By Canada Life
What is Canada Life My Par Gift participating life insurance?
It’s built on these foundations:
- First and foremost, it’s life insurance designed for charitable giving. The registered charity receives the payout on death of the insured person.
- It’s a single premium payment. The base amount of life insurance is guaranteed to stay in effect for the insured person’s lifetime once the single premium payment is made.*
- It belongs to the charity. As the owner, the charity controls the policy.
- It can help the charity grow its legacy through potential dividends. Dividends can be used in many ways. The charity can choose to buy additional insurance coverage, which may further increase the policy’s cash value and payout on death. Or, they can take the annual dividends as cash.**
- It gives the charity flexibility. Over time, the life insurance policy builds cash value. The charity has guaranteed access to these funds, which can be used in many ways during the insured person’s lifetime. It is important to note that any withdrawals or unpaid loans will decrease the size of the charity’s payout. *
- It has tax advantages for the donor. The single premium payment qualifies as a charitable donation.***
* In the case of a policy loan, if the loan plus interest exceeds the policy’s cash value, the policy will end.
* In the case of a policy loan, if the loan plus interest exceeds the policy’s cash value, the policy will end.
** Any annual dividend paid in cash to the policy-owner will result in a tax slip being issued to the registered charity in any applicable year. *** All donation receipts would be issued by the charity, not by Canada Life. The recognized year of the donation made may be determined by a number of factors. Speak to your advisor for details.
How does participating life insurance work?
- The single premium payment, together with the payments from all other
Canada Life participating policyowners, go into the participating account.
We manage this account to meet the guarantees and commitments to all
our participating life insurance policy-owners, now and in the future. - If actual performance is better than our assumptions at the time of
pricing, which may include but isn’t limited to investments, expenses and
taxes, policy-owner withdrawals and loans, and insurance payouts,
earnings are generated for the participating account. - When earnings exceed the amount needed to meet guarantees and
commitments, policy-owners might be able to share, or “participate,” in these earnings. We might distribute some of these earnings as policyowner dividends, although this isn’t guaranteed. The distributed amount is influenced by considerations such as the need to retain earnings as surplus and to reduce short-term volatility in dividends.
A bit about Canada Life:
Experience
They’ve been in the participating life insurance market for 175 years. They’ve distributed participating policy-owner dividends since 1848, even through some of the worst economic times.
Size
They have the largest open participating account in Canada.
Expertise
Their experienced teams and industry-leading partnerships help them make strategic decisions about the participating account.
Accountability
Their transparency has earned the trust of generations of Canadians.
Conviction
Their investment approach remains focused on long-term performance and stability.