As Unit-linked policies such as yours can run for many years, the charges and costs of maintaining them may change. As you get older the cost of providing your benefits increases. Insurance companies will carry out a Policy Review to ensure that the Customer is paying the appropriate premium into his/her policy to maintain the cover they require. Sometimes premiums may be increased, but not always.
When the cost to maintain your policy's level of cover reaches a stage where it is greater than your regular premium, this difference is made up from your fund value. During the Policy Review, Canada Life will calculate whether the premium being paid is enough to maintain your cover until the next Policy Review. Canada Life will examine the value of the fund attached to the policy and the Life Assured's age, smoker status and health.
This depends on the type of policy you have; in other words, it is defined in your Policy Terms and Conditions. Typically a Policy Review happens after a set period of time, usually 5 or 10 years from the start date of the policy, and then usually every five years thereafter. When a Policyholder passes their 65th birthday (60th or 70th for some policy types) a Policy Review takes place each year.
Yes. A Policy Review may also take place if a claim is made under the policy, or if you change the premiums or benefits under the policy while it is in force.
You then have a choice either to increase your premium or to reduce your cover. A letter will be sent to you giving you a different level of cover and premium, which you may select. You should always discuss your options with a Financial Adviser if possible. Please note that for policies where the Inflation Protector option has been selected, the revised premium/level of cover shown are assumed to continue inflating until the cessation date of the option.
Canada Life guarantees to maintain the selected cover on your policy until the date of your next Policy Review, provided that all premiums are paid in full.
To get a quote you need to go through a Broker or Canada Life Financial Advisor. If you don't have a financial advisor and would like to avail of a free financial health check from a Canada Life Financial Advisor please click on the link here to get a list and contact details for Canada Life Financial Advisors in your area.
Yes. However, there are a number of restrictions regarding this option:
Can I switch funds and is there a charge?
Two fund switches can be processed free of charge per year. Any more than this is subject to a charge of €25 per switch. This is charged by means of unit deduction.