Lifetime Income Benefit


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Guarantee your income for life.

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Lifetime Income Benefit

  1. 1. Is it right for you? L o n d o n L i f e S e g r e g at e d f u n d S p o L i c i e SThe lifetime income benefit is justone component of a well-diversified London Life lifetime Lifetime income benefitretirement income portfolio.It’s appropriate for people: income benefit option• Getting ready to retire and retirees looking Guarantee your income for life for secure, predictable, guaranteed income For years your focus has been to save Information at your finger tips• Age 50 and under age 91 for retirement. Now you need innovative Visit• Who do not already have guaranteed solutions to help you transition your for more information about the retirement income from government hard-earned savings into income that features and advantages of the lifetime benefits, company pension plans will last your lifetime. You also need income benefit. or life annuities to protect your savings against three retirement risks: For more information about London Life and its products, visit Longevity risk You might outlive your money.Work with your financial security Market return risk A description of the key features of the You could experience poor market segregated fund policy is contained in the Guarantee your income for lifeadvisor to develop a savings and information folder. returns in the early retirement years,income plan that’s appropriate increasing the chances you’ll use all Any amount that is allocated to a segregated fund is invested at the risk your savings sooner than you planned.for you. He or she can show you of the policyowner and may increase or decrease in the lifetime income benefit Inflation riskmay help you to meet your Your retirement savings might not earn enough to keep up with inflation.retirement goals. GUARANTEES PROTECTION STRENGTH London Life and design are trademarks of The London Life Insurance Company. 46-7677-10/11
  2. 2. The London Life lifetime income benefit helps you manage risks in retirement and protect your savings. The lifetime income benefit can help provide: • Predictable, guaranteed income for life, beginning as early as age 50 • The potential for increasing income • A safe transition from savings to income With the lifetime income benefit, you’re guaranteed income for life whether you live to 85, 105 or beyond. Your income will not decrease, regardless of how the segregated funds perform. Even if the market value of your policy drops to $0, you are guaranteed to continue receiving payments for the rest of your life. Age used to Incomecalculate income percentage 50 to 54 4.00% Guaranteed income for life Five per cent annual Income resets 55 to 59 4.25% No matter how long you live deferral bonus Increase your lifetime income The London Life lifetime income benefit: Increase your lifetime income amount 60 to 64 4.50% With the lifetime income benefit, you are eligible to As policy values increase, you have the potential 65 to 69 5.00% • Offers predictable, guaranteed income for life1 to secure those gains to increase your lifetime earn a five per cent deferral bonus every year until • Starts as early as age 50 unlike other policies that you make a withdrawal. If you don’t need to take income amount. Your lifetime income amount will 70 to 74 5.25% don’t start distributing income until age 65 an income right away, the deferral bonus can help not decrease, regardless of how the segregated 75 and older 6.00% you grow your lifetime income amount even when funds perform. • Provides a lifetime income amount based on your age – you are eligible for higher income payments markets are down. Key features of income resets as you get older For example: If you contribute a premium ofWith the lifetime When you add the lifetime income benefit, your $200,000 to your policy and defer income for • Income resets can occur every three years • Lifetime income amount will increase whenincome benefit, you’re eligible lifetime income amount is the market value 10 years, your lifetime income withdrawal base a reset is applied of your policy multiplied by the income percentage will have a minimum value of $300,000 because ofguaranteed income for that corresponds with your current age (or your deferral bonuses. • Resets are available for the life of the policy spouse, if applicable). Important: Deferral bonuses are not a guaranteedlife whether you live The percentage used to calculate the lifetime rate of return. They have no cash value and do not Secure growth with automaticto 85, 105 or beyond. income amount increases with age. increase any applicable maturity or death benefits income resets guarantee. Deferral bonuses increase your eligible You may be able to increase your income through Once your lifetime income withdrawal base lifetime income amount. deferral bonuses and resets. increases, it is guaranteed for life – regardless of any future down markets, assuming no excess 1 Excess withdrawals will decrease the annual guaranteed income amount and you will no longer be eligible for any withdrawals are made. future bonuses. An excess withdrawal is a withdrawal that exceeds the annual guaranteed income amount.