Effective
May 8, 2020 at 4:00 p.m. (EDT), we stop offering the Helios2 – 75/100 GLWB Guarantee for an indefinite period of time
Protect your clients’ retirement income
Target clientele
Clients who want to maintain their lifestyle without having to worry about market downturns or risk outliving their savings, but who also want to profit from market upturns.
Help them keep doing what they love in retirement!
What does this guarantee offer?
| 75% | 100% |
|---|
At Contract maturity1
The maturity benefit2 is the greater of: - The market value of the units attributed to the Contract
- 75% of deposits, less adjustments for withdrawals
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On the Annuitant’s3 death
On the Annuitant’s death, the death benefit4 is the greater of: - The market value of the units attributed to the Contract
- The minimum death benefit amount, which is equal to 100% of the value of each deposit
Up to the Annuitant’s 80th birthday, the minimum death benefit amount is reset every three years on the contract anniversary date based on the greater of: - The current minimum death benefit Amount
- The market value of the units attributed to the Contract, calculated at the next valuation date following the contract anniversary date
When the death benefit is paid out, the Contract is terminated. |
1 The Contract matures when the Annuitant reaches age 105.
2 The minimum maturity benefit amount is reduced in proportion to any units that may have been surrendered/withdrawn, including all GLWB withdrawals. Refer to the Contract and Information Folder for more information about surrendering/withdrawing units.
3 The Annuitant is the person on whose life the Contract is based. When the Annuitant dies, the death benefit is paid to the Beneficiary named by the Contract Owner.
4 The minimum death benefit amount is reduced in proportion to any units that may have been surrendered/withdrawn, including all GLWB withdrawals. Refer to the Contract and Information Folder for more information about surrendering/withdrawing units.
Guaranteed Lifetime Withdrawal Benefit (GLWB)
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GLWB Protected Value/GLWB Bonus Base | Initially, these values are equal to 100% of every deposit. - The GLWB Protected Value is used to determine the GLWB maximum amount.
- The GLWB Bonus Base is used to determine the GLWB Bonus.
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GLWB Bonus | - The GLWB Bonus is calculated as at December 31 of every year that no withdrawals are made. It’s calculated by multiplying the GLWB Bonus Base by the GLWB Bonus Rate. The GLWB Bonus is added to the GLWB Protected Value.
- For the first calendar year of the Contract, 100% of the GLWB Bonus is added to the GLWB Protected Value. This amount isn’t prorated.
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GLWB Bonus Rate5 | The GLWB Bonus Rate is based on the 10-year Canadian bond rate, plus 1.5%. The minimum rate is 2.5%; the maximum is 8%. |
5 The GLWB Bonus Rate is equal to the 10-year Government of Canada benchmark bond yield (CANSIM Identifier V39055) as at the last business day of November of the current calendar year, plus 1.5%.
GLWB Withdrawal Percentage6
The GLWB Withdrawal Percentage is determined at the time of the first GLWB Eligible Withdrawal based on the age of the Annuitant(s).
| Annuitant’s age | One Annuitant | Two Annuitants |
|---|
| 55 to 59 | 3.0% | 2.5% |
| 60 to 64 | 3.6% | 3.1% |
| 65 to 69 | 4.1% | 3.6% |
| 70 to 74 | 4.6% | 4.1% |
| 75 + | 5.0% | 4.5% |
6 These rates may be subject to change for new sales and can be found in Appendix A of the Contract and Information Folder.
GLWB Maximum Amount
Calculated on January 1 of each year
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GLWB Maximum Amount | = | GLWB Protected Value | X | GLWB Withdrawal Percentage |
Resets of the GLWB Bonus Base and the GLWB Protected Value
Every three years, on the contract anniversary date, the GLWB Bonus Base and the GLWB Protected Value are compared to the market value of the Contract. If the market value is higher, the GLWB Bonus Base and the GLWB Protected Value are increased to match.
It’s not necessary for the GLWB Protected Value to be reset in order for the GLWB Bonus Base to be reset.
If, at an anniversary, the GLWB Protected Value is adjusted upwards and the Annuitant has reached an age requiring a change in the GLWB Payout Percentage, the client's GLWB Maximum Amount will be calculated using this new percentage.
