reset feature on Ideal Segregated Funds - Standard Life

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Ideal Segregated Funds are offered under
Standard Life’s savings and retirement
income plans, which are insurance
products.
A description of the key <strong>feature</strong>s of
Standard Life’s Ideal Segregated Funds is
contained in the Information Folder.
Subject to any applicable death and
maturity guarantee, any part of the
premium or other amount allocated to an
Ideal Segregated Fund is invested at the
risk of the policyholder and may increase or
decrease in value according to fl uctuations
in the market value of the assets of the Ideal
Segregated Fund.
The Standard Life Assurance Company of Canada
February 1, 2007
6022A-02-2007
Investment Solutions
This is all about the
<strong>reset</strong> <strong>feature</strong>
on Ideal
Segregated
Funds
with Standard Life

Hello.
When Standard Life talks
about helping you get the
most out of your financial
plans, we mean precisely
that. Who wants to watch
their investment gains slip
away when the market
isn’t doing well? Our new
<strong>reset</strong> <strong>feature</strong> 1 can help you
sidestep this situation by
giving you the chance to
increase your maturity and
death benefit guarantees to
reflect the growth of your
assets.
The decision about when to lock-in is
entirely yours (and in fact, you can <strong>reset</strong>
twice a year) 1 . When the market does
well, so do you. When it doesn’t do so
well, your money is protected against
signifi cant losses.
Resets take it up a notch:
you get additional security
Standard Life’s Ideal Segregated Funds already
have built-in <strong>feature</strong>s to protect your premiums
such as a 75% maturity benefi t guarantee and a
100% death benefi t guarantee 2 . In other words,
no matter what happens to the market, you, as
the owner of the policy, can get back at least
75% of the premiums you paid when the policy
matures, or your benefi ciaries will get back no
less than 100% of the premiums paid upon
death 3 . If you made a surrender, the amount
guaranteed will decrease proportionately with
the surrender.
Resets take it one step further: If your segregated
funds go up in value, you can <strong>reset</strong> 1 your
guarantees to refl ect the gain. That means the
75% maturity benefi t and 100% death benefi t
guarantees can cover an amount even greater
than the amounts you allocated to the policy.
Your new policy value will depend on how well
the market performed, and when you decided
to <strong>reset</strong>.
1 Resets are available on our no-load Ideal Segregated
Funds with <strong>reset</strong> option. You can benefi t from <strong>reset</strong>s
until age 70, however, <strong>reset</strong>s are not allowed in the
10-year period prior to your policy maturity date.
2 If the annuitant is age 80 or over when the policy
is issued, the death benefi t guarantee is 75% of
the premiums paid to the policy less proportional
surrenders.
3 On non-registered policies, you can designate someone
else as the annuitant (or person insured under the
policy), and the death benefi t will be payable on that
person’s death.

Take a look at how <strong>reset</strong>s work
Without <strong>reset</strong>s
Let’s assume you are 40 years old and you put
$10,000 in our Ideal Segregated Fund policy.
Without a <strong>reset</strong>, the death benefi t guarantee is
$10,000 and the maturity benefi t guarantee is
$7,500 regardless of market performance. Of course,
if the market value of your policy increases over the
years, you get the higher of the market value or the
maturity guarantee (the same rules apply to the
death benefi t guarantee).
Resets change the picture
Let’s say your investment of $10,000 has grown to
$16,000 over four years. If you want to benefi t from
this gain you should <strong>reset</strong> your guarantees, which
would result in the following:
Resetting in the 4 th year secures:
$16,000 death benefi t guarantee
(increase of $6,000)
$12,000 maturity benefi t guarantee
(increase of $4,500)
After 15 years, the market value grows to
$23,000. You decide to <strong>reset</strong> again so that your
guarantees refl ect that growth.
Resetting in the 15 th year secures:
$23,000 death benefi t guarantee
(increase of $13,000 from original
guaranteed amount)
$17,250 maturity benefi t guarantee
(increase of $9,750 from original
guaranteed amount)
Simply put, <strong>reset</strong>s provide you with the
opportunity to lock-in market gains,
thereby minimizing downside risk.
Here’s a graphic depiction of how your
guarantees would be improved over a 25-year
period to your target retirement age, had you
<strong>reset</strong> your guarantees once in year 4 and a
second time in year 15. This example assumes
no surrenders were made under the policy 4 .
$25,000
$20,000
Reset in 4
$15,000
$10,000
Policy
$5,000
$0
Policy Value
0 5 10 15
Year
20
Maturity
Date
25
No <strong>reset</strong>s allowed in last 10 years
of the policy
th Reset in 15
year
New Death Benefi t Guarantee: $16,000
New Maturity Benefi t Guarantee: $12,000
th Initial Premium:
year
$10,000
New Death Benefi t Guarantee: $23,000
Death Benefi t
Guarantee: $10,000
Maturity Benefi t
Guarantee at ACD*:
New Maturity Benefi t Guarantee: $17,250
$7,500
This chart is for illustration purposes only and does not refl ect the performance of any particular fund.
* Annuity Commencement Date (or policy maturity date).
4 If you do decide to surrender funds, the amount of your guarantees reduces proportionally.

Ideal <strong>reset</strong>s at Standard Life
You can choose to <strong>reset</strong> twice per
policy year, except in the last 10 years
and until age 70
Your policy maturity date doesn’t
change, no matter how many times
you decide to <strong>reset</strong>
The <strong>reset</strong> date is up to you
Requesting a <strong>reset</strong> is easy. Ask your
insurance representative for all the
details.
You won’t incur any surrender
charges if you take your money out
(but surrenders will proportionally
reduce the amount of your guarantees)
The <strong>reset</strong> <strong>feature</strong> applies to the entire
family of Ideal Segregated Funds,
including Ideal Portfolios
It’s your choice...
At Standard Life, we’re committed to providing
fi nancial solutions that work for you – and
that includes giving you the fl exibility to make
decisions about protecting the growth of your
assets. The Ideal Segregated Funds with <strong>reset</strong>
<strong>feature</strong> give you the option of locking-in gains –
and securing your own peace of mind.