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Flexible permanent protection London Life



Flexib le perma n ent p r ot e c t i on
A solution to your financial
security needs and goals
Universal life insurance from London Life
At London Life, we create products to help you meet your financial
security needs and goals. Our universal life insurance policy can help.
It combines permanent life insurance protection with the opportunity
to accumulate tax-advantaged savings. In fact, it may be the only
insurance policy you’ll ever need.

Do I really need life insurance?                                  During your lifetime, it can:
Most people do. Life insurance helps create                          Build tax-advantaged savings, which you
security for you and your family. If you                              can draw upon as needed for personal
should die prematurely, it can be used to:                            or business opportunities
   Pay final expenses and any debts you                             Supplement your retirement income
    may have                                                         Provide funds for long-term care or
   Provide an income for your family                                 home care
   Ensure your family has the resources to                       You’ve worked hard to build the lifestyle you
    maintain a comfortable standard of living                     enjoy today. You have made sound decisions
                                                                  that meet your investment style and financial
   Pay any taxes owing on your estate so
                                                                  objectives. London Life universal life insurance
    more of your estate is transferred to your
                                                                  can help you protect your plans.
    children or grandchildren
   Leave a legacy to your favourite charity
   Provide your business with the funds
    necessary to fund a buy-sell agreement
   Protect your business against the loss
    of a key employee

                     UNIVERSAL LIFE INSURANCE    |   Flexible permanent protection from London Life                  3
                                      Tailor your insurance coverage to fit your lifestyle.

    Flexibility and choice
    Flexibility                                                    Choose your style of interest options
    London Life universal life insurance may be the                Choose between two styles of interest
    only life insurance policy you will ever need.                 options: with or without client bonus.
    As your family, business or individual needs
                                                                   Interest options with client bonus have an
    change, it has the flexibility to change with
                                                                   enhanced interest-crediting rate, based on
    you. Tailor your insurance coverage to fit your
                                                                   funding levels in the second policy year and
    lifestyle, budget and financial security goals.
                                                                   beyond. As well, regardless of funding levels,
    Tax-advantaged investment                                      all policies with our client bonus option
    component                                                      will receive a bonus interest-crediting rate
                                                                   beginning in the 10th policy year.
    The total account value in your universal life
    policy grows on a tax-advantaged basis.                        Our universal life without client bonus has
                                                                   lower interest option fees. For a comparison
    The insurance proceeds that will be paid to
                                                                   of interest option fees, see London Life’s
    your beneficiary upon your death are tax-free
                                                                   Universal life insurance interest options brochure.
    and may include the total account value that
    you have been accumulating in your policy                      Use our Determine your risk profile
    over the years. Maximize the tax-advantaged                    questionnaire to assist you in selecting
    investment component of your life insurance                    interest options that will match your risk
    policy, while meeting your life insurance                      tolerance and financial security goals. Create
    needs, with our Value Maximizer option.                        a mix of interest options specific to you, or
                                                                   use one of our five folio interest options to
                                                                   give you the diversification you’re seeking
                                                                   without the need for daily management.

4                      UNIVERSAL LIFE INSURANCE   |   Flexible permanent protection from London Life
Choose between two types of life                                  Adjust your insurance protection as
insurance protection                                              your needs change
   The level death benefit option pays your                      London Life universal life insurance allows
    beneficiary the greater of the insurance                      you to change your coverage to reflect your
    face amount or the total account value. In                    changing needs. Please note that some
    both cases, the payment is reduced by any                     changes may require evidence of insurability,
    indebtedness to London Life under a policy                    such as:
    loan. As your total account value increases,                     Changing cost of insurance options
    it becomes, in effect, a larger portion of
    your death benefit, reducing the cost of
                                                                     Increasing your insurance amount
    your insurance coverage.                                         Changing from the level death benefit
    If at any time your total account value                           option to the coverage plus death
    decreases, due to a decrease in the market                        benefit option           Total account value
    index or mutual funds used as an index,                          Adding a benefit or rider
    your insurance coverage will increase,                                           Insurance amount
    as will the associated cost, to maintain
    your level death benefit. This benefit is                     Level death benefit
    ideal if your insurance needs are not likely                                       Death benefit
    to increase, and if you want to maximize
    your total account value in the early years.
   The coverage plus death benefit option
    pays your beneficiary the insurance
    amount plus the total account value. As                                                      Total account value
    your total account value grows, it’s added
                                                                       Insurance amount
    to your life insurance coverage, rather than
    reducing your insurance cost, resulting in
    a death benefit that grows over time.

    However, if at any time your total account                    Coverage plus death benefit
    value decreases, due to a decrease in
    the market index or mutual funds used
    as an index, your total death benefit
    will decrease. There is no change in the
    coverage used to determine your cost of
    insurance charges. This option should be                                                          Total account value
    considered when your insurance needs are
    likely to increase, or if your objective is to                                   Insurance amount
    accumulate tax-advantaged savings and
    you plan to use level or limited-pay cost
    of insurance.                                                                      Death benefit

                                                                                                 Total account value

                      UNIVERSAL LIFE INSURANCE   |   Flexible permanentInsurance amount
                                                                        protection from London Life                         5
                                                        Life insurance helps create security
                                                              for you and your family.

    Insure more than one individual
    Multiple lives benefit                                           Joint last-to-die
    Insure up to five additional lives under your                    This coverage covers two people and provides
    policy, each with its own permanent life                         a death benefit on the second death of
    insurance coverage and the possibility of a                      the lives insured. It’s often used for estate
    separate beneficiary. You can remove one or                      preservation needs, such as providing cash to
    more of these lives and add new lives in their                   cover the cost of taxes on capital gains and
    place, within the maximum allowed, with                          on registered retirement savings plans (RRSPs)
    evidence of insurability, at any time. Structure                 and registered retirement income funds
    your multiple lives coverage in a way that                       (RRIFs) that arise at death. For eligible joint
    meets your needs.                                                last-to-die coverage, we also offer a benefit on
                                                                     first death option, which allows a beneficiary
    Joint coverages                                                  to receive a portion of the policy’s existing
    The following assumes two lives jointly                          total account value upon the first death of
    insured. More than two lives may be possible,                    the lives insured.
    subject to additional underwriting.
                                                                     Changing joint first-to-die to joint
    Joint first-to-die                                               last-to-die
    This coverage covers two people and provides                     You have the option of changing your joint
    a death benefit on the first death of the lives                  first-to-die coverage to joint last-to-die
    insured. The survivor then has the option                        coverage, for annually increasing and level
    to purchase insurance in an equal amount,                        cost of insurance options. Or you can change
    based on his or her attained age at that                         your joint first-to-die coverage to two single-
    time, without evidence of insurability. This                     life coverages, each for 50 per cent of the
    coverage should be considered when insuring                      original death benefit. Changing joint first-to-
    a debt, such as a mortgage or a loan, or for                     die to joint last-to-die is currently unavailable
    providing income replacement.                                    for the limited-pay cost of insurance option.

6                        UNIVERSAL LIFE INSURANCE   |   Flexible permanent protection from London Life
Cost of your protection                                         Changing cost of insurance options
Part of the premium you pay into your policy                       You can change the cost of insurance
covers the cost of the insurance protection.                        option from annually increasing or level
This includes the cost for the primary and                          to limited-pay, subject to rules and limits
additional lives insured, as well as any                            specified in your contract.
optional benefits you select. Life insurance
                                                                   You can change the cost of insurance
costs generally increase with age. London Life
                                                                    option from annually increasing to level,
universal life insurance allows you to manage
                                                                    subject to rules and limits specified in
this increase with the following cost of
                                                                    your contract.
insurance options:
                                                                Your financial security advisor can help
   The limited-pay cost of insurance option
                                                                you select the cost of insurance option
    (10 pay, 15 pay and 20 pay) offers a set
                                                                or combination of options that best suits
    cost of insurance period, guaranteed for
                                                                your needs.
    the duration of the coverage. Guaranteed
    cash values start at the end of the fifth                   Expense charges and fees
    anniversary of coverage. This coverage,                     A guaranteed expense charge of $10 will be
    and therefore the guaranteed cash value,                    deducted from your policy each month.
    can be reduced at any time. As long as you                  If your primary coverage has a limited-pay
    pay the required cost of insurance charges                  cost of insurance option at issue, the $10
    during the required period (10 pay, 15 pay                  expense charge stops at the end of the chosen
    or 20 pay), the associated death benefit                    cost of insurance paying period (10 pay,
    amount is guaranteed.                                       15 pay or 20 pay).
   The annually increasing cost of insurance                   Also, if you chose to invest in a variable
    rate increases annually as your age                         interest option an interest option fee will be
    increases, but the rate scale is guaranteed                 deducted from the returns realized by the
    for the duration of the coverage. It starts                 variable interest option.
    out lower in the early years, allowing you
    to accumulate more of your premium in                       Premiums
    your chosen interest options and accelerate                 Choose the amount of premium you wish
    the growth in your total account value.                     to pay, within the minimum and the
                                                                maximum premium defined in the contract.
   The guaranteed level cost of insurance
                                                                The maximum premium is set to keep the
    rate is locked-in for the duration of the
                                                                policy exempt from taxation. The minimum
    coverage, once it’s set. It allows you to
                                                                premium is set by London Life, based on your
    spread your insurance costs evenly over the
                                                                age, sex and smoking status.
    life of the policy.
                                                                As your total account value accumulates, you
                                                                may choose to reduce or suspend

                    UNIVERSAL LIFE INSURANCE   |   Flexible permanent protection from London Life                 7
                                                           Helping you build a lifestyle
                                                              you can enjoy today.

    out-of-pocket premium payments altogether,                      of one of your interest options has declined
    without jeopardizing your insurance coverage.                   in a particular month, the proportion of
    Depending on the interest earned and the                        the deduction from that interest option will
    level of the total account value in your policy,                decrease as well.
    you may be required to resume premium
    payments in the future.                                         Premium-paying period
                                                                    Premiums can be paid for the entire life of
    Premium allocation                                              the policy. The limited-pay cost of insurance
    After the applicable provincial premium tax                     option guarantees the cost of insurance
    is deducted (two per cent in most provinces),                   charges for the chosen period of time. If the
    your premium will be allocated to the interest                  interest option chosen is variable and returns
    options you select, according to percentages                    are negative, you may need to pay additional
    you stipulate. You may also make lump-sum                       premiums to fund the cost of insurance
    premium payments into your policy at any                        charges for the coverage. After the cost of
    time. There are no other charges applied                        insurance period ends, you have the option
    to the premium before it’s invested in your                     to continue to pay premiums. Both of these
    chosen interest options.                                        actions will enhance the tax-advantaged cash
                                                                    accumulation in the investment component.
    The cost of insurance, premiums for riders
                                                                    Where the coverage plus death benefit option
    and other benefits, and the monthly expense
                                                                    is in effect, this would also have the effect
    charge will be drawn every month from your
                                                                    of increasing the death benefit under the
    total account value, in accordance with the
                                                                    coverage-plus option.
    withdrawal provisions of your policy and our
    processing order.

    For withdrawals made from a like group of
    accounts, our current practice is to make
    withdrawals on a pro-rated basis, according
    to the dollar value of each interest option
    on that date. This means that if the value

8                       UNIVERSAL LIFE INSURANCE   |   Flexible permanent protection from London Life
Side Account                                                   You can also elect to have it decrease your
London Life may monitor your premium                           insurance amount when appropriate,
payments, as part of its overall efforts to                    to reduce the cost of insurance charges being
help ensure your policy remains exempt                         deducted and maximize the accumulation in
from accrual taxation. If you wish to pay a                    your total account value.
premium in excess of the maximum premium
                                                               Client bonus
allowable for your policy, and if London Life
                                                               Choose between London Life universal life
is aware the premium is in excess, London
                                                               insurance with or without client bonus.
Life will deposit this excess premium directly
                                                               Policyowners who choose our universal life
into the Side Account, a premium account
                                                               insurance with client bonus are eligible to
that is separate from your insurance policy
                                                               receive two kinds of interest bonuses.
and provided under a separate contract.
                                                                  Guaranteed bonus – Starting in policy
The funds in your Side Account can be
                                                                   year 10, a guaranteed bonus enhances your
invested in either a daily interest option or
                                                                   policy’s interest-crediting rate on the funds
five-year guaranteed interest option. Since the
                                                                   within the total account value. The annual
Side Account is separate from your insurance
                                                                   bonus rate is 0.6 per cent from policy
policy, any interest income generated by these
                                                                   years 10 to 24 and 0.96 per cent every
investments is fully taxable. London Life will
                                                                   year thereafter. The bonus is guaranteed
transfer funds from your Side Account to your
                                                                   to be paid regardless of how your policy’s
insurance policy to accelerate the growth
                                                                   interest options perform.
of your tax-advantaged total account value,
provided these payments do not exceed the                         Funding bonus – In addition to the
maximum premium allowable for your policy                          guaranteed bonus, you may receive a
based on current tax legislation.                                  funding bonus of up to 0.96 per cent of
                                                                   your total account value. This can begin
Value Maximizer – further                                          as early as policy year two if you are
tax advantages                                                     making significant premium payments to
Your policy is designed to ensure any growth                       your policy or if your total account value
of the policy’s total account value remains                        exceeds certain minimum thresholds.
exempt from accrual taxation under current
                                                               The dollar amount of the guaranteed and
tax legislation. If you wish to maximize
                                                               funding bonuses is a function of your policy
your tax-advantaged savings, you can add
                                                               total account value, which will fluctuate. The
the Value Maximizer option. This feature
                                                               client bonuses don’t apply to funds held in
provides for adjustments to your insurance
                                                               the Side Account.
amount that would allow you to enhance the
tax-advantaged accumulation within your                        Your financial security advisor can help you
universal life insurance policy.                               decide which version of London Life universal
                                                               life insurance you should choose – with client
The Value Maximizer option will
                                                               bonus or without client bonus. London Life
automatically increase your policy’s insurance
                                                               universal life insurance, without client bonus,
component each year, by as much as eight
                                                               has lower interest option fees charged to the
per cent of your previous year’s death benefit,
                                                               policy’s interest options.
to maintain your policy’s tax-exempt status.

                   UNIVERSAL LIFE INSURANCE   |   Flexible permanent protection from London Life                   9
     Interest options                                                                       Market value adjustment (MVA) – A market
     Choose from a variety of interest options.                                             value adjustment is a charge that may be made
     Develop an interest option mix to suit                                                 to an amount held under a guaranteed interest
     your investment objectives and your                                                    option account when an amount is transferred
     risk-tolerance level.                                                                  out of the account before the end of the term
                                                                                            period or at surrender or lapse of the policy.
     When selecting your interest options,                                                  The market value adjustment may also be
     you should consider the volatility of each                                             charged on any unscheduled withdrawal of
     interest option. The following interest options                                        funds that have been invested at a guaranteed
     are currently available:                                                               interest rate within the Side Account.
     Daily interest option (DIO) – Earns interest                                           Market value adjustments apply only
     daily which is credited monthly.                                                       where the guaranteed interest option has
     Guaranteed interest options (GIOs) – Select a                                          been elected and current interest rates for
     guaranteed interest option with annual terms,                                          similar terms have increased. Transfers from
     currently one-, three-, five- or 10-year terms.                                        the guaranteed interest option made by
     The compound-interest guaranteed interest                                              London Life to pay the monthly charges,
     option earns interest daily on the balance                                             or to maintain the tax-exempt status of your
     in the guaranteed interest option, at the                                              policy, will not be subject to a market value
     guaranteed interest rate, until the end of the                                         adjustment. Transfers from the Side Account
     term. Interest is credited to the balance                                              into the policy are also not subject to a market
     on a monthly basis until the end of the                                                value adjustment.
     guarantee period.
                                                                                            Variable interest options (VIOs)
     At maturity of the guaranteed interest option                                          Returns credited on the variable interest
     term selected, the principal and interest will                                         options follow the returns from widely
     be automatically reinvested in a guaranteed                                            recognized investment market indexes and
     interest option of the same type and duration,                                         mutual funds.
     unless, at that time, you instruct us otherwise.
                                                                                            The index-linked and fund-linked variable
     The minimum amount required to establish
                                                                                            interest options credit interest each business
     each guaranteed interest option is $25.
                                                                                            day, at a rate based on daily changes to the
     Under no circumstance will the rate paid                                               underlying investment market index or the
     fall below:                                                                            underlying mutual fund, net of the mutual
                                                                                            fund’s management expense ratio, after
                     Term                        Minimum interest rate
                                                                                            deducting an administration fee (interest
                    1 year                                       0.0%
                                                                                            option fee) for the particular interest option.
                   3 years                                       0.0%                       The interest credited on any particular day
                   5 years                                       2.0%                       may be positive or negative. If the interest
             10 years,                                           2.5%                       credited is negative, the balance in that
         with client bonus1                                                                 interest option will be reduced.
           10 years,                                             3.0%
      without client bonus2                                                                 The variable interest options allow for
                                                                                            enhanced diversification and potentially
     1. Also for policies without client bonus dated before May 26, 2008
     2. For policies dated May 26, 2008, or later
                                                                                            greater returns, but with increased risk and
                                                                                            volatility. These options are not an investment
                                                                                            in securities; they credit returns that are linked

10                                     UNIVERSAL LIFE INSURANCE            |   Flexible permanent protection from London Life
to recognized market indexes or mutual funds,                    number of well recognized mutual funds
affording you a convenient way to mirror an                      that represent various asset classes, net of the
investment in the market without actually                        mutual fund’s management expense ratio
buying securities.                                               after deducting an administration fee (interest
                                                                 option fee) for the particular interest option.
Unlike the guaranteed interest option, the
                                                                 The interest credited for any particular day
variable interest option has no maturity date.
                                                                 may be positive or negative. If the interest is
Once funds have been allocated in a variable
                                                                 negative, the balance in that folio option will
interest option, they will remain allocated
                                                                 be reduced.
until you request a transfer or withdrawal,
or the account is surrendered to pay monthly                     Complete our Determine your risk profile
deductions.                                                      questionnaire, which asks about the amount
                                                                 of investment risk you are comfortable with
It’s important to remember that the performance
                                                                 and helps balance that comfort level with
of variable interest options with a foreign
                                                                 your financial objectives and circumstances.
element, such as the Global Equity and American
                                                                 Based on your responses, it determines a risk
Equity options, is directly affected by the value
                                                                 profile ranging from conservative to aggressive,
of Canadian currency relative to the currencies
                                                                 designed to help you achieve your goals.
measured in the indexes. A declining Canadian
dollar enhances returns, in Canadian dollars,                    For more information on our universal life
while an escalating dollar has the opposite effect.              interest options, refer to London Life’s
                                                                 Universal life insurance interest options brochure.
Index-linked variable interest options
The interest rate factor for an index-linked
variable interest option account is set every                    Accessing your policy
business day and isn’t guaranteed.                               account value
Fund-linked variable interest options                            Withdrawals
London Life currently offers fund-linked                         You may take a partial withdrawal of cash
options ranging from conservative to                             from your policy at any time providing
aggressive, in terms of risk tolerance. The                      sufficient funds remain in the cash surrender
interest rate factor for a fund-linked variable                  value to keep the policy inforce and cover any
interest option account is set every business                    applicable surrender charges and policy loans.
day and isn’t guaranteed.                                        If you have more than one interest option,
                                                                 you must give London Life written direction
Folio interest options                                           as to the account from which the withdrawal
Investment markets and the economy are in a                      should be taken. The minimum withdrawal
constant state of change. Various investments                    is $500.
and asset classes react differently to these
                                                                 If you withdraw cash from a policy with a
changes – some may increase in value, while
                                                                 level death benefit option, your death benefit
others may decrease in value.
                                                                 will decrease by the amount of cash value
A key element in reducing investment risk is                     reduction. A market value adjustment may
diversification. Our folio interest options are                  apply to funds withdrawn from a guaranteed
a set of variable interest options that achieve                  interest option before the end of the interest
diversification by crediting interest at a rate                  guarantee period. A taxable policy gain may be
based on the investment performance of a                         reported for the year of withdrawal.

                     UNIVERSAL LIFE INSURANCE   |   Flexible permanent protection from London Life                     11
                                       You can change your interest-options mix or transfer
                                           funds within your policy as often as you like.

     Policy loans                                                    Surrender
     You may take a policy loan at any time,                         If you surrender your policy during the first
     providing sufficient funds remain in the cash                   nine policy years, London Life will deduct a
     surrender value to keep the policy inforce and                  surrender charge as defined in the contract.
     cover any applicable surrender charges. Policy                  You will then receive the balance, known as
     loans are available on the guaranteed cash                      the cash surrender value. A taxable policy gain
     value when the limited-pay cost of insurance                    may be reported for the year of surrender.
     option is selected, once the total account
                                                                     No surrender charges apply for the
     value is used up.
                                                                     limited-pay cost of insurance options.
     The minimum loan is $500. The loan will be
     subject to a loan interest rate that is set each                Meeting your changing needs
     policy anniversary by London Life.                              As the policyowner, you decide how you
                                                                     want to apply your money. As your objectives
     The loaned portion will continue to earn                        change over time, you can change your
     interest, based on the performance of the                       interest-option mix or transfer funds within
     interest option from which the loan was                         your policy as often as you like. A market
     taken. Because market fluctuations may                          value adjustment may apply to funds
     adversely affect your policy’s total account                    transferred out of a guaranteed interest option
     value, London Life limits the amount of your                    before the end of the guarantee period. Your
     variable interest options available for loan                    financial security advisor can help you review
     to 75 per cent of the value in these options.                   your coverage requirements and investment
     Policy loans may be taxable, depending on                       mix on a regular basis to ensure your policy
     the adjusted cost basis of the policy when the                  is still meeting your long-term goals and
     loan is taken. Policy loan amounts that were                    changing circumstances.
     taxed when taken are later deductible when
     repaid. Policy loan repayments may be made                      Disability lump-sum benefit
     at any time.                                                    If you choose this benefit on the application,
                                                                     the policy will provide for a disability
                                                                     lump-sum benefit. In the event you become

12                       UNIVERSAL LIFE INSURANCE   |   Flexible permanent protection from London Life
totally disabled, subject to the definitions                     contract. If the insured is a minor, and the
in the contract, this benefit is paid from                       automatic payment benefit on disability is on
a portion of any unloaned portion of the                         the parent, a specified amount is deposited
policy’s available total account value,                          into the policy until the insured child’s
excluding any amounts invested in                                25th birthday.
guaranteed interest options. This provision
                                                                 The automatic payment benefit on death
applies only to the primary or joint life
                                                                 provides that London Life will pay a specified
insureds named in the policy.
                                                                 amount into your policy, determined at the
                                                                 time of application, if an insured or premium
                                                                 payor dies. If the insured is a minor, and the
Customize your policy
                                                                 automatic payment benefit on death is on
London Life universal life insurance is flexible
                                                                 the parent, a specified amount is deposited
permanent insurance protection. It offers a
                                                                 into the policy until the insured child’s
broad range of benefits that can be added or
                                                                 25th birthday.
removed as your needs change.
                                                                 The accidental death benefit provides that
Our preferred term riders provide low-cost
                                                                 your beneficiary will receive an additional
additional term insurance protection to age
                                                                 death benefit on top of the original base
85. Premiums renew automatically every
                                                                 insurance amount, if your death occurs by
10 or 20 years. These riders offer preferred
                                                                 accidental means as defined in the contract.
risk rates for face amounts of $250,000 and
greater if you qualify. You choose which                         The guaranteed insurability rider allows you
renewal period fits your needs best. Term 10                     to purchase additional amounts of permanent
coverage is convertible to age 70, or for two                    insurance, at specified option dates,
years after issue if the issue age is greater                    without providing any medical evidence
than 70, and is renewable to age 85. Term                        of insurability. You can get up to $800,000
20 coverage is convertible to age 70 and                         additional coverage in the future without
renewable to age 85.                                             providing medical evidence.

The child’s life insurance rider provides term
insurance protection on the children in your
                                                                 Keeping you informed
immediate family for a set annual premium.
                                                                 London Life will send you an annual
The amount of this coverage increases by
                                                                 statement detailing the status of your policy.
four per cent every year, and additional
                                                                 This statement tells you the interest options
children are automatically insured 15 days
                                                                 in which your money is invested and how it’s
after birth. The coverage may be converted to
                                                                 performing. The total account value of your
a permanent plan of five times the original
                                                                 life insurance policy is also detailed in your
coverage amount for each child when he or
                                                                 annual statement, along with a summary of
she reaches a specified age.
                                                                 your insurance coverage.
The automatic payment benefit on
                                                                 London Life suggests you review your policies
disability provides that London Life will
                                                                 with your financial security advisor regularly
pay a specified amount into your policy,
                                                                 to ensure your universal life policy is still
determined at the time of application, if you
                                                                 meeting your insurance needs and
become totally disabled as defined in the
                                                                 investment objectives.

                     UNIVERSAL LIFE INSURANCE   |   Flexible permanent protection from London Life                13
     Glossary of common terms                                        Expense charge
     Adjusted cost basis (ACB)                                       A fixed amount of $10 deducted from the
                                                                     policy’s total account value every month to
     Generally, this is the total of the premiums
                                                                     cover administrative costs. This amount is
     you have paid, less the cumulative cost
                                                                     guaranteed never to increase for the life of the
     of pure insurance over the years, less all
     monthly charges for additional benefits and
     riders that are not for life insurance, less                    Interest option
     any charges for substandard ratings, less
                                                                     One of several investment accounts in which
     any policy loans taken in the past, less any
                                                                     your premiums may be credited within your
     withdrawals taken in the past, plus any policy
                                                                     life insurance policy.
     gains in the past.
                                                                     Life insured
                                                                     The person (or persons) who is insured under
     The person (or persons) who has been named
                                                                     the terms of the life insurance policy.
     by the policyowner to receive the death
     benefit when the life insured dies.                             Policy
                                                                     The contract issued to you by London Life
     Cash surrender value
                                                                     that stipulates the terms and conditions of
     Your total account value minus any applicable
                                                                     your coverage.
     surrender charges, indebtedness (e.g., a policy
     loan) and market value adjustments. This is                     Policyowner
     the amount you will receive if you cancel                       The person who owns and holds all rights
     your policy.                                                    under the policy, including the power to
                                                                     name and change beneficiaries, obtain a
     Cost of insurance (COI)
                                                                     policy loan, assign the policy to a financial
     The cost of insuring a particular individual for
                                                                     institution as collateral for a loan, withdraw
     a certain coverage. It’s based on the amount
                                                                     funds or surrender the policy for its cash
     of coverage, as well as the underwriting class,
                                                                     surrender value.
     age, sex and tobacco consumption of that
     individual, as well as the cost of insurance                    Premium
     option chosen.                                                  The amount you contribute to the policy to
                                                                     maintain your insurance coverage and your
     Death benefit
                                                                     interest options.
     The total amount paid out tax-free to
     the beneficiary on the death of the life                        Total account value
     insured. The death benefit may include the                      The sum of all the interest options in your
     investment component that you have been                         policy, including interest. It doesn’t include
     accumulating.                                                   any guaranteed cash value from limited-pay
     Evidence of insurability
     Evidence submitted to London Life that is
     used to determine whether an individual is
     eligible for the insurance coverage applied for
     on that individual.

14                       UNIVERSAL LIFE INSURANCE   |   Flexible permanent protection from London Life
Need more information?                                                    London Life – serving our
You can find out more about universal life                                clients since 1874
insurance and our other products and services                             London Life Insurance Company has helped
by calling your financial security advisor or                             Canadians meet their financial security needs
local office. As your insurance and investment                            for more than 130 years and has almost two
needs change over time, regular reviews of                                million clients.
your coverage with your financial security
                                                                          London Life has more than $54 billion* of
advisor will help keep your policy on track
                                                                          assets under administration.
with your objectives.
                                                                          London Life is a subsidiary of The Great-West
You may want to keep this guide with your
                                                                          Life Assurance Company. Together, Great-
policy as a handy reference.
                                                                          West and its subsidiaries – London Life and
You can also call London Life directly at                                 Canada Life – serve the financial security
1-877-566-5433. A client service                                          needs of 12 million people across Canada.
representative will answer your questions and                             London Life, Great-West and Canada Life are
resolve any service issues you might have.                                members of the Power Financial Corporation
                                                                          group of companies.

                                                                          *As at Dec. 31, 2006

While every effort has been made to ensure the accuracy of the information in this brochure at the date of printing, some errors
and omissions may occur. In the event of a discrepancy, the terms of the London Life universal life insurance contract will prevail.
     London Life and design are trademarks of London Life Insurance Company.
        This item is made with 50 per cent recycled paper and 25 per cent post-consumer fibre.                                         46-3482-7/08
16                                    UNIVERSAL LIFE INSURANCE                    |   Flexible permanent protection from London Life

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