How important is it to choose your mortgage insurance carefully?

1. How importantis it to chooseyourmortgage insurancecarefully?

2. Your home... • A valuable asset • Your first major financial commitment

3. To protect it... • Does your current mortgage insurance offer you such regular coverages as: • protection in case of death (life insurance) • protection in case of disability • protection in case of critical illness

4. Right now... • Does your current insurance offer you the following advantages: • no increase in your premium? • possibility to designate the beneficiary of your choice? • possibility to use the insurance proceeds (following a death) as you wish? NO?

5. Right now... • Does your disability coverage offer you: • the payment of your benefits regardless of the duration of your disability? • the full payment of your monthly mortgage instalment? • an insurance premium that does not increase with the interest rates? NO?

6. Are you sure... … that you are fully covered by your current insurance? Or simply, … that you are even INSURED?

7. Uncertainty... • Is your financial institution able to certify that you are insured without even having checked your state of health? Most financial institutions check your state of health... but only when you make a claim.

8. The consequences... • Some people are declined a benefit just when they need it most! Could this happen to you?

9. A product that offersreassuringprotection

10. The advantages of the Home Protection Plan • Level and guaranteed premiums • Contract independent of the loan • Protection against interest rate increases • Choice of beneficiary • Medical questions at issue to make sure you are covered • Complete coverage: life, critical illness, disability and additional benefits

11. The HPP… and other financial institutions • Now let’s take a look at the protection offered by the Home Protection Plan as compared to other financial institutions

13. Product structure LIFE INSURANCE 100% DISABILITY 50% Riders CRITICAL ILLNESS ADDITIONAL BENEFITS (MGI, WPDis, AD, AD&D, AF)

14. Life insurance Protection: • On an individual or joint basis • Always 100% of the loan balance • $10,000 to $1,000,000 • special quotes for > 1 million Term: • maximum period of 30 years

15. Life insurance Premiums • Based on you as an individual and not a pool of clients • age, sex, tobacco use and mortgage balance • Premium guaranteed for the entire term of the contract and is not affected by interest rate hikes • Reducing premiums with lump sum payments of $5,000 per year

16. Life insurance Conversion privilege: • permanent life insurance • without evidence of insurability • before age 65 • for an amount equal to the mortgage balance when the request is made

17. Life insurance Extension: In addition to the conversion privilege, your HPP plan extends the insurance coverage for a period of 45 additional days following the death of the spouse, for joint coverage, at no extra cost!

18. Life insurance Double payment: For a joint insurance coverage, a double payment will be paid if one spouse dies within 45 days of another spouse!

19. Life insurance Beneficiary: You can name a beneficiary other than the lender. Advantages: • control over the benefit • take advantage of a favourable interest rate situation at death

20. Product structure LIFE INSURANCE 100% DISABILITY 50% Riders CRITICAL ILLNESS ADDITIONAL BENEFITS (MGI, WPDis, AD, AD&d, AF)

21. Disability… in statistics • 1 person in 3 will suffer from a more or less extended disability before the end of their loan amortization period • The average duration of a disability that lasts more than 90 days is 2.9 years Source: CIDA 85 Disability Table; CSO 80 Mortality Table; CIAS 86-92 Mortality Table

22. FOR SALE 80%of foreclosed mortgage loans are related to the borrower’s health!

24. Disability insurance • At each insured’s choice • Age at issue: 18 to 54 • Two levels of coverage: • 50%; 100% both insureds can opt for different coverage • Waiver of premium included

25. Disability insurance • Two benefit duration choices: • 2 years • duration of the loan (before the insured reaches age 65) • Disability must occur before age 60 • Waiting period: • 3 months (retroactive to 1 month)

26. Disability insurance Definition of disability: • First24 months: regular occupation • afterward: any occupation for which you are reasonably qualified • Relapses are covered • with no waiting period for the same cause, within 3 months

27. Product structure LIFE INSURANCE 100% DISABILITY 50% Riders CRITICAL ILLNESS ADDITIONAL BENEFITS (MGI, WPDis, AD, AD&D, AF)

28. Critical illness • The critical illness option provides for the payment of a lump-sum amount, equal to 100% of the mortgage balance, following the diagnosis of the following critical illnesses:

29. Covered critical illnesses • Cancer • Stroke • Heart attack • Coronary artery bypass surgery • Kidney failure • Major organ transplant • Multiple sclerosis • Coma • Paralysis • Dismemberment • Blindness • Deafness • Muteness (loss of speech) • Major burns • Benign brain tumour • Occupational injury - HIV • Motor neuron disease • Alzheimer’s disease • Parkinson’s disease • Cystic fibrosis • Loss of independent existence • Aortic surgery • Heart valve replacement

30. Critical illness The lump-sum payment can be used as you wish: • pay off the mortgage balance; • pay medical fees to receive treatment abroad; • pay for home nursing care; • allow your spouse to go on unpaid leave; • etc.

31. Critical illness • Level and guaranteed premiums • Issue age: 18 to 64 • Face amount: • 100% of the loan balance • Duration of the protection: • duration of the loan amortization period (max. 30 years) • to age 75 if before

32. Critical illness Joint insurance: • benefit payable on the first diagnosis of a critical illness (Terminate the contract) • in the case of simultaneous diagnosis of both insureds: double benefit

33. Product structure LIFE INSURANCE 100% DISABILITY 50% Riders CRITICAL ILLNESS ADDITIONAL BENEFITS (MGI, WPDis, AD, AD&D, AF)

34. Additional benefits For a few $, you can add the following additional benefits: • Guarantee your current state of health as a benchmark should you wish to purchase additional insurance later with no medical questions. • Stop the payment of your premiums during a period of disability. • Double the payment of the face amount in the event of accidental death or accidental death and dismemberment. • Obtain an additional benefit in case of accidental fracture.

35. The only REAL mortgage insurance!