Who is this for?
Canadians aged 50 or older – in other words, people who may be thinking about retirement – are eligible for the lifetime income benefit option (or LIB). The LIB is an option that can be added to some segregated fund policies; doing so could potentially guarantee you income for the rest of your life. It’s a feature that may be particularly appealing to Canadians preparing to enter retirement.1
If you don’t have a pension plan through your employer, an LIB can help provide you with a guaranteed income and strengthen your retirement portfolio.2
How will this help me?
Canadians entering retirement want to know that they won’t run out of money. The lifetime income benefit option can help ease those fears. That’s because, for a monthly cost, an LIB ensures your guaranteed income remains the same for the rest of your life, regardless of how the segregated fund performs in the marketplace.3
The amount of income you receive from the LIB will only decrease if you make excess withdrawals from the segregated fund policy or withdraw an amount greater than the annual guaranteed income amount.
What else do I need to know?
Lifetime income protection
Not only does an LIB provide you with regular income for the rest of your life, it also protects you from market volatility and the possibility of outliving your money.
Annual deferral bonus
Thanks to an annual deferral bonus, you can grow your lifetime income amount. With an LIB from London Life, you can earn a 3% deferral bonus each year until you make a withdrawal.4
Capitalize on your gains
As your policy value increases, you have the potential to secure those gains to increase your lifetime guaranteed income amount. To learn more about the LIB, speak with your financial security advisor.
1 Excess withdrawals will decrease the lifetime income benefit available through the LIB. Speak with your financial security advisor to learn more.
2 The London Life segregated funds contract and information folder contain complete details about the features of the lifetime income benefit. You should read them carefully to ensure you understand the lifetime income benefit and its features.
3 When you add the lifetime income benefit to your segregated fund policy, your eligible lifetime income amount is determined by the market value of your policy multiplied by the income percentage associated with your age or the age of the youngest spouse (if you choose a joint-life income).
4 Deferral bonuses are not a guaranteed rate of return. They have no cash value.
Connect with an advisor
Working with a financial security advisor can provide you with the tools and expertise you need to plan for the future.