r client1 - sun life financial · a presentation designed for: r client1 prepared by: trusted...

A presentation designed for:

R Client1

Prepared by:Trusted Advisor

Sun Life Assurance Company of Canada

January 31, 2014 (CSF/HO 6.2.0.470-56228)

Prepared especially for: R Client1

Personal Retirement Account PlanCurrent dividend scale

This presentation contains 5 sections as follows:Table of Contents

1. Problem Description and Recommendation Page 32. How it Works Page 43. Assumptions Page 64. Comparison of Values Page 85. Retirement Income from Bank Loans Page 10

If you have any questions, please feel free to contact me,Trusted Advisor About This PresentationThis presentation was prepared for information purposes only and is neither an insurance contract nor an offer toprovide insurance. It does not form part of any policy that may be issued and is not intended to provide or replaceprofessional legal or tax advice.This presentation contains figures extracted from the participating whole life illustration accompanying thispresentation and bearing the same date. This presentation should be read together with that illustration and isincomplete without it. For example, the accompanying illustration contains policy values based on more than onedividend scale scenario. Illustrating multiple scenarios shows how even a small change in the dividend scaleassumptions can result in a significant reduction in policy values. Such changes would have a similar impact onthe figures shown in this presentation.Unless otherwise indicated, none of the figures shown in this presentation are guaranteed. They are based onassumptions that are certain to change and are neither an estimate nor a guarantee of future performance. Actualresults will differ upward or downward from those shown depending on future experience. Even a small changecan have a large negative impact on the non-guaranteed figures illustrated in this presentation.

January 31, 2014 (CSF/HO 6.2.0.470-56228) of 11

NB: Sun Life Assurance Company of Canada



Problem Description and RecommendationSituation

· You want to create additional retirement income · You earn in excess of $100,000 · You have maximized pension and RRSP contributions, and · You have 15 years before needing income.

Objectives· Generate additional retirement income through tax deferred accumulation.

Problems· The tax payable on non-registered investments may be equal to or more than the actual amount saved. · Overcoming this tax problem may mean taking more investment risk than you would prefer.

RecommendationThe Personal Retirement Account, a retirement solution using life insurance, may be your best solution.A participating whole life insurance policy is an excellent tool that provides for tax-advantaged savings, in additionto the basic insurance benefit. Paying taxes on the growth in the policy is avoided while alive. On death, the totaldeath benefit is paid to your beneficiary outside your estate, avoiding probate and legal fees.The Personal Retirement Account concept demonstrates that a participating whole life insurance policy can be usedsuccessfully to provide a source of income during retirement years. The policy’s cash surrender value can be usedas collateral for annual loans from a bank or trust company.

January 31, 2014 (CSF/HO 6.2.0.470-56228) of 11




How it worksUnlike contributions to an RRSP, these annual payments are not deductible for income tax purposes. However, provided the policy remains ‘’exempt’’ (Sun Life Assurance Company of Canada will maintain theexempt status as per your instructions), any growth in policy cash values will be exempt from income tax while inthe policy.

COMPARISON OF VALUESThe ‘Comparison of values’ section emphasizes the difference in potential results from attempting to achieve thisgoal with a non-registered Alternative Investment versus the life insurance policy. An identical sum is invested ineither the Alternative investment or the policy illustrated. Dividends that accrue to the policy are tax exempt(provided they stay in the policy). In the non-registered Alternative Investment, growth is reduced by annual taxesat the rates shown, prior to reinvestment.RETIREMENT – TURNING SAVINGS INTO INCOMERetirement Income from Bank LoansAn option is to generate income through the use of the policy as collateral against annual loans from a financialinstitution. The policy owner makes a collateral assignment of the policy to a financial institution, giving them firstcharge against the policy cash value (ownership of the policy is not relinquished). A series of loans generates anincome against the security of the policy in a manner which postpones the repayment of the loan until the insureddies.Upon death, the financial institution has first call upon the Estate Benefit of the policy, which is paid out tax-free. After the loan is cleared, the balance of the Estate Benefit is paid to the insured’s beneficiary.Note that most financial institutions will limit the accumulated loan to a maximum percentage of the policy cashvalue. If the accumulated loan balance reaches this limit, you will have to make payments on the loan, or pledgeadditional assets as collateral. If you are unable to meet this requirement at that time, the financial institution mayuse cash value from the policy to reduce or pay off the loan. Under these circumstances, you will be liable for anytaxes payable as a result of the surrender or partial surrender of the policy. After payment of these taxes, thesurrender of the policy may not generate enough cash to repay the loan. The borrowing strategy is viable only ifyou are able to see it through until death.There are some potential risks associated with borrowing against the policy in the manner illustrated. The risks areas follows:1. Availability of the financial institution loans will depend on the financial institution’s lending criteria at

the time the loan(s) are applied for.2. The actual interest rate on the accumulating loan and the dividend being credited to the policy will impact

the amount of actual loan available. Should the actual results differ from the illustrated values, less fundsmay be available for borrowing and the sooner you may have to make loan payments or pledge additionalassets as collateral.

January 31, 2014 (CSF/HO 6.2.0.470-56228) of 11




3. Under current tax law, borrowing against an asset such as a life insurance policy does not trigger taxableincome. However, Canada Revenue Agency (CRA) may change legislation or choose to apply GeneralAnti-Avoidance Rules (GAAR) or otherwise attempt to deem the series of loans to be policy loans andtherefore be subject to tax. This is a particular risk when the loan is set up at the same time as the policyor shortly thereafter.

Professional tax and legal advice should be obtained prior to committing to the use of the policy as collateral.The insurance payment figures and estate benefit amounts are extracted from the policy illustration included withthis presentation. Please refer to it for further information concerning the policy.

January 31, 2014 (CSF/HO 6.2.0.470-56228) of 11


AssumptionsInsureds:Client1, R Age: 42 Life Expectancy: 79

Tax Assumptions:Marginal tax rate on interest: 45%

Capital Gains Inclusion Rate: 50%Marginal tax rate on dividend income: 25%

Alternate Investment Assumptions:Composition:

AllocationNow 65 Assumed

ReturnInterest Dividends Capital

GainsRealized

Gains

Investment Returns

Cash 0% 0% 3% 100%Canadian Bond 40% 60% 5% 85% 0% 15% 10%Foreign Bond 0% 0% 5% 80% 0% 20% 10%Canadian Equity 60% 40% 5% 0% 12% 88% 15%Foreign Equity 0% 0% 9% 0% 5% 95% 15%US Equity 0% 0% 9% 0% 5% 95% 15%Small Cap Equity 0% 0% 10% 0% 0% 100% 20%Rate of Return 5.00% 5.00%

Annual Portfolio Turnover: 20.00%

Insurance amount: $500,000Payment method: Planned Payments for 20 years

Life Policy Assumptions:Insurance Policy Type: Sun Par Protector

Dividend Scale: Current



January 31, 2014 (CSF/HO 6.2.0.470-56228) of 11




Period:Starting in Year: 24Indexed:

for Years:0%

14

Leveraged Income Assumptions:Income: $30,000Assumed Loan Limit: 90%Loan Rate: 8.00%

At age: 79

January 31, 2014 (CSF/HO 6.2.0.470-56228) of 11




Comparison of values

PolicyYear

Annualdeposit

AnnualTaxableGrowth

Annual TaxPayable

Net EstateValue

Net CashValue at

CancellationAge Net Estate

Value

Alternative Investment Life Insurance PolicyPre-tax

withdrawalsAfter-tax

withdrawals1 $23,150 $1,158 $246 $23,956 $7,00343 $531,222$0 $02 $23,150 $2,361 $523 $48,751 $14,81644 $563,713$0 $03 $23,150 $3,610 $828 $74,416 $23,49345 $597,463$0 $04 $23,150 $4,907 $1,157 $100,984 $33,11046 $632,524$0 $05 $23,150 $6,252 $1,509 $128,490 $46,64747 $668,910$0 $06 $23,150 $7,646 $1,884 $156,967 $62,81848 $707,743$0 $07 $23,150 $9,092 $2,278 $186,451 $81,66949 $748,585$0 $08 $23,150 $10,590 $2,693 $216,979 $103,50750 $792,033$0 $09 $23,150 $12,142 $3,127 $248,589 $128,27651 $837,278$0 $010 $23,150 $13,751 $3,580 $281,319 $156,14152 $884,388$0 $011 $23,150 $15,417 $4,053 $315,209 $191,84653 $947,700$0 $012 $23,150 $17,142 $4,545 $350,302 $230,25454 $1,009,742$0 $013 $23,150 $18,930 $5,056 $386,641 $271,21755 $1,069,906$0 $014 $23,150 $20,781 $5,587 $424,269 $307,85456 $1,127,573$0 $015 $23,150 $22,698 $6,138 $463,232 $342,14657 $1,186,933$0 $016 $23,150 $24,683 $6,710 $503,579 $378,30758 $1,248,330$0 $017 $23,150 $26,740 $7,303 $545,359 $422,97759 $1,311,283$0 $018 $23,150 $28,869 $7,917 $588,622 $470,77360 $1,375,793$0 $019 $23,150 $31,074 $8,554 $633,421 $521,82861 $1,441,919$0 $020 $23,150 $33,358 $9,214 $679,811 $570,77562 $1,509,742$0 $021 $0 $34,565 $9,652 $703,892 $590,43963 $1,559,157$0 $022 $0 $35,810 $10,083 $728,841 $610,69664 $1,609,797$0 $023 $0 $37,097 $12,728 $753,290 $631,53265 $1,661,664$0 $024 $0 $36,789 $12,524 $747,536 $620,55566 $1,682,316$30,518 $30,00025 $0 $36,477 $12,343 $741,576 $607,57067 $1,701,556$30,502 $30,00026 $0 $36,160 $12,177 $735,407 $590,68068 $1,713,056$30,490 $30,00027 $0 $35,835 $12,023 $729,024 $571,18369 $1,722,515$30,480 $30,00028 $0 $35,502 $11,877 $722,422 $548,21170 $1,729,725$30,472 $30,00029 $0 $35,160 $11,736 $715,593 $521,87171 $1,734,481$30,467 $30,00030 $0 $34,808 $11,598 $708,534 $491,87872 $1,736,528$30,462 $30,00031 $0 $34,445 $11,461 $701,235 $457,86773 $1,735,583$30,459 $30,00032 $0 $34,072 $11,325 $693,690 $419,44474 $1,731,264$30,456 $30,00033 $0 $33,686 $11,187 $685,891 $376,24875 $1,723,175$30,454 $30,00034 $0 $33,289 $11,048 $677,830 $327,92776 $1,710,871$30,452 $30,00035 $0 $32,878 $10,907 $669,498 $274,00877 $1,693,931$30,451 $30,00036 $0 $32,454 $10,762 $660,887 $213,92578 $1,671,964$30,450 $30,000

January 31, 2014 (CSF/HO 6.2.0.470-56228) of 11




PolicyYear

Annualdeposit

AnnualTaxableGrowth

Annual TaxPayable

Net EstateValue

Net CashValue at

CancellationAge Net Estate

Value

Alternative Investment Life Insurance PolicyPre-tax

withdrawalsAfter-tax

withdrawals37 $0 $32,016 $10,613 $651,987 $160,09779 $1,644,545$30,449 $30,00038 $0 $33,087 $10,965 $673,793 $139,89780 $1,643,617$0 $039 $0 $34,193 $11,330 $696,328 $115,83081 $1,638,852$0 $040 $0 $35,336 $11,707 $719,616 $87,56882 $1,629,922$0 $041 $0 $36,517 $12,097 $743,682 $54,76183 $1,616,461$0 $042 $0 $37,738 $12,501 $768,554 $17,05184 $1,598,070$0 $043 $0 $39,000 $12,918 $794,257 ($23,671)85 $1,574,238$0 $044 $0 $40,304 $13,349 $820,819 ($72,556)86 $1,544,422$0 $045 $0 $41,652 $13,795 $848,270 ($127,947)87 $1,507,934$0 $046 $0 $43,045 $14,256 $876,639 ($190,614)88 $1,464,085$0 $047 $0 $44,484 $14,732 $905,956 ($261,482)89 $1,412,021$0 $048 $0 $45,972 $15,224 $936,254 ($341,582)90 $1,350,878$0 $049 $0 $47,509 $15,733 $967,565 ($432,014)91 $1,279,743$0 $050 $0 $49,098 $16,259 $999,923 ($533,830)92 $1,197,658$0 $051 $0 $50,740 $16,803 $1,033,363 ($648,070)93 $1,103,610$0 $052 $0 $52,437 $17,365 $1,067,922 ($775,550)94 $996,586$0 $053 $0 $54,190 $17,945 $1,103,636 ($916,882)95 $875,558$0 $054 $0 $56,003 $18,545 $1,140,545 ($1,072,183)96 $739,472$0 $055 $0 $57,876 $19,165 $1,178,687 ($1,240,616)97 $587,143$0 $056 $0 $59,811 $19,806 $1,218,106 ($1,419,337)98 $417,241$0 $057 $0 $61,811 $20,469 $1,258,843 ($1,601,082)99 $227,968$0 $058 $0 $63,878 $21,153 $1,300,942 ($1,768,229)100 $16,332$0 $0

January 31, 2014 (CSF/HO 6.2.0.470-56228) of 11




Retirement Income from Bank LoansNote: There are interest rate risks and possible tax risks when using this strategy.

PolicyYear Annual Loan Accumulated

Loan Balance% of PolicyCash Value

Pre-tax PolicyCash Value

After-TaxCash ValueAge

Net CashValue at

CancellationNet Estate Value

Bank Loan Life Insurance PolicyAdditionalCollateralNeeded

24 $30,000 $32,400 4% $900,202 $652,95566 $620,555 $1,682,316$025 $30,000 $67,392 7% $953,257 $674,96267 $607,570 $1,701,556$026 $30,000 $105,183 10% $1,005,675 $695,86368 $590,680 $1,713,056$027 $30,000 $145,998 14% $1,060,298 $717,18169 $571,183 $1,722,515$028 $30,000 $190,078 17% $1,116,151 $738,28970 $548,211 $1,729,725$029 $30,000 $237,684 20% $1,174,115 $759,55571 $521,871 $1,734,481$030 $30,000 $289,099 23% $1,234,348 $780,97772 $491,878 $1,736,528$031 $30,000 $344,627 27% $1,296,865 $802,49473 $457,867 $1,735,583$032 $30,000 $404,597 30% $1,361,604 $824,04174 $419,444 $1,731,264$033 $30,000 $469,365 33% $1,428,558 $845,61375 $376,248 $1,723,175$034 $30,000 $539,314 36% $1,497,684 $867,24176 $327,927 $1,710,871$035 $30,000 $614,859 39% $1,568,919 $888,86777 $274,008 $1,693,931$036 $30,000 $696,448 42% $1,642,237 $910,37378 $213,925 $1,671,964$037 $30,000 $784,564 46% $1,717,566 $944,66179 $160,097 $1,644,545$038 $0 $847,329 47% $1,794,956 $987,22680 $139,897 $1,643,617$039 $0 $915,115 49% $1,874,445 $1,030,94581 $115,830 $1,638,852$040 $0 $988,324 51% $1,956,167 $1,075,89282 $87,568 $1,629,922$041 $0 $1,067,390 52% $2,040,274 $1,122,15183 $54,761 $1,616,461$042 $0 $1,152,781 54% $2,126,967 $1,169,83284 $17,051 $1,598,070$043 $0 $1,245,003 56% $2,220,603 $1,221,33285 ($23,671) $1,574,238$044 $0 $1,344,603 58% $2,312,812 $1,272,04786 ($72,556) $1,544,422$045 $0 $1,452,171 60% $2,407,680 $1,324,22487 ($127,947) $1,507,934$046 $0 $1,568,345 63% $2,504,966 $1,377,73188 ($190,614) $1,464,085$047 $0 $1,693,813 65% $2,604,238 $1,432,33189 ($261,482) $1,412,021$048 $0 $1,829,318 68% $2,704,974 $1,487,73690 ($341,582) $1,350,878$049 $0 $1,975,663 70% $2,806,635 $1,543,64991 ($432,014) $1,279,743$050 $0 $2,133,716 73% $2,908,883 $1,599,88692 ($533,830) $1,197,658$051 $0 $2,304,413 77% $3,011,532 $1,656,34393 ($648,070) $1,103,610$052 $0 $2,488,766 80% $3,114,938 $1,713,21694 ($775,550) $996,586$053 $0 $2,687,867 83% $3,219,973 $1,770,98595 ($916,882) $875,558$0

January 31, 2014 (CSF/HO 6.2.0.470-56228) of 11


PolicyYear Annual Loan Accumulated

Loan Balance% of PolicyCash Value

Pre-tax PolicyCash Value

After-TaxCash ValueAge

Net CashValue at

CancellationNet Estate Value

Bank Loan Life Insurance PolicyAdditionalCollateralNeeded

54 $0 $2,902,896 87% $3,328,569 $1,830,71396 ($1,072,183) $739,472$055 $0 $3,135,128 91% $3,444,568 $1,894,51297 ($1,240,616) $587,143$35,01756 $0 $3,385,938 95% $3,575,639 $1,966,60198 ($1,419,337) $417,241$167,86357 $0 $3,656,813 98% $3,737,692 $2,055,73199 ($1,601,082) $227,968$292,89058 $0 $3,949,358 100% $3,965,690 $2,181,129100 ($1,768,229) $16,332$380,237



January 31, 2014 (CSF/HO 6.2.0.470-56228) of 11



An illustration designed for:

R Client1

Prepared by:Trusted Advisor

January 31, 2014 (CSF/HO 6.2.0.470-56228)

Designed for R Client1

Sun Par ProtectorDividend option: Paid-up additional insurancePremiums payable for 20 yearsCurrent dividend scale

About this IllustrationThis illustration was prepared for information purposes only and is neither an insurance contract nor an offer toprovide insurance. It does not form part of any policy that may be issued.Unless otherwise indicated, the figures shown in this illustration are not guaranteed. Sun Par Protector policies areeligible to receive dividends based on a variable scale set by the company each year. The company reviews theinvestment performance, expenses, mortality experience, and other relevant factors for each class or group ofparticipating policies to determine the annual dividend scale. Even small changes to the dividend scale willincrease or decrease your non-guaranteed policy values; in some instances changes to these values could besignificant.All insurance illustrated will be subject to underwriting review and approval.For more details about the information contained in this illustration, please consult your advisor or refer to yourclient guide.

January 31, 2014 (CSF/HO 6.2.0.470-56228)Page 2 of 10




This illustration contains the following sections:

Table of contents

1. Key terms Page 42. Illustration details Page 53. Policy values (current dividend scale) Page 64. Policy values (current dividend scale minus 1.0%) Page 85. Statement of variability Page 10

Sun Par Protector is a permanent participating life insurance policy offered by Sun Life Financial. It provides you with the security of being insured with one of North America's strongest financial organizations. This product provides you with comprehensive life insurance protection, guaranteed values, and a variety of annual dividend options.

If you have any questions, please feel free to contact me.Trusted Advisor





Section 1. Key termsThe terms defined below are for descriptive purposes only and do not fully detail the product. The policy willgovern in all cases.Permanent participating policy – is insurance that provides protection for the entire lifetime of the insured person. Participating life insurance involves the transfer of risk from an individual to a life insurance company. With participating insurance, a portion of the risk is shared among the policy owners and the company. We call it "participating insurance" (or "par insurance") because the policy owner participates in the risk along with the insurance company. As part of this risk-sharing, par policy owners may also share in certain rewards when their policies perform better than originally expected. This reward may come in the form of a policy owner dividend, which is a portion of the earnings from the par account where the investments, expenses and other items related to the company's par policies are tracked. The dividend is not guaranteed. Age - the ‘insurance age’ of the insured person(s) is their age at their birthday nearest to the date the coverage begins. For example, if the insured person’s actual age is 34 and 7 months, the ‘insurance age’ will be 35. This age will be used to calculate all of the values in the illustration and policy contract. Total guaranteed premium - includes all of the required base premiums and any premiums for additional benefits that may have been selected, all of which are guaranteed for life. It does not include any Plus premium payment. Total premium – consists of the total guaranteed premium including any Plus premiums. Guaranteed cash value - is an amount we determine as shown on the guaranteed values page. It is part of the amount we pay if a policy is cancelled. Any policy loans will reduce this amount. Total cash value – includes the guaranteed cash value and the cash value of any paid-up additional insurance or dividends on deposit. Any policy loans or withdrawals will reduce the amount. Guaranteed insurance amount - consists of the base insurance amount less any outstanding policy loans plus any enhanced insurance amount within the guaranteed period. It also includes any term insurance benefits selected. Total death benefit – is the amount paid to the beneficiary if the insured person dies while the policy is in effect. It consists of the guaranteed insurance amount, any term life insurance benefits selected plus any accumulated dividends on deposit or insurance purchased by dividends and Plus premiums, if applicable. Any policy loans or withdrawals will reduce the amount. Taxation – this product is classified as an exempt life insurance policy. This illustration assumes that current Income Tax Act (Canada) rules affecting life insurance will remain the same. It should be noted that these rules can change at any time. Common terms and definitions – for more details concerning the terminology used in the illustration ask to see the Common terms and definitions page.





Section 2. Illustration detailsDividend option - Paid-up additional insuranceAdditional permanent life insurance is purchased with any dividends credited to the policy. Premium rates forpaid-up additional insurance are not guaranteed. This additional insurance is also eligible for dividends whichwill be used to purchase more paid-up additional insurance. Once purchased, the paid-up additional insuranceprovides a guaranteed death benefit and guaranteed cash value. This additional insurance can be cancelled at anytime for its cash value.Insured informationName Sex Age Risk classR Client1 Male 42 non-smoker

Summary of coverageCoverage/benefit Insurance amount Initial yearly premiumSun Par Protector $500,000

Coverage is for life.$15,730.00Payable for 20 policy years.

Plus premium n/a $7,420.00Payable from year 1 to year 20

Primary Dividend ScaleCurrent dividend scale

PremiumsTotal initial monthly premium (including the policy fee of $4.50 monthly)$2,083.50Total initial yearly premium (including the policy fee of $50.00 yearly)$23,150.00





Section 3. Policy values (current dividend scale)

YearTotal

guaranteedyearly premium

Guaranteedcash value

Guaranteedinsurance

amountTotal yearly

premiumTotal cash

valueTotal death

benefit

Guaranteed values Current dividend scale non-guaranteed values

1 15,730.00 0 500,000 23,150.00 7,003 531,2222 15,730.00 0 500,000 23,150.00 14,816 563,7133 15,730.00 0 500,000 23,150.00 23,493 597,4634 15,730.00 0 500,000 23,150.00 33,110 632,5245 15,730.00 2,915 500,000 23,150.00 46,647 668,9106 15,730.00 7,085 500,000 23,150.00 62,818 707,7437 15,730.00 12,575 500,000 23,150.00 81,669 748,5858 15,730.00 19,425 500,000 23,150.00 103,507 792,0339 15,730.00 27,700 500,000 23,150.00 128,276 837,27810 15,730.00 37,450 500,000 23,150.00 156,141 884,38811 15,730.00 48,725 500,000 23,150.00 191,846 947,70012 15,730.00 61,585 500,000 23,150.00 230,254 1,009,74213 15,730.00 76,075 500,000 23,150.00 271,217 1,069,90614 15,730.00 92,255 500,000 23,150.00 314,579 1,127,57315 15,730.00 110,200 500,000 23,150.00 361,899 1,186,93316 15,730.00 129,900 500,000 23,150.00 413,420 1,248,33017 15,730.00 163,170 500,000 23,150.00 480,893 1,311,28318 15,730.00 200,150 500,000 23,150.00 554,557 1,375,79319 15,730.00 241,000 500,000 23,150.00 634,703 1,441,91920 15,730.00 275,945 500,000 23,150.00 711,719 1,509,74221 0.00 283,650 500,000 0.00 755,420 1,559,15722 0.00 291,365 500,000 0.00 801,350 1,609,79723 0.00 299,085 500,000 0.00 849,586 1,661,66424 0.00 306,825 500,000 0.00 900,202 1,714,71625 0.00 314,595 500,000 0.00 953,257 1,768,94826 0.00 322,405 500,000 0.00 1,005,675 1,818,23927 0.00 330,155 500,000 0.00 1,060,298 1,868,51328 0.00 336,835 500,000 0.00 1,116,151 1,919,80329 0.00 343,240 500,000 0.00 1,174,115 1,972,16530 0.00 349,515 500,000 0.00 1,234,348 2,025,62731 0.00 355,645 500,000 0.00 1,296,865 2,080,21032 0.00 361,635 500,000 0.00 1,361,604 2,135,86133 0.00 367,505 500,000 0.00 1,428,558 2,192,54034 0.00 373,295 500,000 0.00 1,497,684 2,250,185





YearTotal



Guaranteedinsurance

amountTotal yearly

premiumTotal cash

valueTotal death

benefit

Guaranteed values Current dividend scale non-guaranteed values

35 0.00 379,025 500,000 0.00 1,568,919 2,308,79036 0.00 384,665 500,000 0.00 1,642,237 2,368,41237 0.00 390,185 500,000 0.00 1,717,566 2,429,10938 0.00 395,560 500,000 0.00 1,794,956 2,490,94639 0.00 400,765 500,000 0.00 1,874,445 2,553,96740 0.00 405,780 500,000 0.00 1,956,167 2,618,24641 0.00 410,575 500,000 0.00 2,040,274 2,683,85142 0.00 415,105 500,000 0.00 2,126,967 2,750,85143 0.00 423,585 500,000 0.00 2,220,603 2,819,24144 0.00 427,585 500,000 0.00 2,312,812 2,889,02545 0.00 431,305 500,000 0.00 2,407,680 2,960,10546 0.00 434,780 500,000 0.00 2,504,966 3,032,43047 0.00 438,060 500,000 0.00 2,604,238 3,105,83448 0.00 441,200 500,000 0.00 2,704,974 3,180,19649 0.00 444,260 500,000 0.00 2,806,635 3,255,40650 0.00 447,315 500,000 0.00 2,908,883 3,331,37451 0.00 450,465 500,000 0.00 3,011,532 3,408,02352 0.00 453,825 500,000 0.00 3,114,938 3,485,35253 0.00 457,530 500,000 0.00 3,219,973 3,563,42554 0.00 461,755 500,000 0.00 3,328,569 3,642,36855 0.00 466,835 500,000 0.00 3,444,568 3,722,27156 0.00 473,425 500,000 0.00 3,575,639 3,803,17957 0.00 483,090 500,000 0.00 3,737,692 3,884,78158 0.00 500,000 500,000 0.00 3,965,690 3,965,690

The Guaranteed cash value and Guaranteed insurance amount will be reduced by any outstanding policy loans.The above guaranteed values are guaranteed as long as your policy remains in effect.Premiums shown are payable at the beginning of the policy year. All other values are illustrated as of the end ofthe policy year.Current dividend scale illustrates an example of how policy values including the death benefit, cash value andprojected premium offset point (if applicable) may change, assuming no change in the dividend interest rate used indetermining the annual dividends.





Section 4. Policy values (current dividend scale minus 1.0%)

YearTotal



Guaranteedinsurance

amountTotal yearly

premiumTotal cash

valueTotal death

benefit

Guaranteed values Current dividend scale minus 1.0%non-guaranteed values

1 15,730.00 0 500,000 23,150.00 6,900 530,7622 15,730.00 0 500,000 23,150.00 14,453 562,1523 15,730.00 0 500,000 23,150.00 22,704 594,1864 15,730.00 0 500,000 23,150.00 31,699 626,8795 15,730.00 2,915 500,000 23,150.00 44,402 660,2396 15,730.00 7,085 500,000 23,150.00 59,406 695,0227 15,730.00 12,575 500,000 23,150.00 76,766 730,9458 15,730.00 19,425 500,000 23,150.00 96,699 768,3889 15,730.00 27,700 500,000 23,150.00 119,188 806,80210 15,730.00 37,450 500,000 23,150.00 144,351 846,20511 15,730.00 48,725 500,000 23,150.00 175,585 896,83512 15,730.00 61,585 500,000 23,150.00 209,131 945,90813 15,730.00 76,075 500,000 23,150.00 244,895 993,03514 15,730.00 92,255 500,000 23,150.00 282,769 1,037,77915 15,730.00 110,200 500,000 23,150.00 323,876 1,083,16116 15,730.00 129,900 500,000 23,150.00 368,409 1,129,52817 15,730.00 163,170 500,000 23,150.00 428,056 1,176,36718 15,730.00 200,150 500,000 23,150.00 493,004 1,223,68519 15,730.00 241,000 500,000 23,150.00 563,476 1,271,51120 15,730.00 275,945 500,000 23,150.00 629,781 1,319,88121 0.00 283,650 500,000 0.00 661,967 1,349,35022 0.00 291,365 500,000 0.00 695,486 1,379,42223 0.00 299,085 500,000 0.00 730,376 1,410,10824 0.00 306,825 500,000 0.00 766,646 1,441,31125 0.00 314,595 500,000 0.00 804,311 1,473,01026 0.00 322,405 500,000 0.00 841,053 1,500,63227 0.00 330,155 500,000 0.00 878,941 1,528,59428 0.00 336,835 500,000 0.00 916,960 1,556,90529 0.00 343,240 500,000 0.00 955,949 1,585,61230 0.00 349,515 500,000 0.00 996,023 1,614,70731 0.00 355,645 500,000 0.00 1,037,157 1,644,18732 0.00 361,635 500,000 0.00 1,079,273 1,673,99233 0.00 367,505 500,000 0.00 1,122,348 1,704,08834 0.00 373,295 500,000 0.00 1,166,310 1,734,380





YearTotal



Guaranteedinsurance

amountTotal yearly

premiumTotal cash

valueTotal death

benefit

Guaranteed values Current dividend scale minus 1.0%non-guaranteed values

35 0.00 379,025 500,000 0.00 1,211,073 1,764,81836 0.00 384,665 500,000 0.00 1,256,587 1,795,44037 0.00 390,185 500,000 0.00 1,302,793 1,826,31138 0.00 395,560 500,000 0.00 1,349,680 1,857,44439 0.00 400,765 500,000 0.00 1,397,267 1,888,89140 0.00 405,780 500,000 0.00 1,445,617 1,920,69741 0.00 410,575 500,000 0.00 1,494,794 1,952,89042 0.00 415,105 500,000 0.00 1,544,902 1,985,51943 0.00 423,585 500,000 0.00 1,600,243 2,018,60244 0.00 427,585 500,000 0.00 1,652,359 2,052,07645 0.00 431,305 500,000 0.00 1,705,326 2,085,84646 0.00 434,780 500,000 0.00 1,758,922 2,119,80547 0.00 438,060 500,000 0.00 1,812,813 2,153,77948 0.00 441,200 500,000 0.00 1,866,630 2,187,63849 0.00 444,260 500,000 0.00 1,919,970 2,221,22650 0.00 447,315 500,000 0.00 1,972,586 2,254,41551 0.00 450,465 500,000 0.00 2,024,382 2,287,14152 0.00 453,825 500,000 0.00 2,075,574 2,319,34853 0.00 457,530 500,000 0.00 2,126,761 2,351,10254 0.00 461,755 500,000 0.00 2,179,173 2,382,49455 0.00 466,835 500,000 0.00 2,235,248 2,413,63956 0.00 473,425 500,000 0.00 2,299,729 2,444,61457 0.00 483,090 500,000 0.00 2,382,278 2,475,15258 0.00 500,000 500,000 0.00 2,504,113 2,504,113

Current dividend scale minus 1.0% illustrates an example of how policy values including the death benefit, cash value and projected premium offset point (if applicable) may change, assuming a 1.0% decrease in the dividend interest rate used in determining the annual dividends.



Section 5. Statement of variabilityHow dividends can affect your policy:Dividends are not guaranteed and will vary upward or downward from those illustrated depending on future dividend scales. The dividend scale is affected by a number of variables such as investment returns, mortality experience, expenses and other relevant factors. Fluctuations in dividends will significantly affect the non-guaranteed values in your policy. The scenarios below demonstrate the effect a change in the dividend scale can have on the illustrated values and do not provide either a best estimate or a worst case scenario.

YearGuaranteed

yearlypremium


Guaranteedinsurance

amountTotal cash

valueTotal death

benefitTotal cash

valueTotal death

benefit

Guaranteed values Non-guaranteed valuesCurrent dividend

scaleCurrent dividend scale

minus 1.0%

Total cashvalue

Total deathbenefit

Current dividend scaleminus 2.0%

5 15,730.00 2,915 500,000 46,647 668,910 44,402 660,239 42,214 651,78810 15,730.00 37,450 500,000 156,141 884,388 144,351 846,205 133,194 810,07115 15,730.00 110,200 500,000 361,899 1,186,933 323,876 1,083,161 288,938 987,80820 15,730.00 275,945 500,000 711,719 1,509,742 629,781 1,319,881 557,305 1,151,94530 0.00 349,515 500,000 1,234,348 2,025,627 996,023 1,614,707 803,067 1,282,01350 0.00 447,315 500,000 2,908,883 3,331,374 1,972,586 2,254,415 1,344,223 1,531,652

Current dividend scale minus 1.0% illustrates an example of how the death benefit, cash value and projected premium offset point (if applicable) may change, assuming a 1.0% decrease in the dividend interest rate used in determining the annual dividends. Current dividend scale minus 2.0% illustrates an example of how the death benefit, cash value and projected premium offset point (if applicable) may change, assuming a 2.0% decrease in the dividend interest rate used in determining the annual dividends. All values in the illustration assume you continue to pay the required premium. Plus premium, if applicable, isassumed to be paid as indicated on the illustration details page.The guaranteed cash value and guaranteed insurance amount will be reduced by any outstanding policy loans.In the preceding illustration unless values are indicated as "Guaranteed", none of the figures shown in thisillustration are guaranteed. They are hypothetical only and are based on assumptions that are certain to change. They are not a best estimate or a guarantee of future policy performance. Actual results will differ upward ordownward from those illustrated, depending upon future experience, because they are highly dependent upon anumber of factors. These factors include the Company’s experience with such things as death claims, interest ratesand other investment returns, taxes and other expenses. Even a small change in one of these factors could have adramatic negative or positive impact on the non-guaranteed figures shown in this illustration.This illustration will not become part of any issued policy and is provided solely to show how policy benefits andvalues may change over time based on different sets of assumptions.





r client1 - sun life financial · a presentation designed for: r client1 prepared by: trusted...

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