Manulife Investments Guaranteed Interest Contract (GIC) Offering more choice and flexibility

Advisor Overview

Welcome to the Manulife Investments GIC Advisor Overview!

Not all GICs are created equal…

Choice of six different investment options

Unique product advantages and features, along with insurance company benefits

Retirement income features are designed to allow retired clients flexibility in their retirement income plan

Unique sales ideas and excellent product support materials

Manulife Investments GIC

Choose from six different investment options:

1. Basic GIC Account

2. Basic Non-Cashable GIC Account

3. Laddered GIC Account

4. Escalating Rate GIC Account

5. Market Growth GIC Account (offered during limited time periods only)

6. Daily Interest Account

Multiple investment options are available in one contract for a given registration type.

$2,500 contract minimum.

$5,000 for 5-Year Laddered Account ($10,000 for 10-Year Laddered Account), Escalating Rate Account, and Market Growth Account.

Basic GIC Account

The Basic GIC Account is a cashable investment option that provides:

The security of guaranteed rates

6 month to 10-Year Terms (up to 30 years for a RRIF)

Flexibility to cash-in if needed (surrender charges may apply if withdrawn prior to the maturity date)

One of the strongest selling features of the Basic GIC Account is the unique ½ year bonus. By selecting six months past a standard length term, your client will earn the next term’s rate.*

(For example: 4 ½ year term = 5 year rate)

Minimum of $1,000 per account Available for ALL tax types Non-registered annual, semi-annual, quarterly, and monthly interest

options are available at reduced rates in most cases Interest is allocated to the Daily Interest Account

*This does not apply to terms from six to 12 months less one day.

Basic GIC Account (continued)

Basic Non-Cashable GIC Account

The Basic Non-Cashable GIC Account is designed to enhance your client’s guaranteed rate of interest

Similar to Bank and Trust Company GICs in terms of non-cashability

Rates will be higher than the Basic GIC Account (Cashable)

No ½ year rate bonus. Any non-integral term will receive the lowest term rate. For example a 2-Year, 11-Month term will receive the 2-Year rate

6 month to 10-Year terms available

Minimum of $1,000 per term

Available for non-registered and RRSP/LIRA tax types (not for RRIF/LIF/LRIF/PRIF/RLIF or TFSA)

Non-registered annual, semi-annual, quarterly, and monthly interest options are available at reduced rates in most cases.

Interest is allocated to the Daily Interest Account.

Basic Non-Cashable GIC Account (continued)

Laddered GIC Account

A convenient way to automatically diversify your clients’ GICs.

A portion matures each year and is reinvested at attractive long-term rates

Automated way to easily ladder a client’s GIC portfolio

A portion of the investment comes due every year, thereby reducing exposure to fluctuating interest rates

1-5-Year or 1-10-Year Basic Account terms all set-up with the same initial rate

Purchase Minimums: $5,000 for the 5-Year Laddered Account ($1,000 per term)

$10,000 for the 10-Year Laddered Account ($1,000 per term)

Available for ALL tax types

Non-registered annual, semi-annual, quarterly, and monthly interest options are available at reduced rates in most cases

Interest is allocated to the Daily Interest Account

Laddered GIC Account (continued)

Laddered GIC Account

$50,000 5-Year Laddered Account

2 Yr - 2.15%

3 Yr - 2.15%

4 Yr - 2.15%

5 Yr - 2.15%

1 Yr - 2.15% New 5 Yr Basic Acct

New 5 Yr Basic Acct

New 5 Yr Basic Acct

New 5 Yr Basic Acct

New 5 Yr Basic Acct

For illustration purposes only. Rates as at January 27, 2011. Investment divided equally into 1-5 year terms at the same initial interest rate. On maturity, each term is reinvested into a new 5 year term at current Basic Account rates.

$10,000

$10,000

$10,000

$10,000

$10,000

Escalating Rate GIC Account

For clients who would like increasing interest rates each year…

3 or 5 year terms available

Client will receive an increasing rate each year of the term

Offers higher rates in later years

The average yield to maturity for the term will be greater than the equivalent Basic Account term rate

Available for RRSP/LIRA/TFSA tax types ONLY

Not available for non-registered or RRIF/LIF/LRIF/PRIF/RLIF

Escalating Rate GIC Account

$10,000 3-Year Escalating Rate Account

0.60%

1st Year

1.40%

2nd Year

3.00%

3rd Year

For illustration purposes only. Rates as at January 27, 2011. Average rate over the term is 1.66%, which is higher than the rate of 1.60%, applicable to a 3-Year Basic Account (as at January 27, 2011). Rate increases every year of term.

Market Growth GIC Account

For clients who want the growth potential of market based investments, while guaranteeing their principal

The Market Growth GIC Account is a unique product intended to diversify the investment portfolio

Offered during limited time periods

Available for RRSP/LIRA tax types ONLY

Daily Interest Account

A cashable account for clients who require easy access to their investments:

Client’s money can be consolidated for future investment purchases.

Variable daily rate with interest credited monthly

Interest from non-registered, simple interest terms are automatically deposited into the Daily Interest Account

PAC deposits are made to the Daily Interest Account

Funds can be transferred to a GIC account once the account minimum has been reached

Funds may be withdrawn at anytime without charge

Available for all tax types

Registered Types – Comparison Table

Any accounts of the same registration may be held in the same contract.

Account Type Non-Registered Registered (RRSP, LIRA)

Retirement Income

(RRIF/LIF/LRIF/PRIF)

TFSA

Basic (cashable)

Basic non-cashable

Laddered

Escalating Rate

Daily Interest Account

Market Growth

Benefits of Manulife Investments GICs

Competitive rates

Attractive advisor commissions

Superior rate guarantee programs

Flexible retirement income options

Powerful insurance company benefits

Competitive Rates and The Large Case Program

Competitive rates and ways to enhance client rates: Posted cashable rates are competitive with peer insurance companies Posted non-cashable rates are competitive with bank and trust

company broker rates

Large Case Program: Clients may qualify for enhanced rates for reinvestments and new

money on any amount if total GIC assets invested with Manulife Investments are $500,000 or greater (spouses combined assets are considered)

Special rates through the Large Case Program – contact the Call Centre for a quote on a Large Case

Amounts greater than $100,000 that qualify for large case rates will receive better enhancements than amounts less than $100,000 (total assets must equal $500,000 or more)

Advisor Rate Discretion:

Advisors may trade ‘rate for commissions’ in order to enhance the rates for the client. This assists in attracting new business or retaining current business

Competitive Rates and The Large Case Program

What’s in it for you?

Commission rate per year of term Paid…

Basic 0.40% (max 10 years) up-front

Basic Non-Cashable

0.20% up-front

Laddered0.40%

5-Year total = 1.20%10-Year total = 2.20%

up-front

Escalating Rate 0.40% up-front

Market Growth 0.50% up-front

Daily Interest 0.20% Monthly(calculated daily)

Increase any posted term rate with a corresponding reduction in commissions if required.

Advisor Rate Discretion

Advisors may trade “rate for commission” in order to attract new or retain existing investments

No prior Head Office approval is required

For the Basic (1-10-Year Terms), Laddered, and Escalating Rate GIC Accounts, posted rates may be increased by as much as 0.40%

For the Basic Non-Cashable GIC Account, posted rates may be increased by as much as 0.20%

Use ONLY when necessary

Superior rate guarantee programs

Rate Guarantee Programs apply to both registered and non-registered money!

New Deposits:

Once locked-in, the rate is guaranteed for up to 30 days until funds are received

Reinvestments:

Lock-in a “better of” rate up to 30 days prior to a term maturity

If the term rate is higher on the renewal date, client gets the higher rate!

“Better of” program is not automatic and must be requested by either the Advisor or the client.

Flexible retirement income options

A wide range of options for payment frequency, amounts, funding, and withholding tax

Capital erosion allowed for scheduled payments

10% free annual cash withdrawals

Flexible retirement income options continued …

Choose from Monthly, Quarterly, Semi-Annual, or Annual payment frequencies

Unique payment funding allows clients to choose from: Payments funded from lowest rate term first (interest first then principal)

Payments are pro-rated across all terms

Scheduled payments can be higher than interest earned on terms with no withdrawal penalties

In addition to scheduled payments, once a year clients are allowed to take a charge-free, unscheduled withdrawal (into income) up to 10%, to a maximum of $10,000, of the value of their Basic and Laddered GIC Accounts

On-line RRIF Illustration software

Add more value with the GIC RRIF Illustration

Produce PDF illustration reports that are customized for each client

Project individual term maturity values

Illustrate the direct impact of “pro-rated across all terms” vs. “lowest rate term first” withdrawal order options

No software downloads for installation or updates required

Available on Repsource

Sales ideas

Higher rates and compensation using ½ year rate bonus!

Add 6 months to a standard length Basic Account term

(i.e. 1 ½ year Basic Account term = 2 year rate)

Take the guesswork out of GIC investing!

Stop worrying about fluctuating interest rates with a Laddered GIC Account

Powerful insurance benefits

Potential creditor protection

Non-registered tax advantages

Powerful estate planning opportunities

Manulife is a member of Assuris. Visit www.assuris.ca for more details

Insurance benefits… more details

Potential creditor protection - the GIC investment may be protected from creditors in the event of bankruptcy

Non-registered tax advantages - policy year tax reporting will allow your client to delay paying tax on the interest earned for up to a year. If the client is 65 years of age or older, the interest income will qualify for an annual pension income tax credit and for pension income splitting purposes

Powerful estate planning opportunities - upon death, named beneficiaries receive the GIC proceeds (including interest) privately*, without charges, and avoiding probate and estate fees

Invest in a strong partner with demonstrated financial success - GICs are backed by the strength of Manulife Financial. Manulife is a member of Assuris. Visit www.assuris.ca for more details

*Not applicable in Saskatchewan.

Marketing Support

For Marketing Support, go to Repsource

Client brochures and mailers

Current rates

Product guide

Administration forms

FOR ADVISOR USE ONLY

This information is for Advisor use only and should not be used with clients or potential clients.

The Manufacturers Life Insurance Company is the issuer of the Manulife Investments Guaranteed Interest Contract (GIC).

Manulife, Manulife Investments, the Manulife Investments For Your Future logo, the Block Design, the Four Cubes Design, and Strong Reliable Trustworthy Forward-thinking are trademarks of The Manufacturers Life Insurance Company and are used by it, and by its affiliates under license.

To complete this learning module and earn CE credits, please review the GIC Quick Reference Guide and then take the Quiz.

FOR ADVISOR USE ONLY

Thank you