Lifetime income benefit

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Lifetime income benefit

Guarantee your income for Life

Grow

income

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T H E C A N A D A L I F E A S S U R A N C E C O M PA N Y

financial

strength and stability

in canada, these products include investments, savings and retirement income, annuities, life, disability and critical illness insurance, distributed through independent advisors associated with managing general agencies, as well as national accounts, including investors Group. Group payout products issued by canada Life are distributed by Great-west Life.

canada Life, together with Great-west Life and London Life, manages over $18.6 billion*_in

segregated fund policy assets for individual clients across canada.

canada Life, Great-west Life and London Life together serve the financial security needs of more than 12 million people across canada and have $204 billion*_{in consolidated assets under}

administration. the companies are subsidiaries of Great-west Lifeco inc., and members of the Power financial corporation group of companies.

*_{as of dec. 31, 2011}

canada Life, founded in 1847, was canada’s first domestic life insurance company.

today, canada Life provides insurance and wealth management products and

services in canada, the united Kingdom, isle of man, ireland and Germany.

for information about canada Life and our products and services, visit

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Lifetime income benefit ...4

take control of your income ...6

Guaranteed income for life ...7

annual deferral bonus ...8

income resets ...9

weak market conditions don’t affect your retirement income ...10

Payments from registered policies ...14

canada Life segregated funds plus lifetime income benefit ...15

select the right funds for you ...16

investment managers ...19

Glossary of terms ...19

notes about segregated fund policies

• The Canada Life segregated funds contract and information folder contain complete details about all the features of the lifetime income benefit. read them carefully to ensure you understand the lifetime income benefit and its features.

• Features and guarantees vary by policy and age of annuitant and some limitations apply. maturity and death benefit guarantees are reduced proportionately by withdrawals.

• Creditor protection depends on court decisions and applicable legislation, which can be subject to change and can vary from each province; it can never be guaranteed. talk to your lawyer to find out more about the potential for creditor protection for your specific situation.

• Maturity guarantee and death benefit reset options must be chosen at time of initial premium to the segregated funds and cannot be removed once added. additional fees apply.

notes about the lifetime income

benefit option

• Deferral bonuses are not a guaranteed rate of return. they have no cash value and do not increase any applicable maturity or death guarantee benefits. deferral bonuses increase your eligible lifetime income amount.

• Excess withdrawals will decrease the lifetime income amount and you will no longer be eligible for any future bonuses. An excess withdrawal is a withdrawal that exceeds the annual guaranteed income amount. • Income resets do not increase the basic amount

used in determining maturity or death benefit

guarantees. income resets are calculated every three years on the lifetime income benefit anniversary and come into effect on Jan. 1 of the next calendar year. for information about maturity or death benefit guarantees, turn to page 15.

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Life expectancy in years at given age*

age Male female

50-54 +29.1 +33.9 55-59 +24.7 +29.3 60-64 +20.5 +24.9 65-69 +16.7 +20.8 70-74 +13.2 +16.9 75-79 +10.2 +13.2 80-84 +7.7 +10.1 85-89 +5.7 +7.4 90+ +4.3 +5.5

Guarantee your income for life

for years your focus has been to save for retirement. now you need innovative solutions to help you transition your hard-earned savings into income that will last your lifetime. you also need to protect your savings against three retirement risks:

■ longevity risk: you might outlive your money. ■ Market return risk: You could experience poor

market returns in your early retirement years, increasing the chances you’ll use all your savings sooner than you planned.

■ inflation risk: your retirement savings might not earn

enough to keep up with inflation.

the canada Life segregated funds lifetime income benefit helps you manage these risks in retirement and protect your savings. the lifetime income benefit can help provide:

■ Predictable, guaranteed income for life beginning as

early as age 50

■ the potential for increasing income ■ a safe transition from savings to income

■ Guaranteed income for life for you and your spouse

your lifetime income amount will not decrease regardless of how your segregated funds perform.

*_{Statistics Canada, Life expectancy at various}

ages, by population group and sex, 2006

Lifetime

income benefit

Longevity risk

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Age 40 42 44 46 48 50 52 54 56 58 60 62 64 66 68 70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 100

Retirement income years

Saving years Retirement risk zone

Retirement risk zone

Retirement date

For illustration purposes only. Policy market value is hypothetical only and not indicative of future performance.

Hypothetical policy mar

ket value

99-0537C-A

the lifetime income benefit helps get you through this retirement risk zone by guaranteeing the starting value on which your lifetime income amount will be based.

you can increase your income amount by deferral bonuses earned in every year you defer making a withdrawal prior to taking an income.

market return risk

as you plan for retirement, you may question what happens if you experience poor market returns early in retirement. Industry experts consider the five years before and the five years after retirement an especially critical phase for your retirement savings.

this 10-year period is often referred to as the

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$21,000

Guaranteed income for life

You contribute a $500,000 premium to your policy

at age 65. Even if the policy market value drops to $0, you are

guaranteed to continue receiving payments for the

rest of your life.

$0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 Hypothetical policy market value Guaranteed income continues for life

Age 65 105 115 +

For illustration purposes only. Policy market value is hypothetical only and not indicative of future performance. The lifetime income benefit option offers a lifetime income amount, which will never decrease provided excess withdrawals are not taken.

99-0542C

you may be able to increase your income through deferral bonuses and income resets.

take control

of your income

the lifetime income benefit puts you in control of your retirement savings and income by guaranteeing your income for life. your income won’t decrease regardless of how the segregated funds perform, which provides you with protection against the risks of longevity, inflation, and market returns and volatility.

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is it right

for you?

Guaranteed

income for life

no matter how long you live

the canada Life lifetime income benefit provides predictable, guaranteed income for life, starting as early as age 50. the lifetime income amount is based on age; this makes you eligible for higher income payments as you get older.

when you add the lifetime income benefit, your eligible lifetime income amount is the initial market value of your policy multiplied by the income percentage corresponding to your current age (or your spouse, if applicable).

the percentage used to calculate the lifetime income amount increases with age.

with the lifetime income

benefit, you’re guaranteed

income for life, whether

you live to 85, 105 or

beyond. your income will

not decrease, regardless

of how the segregated

funds perform.

Age used to calculate

income Single-life income Joint-life income

50-54 3.00% 2.50% 55-59 3.40% 2.90% 60-64 3.80% 3.30% 65-69 4.20% 3.70% 70-74 4.60% 4.10% 75 + 5.00% 4.50%

you may be able to increase your income through deferral bonuses and income resets.

the lifetime income benefit is just one component of a well-diversified retirement income portfolio. it’s most appropriate for people getting ready to retire and retirees looking for secure, predictable, guaranteed income. you and your spouse, if applicable, must be at least age 50 and under age 91 to add the lifetime income benefit to a segregated fund policy.

the lifetime income benefit works best for people who do not already have guaranteed retirement income. Guaranteed income comes from government benefits, company pension plans or life annuities. you should allocate only a portion of your retirement income portfolio to the lifetime income benefit. you will want to keep some funds easily accessible for emergencies and other needs that arise. the lifetime income benefit doesn’t allow you to take out extra money without penalties.

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increase your lifetime income

amount with deferral bonuses

with the lifetime income benefit, you are eligible to earn a three per cent deferral bonus every year until you make a withdrawal. if you don’t need to take an income right away, the deferral bonus can help you grow your lifetime income amount even when markets are down. once you begin taking an income, you are no longer eligible for deferral bonuses. if you stop taking income, you may only be eligible for deferral bonuses again when your policy value exceeds your lifetime income withdrawal base.

annual

deferral bonus

deferral bonuses can add up

you can increase your income amount by deferral bonuses earned in every year you defer making a withdrawal before you start taking an income. deferral bonuses increase the lifetime income withdrawal base, which help determine the lifetime income amount available to you.

For example: If you contribute a premium of $200,000 to your policy and defer income for 10 years, your lifetime income withdrawal base will have a minimum value of $260,000 because of deferral bonuses.

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income

resets

increase your lifetime income amount with income resets

as policy market values increase, you have the potential to secure those gains to increase your lifetime income amount. your lifetime income amount will not decrease regardless of how the segregated funds perform.

Secure growth with automatic

income resets

The example below shows how the lifetime income withdrawal base is increased every three years when the policy value is greater than the existing lifetime income withdrawal base.

once your lifetime income withdrawal base increases, it is guaranteed for life – regardless of any future down markets, assuming no excess withdrawals are made.

Key features

of inCoMe resets

■ can occur every three years ■ Lifetime income amount will

increase when an income reset is applied

■ income resets are available for

the life of the policy

■ income resets do not increase the

basic amount used in determining maturity or death benefit

guarantees

Years

How income resets work

1

0 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Lifetime income amount increases when income resets occur

Hypothetical policy mar

ket value

Reset

Hypothetical policy market value Lifetime income withdrawal base

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t H e c a n a d a L i f e a s s u r a n c e c o m Pa n y

Jack, age 65, is planning his retirement income. He has a certain amount of guaranteed income from his company’s pension plan and decides to allocate $500,000 from his savings to a policy with the lifetime income benefit. He starts taking income

Taking income in a down market

$21,000 minimum guaranteed income for life

Lifetime income amount (years)

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 $300,000 $240,000 $200,000 $300,000 $400,000 $500,000 $39,000 $52,000 $65,000 Hypothetical policy market value

Annual income

INCOME

99-0540C

immediately. Based on Jack’s age and initial premium, he’s guaranteed to receive an annual lifetime income amount of $21,000 (4.20% of $500,000) when single-life income is chosen. consider the following two scenarios.

Taking income in a down market

even if the market value of his policy is reduced because of a market downturn, the lifetime income benefit still guarantees Jack an income for life.

Benefit: your inCoMe is guaranteed for life.

weak market conditions don’t affect

your retirement

income

1

after 16 years, Jack’s policy market value reduces to $0. However, thanks to the lifetime income benefit, he continues to receive $21,000 a year.

1 _{These examples presume simplifying assumptions regarding the timing of}

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Lifetime income amount (years)

Taking income in an up market

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Hypothetical policy market value

$42,100 minimum guaranteed income for life $400,000 $600,000 $800,000 $1,000,000 INCOME $21,000 $22,105 $23,305 $25,765 $29,855 $36,070 $42,100 $24,000 $12,000 $48,000 $60,000 99 -0535 C

when markets and segregated funds in Jack’s policy perform well, Jack can take advantage of income resets and higher income percentages.

as previously mentioned, Jack’s annual lifetime income amount starts at $21,000. However, every three years, Jack’s policy can reset his income to a higher amount, if the market value on that date multiplied by his

Benefit: your lifetiMe inCoMe aMount Can inCrease with inCoMe resets.

amount. even when taking income, Jack benefits from income resets every three years.

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Lifetime income withdrawal base (years)

For illustration purposes only and using single-life income: Policy market value is hypothetical only and not indicative of future performance.

Deferral bonus Hypothetical policy market value Initial premium

$14,720 minimum guaranteed income for life 4.60% x $320,000 $0 $50,000 $100,000 $150,000 $250,000 $300,000 $350,000 $400,000

Deferring income in a down market

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

$200,000 Initial premium

99-0541C

fortunately for nancy, even in down markets, her lifetime income amount is guaranteed, and it can grow through deferral bonuses. through deferral bonuses of $6,000 accumulated over 20 years, nancy’s lifetime income withdrawal base grows to $320,000.

the lifetime income amount available to nancy when she retires at age 70 is $14,720 (4.60% of $320,000) when single-life income is chosen. She’s guaranteed to receive this amount every year for the rest of her life. Nancy could have deferred even longer because there is no maximum deferral period.

nancy, age 50, wants to retire within 15 years. as a small business owner without a pension plan, she allocates $200,000 of her savings to the lifetime income benefit. this allows her to take advantage of the guarantees, income resets and deferral bonuses that may increase her lifetime income amount.

nancy’s initial premium establishes a lifetime income withdrawal base of $200,000. for every year she defers

taking income, she benefits from a three per cent deferral bonus. However, if nancy decides to take an income, she could still be eligible for a deferral bonus again when lifetime income withdrawal base resets to a higher amount. the bonus is a notional amount that, when added to her lifetime income withdrawal base, increases the lifetime income amount she is guaranteed to receive. deferral bonuses have no cash value. consider the following two scenarios.

Benefit: your lifetiMe inCoMe aMount Can grow through deferral Bonuses.

deferring income in a down market

as nancy approaches her retirement date, she can decide to receive a lifetime income amount at any time. For example, at age 65, her lifetime income amount is $12,180 per year (4.20 % of $290,000) when single life

income is chosen. this annual amount is guaranteed for life and could increase. in the down market, nancy is concerned about poor segregated fund returns in her policy. she decides to remain employed and let the annual deferral bonus continue, so she can increase her income when she retires.

weak market conditions don’t affect

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Lifetime income withdrawal base (years)

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

$45,310 minimum guaranteed income for life

4.60% x $985,000

Deferral bonus Hypothetical policy market value

Deferring income in an up market

$0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 Income reset 99-0536C

of policy growth, she can benefit from both deferral bonuses and income resets. income resets can occur as often as every three years. they can lock-in market growth and increase the lifetime income amount. they can also increase the amount of deferral bonus nancy receives.

In this example, Nancy’s lifetime income benefit withdrawal base grows to more than $651,000 because of deferral bonuses and policy market value resets. nancy can start receiving more than $27,000 per year at age 65. However, if she waits five more years and enjoys continued positive segregated fund performance, her starting income can be much higher.

if nancy waits to retire at age 70, her withdrawal base grows to over $985,000. nancy is now guaranteed to receive $45,310 every year for the rest of her life.

Benefit: your lifetiMe inCoMe aMount Can grow through deferral Bonuses. Benefit: inCoMe resets Can inCrease your lifetiMe inCoMe aMount.

deferring income in an up market

2 _{These examples presume simplifying assumptions regarding the timing of policy anniversary, date of birth, etc. Other}

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when you convert your registered retirement savings plan (RRSP) into a registered retirement income fund (RRIF) you are required to take minimum annual payments.

the lifetime income benefit was designed to provide income for life, regardless of rrif payments. you can meet the legal requirements of the minimum annual payment schedule, and still be guaranteed an annual income – even if the market value of your policy is reduced to zero.

in each calendar year, you may withdraw the greater of the rrif minimum or the lifetime income amount. If your legislated minimum exceeds the lifetime income amount, the legislated minimum will be paid to you. These payments are not treated as excess withdrawals.

For example: If the lifetime income amount is

the lifetiMe inCoMe

Benefit is only

availaBle on the 75/75

or 75/100 guarantee

poliCies. the poliCy

Can Be a:

■ non-registered policy ■ rrsP and spousal rrsP ■ rrif and spousal rrif

■ Prescribed retirement income

fund (PRIF) (Single life-income only)

■ Locked-in retirement account

(LIRA) – Saskatchewan only (Single life-income only)

Payments

from registered policies

Legislated minimum payments

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canada Life

segregated funds

+ lifetime income benefit

Payments

from registered policies

Legislated minimum payments

Benefits

of segregated fund policies

segregated fund policies are life

insurance contracts. this means segregated fund policies have benefits and standard protection features, including:

Creditor protection potential – because segregated funds are part of an

insurance policy, your policy may be protected from creditors.

no trustee fees – if you choose a registered segregated fund policy, there are no trustee fees.

estate bypass – upon the annuitant’s death, proceeds go directly to named beneficiaries, if other than the estate, bypassing the delays and expense of the probate process.

75/75 guarantee 75/100 guarantee

Guarantees 75 per cent maturity guarantee

and 75 per cent death benefit guarantee

you’re guaranteed to receive 75 per cent of all premiums contributed reduced

proportionately by any withdrawals:

■ at the maturity guarantee date ■ on notification of death of the

last annuitant

Lifetime income benefit

available available

By combining a segregated fund policy with the lifetime income benefit, you get income for life as well as an investment portfolio tailored to suit your needs. you can select from a variety of funds containing fixed income and equity investments.

you have the potential to build your investments while receiving secure income payments regardless of what happens to portfolio values.

you can add the lifetime income benefit to one of two canada Life segregated funds policies at any time.

■75/75 guarantee policy ■75/100 guarantee policy

1. choose your guarantee

You have the flexibility to choose the maturity and death benefit guarantees to protect you. this helps you tailor your investment solutions to fit your needs and financial goals.

2. add the lifetime income

benefit

a powerful combination

75 per cent maturity and 100 per cent death benefit guarantee

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fund name investment _manager asset _class investment equity style

fund objective

Managed fund solutions Core managed solutions

core conservative Growth multiple investment managers asset allocation multiple styles

this fund’s objective is to provide interest income with the potential for capital appreciation by investing primarily in units of Canadian fixed income funds while investing

a smaller portion in canadian and foreign equity funds.

This fund typically allocates 30 per cent to equity investments and 70 per cent to fixed income investments to achieve its objective.

core moderate

multiple investment

managers allocationasset multiplestyles

this fund’s objective is to provide a balance between current income and long-term capital growth by investing primarily in units of Canadian fixed income funds while investing a

smaller portion in canadian and foreign equity funds.

core moderate Growth Plus multiple investment managers asset allocation multiple styles

this fund’s objective is to provide a balance between long-term capital growth and current income by investing in units of Canadian fixed income and Canadian and foreign

equity funds.

core Balanced

multiple investment

managers allocationasset multiple styles

this fund’s objective is to provide a balance between long-term capital growth and current income by investing in units of Canadian fixed income and Canadian and foreign

equity funds.

core Balanced Growth Plus multiple investment managers asset

allocation multiple styles

this fund’s objective is to provide long-term capital growth by investing primarily in units of canadian and foreign equity funds while investing a smaller portion in

Canadian fixed income funds.

partner managed solutions

fidelity moderate income fidelity asset allocation multiple styles

this fund’s objective is to provide interest income with the potential for capital appreciation by investing in units of funds managed by fidelity investments canada uLc. The fund primarily invests in fixed income funds while investing a smaller portion in units

of canadian and foreign equity funds.

fidelity moderate

Growth Plus fidelity allocationasset multiplestyles

this fund’s objective is to provide a balance between long-term capital growth and current income by investing in units of Canadian fixed income and Canadian and foreign equity

funds managed by fidelity investments canada uLc.

fidelity Balanced fidelity _allocationasset multiple _styles

funds managed by fidelity investments canada uLc.

3. select the right funds for you

with canada Life segregated fund policies, you can add the lifetime income benefit to 28 eligible segregated funds.

managed fund solutions

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franklin templeton moderate income franklin templeton asset allocation multiple styles

The fund primarily invests in fixed income funds while investing a smaller portion in units of canadian and foreign equity funds.

fund name investment _manager asset _class

equity investment

style fund objective

partner managed solutions (cont’d)

franklin templeton moderate Growth franklin templeton asset allocation multiple styles

funds managed by franklin templeton investments.

franklin templeton Balanced income franklin templeton asset allocation multiple styles

funds managed by franklin templeton investments.

ci Balanced

income ci investments allocationasset multiple styles

funds managed by ci investments.

mackenzie

moderate income mackenzie

asset allocation

multiple styles

this fund’s objective is to provide interest income with the potential for capital appreciation by investing in units of funds managed by mackenzie financial corporation. The fund primarily invests in fixed income funds while investing a smaller portion in units

of canadian and foreign equity funds.

mackenzie

moderate Growth mackenzie

asset allocation

multiple styles

funds managed by mackenzie financial corporation.

mackenzie

Balanced income mackenzie allocationasset multiple styles

mackenzie Balanced mackenzie asset allocation multiple styles

fund name investment _manager asset _class investment equity

style

fund objective

stand-alone funds

money market Laketon

cash and cash equivalents

not applicable _{income through investments in commercial papers such as federal and provincial}the fund’s objective is to provide short-term capital preservation and interest treasury bills and bankers’ acceptances.

income

opportunity London capital Fixed income not applicable

the fund’s objective is to provide a balance between long-term capital growth and current income by investing primarily in Canadian fixed income securities

and equities.

The fund will focus on securities that are expected to provide income like government and corporate bonds and dividend-yielding canadian stocks.

Balanced Bissett Balanced

Bottom-up, growth at a reasonable price

(GARP)

this segregated fund invests in the Bissett canadian Balanced fund. the underlying fund seeks balance of current income and long-term capital appreciation by investing primarily in a portfolio of Bissett funds to achieve a

balance of fixed income and equity investments.

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fund name investment _manager asset _class investment equity

style

fund objective

managed Laketon Balanced top-down,_blend

this fund’s objective is to provide a balance between long-term capital growth and current income by investing primarily in Canadian fixed-income securities and

Canadian and foreign equities. The fund targets a long-term asset mix of 30 per cent canadian equities, 25 per cent global equities and 45 per cent

fixed income securities.

Balanced Greystone Balanced Bottom-up, _growth

the objective of this fund is the preservation of the value of original investments, capital appreciation and income. Greystone uses a growth-oriented investment

style to manage the equity portion of this fund.

this fund typically allocates 60 per cent to equity investments and 40 per cent to fixed income investments to achieve its objective.

Maxxum Canadian

Balanced fund mackenzie Balanced

Bottom-up, growth at a reasonable price

(GARP)

this segregated fund invests primarily in

Canadian fixed income securities and stocks currently through the Mackenzie Maxxum Canadian Balanced Fund.

asset allocation funds

conservative allocation

multiple investment

managers asset allocation multiple styles

this fund’s objective is to provide interest income with the potential for capital appreciation by investing in units of Canadian fixed income segregated funds with

a smaller portion in its equity segregated funds. this fund usually divides its investments as follows:

n 20 to 40% equities n 60 to 80% fixed income moderate allocation multiple investment

managers asset allocation multiplestyles

this fund’s objective is to provide a balance between current income and long-term capital growth by investing primarily in units of Canadian fixed income

segregated funds and includes a significant investment in its equity segregated funds.

this fund usually divides its investments as follows:

n 30 to 60% equities n 40 to 70% fixed income Balanced allocation multiple investment

managers asset allocation multiplestyles

this fund’s objective is to provide a balance between long-term capital growth and current income by investing primarily in units of equity segregated funds and

includes a significant investment in its fixed income segregated funds. this fund usually divides its investments as follows:

n 50 to 75% equities n 25 to 50% fixed income

income allocation funds

income focus

multiple investment

managers allocationincome multiple styles

this fund’s objective is to provide interest income with the potential for capital appreciation by investing in units of Canadian fixed income segregated funds with

a smaller portion in units of equity segregated funds. this fund usually divides its investments as follows:

income Growth

multiple investment

managers allocationincome multiplestyles

this fund’s objective is to provide a balance between current income and long-term capital growth by investing primarily in units of fixed income segregated funds and includes a significant investment in units of equity segregated funds.

n 25 to 45% equities n 55 to 75% fixed income income Growth Plus multiple investment

managers allocationincome multiplestyles

this fund’s objective is to provide a balance between current income and long-term capital growth by investing primarily in units of equity and fixed income

segregated funds.

access your savings at any time

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Glossary

of terms

investment managers

with the

lifetime income benefit

*In Quebec, advisor refers to a financial security advisor for individual insurance and segregated fund policies; and to an advisor in group insurance/annuity plans for group products.

this section provides a brief definition of the terms associated with the canada Life lifetime income benefit. For a detailed explanation and other details, please talk to your advisor* or refer

to the canada Life information folder.

annual guaranteed income amount is the maximum income you can take in a year without incurring an excess withdrawal. The annual guaranteed income amount is the greater of the lifetime income amount or rrif minimum, if applicable.

Base for income bonus is a notional balance used to determine the deferral bonus amount applied to the lifetime income withdrawal base. this is not a cash value.

deferral bonus – a percentage of the base for income bonus is added to lifetime income withdrawal base when no withdrawals have been taken in any year. this is not a cash value.

excess withdrawals are cumulative annual withdrawals in excess of the lifetime income amount, or RRIF

minimum (if applicable). Excess withdrawals will decrease the lifetime income amount and you will no longer be eligible for any future bonuses.

income resets – an increase in the market value of the policy resets the lifetime income withdrawal base used to determine the lifetime income amount. income resets may occur every three years and your lifetime income amount will only be re-calculated upwards. lifetime income amount represents the annual guaranteed lifetime income and is the maximum amount that can be withdrawn each calendar year. lifetime income withdrawal base is a notional balance used to calculate the lifetime income amount and lifetime income benefit monthly fee. this is not a cash value.

single-life income refers to guaranteed lifetime income, for you.

Joint-life income refers to guaranteed lifetime income for you and your spouse, until the last spouse dies. a successful fund selection along with the income

reset feature and deferred bonuses can increase your guaranteed income. canada Life offers a multi-manager, multi-style lineup of segregated funds that gives you the flexibility to tailor a portfolio to meet your individual needs.

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Canada Life and design, and “Helping people achieve more” are trademarks of The Canada Life Assurance Company. 46-7082-10/12

Helping people achieve more

™

a description of the key features of the segregated fund policy is contained in the information folder.

Any amount that is allocated to a segregated fund is invested at the risk of the policyowner and may increase or decrease in value.

the display of trademarks on this brochure does not imply that a licence of any kind has been granted. all service and product names are trademarks of their respective owners.

Lifetime income benefit

Lifetime income benefit

Guarantee your income for Life

Grow

income

financial

strength and stability

canada Life, founded in 1847, was canada’s first domestic life insurance company.

today, canada Life provides insurance and wealth management products and

services in canada, the united Kingdom, isle of man, ireland and Germany.

table of contents

notes about segregated fund policies

notes about the lifetime income

benefit option

Guarantee your income for life

Lifetime

income benefit

Longevity risk

Retirement risk zone

market return risk

you may be able to increase your income through deferral bonuses and income resets.

take control

of your income

is it right

for you?

Guaranteed

income for life

no matter how long you live

with the lifetime income

benefit, you’re guaranteed

income for life, whether

you live to 85, 105 or

beyond. your income will

not decrease, regardless

of how the segregated

funds perform.

you may be able to increase your income through deferral bonuses and income resets.

increase your lifetime income

amount with deferral bonuses

annual

deferral bonus

deferral bonuses can add up

income

resets

increase your lifetime income amount with income resets

Secure growth with automatic

income resets

Key features

of inCoMe resets

How income resets work

Taking income in a down market

Taking income in a down market

weak market conditions don’t affect

your retirement

income

1

Taking income in an up market

Deferring income in a down market

deferring income in a down market

weak market conditions don’t affect

Deferring income in an up market

deferring income in an up market

the lifetiMe inCoMe

Benefit is only

availaBle on the 75/75

or 75/100 guarantee

poliCies. the poliCy

Can Be a:

Payments

from registered policies

Legislated minimum payments

canada Life

segregated funds

+ lifetime income benefit

Payments

from registered policies

Legislated minimum payments

Benefits

of segregated fund policies

1. choose your guarantee