Class Plus 2 Information Folder and Contract Provisions - Empire Life

6.9 Death Benefit GuaranteeThe Death Benefit Guarantee is 100% of the sum of the depositsreduced proportionately for withdrawals.The Death Benefit Guarantee will not decrease as a result of awithdrawal to pay the Class Plus Fee (See Section 7.3Class Plus Fee).6.10 Contract Continuance on Death6.10.1 Non-registered ContractsIf you have selected the Joint Tiered LWA Option the contractwill automatically continue until the death of the lastAnnuitant.If you have selected the Single Tiered LWA Option, yournon-registered contract may continue following your deathprovided certain elections are made prior to your death.Joint or Successor OwnerJoint owners shall be deemed to hold the contract as jointowners with right of survivorship (unless we are notifiedotherwise), except in Quebec. When a joint owner dies, theother joint owner with right of survivorship will become theContract Owner. In Quebec, joint owners who wish to obtainthe same legal effect as the right of survivorship must eachappoint the other owner as his/her subrogated policyholder.In Quebec, or if the contract is jointly owned without right ofsurvivorship, the successor owner/subrogated policyholder willbecome the Contract Owner when a joint owner dies.If there is no successor owner/subrogated policyholderappointed the Annuitant will become the Contract Owner.Successor AnnuitantIf you have selected the Joint Tiered LWA Option, a SuccessorAnnuitant cannot be appointed.If you have selected the Single Tiered LWA Option, you mayappoint a Successor Annuitant at any time prior to the deathof the Annuitant. On the death of the Annuitant, the SuccessorAnnuitant will become the Annuitant and the contract willcontinue with no Death Benefit payable at that time. You mayremove a previously appointed Successor Annuitant atany time.On the death of the Annuitant:1) a reset of the Death Benefit Guarantee is performed if theSuccessor Annuitant is less than 80 years old (See Section6.11 Resetting the Benefit Guarantees);2) an Income Base Reset is performed (See Section 5.6 IncomeBase Reset);3) a Bonus Base Reset is performed (See Section 5.5 IncomeBase Bonus);4) the LWA is changed immediately following 2) above to equalthe Single Tiered LWA Percentage based on the SuccessorAnnuitant’s age as of December 31st of the current calendaryear. This may result in the LWA increasing or decreasing orbeing set to equal $0;5) if the Successor Annuitant is younger than 55 as ofDecember 31st of the current calendar year, the SuccessorAnnuitant’s LWA is set to equal $0 for the remainder of thecurrent calendar year and any withdrawal made followingthe death of the Annuitant will be considered an ExcessWithdrawal;6) if the Successor Annuitant is 55 or older as of December31st of the current calendar year, cumulative withdrawalsup to the greater of the Annuitant’s LWA and the SuccessorAnnuitant’s LWA will be available for the current calendaryear without being considered Excess Withdrawals. Thecumulative withdrawals include any withdrawals for thecurrent calendar year received prior to the death of theAnnuitant.The Maturity Date of the contract will not change.The process as outlined above will apply even if the contract isin the Guaranteed Payment Phase.6.10.2 Registered ContractsJoint or successor owners cannot be appointed on RSPs.If your contract is a RIF and you have appointed your spouse orcommon-law partner as Successor Annuitant your spouse orcommon-law partner will become the Annuitant and ContractOwner on your death. The retirement income payments willcontinue to your spouse or common-law partner. The contractwill continue with no Death Benefit payable at that time.6.10.3 TFSAIf your contract is a TFSA you may appoint your spouseor common-law partner as successor owner (subrogatedpolicyholder in Quebec). You may not appoint a joint owner.On your death, your spouse or common-law partner willautomatically become the Annuitant and Contract Owner.The contract will continue with no Death Benefit payableat that time.6.11 Resetting the Benefit GuaranteesWe reserve the right to change the reset features or to removethis feature at any time, in accordance with our rules. We willprovide notice to you 60 days prior to the cancellation ofthis provision.53