferred annuity contract and the guarantor of theMaturity Benefit, Death Benefit and Guaranteed Withdrawal Benefit Guarantees as outlined in the ContractProvisions.Les HerrPresident and Chief Executive Officer43
1. GENERAL INFORMATION1.1 DefinitionsThe following are definitions for some of the key terms usedthroughout this document. The definitions provided will havethe same meaning throughout the Information Folder and theContract Provisions.“Annuitant” shall mean the individual named as Annuitanton the Application. The Annuitant is also presumed to be theContract Owner only for the purposes of describing the benefitsavailable;“Application” shall mean the Class Plus 2 Application, the ClassPlus 2 Application for Nominee/Intermediary Account, or theClass Plus 2 Application for a Tax-Free Savings Account;“Bonus Base” shall mean the notional amount used to calculatethe Income Base Bonus at the end of the calendar year;“Bonus Base Reset” shall mean a notional increase to the BonusBase to equal the market value of the Funds at the credit of yourcontract, if the market value of the Funds is greater than theBonus Base. Commencing on the third Class Plus AnniversaryDate and on every third Class Plus Anniversary Date thereafter aBonus Base Reset will occur;“Class Plus Anniversary Date” shall mean the Valuation Date ofthe initial deposit to your contract and every year thereafter;“cut-off time” is 4:00 p.m. EST of a Valuation Date. Anydeposits, switches or withdrawal requests received after thecut-off time will be processed effective the next ValuationDate. Empire Life reserves the right to change the cut-off timewithout advance notice to you;“deposits” shall mean the premium amounts you pay to useither directly or as a transfer from another policy/contractwith Empire Life or from another financial institution under theterms of the contract;“effective date” shall be the date we have received all of therequired documents and your initial deposit. The effective dateof your contract is as shown on the confirmation notice;“Excess Withdrawal” shall occur when total withdrawals in acalendar year exceed the Lifetime Withdrawal Amount;“Fund(s)” and “Segregated Funds” shall mean and include anyone or all of the Segregated Funds and their respective FundClasses available under the terms of the contract at any time;“Fund Class” shall mean the notional division of a SegregatedFund for the purposes of determining management fees andbenefit guarantees;“Fund Class Unit(s)” shall mean the notional division of aSegregated Fund for the purposes of determining benefits underthe contract;“Fund Facts” shall mean the disclosure document that formspart of the Information Folder and, for specified information inthe Fund Facts, part of the contract;“Guaranteed Withdrawal Benefit (“GWB”)” shall mean thefeature of Class Plus 2 that provides for withdrawals over the lifeof the contract provided an Excess Withdrawal does not occurand the age eligibility requirement has been met;“GWB Guarantee” shall mean a guarantee that withdrawals willcontinue for the life of the Annuitant or, if applicable, the lifeof the Joint Life provided an Excess Withdrawal does not occurand the age eligibility requirement has been met;“Guaranteed Payment Phase” shall mean the period of timethat withdrawals up to an annual maximum amount canoccur when the market value of the Funds at the credit of yourcontract equals $0, subject to specified conditions;“Income Base” shall mean the notional value that is the basisfor determining the Lifetime Withdrawal Amount eachcalendar year;“Income Base Bonus” shall mean a notional amount added tothe Income Base at the end of each calendar year following theinitial deposit during which no withdrawals are made forthat year;“Income Base Downward Adjustment” shall mean a potentialreduction to the Income Base that occurs immediately followingan Excess Withdrawal;“Income Base Reset” shall mean a notional increase to theIncome Base to equal the market value of the Funds at the creditof your contract, if the market value of the Funds is greaterthan the Income Base. Commencing on the third Class PlusAnniversary Date and on every third Class Plus AnniversaryDate thereafter an Income Base Reset will occur;“Income Tax Act” shall mean the Income Tax Act (Canada) asamended from time to time;“Information Folder” shall mean the disclosure document inrespect of the Class Plus 2 contract and the Fund informationthat is required under provincial insurance laws;“Joint Life” shall mean, for purposes of the Joint Tiered LWAOption, the individual named as Joint Life on the Applicationwho must be the Annuitant’s spouse or common-law partner atthat time;“Joint Tiered Lifetime Withdrawal Amount Option (“JointTiered LWA Option”)” shall mean an option available wherewithdrawals are guaranteed for the life of the Annuitant or JointLife provided an Excess Withdrawal does not occur and the ageeligibility requirement has been met;“last Annuitant” shall mean the Annuitant, or if there is aSuccessor Annuitant or Joint Life, the survivor;44
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 and 48: John and Mary are guaranteed an LWA
Page 49: Income Later - Down Market Scenario
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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