Class Plus 2 Information Folder and Contract Provisions - Empire Life

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CLASS PLUS 2 INFORMATION FOLDER1. 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 Folder and the ContractProvisions.“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, theClass Plus 2 Application for Nominee/Intermediary Account,or the Class 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 thereaftera Bonus 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 date ofyour contract will be 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 benefitsunder the contract;“Fund Facts” shall mean the disclosure document that formspart of this Folder and, for specified information in the FundFacts, 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 time thatwithdrawals up to an annual maximum amount can occur whenthe market value of the Funds at the credit of your contractequals $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;“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 partnerat that 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;“Lifetime Withdrawal Amount (“LWA”)” shall meanthe maximum amount guaranteed to be available eachcalendar year for withdrawal for the life of the Annuitant1
or, if applicable, the life of the Joint Life, provided an ExcessWithdrawal does not occur and the age eligibility requirementhas been met;“Maturity Date” shall mean the latest date that a contract may beowned. The Maturity Benefit is payable on the Maturity Date;“notice to us” shall mean notice in writing, by any electronicmeans acceptable to us, or in any other form we may approveand received by us;“notice to you” shall mean written notice sent by regular mailfrom us to you at your last known address according to ourrecords;“rules” shall mean the administrative rules and proceduresestablished for the contract by us from time to time. We maychange our rules in order to provide better service or to reflectcorporate policy as well as when required by economic andlegislative changes, including revisions to the Income Tax Actand applicable pension legislation. The operation of the contractand your rights as Contract Owner is subject to our rules andprocedures and no prior notice to you is required for a ruleor procedure, or for a change to a rule or procedure to becomeeffective;“similar fund” shall mean a Segregated Fund that hascomparable fundamental investment objectives, is in the sameinvestment fund category (in accordance with fund categoriespublished in a financial publication with broad distribution)and has the same or a lower management fee than themanagement fee of the Fund in question;“Single Tiered Lifetime Withdrawal Amount Option (“SingleTiered LWA Option”)” shall mean an option available wherewithdrawals are guaranteed for the life of the Annuitantprovided an Excess Withdrawal does not occur and the ageeligibility requirement has been met;“Successor Annuitant” shall mean the person who will becomethe Annuitant on the death of the Annuitant;“Valuation Date” shall mean each day that our Head Office isopen for business and a value is available for the underlyingassets of the Funds. Valuation of the Segregated Funds and anysecondary funds occurs at the close of business each ValuationDate. We reserve the right to value a Fund less frequently thaneach business day, subject to a minimum monthly valuationoccurring on the last business day of each month;“we”, “us”, “our”, “the Company” and “Empire Life” shallmean The Empire Life Insurance Company and, for purposesof a Tax-Free Savings Account, the issuer of the Tax-FreeSavings Account;“withdrawal fee schedule” shall mean the schedule of feesapplicable to withdrawals. The fees in effect at the time yourcontract is applied for are outlined in Section 8.2 PurchaseFee Options;“you”, “your”, and “Contract Owner” shall mean the legalowner of the contract and, for purposes of a Tax-Free SavingsAccount, the holder of the Tax-Free Savings Account.1.2 Use of your Personal Information1.2.1 Privacy StatementBy signing the Application you understand and agree that:1) Empire Life will maintain a file with the informationcontained in your Application and any related documents.The file will enable Empire Life and our employees, agentsor representatives to:a) assess the Application;b) appraise any risk;c) assess any claim that you or your beneficiaries maymake for income payments or other benefits;d) administer the file;e) answer any questions you may have about yourApplication or file in general; andf) provide you with information about your file and ourproducts and services.2) Your file will be kept at our Head Office. We may alsouse third party service providers located in or outside ofCanada to process and store your personal information. Youare entitled to consult your file and when applicable, haveit corrected. To access a copy of our most recent PrivacyPolicy you may access our web site at www.empire.ca. Toexercise your rights, you must send written notification to:Chief Privacy Officer, Empire Life, P.O. Box 1000, Kingston,Ontario, K7L 4Y4.3) We will use your personal information on a continuingbasis for the purpose of your file. If you refuse to provideconsent for this we won’t be able to assess your Applicationor claim for income payments or other benefits. Withoutyour consent we cannot issue any benefits or incomepayments. If you are permitted by law to withdrawyour consent and do so, we won’t be able to continue toadminister the contract, you nor your estate will be able toexercise any rights under the terms of the contract, and thecontract may be terminated at our discretion.1.2.2 Authorization and ConsentBy signing the Application you authorize and provide yourconsent for:1) Empire Life, our reinsurers, employees, agents andrepresentatives, and any other person authorized by you to2
Page 3 and 4: KEY FACTS FOR THE CLASS PLUS 2 CONT
Page 5 and 6: TABLE OF CONTENTS1. GENERAL INFORMA
Page 7: INTRODUCTIONThe Empire Life Insuran
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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