The Guardian Flexi-Term Special is a plan designed to meet the insurance needs of persons requiring long-term loans and, in particular, mortgages and estate planning. It will also provide relatively low-cost coverage to customers who need additional coverage for a predetermined period of time. This is an underwritten plan for which a medical will be required. This plan is neither convertible nor renewable. The premium rates are level for the specific coverage for the duration of the coverage period. The plan which provides insurance protection for individuals, families and businesses offers flexible coverage periods of 10, 15, 20, 25 and 30 years.

Issue Ages

This underwritten insurance solution will provide coverage for males and females ages 18 to 65 years nearest birthday, as follows:

Coverage Periods & Issue Ages:

• 10 Years - 18 to 65

• 15 Years - 18 to 60

• 20 Years - 18 to 55

• 25 Years - 18 to 50

• 30 Years - 18 to 45

Minimum Sum Insured

The current minimum sum insured is $5,000,000. However, this may be changed from time to time at the discretion of Guardian Life Limited.

The Guardian Flexi-Term Special offers special features:

• Premium Holiday:

At any time subsequent to the third anniversary of the policy, the Insured person may apply to the Company for the Premium Holiday benefit, provided that the policy is in force and all premium amounts due prior to the time of application to the Company have been paid. The payment of premiums under this Benefit shall be waived as follows:

- During the fourth policy year, the Company will waive premium payments for a period of three months

- During the fifth policy year, the Company will waive premium payments for a period of four months

- During the sixth policy year, the Company will waive premium payments for a period of five months

- During the seventh or a subsequent policy year, the Company will waive premium payments for a period of six months

The insured person may not avail of the premium holiday benefit on more than one occasion.

• Return of Premium:

The total basic premium comprises:

- The basic minimum premium for the plan, paid in respect of the Sum Insured.

- A policy fee, which the company may vary from time to time.

If the policy continues in force until expiry and all premiums due under the policy have been paid, an amount equal to a percentage of the total basic premiums (including any total basic premiums waived under the Premium Holiday Benefit) paid over the duration of the policy will be refunded. The percentage of the total basic premiums paid which will be refunded at expiry will vary with the coverage period of the plan, as follows:

Coverage Periods & Percent of Total Premium

• 10 Years - 20%

• 15 Years - 25%

• 20 Years - 30%

• 25 Years - 35%

• 30 Years - 40%

Death Benefits

On the death of the life insured before the expiry date of the Policy, the death benefit payable will be the basic sum insured.

Additional Riders

You may include any of the following additional benefits (riders) with your plan for an additional premium:

• Accidental Death and Permanent Disablement Benefit: The Accidental death becomes payable as a result of death, resulting solely, directly and independently from bodily injury caused by violent, external and visible means and where such death occurred within ninety (90) days of such injury. The benefit ceases at the earlier of the Life Insured attaining age 65 or the expiration date of the policy.

• Disablement: In the unfortunate event, you suffer a permanent loss (complete or partial) of the use of any limb or organ, specified in your contract, as a result of an accident, a portion of the sum assured will be payable. However, no claim can be considered until after six months of the commencement of the permanent disability and receipt of confirmation from a medical specialist. The benefit ceases at the earlier of the Life Insured attaining age 65 or the expiration date of the policy.

• Total Disability Waiver of Premium Benefit: The waiver of the total basic premiums where the Insured Person becomes permanently disabled and is continuously unable to engage in work for remuneration or profit. The benefit ceases at the earlier of the Life Insured attaining age 65 or the expiration date of the policy. No premiums will be waived within the first six months of the commencement of the disability.

• Exceptions: The additional benefits described above may not apply if either death, permanent or total disablement result from certain activities including but not limited to criminal actions, drug abuse or suicide.

Claims

In the event of a claim, there are documents that will be required for submission by the claimant. These include but are not limited to proof of age, a death certificate, and a completed claim form.

Premium Payments

Premiums may be paid monthly, quarterly, half-yearly or yearly. Premiums are payable until the death of the Life Insured or the expiry date of the plan. The premiums payable under this plan consist of:

• The total basic premium for the plan, as defined in the Return of the Premium Section

• The premium for the rider benefit(s) if taken

Grace Period

The Grace Period is thirty (30) days from the premium due date allowed by the company for the payment of such premiums.

Non-Payment of Premiums

Where premiums are not paid within the grace period, your policy will lapse. After your policy has lapsed, all benefits shall cease.

Policy Reinstatement

Reinstatement is by revival only and premiums shall not be outstanding for more than twenty-four months.