National Life Launches Enhanced Universal Life Product

TORONTO, Nov. 12 – Clients can now expect greater value for their money with
National Life’s updated Flex Account Universal Life product. It contains new and enhanced
attributes that offer the potential for increased investment returns, improved fund
options, faster policy processing, and easier-to-understand product terminology.
“When combined with existing policy features like built-in flexibility and
tax-advantaged growth, these elements help make this version of Flex Account our strongest
Universal Life product to date,” said Promod Sharma, Actuary, Individual Insurance.

With the latest version of Flex Account, policyowners are
rewarded on their investment earnings in one of two ways. The first option, a new
Guaranteed Bonus, offers a 1.2% annual rate and is not affected by premium, rate of
return, timing, or other conditions. The second option is the existing Performance Bonus,
which has been improved and now returns 2% annually on Market Index Accounts and 1%
annually on Guaranteed and Daily Interest Accounts, based on an average 5% investment
growth rate or more during the policy year.

As the new underlying index for the Canadian Equity 60
Account, the S&P/TSE 60 Index should make it easier for clients to enjoy the rewards
that come with owning Flex Account. The Canadian Equity 60 Account replaces the Canadian
Equity 300 Account, which was based on the TSE 300 Index. National Life’s new index
account provides clients with more consistent investment returns through a stronger, more
concentrated portfolio of stocks.

Updates to Flex Account underwriting requirements now
include improved medical and financial requirements while the Personal Projection
software’s retailored Insurance Planner uses the latest tax rates and includes new
presentation pages describing tax issues and solutions. “Enhancements in these areas
make our financial planning tools more user-friendly, improve the value of our products
and increase the efficiency of our underwriting process,” commented Mr. Sharma.

Along with the above changes to Flex Account, National Life
has incorporated easier-to-understand terminology into the software, policy contracts,
forms, and on the Web site. Investment Growth, Risk Class and Optional Benefits are just
some of the new terms that will give clients a better understanding of their investment.

National Life’s Flex Account product has been a leading
performer in the universal life market, offering flexibility and choice to suit a variety
of insurance and investment needs. This newly enhanced version builds on these strengths
while continuing to offer clients the highest level of quality, service and support. Flex
Account is a product designed to be an integral component of a client’s long-term financial goals.

National Life has been a strong performer in the insurance
industry for over a century, with a reputation for product innovation and excellent
service. Providing individual insurance, group life and health insurance, and retirement
and investment products to clients across Canada and in the Caribbean, National Life is
owned by Industrial Alliance Insurance and Financial Services, which ranks among Canada’s
top 10 insurers and manages over $14 billion in total assets.

For further information, Contact:
Janice Wong, Corporate Communications,
National Life,
522 University Avenue,
Toronto, Ontario, M5G 1Y7,
Phone: (416) 585-8086, Fax: (416) 598-8904,
E-mail: janice.wong@nationallife.ca