Flexibility of a Participating Life Insurance Policy

Choice of basic participating life insurance policy

All three of these basic policies give you permanent life insurance protection. The policy doesn’t terminate at a certain age, as long as you pay premiums as described in the policy.

20-Pay Life

This policy gives you lifetime protection with premiums payable for 20 years. After that, your basic coverage is fully paid up and no further premiums are due. 20-Pay Life gives you the highest early cash surrender values, compared to the other two products. It also gives you excellent long-term cash value and growth of the death benefit.

Life Premiums to 65

This policy gives you lifetime protection with premiums payable to age 65. After that, your basic coverage is fully paid up and no further premiums are due. Life Premiums to 65 is available for issue ages up to and including age 45.

Jubilee Whole Life

This policy gives you lifetime protection with premiums payable to age 100. This popular policy gives you the lowest annual premium of the three basic policies.

London-Life

Choice of death benefit

The death benefit is the money a beneficiary is eligible to receive on the death of the insured person. Jubilee Whole Life and 20-Pay Life are available as single- or joint-life protection. Life Premiums to 65 is available only as single-life protection.

Single life

The policy insures the life of one individual. The death benefit is payable when the insured person dies.

Joint first-to-die

The policy insures the lives of two individuals. The death benefit is payable when the first insured person dies. Depending on risk, class and age, the policy may include other features, such as:

  • Exchange option – You can exchange the original policy for two single-life policies, each up to 60 per cent of the original death benefit, for any reason during the first five years. There are some limitations after five years.
  • Interim insurance benefit – If both insured people die within 60 days of each other, there’s an additional death benefit payable.
  • Survivorship option – The surviving insured person can purchase insurance, within 60 days of the death of the first insured person, without evidence of insurability.

A joint first-to-die policy lets you cost-effectively:

  • Replace income
  • Insure a mortgage
  • Fund a buy-sell agreement for a business

Joint last-to-die

The policy insures the lives of two individuals. The total death benefit is payable only when the second insured person dies. This means you shouldn’t buy a joint last-to-die policy if you need the funds on the first death. A joint last-to-die policy usually costs considerably less than two single-life policies.

There are two types of joint last-to-die policies:

  • Pay premiums to the first death
  • Pay premiums to the last death

You can use a joint last-to-die policy to:

  • Pay taxes on the last death
  • Preserve your estate for your heirs
  • Give a gift to your favourite cause or charity