You are here > Home > Investments > Products > Gateway Portfolio >Technical Details

GATEWAY PORTFOLIO

Technical Details

Details


Minimum Premium:

€5,000

Maximum Premium: €2,500,000
Minimum Term:

This is an open ended contract. However we would recommend an investment term greater than 5 years. This is due to the early surrender penalties which apply in the first 5 years after any investment and because you may choose to invest some or all of your policy in volatile funds which are more suitable for longer investment terms.
Maximum Term:

There is no maximum term on this contract. You may continue to hold the policy for as long as you wish.
Minimum Entry Age:

18 attained (19 next birthday) Applications may be accepted for children with a supplementary application form (please note that the policy cannot be amended or encashed until the child's 18th birthday). Policies may also be placed in trust for the benefit of a child or children. Please speak to your Financial Advisor about this facility.  
Maximum Entry Age:

85 attained (86 next birthday)

Features & Benefits


Basis:

The policy may be written as single life, or joint life (second death basis).
Income Option:

You can choose to receive regular payments from the policy.

Regular payments can be taken on a monthly, quarterly, half yearly or annual basis.

Regular payments can be taken in one of the following ways:

1. Regular payments can be taken as a percentage of the value of the policy. If this option is selected the maximum payment that can be requested is currently 7.5% of the value of the policy each year before tax.

The amount you receive will vary as the value of their fund changes.

For example, if you request your payments to be paid monthly the amount payable each month will be calculated as:

Annual percentage selected/12 * Policy fund at time of payment   -  Tax payable

OR

2. Regular payments can be requested as a fixed amount each year.

The minimum payment you may request is €125, regardless of the frequency.

At the outset of the policy, the fixed annual amount that may be requested is subject to a maximum of 7.5% of the amount invested.

If you request a fixed annual income at a later date, then this is subject to a maximum of 7.5% of the surrender value at that time.

From time to time, Canada Life may review the policy, and reduce the amount of fixed income being taken from the policy to 7.5% of the surrender value at that time if this is lower.

Regardless of the income option selected, when a payment is made a number of units equal in value to the payment plus any tax payable will be deducted from the policy.

Payments will therefore reduce the value of the policy.

You should note that if your investment grows on average at a lower rate than the level of income you are taking, the value of your investment will fall.

If the effect of an income payment would be to reduce the surrender value of your policy to an amount below €1,250 then this payment will not be made and your income will cease at this point.

No encashment charges apply to withdrawals from the policy under the income option.

The allowable limits for regular payments are subject to change from time to time.
Partial Surrenders:

Partial surrenders may be made subject to surrender penalties in the first five years of any investment. The minimum amount that can be surrendered is €650. After each surrender the value of the policy must be at least €1,250.
Full Surrenders:

You can fully surrender your policy subject to surrender penalties in the first five years as outlined in the charges section below.
Death benefit:

The death benefit is 101% of the fund value on the policy on the day after we receive notification of death and all requirements. The death benefit will not be reduced by surrender penalties.

In the case of a joint life policy the death benefit is payable on the death of the last to die of the two lives.
Policy Value:

No guarantees are provided with any of the funds in the Gateway Portfolio.

The value of the policy will depend on the performance of the chosen fund.

In all cases where payments are being made from the policy the payment will be reduced by the amount of tax due.

On exit the value of the policy will also be affected by any encashment charges that apply.

The value of the policy will be affected by the costs associated with buying and selling the assets underlying the policy. These costs will reduce the value of the fund.

In certain circumstances there may be a delay in making payments on the policy. Please see the policy conditions for full details.