Amendments to the Canada Life GenerationsTM Individual Variable Insurance
Contract and Endorsements issued by The Canada Life Assurance Company
TM
This amends the Canada Life Generations Individual Variable Insurance Contract and Endorsements
to take into consideration changes to the Income Tax Act (Canada) introducing the Tax-free Savings
Account effective for 2009 and subsequent taxation years. Other terms and conditions of the contract
and endorsement remain unchanged.
The Canada Life Assurance Company Individual Variable Insurance Contract (the “Contract”) is hereby
amended effective January 1, 2009. The affected sections of the Contract and the amendments thereto
are as follows:
1. General Overview
The following is added to the second paragraph immediately following the second sentence:
Where requested Canada Life will file an election to register this Policy as a Tax-free Savings
Account (TFSA) pursuant to the provisions of the Income Tax Act (Canada) and any applicable
provincial and territorial legislation. If you have requested the Policy be registered as a TFSA
under the Income Tax Act (Canada) and if you are the Annuitant named in the application for the
Policy, the additional provisions of the TFSA endorsement apply.
1.1 Account
The second sentence is deleted and replaced by the following:
A registered Account includes registered retirement savings plan (RRSP), Spousal RRSP,
locked-in retirement account (LIRA), locked-in RRSP, registered retirement income fund (RRIF),
life income fund (LIF), prescribed retirement income fund (PRIF), locked-in retirement income
fund (LRIF) and tax-free savings account (TFSA).
1.2 Account Final Maturity Date
The first sentence of the second paragraph is deleted and replaced by the following:
The Account Final Maturity Date for a non-registered, a RRIF, PRIF, LRIF or TFSA Policy is
st
December 31 of the year in which the Annuitant turns 100.
The first sentence of the fifth paragraph is deleted and replaced by the following:
For Policies other than TFSA Policies, the amount of the annuity payments will be determined by
multiplying the Market Value of your Policy (less any applicable fees and charges) one month
before the date the annuity payments commence by the greater of:
The last paragraph is deleted and replaced by the following:
If your Policy is a TFSA, the amount of the annuity payments will be determined by multiplying the
Market Value of your Policy (less any applicable fees and charges) one month before the date the
annuity payments commence by the greater of:
a) the then current Canada Life annuity rate for a one-year term certain annuity; and
b) $82.13 for each $1,000 of Market Value of your Policy.
For policies other than TFSA policies, the annuity payments are conditional on the Annuitant
being alive and will be in equal annual or more frequent periodic amounts. We will make the
payments to the Annuitant for as long as the Annuitant lives. Payments are not commutable
during the Annuitant’s lifetime.
If your Policy is a TFSA, we will make 12 equal monthly payments to the Annuitant. If the
Annuitant dies while any amount remains unpaid, any remaining payments will be made to the
Beneficiary or, if there is no Beneficiary, your estate.
No Premiums will be accepted under the Policy after the annuity payments commence. Where
any annuity payment depends upon the survival of any person, we may require evidence that the
person is living when the payment becomes due.
1.4 Annuitant
The section is deleted and replaced by the following:
1.4 Annuitant
Annuitant is the person on whose life the Policy is based. In the case of an RRSP, Spousal
RRSP, locked-in RRSP, LIRA, RRIF, PRIF, LIF, LRIF or TFSA Policy, the Policyholder and the
Annuitant are required to be the same person. Under a RRIF Policy where the Annuitant dies
prior to the Account Final Maturity Date and a Spouse (as defined in section 1.30) of the
Annuitant is entitled to receive retirement income payments, such person becomes the Annuitant
and Policyholder. Under a TFSA Policy where the Annuitant (Holder of the TFSA) dies and the
Annuitant has appointed a successor holder who is a Spouse of the Annuitant at the time of the
Annuitant’s death, such person becomes the Annuitant, Policyholder and Holder who acquires all
of Holder’s rights under the Policy.
1.19 Non-Assignment
The section is deleted and replaced by the following:
1.19 Non-Assignment
Registered Accounts, other than TFSAs, may not be assigned to any other person. Non-
registered and TFSA Accounts may be assigned by the Policyholder.
3.7.1 Automatic Partial Redemptions (APRs) and Scheduled Income Payments
The first sentence is deleted and replaced by the following:
You may request an Automatic Partial Redemption (APR) in your non-registered and/or TFSA
Policy or Scheduled Income Payments in your RRIF, PRIF, LIF, and/or LRIF Policy, according to
our then current Administrative Rules and subject to applicable legislation.
3.7.3 Free Amount from Deferred Sales Charge (DSC)
The first sentence of the first bullet is deleted and replaced by the following:
RRSP, Spousal RRSP, LIRA, Locked-in RSP, TFSA or non-registered Policy:
3.13.2 Maturity Benefit Date
Clause B is deleted and replaced by the following:
B) Where the Policy is non-registered, a RRIF, PRIF, LIF, LRIF or TFSA the Maturity Date is the
Account Final Maturity Date.
3.14.2 Maturity Benefit Date
Clause B is deleted and replaced by the following:
B) Where the Policy is non-registered, a RRIF, PRIF, LIF, LRIF or TFSA the Maturity Benefit Date
is the Account Final Maturity Date.
3.15.2 Maturity Benefit Date
B) Subsequent Maturity Benefit Date
The first sentence of subclause III) is deleted and replaced by the following:
III) For a Policy which is non-registered or a TFSA and there are 15 years or more to the
Account Final Maturity Date, the subsequent Maturity Benefit Date will be 15 years from the
most recent anniversary of the Fund Entry Date that is on or after the Maturity Benefit Date.
4.1 Surrender of This Policy
The second sentence of the first paragraph is deleted and replaced by the following:
Surrenders are subject to locking-in endorsements, applicable legislation, withholding taxes
(where applicable), MVA, DSC, Short-Term Trading and other fees or charges.
5. Endorsements
The following new endorsement is added following the endorsement entitled “5.7 Prescribed Manitoba
RIF”.
5.8 TFSA Endorsement
5.8.1 POLICYHOLDER, ANNUITANT AND HOLDER:
For the purposes of this TFSA endorsement, the Policyholder, Annuitant and Holder of the TFSA are to
be the same person. When we refer to the Policyholder, we also mean the Annuitant and Holder, just as
when we refer to the Annuitant or to the Holder, we also mean the Policyholder. “Holder” means, until
your death, you, and at and after your death your validly designated successor holder, if any.
5.8.2 APPLICABLE PROVISIONS:
If you have requested that an election be filed to register an Account offered under this Contract as a
TFSA under the Income Tax Act and any applicable provincial or territorial legislation and if you are the
Policyholder named in the application for that Account who has attained the minimum age specified in the
Income Tax Act, the provisions of this TFSA endorsement form part of the Contract. In the event of a
conflict, the provisions of this endorsement will prevail. The Account will be administered and will comply
with all relevant provisions of the Income Tax Act and any applicable provincial or territorial legislation.
5.8.3 REGISTRATION:
We will file an election to register your Account as a TFSA under the Income Tax Act and any applicable
provincial or territorial legislation.
5.8.4 PREMIUMS:
Only you may allocate Premiums to such Segregated Fund Options as are available from time to time for
your Account. Premiums may not be allocated to Interest Bearing Investment Options and you may not
switch from Funds to Interest Bearing Investment Options. We will also accept transfers of funds as
Premiums under your Contract from any source permitted by the Income Tax Act from time to time,
including a transfer from another TFSA held by you or from a TFSA of your current or former Spouse (as
defined in section 1.30) where the transfer relates to a division of property arising out of, or on the
breakdown of, your marriage or common-law partnership, in accordance with the Income Tax Act.
5.8.5 DISTRIBUTIONS TO THE ANNUITANT:
You may make Redemptions so that distributions can be made from your TFSA, including distributions to
reduce the amount of tax otherwise payable in respect of contributions made to your TFSA while a non-
resident of Canada or contributions in excess of the maximum contribution limits for TFSAs permitted
under the Income Tax Act. Distributions will be made net of all appropriate charges and fees as set out in
the Policy contract provisions.
5.8.6 TRANSFERS FROM YOUR ACCOUNT:
Subject to any restrictions imposed by the Income Tax Act, all or part of the value of your Account may be
transferred to another TFSA of the Holder.
Following receipt of your written instructions in a form satisfactory to us, we shall effect the transfer. Such
transfer will be net of all appropriate charges. In the event of a partial transfer from your Account and in
the absence of satisfactory instructions, we will withdraw amounts or redeem units as set out in the terms
of your Contract to effect the transfer.
5.8.7 DEATH OF THE ANNUITANT:
Upon receipt of written notification of your death, if you have appointed a successor holder who is your
Spouse at the time of your death, your Spouse becomes the successor holder of your TFSA, will be
deemed to be the Annuitant under the Account and will acquire all of your rights under the Policy. If, at
the time of your death: (i) your Spouse is not the appointed successor holder, or (ii) your Spouse is the
appointed successor holder but is not your Spouse at the time of your death, or (iii) your Spouse has
predeceased you, the Market Value of your Account will be paid in a lump sum to your designated
beneficiary, or, if there is no surviving beneficiary, to your estate. The lump sum payment made will be net
of any appropriate charges, including any income tax required to be withheld.
5.8.8 ACCOUNTING AND REPORTING:
An Account will be maintained in your name reflecting, with appropriate dates:
• Premiums allocated to your account;
• Transfers to your Account;
• Units allocated to your Account;
• Cash withdrawals, transfers and expenses paid from your Account;
• Market Value of your Account;
You will be sent statements of all your Accounts held under this Contract at least annually.
5.8.9 PROHIBITION:
Your Account will be maintained exclusively for the benefit of the Holder, disregarding any right of a
person to receive a payment out of or under the Account only on or after the death of the Holder. While
there is a Holder, no person other than the Holder or us shall have any rights under the Account relating
to the amount and timing of distributions and investing of premiums.