London Life participating life insurance gives you a foundation of guaranteed values and tax-advantaged growth. It also gives you the opportunity to receive policyowner dividends, based on your participation in a pool with other participating life insurance policies. It gives you stability and flexibility in a permanent life insurance solution.
Foundation of guaranteed values
- Guaranteed premiums
- Guaranteed death benefit
- Guaranteed cash value
- Cash value grows on a tax-advantaged basis.
- The death benefit is not subject to income tax.
Strength of London Life’s participating account
- Largest participating account in Canada, as measured by assets
- Long track record of stable investment returns
- Strong history of dividend payments
Choices to match your needs
- Fund your policy in 20 years or pay premiums to age 65 or age 100.
- Use your policyowner dividends to buy more insurance, reduce premiums or take a Premium Vacation™.
- Access your cash value through policy loans.
- Select from a wide range of riders and benefits.
How participating life insurance works
- When you purchase participating insurance, the premiums you pay go into an account called the participating account, together with funds from other London Life participating policies.
- To determine your guaranteed premiums, guaranteed cash values and guaranteed death benefits, London Life uses long-term assumptions for factors such as investment returns, mortality, expenses, lapses and taxes.
- If the actual and expected future results in the participating account are collectively more favourable than the assumptions supporting the guaranteed values, earnings are generated and become part of the participating account surplus (retained earnings).
- Each year, London Life may distribute a portion of the earnings as participating policyowner dividends, as approved by the board of directors.
- Surplus is held in the participating account to maintain the strength and stability of the participating account into the future.
Value, strength and choice
Each section of this guide deals with an aspect of participating life insurance that clients have identified as important. Here’s an overview of each section.
Value of participating life insurance
In this section you learn about the key components that contribute to the performance of your policy, the long-term benefits and the cost of your coverage. You also learn how you and over one million other participating London Life policyowners share in the results.
Strength of London Life
In this section you learn about the company that stands behind your participating life insurance coverage. It’s important to select a strong company and a strong participating account. Here you learn about London Life’s strength and stability over the long term.
Choice and flexibility
In this section you learn about the different features and options that are available to tailor your coverage to your specific needs. Participating life insurance is not one-size-fits-all. You can choose how you want to balance affordability with future growth and flexibility. You can combine permanent and term life insurance to meet long- and short-term needs.
I can help you make the best choices to meet your needs and goals.