The death benefit guarantee reset option
The death benefit guarantee is the core of segregated fund policies. It ensures a set payout to beneficiaries, adjusted for any withdrawals. Canada Life offers a reset option for this guarantee, which updates the death benefit guarantee each year based on market values, locking in growth. This means the higher investment amount is protected.[1]
Canada Life has extended the maximum age to reset from 70 to 80,[2] catering to Canadians’ longer lives. With this option added to a Canada Life segregated fund policy, you can help secure gains for your clients and help them feel more confident about the legacy they’re building, for longer.
Effortless management with a ‘set it and forget it’ safety net
Investments can be complex. Adding Canada Life’s reset option to a segregated fund policy simplifies things. It acts as a “growth capture” mechanism, locking in gains each year without needing to monitor market cycles. This provides stability and preserves growth.
Maximizing a legacy through growth protection
Consider Catherine, who at 64 is planning for her retirement. Her goal is to build an inheritance for her grandchildren while balancing her need for growth with a sense of security. She invests $100,000 into a Canada Life 75/100 segregated fund policy and adds the annual death benefit guarantee reset option. By the time she’s 79, her policy has grown to $170,000 due to the reset option capturing and locking in market growth years. If Catherine had passed away during a market downturn at age 75, her beneficiaries would have received her last locked-in reset amount of $149,000, despite the market value of the portfolio being only $132,000 at that time. This amount would make a significant difference to her grandchildren’s lives.
