Class Plus 2 Information Folder and Contract Provisions - Empire Life

More documents

Recommendations

Info

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
6.11.1 Death Benefit GuaranteeThe Death Benefit Guarantee is reset automatically commencingon the third Class Plus Anniversary Date and every thirdClass Plus Anniversary Date thereafter prior to:1) the Annuitant’s 80th birthday, if you have selected theSingle Tiered LWA Option; or2) the earliest of the Annuitant’s or the Joint Life’s 80thbirthday (even if that person has died while the contract isin effect), if you have selected the Joint Tiered LWA Option.The last Death Benefit Guarantee reset will occurautomatically on:1) the Annuitant’s 80th birthday, if you have selected theSingle Tiered LWA Option; or2) the earliest of the Annuitant’s or the Joint Life’s 80thbirthday (even if that person has died while the contract isin effect), if you have selected the Joint Tiered LWA Option.If the Class Plus Anniversary Date or the Annuitant’s orJoint Life’s 80th birthday is not a Valuation Date the mostrecent Valuation Date prior to that date will be used forcalculation purposes.The new Death Benefit Guarantee will be determined as if acomplete withdrawal and a redeposit of the market value of theFund Class Units at the credit of your contract had occurred.If the new Death Benefit Guarantee is greater than the currentDeath Benefit Guarantee the Death Benefit Guarantee will beincreased to equal the new Death Benefit Guarantee. Otherwise,the Death Benefit Guarantee will remain unchanged.6.11.2 Maturity Benefit GuaranteeThe Maturity Benefit Guarantee cannot be reset.6.12 Switches and the GuaranteesSwitches between Funds will not affect the Maturity and DeathBenefit Guarantees or the GWB Guarantee.6.13 Withdrawals and the GuaranteesWhenever the term “reduced proportionately” is usedthroughout the Information Folder and Contract Provisionsit means we will calculate a proportionate reduction based onthe market value of the Fund Class Units at the credit of yourcontract at the time of the transaction.7. FEES AND CHARGES7.1 General InformationDepending on the Purchase Fee Option you have selected youmay have to pay a sales charge at the time you make a depositor pay a withdrawal fee at the time you make a withdrawal.There are currently three Purchase Fee Options available underthe terms of the contract – a Front-End Load Option (“FEOption”), the Deferred Sales Charge Option (“DSC Option”),and the Low Load Option (“LL Option”).The fee you pay for the Maturity and Death Benefit Guaranteesis included in the Management Expense Ratio (“MER”) of theFund(s) you have selected.The fee you pay for the GWB is paid from the contract, throughthe withdrawal of Fund Class Units (See Section 7.3Class Plus Fee).7.2 Purchase Fee Options7.2.1 FE OptionIf you select the FE Option, a sales charge of between 0% and5% of your deposit is deducted at the time your deposit is made.The amount of your sales charge is negotiated between you andyour Advisor. The sales charge is deducted from your depositand the net amount is applied towards the purchase of FundClass Units. We will pay a commission equivalent to the salescharge to your Advisor.The deposit amount (before the sales charge is deducted) is usedfor determining the Maturity and Death Benefit Guarantees andthe Income Base for the GWB.No withdrawal fees will apply should you make a withdrawalof some or all of the market value of the Fund Class Units at thecredit of your contract.7.2.2 DSC and LL OptionsIf you select the DSC or LL Option, 100% of your deposit isapplied towards the purchase of Fund Class Units. However,should you make a withdrawal a withdrawal fee may bededucted from the amount withdrawn in accordance with thewithdrawal fee schedule. The withdrawal fee is calculated asa percentage of the original purchase price of the Fund ClassUnits and the number of complete years from the date ofdeposit to the date of withdrawal. The deposits to the respectiveFund that have been at the credit of your contract the longestwill be used for the purpose of calculating the withdrawal fee.The original date of your deposit will not change when aswitch occurs.We will pay a commission to your Advisor whenever a deposit isapplied towards the purchase of Fund Class Units.7.3 Class Plus FeeThe fee you pay for the GWB, the Class Plus Fee, is an insurancefee that is paid from the contract. The Class Plus Fee is paidthrough a withdrawal of Fund Class Units. The amount to bewithdrawn from each Fund will be determined based on anumber of factors as outlined in the Information Folder. Thewithdrawal will be processed on the last Valuation Date of each54
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 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: 6.3 Maturity BenefitThe Maturity Be
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 (
show all

Class Plus 2 Information Folder and Contract Provisions - Empire Life

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?