Class Plus 2 Information Folder and Contract Provisions - Empire Life

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APPENDIX TO INFORMATION FOLDER......................................34CLASS PLUS 2 CONTRACT PROVISIONS....................................43IMPORTANT INFORMATION.........................................................431. GENERAL INFORMATION...................................................... 441.1 Definitions................................................................................................. 441.2 Contract.................................................................................................... 451.3 Effective Date.......................................................................................... 461.4 Currency................................................................................................... 461.5 Payment of Benefits.............................................................................. 461.6 Beneficiary............................................................................................... 461.7 Control of Policy.................................................................................... 461.8 Contract Termination........................................................................... 462. DEPOSITS..................................................................................462.1 General Information.............................................................................. 462.2 Allocation of Deposits ..........................................................................472.3 Rescission Rights....................................................................................473. SWITCHES.................................................................................473.1 General Information...............................................................................473.2 Scheduled Switches...............................................................................474. WITHDRAWALS........................................................................474.1 General Information...............................................................................474.2 Scheduled Withdrawals....................................................................... 484.3 Free Withdrawal Limit........................................................................... 484.4 Minimum Balance Requirements..................................................... 485. GUARANTEED WITHDRAWAL BENEFIT (“GWB”)..............485.1 General Information.............................................................................. 485.2 Single Tiered Lifetime Withdrawal Amount Option(“Single Tiered LWA Option”)..................................................................... 495.3 Joint Tiered Lifetime Withdrawal Amount Option(“Joint Tiered LWA Option”)....................................................................... 495.4 Income Base........................................................................................... 505.5 Income Base Bonus.............................................................................. 505.6 Income Base Reset............................................................................... 505.7 Retirement Income Payments............................................................ 515.8 Excess Withdrawals................................................................................ 515.9 Guaranteed Payment Phase................................................................ 516.12 Switches and the Guarantees.......................................................... 546.13 Withdrawals and the Guarantees................................................... 547. FEES AND CHARGES................................................................547.1 General Information.............................................................................. 547.2 Purchase Fee Options........................................................................... 547.3 Class Plus Fee.......................................................................................... 547.4 Excessive Short-Term Trading Fee.....................................................557.5 Recovery of Expenses or Investment Losses..................................557.6 Management Fees..................................................................................557.7 Empire for Life Loyalty Program.......................................................558. VALUATION...............................................................................558.1 Market Value of Fund Class Units.......................................................558.2 Market Value of your Contract...........................................................558.3 Valuation Date and Fund Class Unit Values................................... 569. SEGREGATED FUNDS .............................................................569.1 General Information.............................................................................. 569.2 Changes to Funds and Fund Classes............................................... 569.3 Deleting Funds and Fund Classes..................................................... 569.4 Splitting of Fund Class Units ..............................................................579.5 Merger of Funds......................................................................................579.6 Fees and Expenses Paid by the Funds..............................................579.7 Application of Earnings.........................................................................579.8 Fundamental Changes.........................................................................5710. RSP ENDORSEMENT................................................................ 5711. RIF ENDORSEMENT.................................................................5812. TFSA ENDORSEMENT..............................................................596. MATURITY AND DEATH BENEFITS....................................... 516.1 General Information.............................................................................. 516.2 Maturity Date........................................................................................... 516.3 Maturity Benefit.......................................................................................526.4 Maturity Benefit Guarantee.................................................................526.5 Maturity Options.....................................................................................526.6 RSP to RIF Conversion..........................................................................526.7 Death Benefit Date.................................................................................526.8 Death Benefit...........................................................................................526.9 Death Benefit Guarantee.....................................................................536.10 Contract Continuance on Death.....................................................536.11 Resetting the Benefit Guarantees....................................................53
INTRODUCTIONThe Empire Life Insurance Company (“Empire Life”) is federally incorporated in Canada. It is a stock company that wasincorporated under Letters Patent granted by the Province of Ontario in 1923, to transact the business of life insurance, includingthe business of annuities, and continued as a federal corporation by Letters Patent in 1987. The Insurance Companies Act (Canada)governs its operations. Our Corporate Head Office is located at 259 King Street East, Kingston, Ontario, K7L 3A8.The Information Folder for an individual variable insurance contract provides a description of the key features of the contractbeing considered. Our individual variable insurance contracts are offered primarily through licensed life insurance agents orfinancial planners, investment fund dealers or stockbrokers who are contracted with Empire Life and are also licensed to sell lifeinsurance products.This document contains the Information Folder (excluding the Fund Facts) and the Contract Provisions for the Class Plus 2contract. Delivery of the Contracct Provisions does not constitute our acceptance of a contract purchase. We will send you aconfirmation notice as our acceptance of a contract purchase. The confirmation notice is sent once we have received all of therequired documents and the initial deposit.The Class Plus 2 contract is a deferred annuity contract that contains Maturity Options including the option to receive animmediate annuity. The Class Plus 2 contract provides guarantees payable at the Maturity Date or on the death of the lastAnnuitant. The Class Plus 2 contract provides guaranteed income payments over the lifetime of the Annuitant or, if applicable,the Joint Life when certain criteria are met.Each Segregated Fund offered by Empire Life is established and maintained in accordance with Section 451 of the InsuranceCompanies Act (Canada). The assets of each Segregated Fund are owned by Empire Life and are segregated from the other assets ofEmpire Life for the exclusive benefit of the Contract Owners whose deposits have been applied to acquire Fund Class Units in theSegregated Funds. The Segregated Funds are not separate legal entities. Each Segregated Fund is divided into units of a Fund Classand those Fund Class Units are attributed to individual contracts for the purpose of determining benefits under those contracts.The Contract Owner acquires no direct claim on the Fund Class Units of a Segregated Fund but only on the benefits provided for inthe Contract Provisions. Fund Class Units credited to your contract are acquired and subsequently cancelled when required bythe terms of the contract. A Contract Owner is not a shareholder or member of Empire Life and, as such, is not entitled to anyvoting rights. The rights of the Contract Owner are limited to those contained in the contract.CERTIFICATIONThis is to certify that this Information Folder (“Folder”) including the Fund Facts provides brief and plain disclosure of allmaterial facts relating to the Class Plus 2 contract issued by Empire Life. The Folder is incomplete unless the Fund Facts areincluded. The Folder is for information purposes only and is not an insurance contract.Les HerrPresident and Chief Executive OfficerGary McCabeSenior Vice-President and Chief Financial Officer
Page 3 and 4: KEY FACTS FOR THE CLASS PLUS 2 CONT
Page 5: TABLE OF CONTENTS1. GENERAL INFORMA
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 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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