What is the Platinum Option?

Standard Life has temporarily suspended new sales of Ideal Income Series effective April 16, 2012. If you are already an Ideal Income Series client, you will receive a letter about what this means to you. You may also wish to contact your advisor.

The Ideal Segregated Funds – Signature Series Platinum Option is designed for affluent investors or those who wish to consolidate their assets for retirement. For a minimum premium of $250,000, you can take advantage of significantly lower management fees, solid growth potential, built-in capital protection, resets and more – advantages that will surely entice you. This option is available on both savings and registered retirement income plans.

4 reasons why you should consider Platinum Option

Low fees can make a big difference!

Our Ideal Segregated Funds – Signature Series Platinum Option is a great way to help you grow your nest egg, while maintaining capital protection.

Take a look at the significant difference that low fees can have on a portfolio. To illustrate, let’s compare a $250,000 investment in a fund with lower fees, such as the Ideal Canadian Equity Fund – Platinum Option with the same investment in funds with higher fees. The example below uses a 15-year return of 7% (before fees and expenses).

Low fees can make a big difference!

Guarantees that speak for themselves

You can choose between a base capital protection (Ideal 75/100 Series), a full capital protection (Ideal 100/100 Series) or a lifetime guaranteed source of income (Ideal Income Series), depending on your needs. Tailor your contract by choosing one or a combination of series.

 Ideal 75/100 SeriesIdeal 100/100 SeriesIdeal Income Series
Maturity Benefit Guarantee
Base capital protection√ ——
Full capital protection— √—
Full income protection— —√
Death Benefit Guarantee√ √√
Payout Benefit Guarantee√ √—
Income for life— —√

Find out about the guarantees for each series:

Ideal 75/100 and Ideal 100/100 Series
Ideal Income Series

Of the three series, the Ideal Income Series was specifically designed to ensure that you don’t outlive your assets. Here’s how it works:

Resets take it up a notch

Another great benefit of the Ideal Segregated Funds – Signature Series Platinum Option is the reset feature. If your segregated funds go up in value, resetting increases the guaranteed amounts to reflect the gain. Over the lifetime of the series, regular resets can make a significant difference to your capital. You benefit when the market rises, and you are protected when it declines.

Simply put, resets lock-in market gains, thereby potentially minimizing downside risk

Find out about the reset feature for each series:

Ideal 75/100 and Ideal 100/100 Series

With the Ideal 75/100 and Ideal 100/100 Series, you get extra protection with two types of resets:

  • You can request to reset your Maturity Guarantee Value1 up to 2 times per series year
  • Automatic resets every 3 years of the Death Guarantee Value with a final reset on the series anniversary date following the annuitant's 70th birthday, if the series value is greater than the Death Guarantee Value

1 No resets allowed in the 10-year period (Ideal 75/100 Series) or the 15-year period (Ideal 100/100 Series) prior to the series maturity date.

Ideal Income Series

Like the Ideal 75/100 and Ideal 100/100 Series, the Ideal Income Series also allows you to capture market gains with resets.

Automatic resets, every 3 years on the series anniversary date, mean that if the market goes up and the Ideal Income Series value is higher than your Guaranteed Withdrawal Balance (GWB), a reset occurs and gains are locked-in (the GWB and the GBB are both reset to this value). This can help offset the impact of inflation. As well, the new Lifetime Guaranteed Withdrawal Amount will be recalculated and adjusted upwards at the end of the year and future bonuses (before the LID) will be calculated on the higher reset amount. The reset also applies to the Death Guarantee Value up to the annuitant’s age 70. A final reset may occur on the series anniversary date following the annuitant’s 70th birthday, if the series value is greater than the Death Guarantee Value.

Platinum Option provides you with additional peace of mind

Potential for creditor protection1

Have you planned ahead to ensure that your money will be safe from creditors in the event of an unexpected bankruptcy? Your Ideal Segregated Fund – Signature Series assets can be protected from creditors provided that a preferred class beneficiary was named.

Probate bypass opportunities2

Working a lifetime to build your estate, you do not want it to dwindle due to costs of probate. Help ensure your loved ones get everything that they are entitled to. If there is a named beneficiary at the time of death, Ideal Segregated Fund – Signature Series assets can be paid directly to your beneficiaries, thus bypassing the estate and avoiding probate fees and other estate-related costs and delays.

Assuris protection

The Standard Life Assurance Company of Canada is a member of Assuris. Details about the extent of Assuris’ protection are available at www.assuris.ca or in its brochure, which can be obtained from your advisor or from Assuris by email at info@assuris.ca or by calling 1-800-268-8099.

1There are some situations where this doesn’t apply – ask a legal advisor. This feature may also not apply if your contract is held in a nominee plan. Please refer to the Information Folder for more details.

2In Quebec, notarial wills don’t need to be probated. Probate fees are minimal for both holograph wills and wills made in the presence of witnesses.



©2012 Morningstar Research Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

A description of the key features and the terms and conditions are available in the Ideal Segregated Funds - Signature Series Information Folder and Contract.

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Guarantee

All Standard Life individual insurance products are covered by our unique six-month Total Customer Satisfaction Guarantee.

* excludes structured settlement annuities

More details

Guarantees that when you reach your series maturity date, you’ll receive at least a set amount of the premiums paid to your series (less any money you withdraw).

Guarantees that you'll receive income payments of at least a set amount of your premiums (less any scheduled retirement income payments made) over the lifetime of the series.



Guarantees that on death, your beneficiaries will receive at least part of or all of the premiums paid to your series.

If you are under age 80 at the series issue, your loved ones will receive 100% of the premiums paid.

If you are age 80 or older at the series issue, your loved ones will receive 75% of the premiums paid.

Your lifetime guaranteed stream of income is calculated using the Guaranteed Withdrawal Balance. At first, this represents your initial premium, however, additional premium payments or withdrawals may increase or decrease your balance.

TransactionGWB
Initial premium of $100,000$100,000
Additional premium of $10,000$110,000
Withdrawal of $5,000*$105,000
Amount at year-end$105,000

* Assuming it is made prior to the date you begin drawing an income and that it's not in excess of the amount you can withdraw every year.

The guaranteed amount that you can withdraw every year for your lifetime is known as the Lifetime Guaranteed Withdrawal Amount. This amount is a percentage of the Guaranteed Withdrawal Balance, varies according to age and is calculated annually.

That’s why we let you specify your Life Income Date (LID) – the date you elect to begin drawing an income. Once your Life Income Date is reached, the percentage used to calculate the LGWA is fixed based on your age (or younger annuitant’s age, if joint life option was chosen). You can start as early as age 55 or as late as age 90. The later you begin, the higher the percentage. No matter when you start receiving an income, you no longer have to worry about outliving your assets.

AgeSingle life in LGWAJoint life LGWA
55-594.00%3.50%
60-634.50%4.00%
64-695.00%4.50%
70-745.25%4.75%
75-796.00%5.50%
80+6.50%6.00%

Guarantees that on death, your beneficiaries will receive at least part of or all of the premiums paid to your series.

If you are under age 80 at the series issue, your loved ones will receive 100% of the premiums paid.

If you are age 80 or older at the series issue, your loved ones will receive 75% of the premiums paid.

This chart is for illustration purposes only and does not reflect the performance of any particular fund.

This graph demonstrates how a client’s Maturity and Death Benefit Guarantees would be improved over a 31-year period. In this example, the client has selected a series maturity date (SMD) of age 71 and requests to reset the Maturity Guarantee Value in years 2, 4, 9, 10 and 16. The Death Guarantee Value automatically resets in years 3, 9, 15 and 21.

At age 40, the client allocates a premium of $10,000 to an RRSP (Ideal 100/100 Series) and requests a reset of the Maturity Guarantee Value in the following years where the series value is greater than the guaranteed amount:

At the series maturity date (age 71), the client’s Maturity Benefit Guarantee of $23,000 {100% of $23,000 (Maturity Guarantee Value at last reset)} has more than doubled from the initial premium. At this point, the client receives the higher of the Maturity Benefit Guarantee of $23,000, or the series value of $22,000.

Automatic resets of the Death Guarantee Value occur in the following years:

A final reset occurs on year 30, on the series anniversary date following the annuitant’s 70th birthday, since the series value is greater than the Death Guarantee Value. Should the annuitant die in year 30 (age 70), the beneficiary is guaranteed to receive a Death Benefit Guarantee of $25,000 {100% of $25,000 (Death Guarantee Value at last reset)} or the series value, whichever is higher.

Let’s assume that a client (age 45) allocates an initial premium of $200,000 to the Ideal Income Series, therefore his/her Guaranteed Withdrawal Balance (GWB) is also equal to $200,000. It is increased every 3 years when the series value is greater than the GWB, resulting in more guaranteed income for the client. Reset opportunities are available for the lifetime of the series.