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ASSANTE ESTATE AND INSURANCE SERVICES INC.

Increase your retirement income while

preserving your estate

INSURED ANNUITIESTalk to your Assante advisor

Intrigued by the increased income and security of an Insured Annuity? Talk to your Assante advisor to find out more.

Assante provides integrated wealth management solutions to simplify and enhance your life. Your Assante advisor will assess your financial requirements in order to choose the best solution for you from a number of leading financial service providers.

The insured annuity provides much higher gross income, yet significantly lower taxable income. So even after insurance premiums, you receive thousands of dollars more every year.Actual results may vary from projected values in this case study. Note that an insured annuity may compare less favourably to a fixed income portfolio during periods of high interest rates. Insurance is based on a Term to 100 life insurance policy.

FIXED-INCOME PORTFOLIO VERSUS INSURED ANNUITY

Insured annuity case study:

more income than a fixed income portfolio

Here’s how a 65-year-old woman, a non-smoker, comes out ahead with an insured annuity, compared to a fixed-income portfolio that pays an annual 4.0%

Fixed-Income Insured Portfolio Annuity

> Original Investment $250,000 $250,000

> Annual Gross Income $10,000 $16,000

Higher income

> Annual Taxable Income $10,000 $3,645

Lower taxable income

> Annual Taxes (43%) $4,300 $1,567

Less tax paid

> Annual After-Tax Income $5,700 $14,433

> Annual Insurance Premium $0 - $6,175

> Total Net Annual Income $5,700 $8,258

23.8% more from an insured annuity

> Gross Equivalent Rate 4.0% 5.79%

A higher rate, guaranteed for life

This material is provided for general information and is subject to change without notice. Every effort has been made to compile this material from reliable sources however no warranty can be made as to its accuracy or completeness. This material is not intended to provide, and should not be construed as providing individual financial, investment, tax, legal or accounting advice. You should consult your professional advisor(s) prior to acting on the basis of the information herein, and ask about the risks and costs involved when investing in insurance products. ®The Assante symbol and Assante Wealth Management are registered trademarks of CI Investments Inc., used under licence.

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Would you like a higher lifetime income

to enjoy retirement even more?

At one time, you could count on fixed-income investments for solid retirement income. But with today’s low interest rates, it’s a different story. The traditional instruments may not give you the income you would like.

Fortunately, there’s a way to maximize your income in a low interest rate environment if you fit this profile:

> You are at least 60 years of age, retired, and in a medium or high tax bracket.

> You depend on income from non-registered investments to supplement your retirement income.

> You would take comfort in knowing that part of your portfolio provides a guaranteed fixed income, avoiding investment volatility and risk.

> You don’t want to encroach on your capital, and especially don’t want to outlive your savings.

> You’re of average health for your age and qualify for life insurance.

> You are able to lock in a sizeable lump sum for life.

INCREASE YOUR

RETIREMENT INCOME WHILE

PRESERVING

YOUR ESTATE Your solution? An Insured Annuity An insured annuity sounds complicated, but it’s really quite simple. It’s a solution that uses two easy-to-understand products – a life annuity and life insurance.

A life annuity is a product you purchase with a lump sum of non-registered funds, in return for a guaranteed lifelong stream of equal payments. The payments are part interest, part return of capital—and that has a significant tax advantage. Tax is only payable on the interest portion, whereas interest income from traditional non-registered investments is fully taxable.

That’s the annuity half. But if that’s all you did, you would leave no funds for your heirs.

In addition to increasing your income and protecting your capital, insured annuities also provide the following benefits:

CONSIDER THE MANY BENEFITS OF AN INSURED ANNUITY

> Your income is fully guaranteed for life.

> You diversify your retirement portfolio with a risk-free

investment that’s not dependent on stock or bond market

performance, or even on interest rate movement.

> When you direct the tax-free life insurance proceeds

to your beneficiaries instead of your estate, you avoid

probate fees and other costs and delays.

> A single insured annuity can be established for both

you and your spouse.

> The annuity income qualifies for the pension income

tax credit, which is granted on the first $1,000 of

eligible pension income when you’re 65 and over.

> An insured annuity can minimize the clawback

of Old Age Security benefits, because it reduces

taxable income.

> You can donate all or part of the tax-free proceeds to

a charity, either choosing charitable donation receipts

that reduce your tax annually, or by having the donation

provide tax relief to your estate.

Which brings us to the insurance half.

The tax savings you receive from the annuity are applied to insurance premiums on a life insurance policy. You purchase a policy that has the same value as your annuity. Buying a $250,000 life annuity? Then get a $250,000 life insurance policy. That amount is paid upon death to your beneficiary, tax-free. In other words, the capital originally invested in the annuity is recovered.

So you receive greater payments throughout retirement than you would receive from fixed-income investments. Your loved ones receive a significant

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