46-7136 CL_Info Folder_EN

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CAnAdA l i fe

segregAted funds

Inormation older

July 2013

The Canada Lie Assurance Company is the sole issuer o the

individual variable annuity policy described in this inormation older.

This document is not an insurance contract.

Including preferred ser ies 1


2/252

This information folder is not an insurance contract. The information in this folder is subject to change from

time to time. If there is a difference between this information folder and your contract, your contract will apply.

In this information folder, you and your mean the potential or actual policyowner of a Canada Life segregated

funds individual variable annuity policy. We, us, our and Canada Life means The Canada Life Assurance

Company.

About Canada LifeThe Canada Life Assurance Company, a subsidiary of The Great-West Life Assurance Company and a member ofthe Power Financial Corporation group of companies, provides insurance and wealth management products andservices. Founded in 1847, Canada Life is the countrys first domestic life insurance company. The terms andconditions of the policies issued by Canada Life and the distribution of the policies are governed by the insuranceacts of the provinces and territories in Canada where Canada Life carries on business.

Canada Lifes administrative offices are located at:

London

255 Dufferin Avenue

London, ON N6A 4K1

Montreal2001 University Street, Suite 540

Montreal, QC H3A 1T9

Canada Lifes head office is located at:

Toronto

330 University Avenue

Toronto, ON M5G 1R8

Certification

This information folder contains brief and plain disclosure of all material facts relating to the segregated fund optionavailable in the Canada Life segregated funds individual variable annuity policy issued by Canada Life.

March 14, 2013.

Paul Mahon Douglas A. Berberich

President and Chief Operating Officer, Canada Vice-President and Associate General Counsel, Canada


3/252CANADA LIFE SEGREGATED FUNDS INFORMATION FOLDER | JULY 201 3

Key facts about the Canada Life segregated fundsindividual variable annuity policy

This summary provides a brief description of the basic things you should know before you apply for this individualvariable insurance contract. This summary is not your contract. A full description of all the features and how theywork is contained in this information folder and your contract. You should review these documents and discuss any

questions you have with your advisor*.

What am I getting?You are getting an insurance contract between youand The Canada Life Assurance Company. It givesyou a choice of segregated funds and providescertain guarantees.

You can:

Choose a registered or non-registered contract

Name a person to receive the death benefit

Withdraw money from your contract Receive regular payments now or later

The choices you make may affect your taxes, seethe section Income tax considerations. They couldalso affect the guarantees, see the section Exampleof how redeeming units affects the guarantee

amount. Ask your advisor to help you make thesechoices.

The value of your contract can go up or downsubject to the guarantees.

What guarantees are available?You get maturity and death benefit guarantees.These help protect your fund investments. You havea choice of three guarantee levels. You pay fees forthis protection and the fees are different for eachlevel. The guarantee levels are:

75/75 guarantee (75 per cent maturity and deathbenefit guarantees)

75/100 guarantee (75 per cent maturity guaranteeand 100 per cent maximum death benefitguarantee)

100/100 guarantee (100 per cent maximum

maturity guarantee and 100 per cent maximumdeath benefit guarantee)

For full details about each of the guarantee levels,see the Guaranteed benefits section. For details onthe cost, see the Fees and expenses section.

You may also get added protection from reset andlifetime income benefit options. There are extra feesfor any options you select.

Any withdrawals you make will reduce your maturityand death benefit guarantees and may reduce yourlifetime income amount. For full details please seethe Example of how redeeming units affects theguarantee amountsection and Excess redemptionsin the Lifetime income benefit option section.

Maturity guarantee

This protects the value of your investment at one ormore specific dates in the future. These dates areexplained in the Guaranteed benefits section.

On these dates, you will receive the greater of:

The market value of the funds, or

75 per cent of the money you put in the funds

You can get up to a 100 per cent maturityguarantee. This will cost you more. For details aboutthe 100 per cent maturity guarantee, see the100/100 guarantee policysection. For details aboutthe costs, see the Fees and expenses section.

Death benefit guarantee

This protects the value of your investment if theinsured person dies. It is paid to someone youname.

The death benefit applies if the insured person diesbefore the maturity date. It pays the greater of:

The market value of the funds, or

75 per cent of the money you put in the funds

You can get up to a 100 per cent death benefitguarantee. This will cost you more. For details about

the 100 per cent death benefit guarantee, see the75/100 guarantee policyand the 100/100 guaranteepolicysections. For details about the costs, see theFees and expenses section.



Reset options

A death benefit guarantee reset option is availableon the 75/100 guarantee policy and 100/100guarantee policy. A maturity guarantee reset optionis available on the 100/100 guarantee policy. Theseoptions reset the amount of the death benefit andmaturity guarantee amounts. These options

cost extra.

For full details, see the Guaranteed benefitssection. The fees are described in the Feesand expenses section.

Lifetime income benefit option

This option guarantees income payments. Thesepayments can last for a period of time or for as longas you or your spouse live. This option costs extraand is available on the 75/75 guarantee policy and75/100 guarantee policy. Only certain segregatedfunds come with this option.

How much you invest and how old you are will affectthe payments you receive. You may be able toincrease this amount through bonuses and resets.You will decrease this amount if you take outextra payments.

For full details, see the Lifetime income benefitoption section. The fees are described in theFees and expenses section.

Rebalancing service

The rebalancing service is an automatic portfoliorebalancing service. It allows you to choose specific

target allocations in order to maintain a consistentbalance of risk among different categories ofsegregated funds. We monitor and rebalance yourchosen segregated funds based on the frequencyand rebalancing range percentage you select. Forfull details, see the Rebalancing service section.

What investments are available?You can only invest in the funds described in theFund Facts section.

Other than any maturity and death benefitguarantees, Canada Life does not guarantee the

performance of the segregated funds. Carefullyconsider your tolerance for risk when you selecta fund.

How much will this cost?Your costs will vary depending on the guaranteelevel, segregated fund(s) and sales charge optionyou select. The funds are available on a deferredsales charge, low-load deferred sales charge,front-end load or preferred series 1 front-end loadbasis. For full details, see the section Sales charge

options and the Fund Facts for each fund.

Fees and expenses are deducted from thesegregated funds. They are shown as managementexpense ratios or MERs on the Fund Facts foreach fund.

If you select a reset option or the lifetime incomebenefit option, additional fees apply.

If you make certain transactions or other requests,you may be charged separately for them and thisincludes a short-term trading fee.

For full details, see the section Fees and expenses

and the Fund Facts for each segregated fund.

What can I do after I purchase thiscontract?If you wish, you can do any of the following:

Switches

You may switch from one fund to another. See thesection How to switch segregated fund units.

Withdrawals

You can withdraw money from your contract. If you

decide to, this will affect your guarantees. You mayalso need to pay a fee or taxes. See the sectionHow to redeem segregated fund units.

Premiums

You may make lump-sum or regular payments. Seethe section How to allocate premiums to segregatedfund units.

Lifetime income benefit option

You can add or remove the lifetime income benefitoption. Certain restrictions and other conditionsapply. For full details, see the Lifetime incomebenefit option section.

Payout annuity

At a certain time, unless you select another option,we will start making payments to you. See thesection When your policy matures.



Certain restrictions and other conditions may apply.Review the contract for your rights and obligationsand discuss any questions with your advisor.

What information will I receive aboutmy contract?We will tell you at least once a year the value of yourinvestment and any transactions you have madeduring the year.

You may request more detailed financial statementsof the funds. These are updated at certain timesduring the year.

For full details, see the sectionAdministration of thesegregated funds.

Can I change my mind?Yes, you can:

Cancel the contract Cancel the initial pre-authorized chequing

premium

Cancel any additional lump-sum premium youmake

To do any of these, you must tell us in writing withintwo business days of the earlier of:

The day you receive the confirmation of yourtransaction, or

Five business days after we mail the confirmationto you

The amount returned will be the lesser of theamount you invested or the current value of the unitsyou acquired on the day we process your request ifit has gone down. The amount returned will includea refund of any sales charges or other fees you paid.The transaction may generate a taxable result andyou are responsible for any income tax reporting andpayment that may be required.

If you change your mind about a specific additionalpremium, the right to cancel only applies to thattransaction. For full details, see the introductorypage to the Fund Facts.

Where can I get more information?You may call us at 1-888-252-1847 or send us anemail to [email protected] about our company and the productsand services we provide is on our website atwww.canadalife.com.

For information about handling issues that you areunable to resolve with your insurer, contact theOmbudService for Life and Health Insurance at1-800-268-8099 or on the Internet at www.olhi.ca.Additionally, if you are a resident of Quebec contactthe Information Centre of the Autorit des marchsfinanciers (AMF) at 1-877-525-0337 or [email protected].

For information about additional protection availablefor all life insurance policyowners, contact Assuris, acompany established by the Canadian life insuranceindustry. See www.assuris.ca for details.

For information about how to contact the insuranceregulator in your province, visit the CanadianCouncil of Insurance Regulators website atwww.ccir-ccrra.org.



Table of Contents

Key facts about the Canada Life segregatedfunds individual variable annuity policy .................. 1

How a Canada Life segregated fundspolicy works ................................................................. 6

Introduction ..................................................................... 6Minimums to establish and maintain a policy ................. 6

Last age to establish or pay premiums to a policy .......... 9

Types of policies ............................................................. 9

Beneficiaries.................................................................. 11

How our segregated funds work ............................... 12Asset and income allocation funds ............................... 13

How we value segregated fund units ............................ 13

Fundamental changes to the segregated funds ........... 14

Allocating premiums, redeeming and switchingsegregated fund units ................................................ 14How to allocate premiums to segregated fund units ..... 15

Sales charge options .................................................... 15

How to redeem segregated fund units .......................... 16

Free redemption amount ............................................... 17

Automatic redemptions ................................................. 17

How to switch segregated fund units ............................ 18

Short-term trading ......................................................... 19

Rebalancing service ...................................................... 19

When the redemption or switch of your unitsmay be delayed ............................................................. 20

When your policy matures ......................................... 21Policy maturity date ....................................................... 21

What happens to your policy on the policymaturity date ................................................................. 21

GUARANTEED BENEFITS .......................................... 23A. 75/75 guarantee policy ............................................. 24

Maturity guarantee ..................................................... 24

Maturity guarantee date ............................................. 24

Death benefit ............................................................. 24

Death benefit guarantee amount ............................... 25

B. 75/100 guarantee policy ........................................... 25



Death benefit ............................................................ 25

Death benefit guarantee amount ............................... 26

Death benefit guarantee reset option ........................ 26

C. 100/100 guarantee policy ......................................... 27


Maturity guarantee amount ........................................ 27


Maturity guarantee reset option ................................. 2

Death benefit .............................................................. 3

Death benefit guarantee amount ................................ 3

Death benefit guarantee reset option ......................... 3

Example of how redeeming units affects theguaranteed amount ..................................................... 3

Lifetime income benefit option .................................. 3Lifetime income benefit values ...................................... 3

Bonus and automatic resets .......................................... 3

Excess redemptions ...................................................... 4

Subsequent premiums ................................................... 4

Scheduled and unscheduled redemptions .................... 5

Lifetime income benefit option illustrations.................... 5

Lifetime income benefit eligible funds ........................... 5

Lifetime income benefit monthly charge ........................ 5

Lifetime income benefit payments ................................. 5

Options on the policy maturity date ............................... 5

Naming a beneficiary and/or successor annuitantwhile the lifetime income benefit option is in effect ....... 5

Removal of the joint life ................................................. 5

Death of an annuitant while the single-life incomeelection under the lifetime income benefit optionis in effect....................................................................... 5

Death of an annuitant and/or joint life while thejoint-life income election under the lifetime incomebenefit option is in effect ................................................ 6

Termination of the lifetime income benefit option .......... 6

Fees and expenses ...................................................... 6Fees and expenses paid from the segregated fund ...... 6

Fees and expenses paid directly by you ....................... 7

Income tax considerations ......................................... 7Tax status of the segregated funds ............................... 7

Non-registered policies .................................................. 7

RRSPs ........................................................................... 8

RRIFs ............................................................................. 8

TFSAs ............................................................................ 8

Administration of the segregated funds ................... 8Keeping you informed .................................................... 8

Requests forFund Facts, financial statementsand other documents ..................................................... 8

Material contracts .......................................................... 8

Material transactions ..................................................... 8

Assuris protection .......................................................... 8

Investment policy ........................................................ 8

Investment managers .................................................. 8Investment manager review process ............................. 8



Fund risks .................................................................... 84

Fund Facts ................................................................... 89

Asset allocation funds ................................................ 90

Conservative Allocation (PSG) ..................................... 90

Moderate Allocation (PSG) ........................................... 92

Balanced Allocation (PSG) ........................................... 94

Advanced Allocation (PSG) .......................................... 96

Aggressive Allocation (PSG)......................................... 98

Income allocation funds ........................................... 100

Income Focus (PSG) .................................................. 100

Income Growth (PSG) ................................................. 102

Income Growth Plus (PSG)......................................... 104

Managed fund solutions ........................................... 106

Core Conservative Growth (PSG) .............................. 106

Fidelity Moderate Income (PSG) ................................ 108

Franklin Templeton Moderate Income (PSG) ............. 110

Mackenzie Moderate Income (PSG) ........................... 112Core Moderate (PSG) ................................................. 114

Franklin Templeton Moderate Growth (PSG) ............. 116

Mackenzie Moderate Growth (PSG) ........................... 118

Core Moderate Growth Plus (PSG) ............................ 120

Fidelity Moderate Growth Plus (PSG) ......................... 122

CI Balanced Income (PSG) ......................................... 124

Franklin Templeton Balanced Income (PSG) ............. 126

Mackenzie Balanced Income (PSG) ........................... 128

Core Balanced (PSG) ................................................. 130

Fidelity Balanced (PSG) .............................................. 132

Mackenzie Balanced (PSG) ........................................ 134Core Balanced Growth Plus (PSG) ............................ 136

Cash and cash equivalent funds ............................. 138

Money Market (Portico) ............................................... 138

Fixed-income funds .................................................. 140

Government Bond (Portico) ........................................ 140

Fixed Income (Portico) ................................................ 142

Short Term Bond (Portico) .......................................... 144

Long Term Bond (Portico) ........................................... 146

Real Return Bond (Portico) ......................................... 148

Corporate Bond (Portico) ............................................ 150

International Bond (CLI) .............................................. 152

Income Opportunity (London Capital) ......................... 154

North American High Yield Bond (Putnam) ................ 156

Indexed Canadian Bond (TDAM) ................................ 158

Balanced funds ......................................................... 160

Canadian Growth & Income (AGF) ............................. 160

Balanced (Bissett) ....................................................... 162

Harbour Growth & Income (CI) ................................... 164

Canadian Asset Allocation (Fidelity) ............................ 16

Managed (Laketon) ..................................................... 16

Balanced (Invesco) ...................................................... 17

Balanced (Greystone) .................................................. 17

Canadian Large Cap Balanced (Mackenzie) ............... 17

Canadian All Cap Balanced (Mackenzie) .................... 17

Income (Mackenzie) .................................................... 17

Global Balanced (Mackenzie)...................................... 18

Canadian equity funds .............................................. 18

Canadian Equity (Bissett) ............................................ 18

Small Cap Equity (Bissett) ........................................... 18

Harbour Canadian (CI) ................................................ 18

Canada Life Fidelity True North................................ 18

Mid Cap Canada (GWLIM) .......................................... 19

Canadian Equity (Howson Tattersall) .......................... 19

Canadian Equity (Invesco) .......................................... 19

Canadian Growth (Invesco) ......................................... 19

Enhanced Dividend (Laketon) ..................................... 19

Canadian Equity (Laketon) .......................................... 20

Canadian Equity Value (Laketon) ................................ 20

Dividend (London Capital) ........................................... 20

Canadian Equity (London Capital) .............................. 20

Canadian Equity Growth (Mackenzie) ......................... 20

Canadian specialty funds ......................................... 21

Canadian Equity (AGF) ............................................... 21

Real Estate (GWLRA) ................................................. 21

Canadian Resource (Mackenzie) ................................ 21

Foreign equity funds ................................................. 21

American Growth (AGF) .............................................. 21

International Equity (CI) ............................................... 21

Canada Life Fidelity American Disciplined Equity.... 22

Global Equity (Fidelity) ................................................ 22

U.S. Dividend (GWLIM) ............................................... 22

Global Equity (Invesco) ............................................... 22

U.S. Value (London Capital) ........................................ 22

Global Future (Mackenzie) .......................................... 23

U.S. Growth (Mackenzie) ............................................ 23

Global Equity (Setanta) ............................................... 23

International Equity (Templeton) ................................. 23

Cundill Global Value (Mackenzie) ............................... 23

Foreign specialty funds ............................................ 24

Canada Life Fidelity NorthStar.................................. 24

Far East Equity (Mackenzie) ....................................... 24

European Equity (Setanta) .......................................... 24

Global Infrastructure Equity (London Capital) ............. 24

Glossary of terms ...................................................... 24



How a Canada Lifesegregated funds policyworks

IntroductionThe Canada Life segregated funds policy is anindividual variable insurance contract based on thelife of the insured person(s), also known as theannuitant (or if two insured persons, the joint

annuitants), which you name on the applicationform. Canada Life is the issuer of the policy andmaintains the segregated funds.

The policy may be purchased only through advisorswho are life insurance licensed and who areauthorized by us to offer it to you.

The policy is available in four ways:

Non-registered

Registered retirement savings plan (RRSP)

Registered retirement income fund (RRIF)

Tax-free savings account (TFSA)

Spousal RRSPs, locked-in RRSPs (LRRSP),locked-in retirement accounts (LIRAs) and restrictedlocked-in savings plans (RLSP) are four specifictypes of RRSPs. Since all RRSPs work the sameway, whether or not they are LRRSPs, LIRAs orRLSPs, we will simply refer to them as RRSPsthroughout the rest of this information folder unless

we say otherwise. Spousal RRIFs, prescribedretirement income funds (PRIF), life income funds(LIF), restricted life income funds (RLIF) andlocked-in retirement income funds (LRIF) are fivespecific types of RRIFs. Unless we say otherwise,when we refer to features of a RRIF, they also applyto a PRIF, LIF, RLIF and LRIF.

A policy held as an investment in a trustarrangement that is registered externally (meaningnot through Canada Life) under the Income Tax Act(Canada) (such as an RRSP, RRIF, TFSA, etc.) is anon-registered policy with Canada Life and in this

information folder we refer to such a trustarrangement as a trusteed registered plan. The

policyowner of a non-registered policy held in atrusteed registered plan will be the trustee of thetrusteed registered plan.

The policy allows you to allocate premiums to thesegregated funds and sales charge options wemake available from time to time, subject to ourthen-current administrative rules.

This information folder describes the risks andbenefits of the segregated funds, the maturity anddeath benefit guarantees and the lifetime income

benefit option.

If your policy is a non-registered, RRSP or TFSApolicy, it is a deferred annuity, which means annuitypayments will commence, unless you chooseotherwise, following the policy maturity date. If yourpolicy is a RRIF policy, it is a payout annuity and youwill receive annuity payments in accordance with theterms of the policy unless you choose otherwise. Ifyou choose to make a redemption, it will reduce theamount available for annuity payments. Theperformance of the segregated funds you select willaffect the amount available for annuity payments.

For more information, see When your policymatures.

This document is divided into two parts. The first partcontains general information that applies to thepolicy. The second part provides specific informationabout the segregated funds.

A glossary of terms is located at the back of thisinformation folder and provides an explanation ofsome of the terms used in the folder.

Minimums to establish and maintain

a policyThe minimum premium required to establish andmaintain a policy depends on the policy type andsales charge option of the segregated fundsselected. Details are set out below.

We reserve the right to change the minimum andmaximum amounts from time to time.

Front-end load, deferred sales charge andlow-load deferred sales charge options

Where you allocate your premium to segregatedfunds under the front-end load, deferred salescharge or low-load deferred sales charge options,the applicable minimums are set out in thefollowing table.



Non-registered,RRSP andTFSA policies

RRIF Policies

Minimum initial

premium

$500 lump sum

or PAC of $25$10,000

Minimum amount

allocated to a

segregated fund

$25 $25

Additional

premium$100 $1,000

Minimum policy

value$1,000 $1,000

Current as of the date of the information folder subject to

change

Preferred series 1 front-end load option

Where you allocate your premium to segregatedfunds under the preferred series 1 front-end loadoption, the applicable minimums are set out below.

Non-registered,

RRSP, RRIF and TFSA

policies

Minimum investment amount $100,000

Minimum total holding $500,000

Minimum amount allocated to

a segregated fund$25

Additional premium $100

Current as of the date of the information folder subject to

change

Currently to invest in preferred series 1 front-endload option units you must:

Invest a minimum of $100,000 in the preferredseries 1 front-end load option; or

Have at least a market value of $100,000 in front-end load option, deferred sales charge option orlow-load deferred sales charge option units in aCanada Life segregated fund policy when youswitch to preferred series 1 front-end load optionunits; and

$500,000 invested in specific Canada Lifepolicies, (see Minimum total holdings).

You cannot invest in preferred series 1 front-endload units where the lifetime income benefit optionis selected.

Minimum total holdings

You must hold at least $500,000 in one or moreapproved investment products (eligible product).Eligible products can include Canada Lifesegregated fund policies and other investmentproducts approved by Canada Life. Ask your advisorfor details.

Eligible products must be held as follows(collectively referred to as total holdings):

In your name;

In your spouses name;

In joint names between you and your spouse;

In the name of or in trust for dependent children(under the age of 25 and living in the same

household as you);

In your parents name (when living in the samehousehold as you); or

In a corporate name if you own more than 50 percent of the voting shares of the corporation

Once the minimum investment and total holdingshave been confirmed, you will be able to invest inthe preferred series 1 front-end load option.

When you hold preferred series 1 front-end loadoption units, you must continue to meet theminimum investment and total holdings. If you donot, then we may switch the value of your preferredseries 1 front-end load option units to front-end loadoption units. For more information, see Failure tomaintain a market value and/or minimum total

holdings section.

Failure to maintain a minimum market valueand/or minimum total holdings

If a redemption is made from any eligible productsincluded in your total holdings and as a result:

The market value of your Canada Life segregatedfund policy drops below the minimum threshold

(currently $100,000); or

Your total holdings market value falls below theminimum total holdings threshold (currently$500,000);

we may switch the value of all your preferred series1 front-end load option units held in all applicablepolicies to front-end load option units of the samesegregated fund(s). You will not be subject to afront-end load fee. If a segregated fund is notavailable, another segregated fund, as determined


10/2520 CANADA LIFE SEGREGATED FUNDS INFORMATION FOLDER | JULY 201 3

by our administrative rules, will be selected. In anon-registered policy, a switch to units of a differentfund may result in a capital gain or loss.

The market value of your segregated fund policyalong with the total value of all eligible products arereviewed on a regular basis. If either the minimuminvestment or total holdings thresholds are no longer

met, we will send a notice to you. The notice will besent by regular mail to the most recent address onour records for the applicable Canada Lifesegregated fund policy. You should discuss youroptions during the notice period with your financialsecurity advisor.

If during the notice period you add a premium, andthe values then meet all applicable requirements, aswitch will not be made. If after the applicable periodthe requirements have not been met, we will processthe switch.

We will not process the above switch where the

decline in the market value of the segregated fundpolicy and/or eligible product was not wholly or partlya result of a redemption.

For example:

Lets assume that you establish your 100/100

guarantee policy with a premium of $150,000allocated to preferred series 1 units on April 5, 2013and no further premiums are added.

You also have another Canada Life segregatedfund policy, which has a value of $625,000 onApril 5, 2013.

On Jan. 15, 2014 you redeem $80,000 from your100/100 guaranteed policy leaving the policy with avalue of $70,000. During our review of your eligibleproducts, we note the redemption reduced the

market value of your policy below the requiredminimum of $100,000.

As the value is below the required minimum due to aredemption, a notice is sent to advise you that thepreferred series 1 units will be switched to front-endload option units unless an additional premium isadded to the 100/100 guarantee policy.

After the notice period, we review your 100/100guarantee policy and see a premium of $35,000 wasadded. As the value of the premiums added to thepolicy now equals an amount in excess of $100,000and the value of your other applicable eligible

products are still greater than $500,000, a switch tofront-end load option units will not be made.

Alternatively, after the notice period, we review your100/100 guarantee policy and see a premium hasnot been added, we will switch the value of yourunits from the preferred series 1 units to front-endload option units. This switch will occur even thoughthe value of your other applicable eligible productsare still greater than $500,000 as you do not meetboth requirements to hold preferred series 1 units.



Last age to establish or pay premiums to a policyThe last age to establish, pay premiums or transfer (as applicable) to a policy is dependent on the policy type and isbased on the annuitants age. The following table summarizes this information.

Policy typeLast age to establish a policy (based onannuitants age)

Last age to allocate apremium to a policy

Non-registered

90 90

TFSA

RRSP (except LIRAs/LRRSPs underNewfoundland and Labrador pensionlegislation)

71 71

LIRA/LRRSPs under Newfoundland andLabrador pension legislation

70 for 75/75 guarantee or75/100 guarantee

71

64 for 100/100 guarantee

RRIF (except LIFs under New Brunswick orNewfoundland and Labrador pensionlegislation)


9071 for 100/100 guarantee and must be aresult of a transfer from a Canada Life

segregated funds RRSP policy

LIF under New Brunswick pension legislation



segregated funds LIRA policy

LIF under Newfoundland and Labrador pension

legislation



segregated funds LIRA policy

Current as of the date of the cover of this information folder subject to change.

Types of policies

Non-registered policies

A non-registered policy can be owned by a singleindividual or jointly by several individuals. The policycan either have a single annuitant, who can be the

policyowner or someone else, joint annuitants asdescribed below.

Joint policyowners

When a sole annuitant has been named on theapplication, ownership of the policy following thedeath of a joint policyowner depends on the type ofjoint policyowner selected on the application.

A) With right of survivorship

When joint policyowners have been named on theapplication with right of survivorship on the death ofa joint policyowner who is not the annuitant, theother joint policyowner will become the solepolicyowner. Where Quebec law applies, rights of

survivorship means accretion and in order to obtainthe same legal effects as the rights of survivorship,joint policyowners must appoint each other ashis/her subrogated policyowner. You are responsiblefor any income tax reporting and payments that maybe required as a result of the change in ownership. Ifthe deceased joint policyowner is the annuitant, thepolicy will terminate and the applicable death benefitwill be paid. For more information, see Guaranteebenefits and Income tax considerations.



B) Tenants in common

When joint policyowners have been named on theapplication as tenants in common, on the death of ajoint policyowner who is not the annuitant, if nocontingent policyowner has been named, the estateof the deceased policyowner will take the place ofthe deceased joint policyowner. You are responsible

for any income tax reporting and payments that maybe required as a result of the change in ownership. Ifthe deceased joint policyowner is the annuitant, theapplicable death benefit will be paid. For moreinformation, see Guarantee benefits and Income taxconsiderations.

Joint annuitants

Joint annuitants are the persons upon whose life thepolicy is based. Joint annuitants must be eithermarried, civil union spouses or in a common-lawrelationship with each other at the time of theapplication.

Except where the policy is owned by a corporationor other entity that is not an individual the jointannuitants must also be joint policyowners withrights of survivorship (where Quebec law applies,rights of survivorship means accretion and in orderto obtain the same legal effects as the rights ofsurvivorship, joint policyowners must appoint eachother as his/her subrogated policyowner).

When joint annuitants apply for a joint policy on theapplication, the word policyowner and you in this

folder will mean both joint policyowners.

Where joint annuitants are also joint policyownersupon the death of a joint annuitant, the survivingannuitant will become the sole annuitant andpolicyowner. The death benefit will only be paid onthe death of the last annuitant while the policy is inforce.

When we refer to the age of an annuitant, we meanthe age of the younger of the two joint annuitants.The policy maturity date will be based on the age ofthe youngest annuitant. The policy maturity date willnot change if the younger annuitant dies first.

Following the policy maturity date, if an annuitant is

living and has not previously indicated an alternativepreference, annuity payments will commence. If bothannuitants are living, the annuity will be based onand be guaranteed for the life of both annuitants.Otherwise, the annuity will be based on and beguaranteed for the life of the surviving annuitant.

Contingent policyowner

If you are not the annuitant, you may name acontingent policyowner (subrogated policyowner in

Quebec) and may revoke or change a contingentpolicyowner. In the event of your death, thecontingent policyowner, if living, becomes the newpolicyowner. When joint policyowners were namedon the application with right of survivorship(subrogated policyowner in Quebec), your death

means the death of the last surviving policyowner. Ifyou have not named a contingent policyowner, or ifthey are not living on your death, then your estatewill become the policyowner.

Assignment

Subject to applicable laws, you may assign a non-registered policy; however, this does not apply if thelifetime income benefit option is selected (for details,see Lifetime income benefit option). The rights of theassignee take precedence over the rights of anyperson claiming a death benefit. An assignment mayrestrict or delay certain transactions otherwisepermitted. An assignment is not recognized until the

original or a true copy is received and recorded byus. An absolute assignment of a policy will make theassignee the policyowner: a collateral assignment ormovable hypothec in Quebec will not.

The rights of any policyowner or revocable,designated beneficiary, or irrevocably designatedbeneficiary, who has consented, are subject to therights of any assignee.

Registered policies

A registered policy can only be owned by a singleindividual who must also be the annuitant.

RRSPs, spousal RRSPs, LIRAs, LRRSPs andRLSPs

An RRSP is a policy registered under the IncomeTax Act (Canada) as a registered retirement savingsplan.

You can only open LRRSPs, LIRAs and RLSPs withmoney transferred directly from pension plans,where federal or provincial pension laws allow youto. Pension laws place certain restrictions on them.

Generally contributions that you make to your RRSPand spousal RRSPs are tax deductible and there is

a maximum amount you can contribute each yearunder the Income Tax Act (Canada). You can alsotransfer money directly from an RRSP at anotherfinancial institution or from a pension plan, if federalor provincial pension laws allow you to. There are nolimits on the amount of transfers from RRSPs. Thereare limits under the Income Tax Act (Canada) fortransfers from defined benefit pension plans.



RRIFs, spousal RRIFs, PRIFs, LIFs, RLIFsand LRIFs

A RRIF is a policy that gives you regular income andis registered under the Income Tax Act (Canada) asa registered retirement income fund.

You can only open a RRIF with money transferreddirectly from an RRSP or another RRIF. You canonly open PRIFs, LIFs, RLIFs and LRIFs with moneytransferred directly from a pension plan, from aLRRSP, LIRA and RLSP or from another PRIF, LIF,RLIF or LRIF, where federal or provincial pensionlaws allow you to. We currently offer RRIFs and LIFsacross Canada and PRIFs in Saskatchewan andManitoba. RLIFs are only available where the moneytransferred is administered under federal pensionlegislation.

Under the Income Tax Act (Canada), you mustredeem a minimum amount each year from thesepolicies. For LIFs, RLIFs and LRIFs there is also a

maximum amount you may redeem each year.

You can name your spouse as the sole beneficiaryand successor annuitant of your RRIF or spousalRRIF. On your death, the policy will pass to yoursurviving spouse, and payments may continue toyour surviving spouse. The only person who can beappointed as your successor annuitant is yourspouse.

TFSAs

A TFSA is a policy registered under the Income TaxAct (Canada) as a tax-free savings account.

Premiums you allocate to your TFSA policy are nottax deductible and there is a maximum amount youcan contribute each year under the Income Tax Act(Canada).

You can also transfer money directly from a TFSA atanother financial institution. There are no limits onthe amount of transfers from TFSAs.

You may assign a TFSA as security for a loan. Therights of the assignee take precedence over therights of any person claiming a death benefit. Anassignment may restrict or delay certain transactions

otherwise permitted. An assignment is notrecognized until the original or a true copy isreceived and recorded by us.

You can name your spouse as the successor holderof your TFSA. On your death, your surviving spousewill become the annuitant and policyowner of theTFSA policy. The only person who can be appointedas your successor holder is your spouse.

BeneficiariesYou may designate one or more beneficiaries toreceive any death benefit payable under the policy.You may revoke or change the designation prior tothe policy maturity date, subject to applicable law. Ifthe designation is irrevocable, you cannot revoke orchange it or exercise certain other specific rights

without the written consent of the irrevocablebeneficiary in accordance with applicable law.

If the policy is a LIRA, LRSP, RLSP, PRIF, LIF, RLIFor LRIF, the interest of your spouse, civil unionspouse or common-law partner can take priority overa beneficiary designated by you, depending onapplicable pension legislation.

While the lifetime income benefit option is in force,you should consider carefully who you wish to nameas beneficiary or successor annuitant. The individualnamed will have an effect on how the policy isadministered on the death of an annuitant. For

further details, see the Naming a beneficiary and/orsuccessor annuitant while the lifetime income benefit

is in effectsection.



How our segregatedfunds work

Each of our segregated funds is a pool ofinvestments that is kept separate, or segregated,from the general assets of Canada Life. Each

segregated fund is divided into different classes witheach class having an unlimited number of notionalunits of equal value. Currently, you can allocatepremiums to one of six classes of the segregatedfunds depending on the guarantee level and salescharge option you select.

You can select one of three guarantee levels beingeither the 75/75 guarantee, 75/100 guarantee or100/100 guarantee. You can only hold oneguarantee level in each policy. For more informationon the guarantee levels, see Guarantee benefits.

Currently there are four sales charge optionsavailable: front-end load option, deferred salescharge option, low-load deferred sales charge optionand preferred series 1 front-end load option. Youcan allocate premiums to these sales charge optionssubject to our then-current administrative rules andapplicable minimum and maximum amounts. Formore information, see Sales charge options.

For each guarantee level there are two classes ofunits available. Units of the front-end load, deferredsales charge and low-load deferred sales chargeoptions are in the same class and can be held in thepolicy at the same time. Units of the preferred series

1 front-end load option are in a different class andcan only be held when units of the other options arenot held in the policy.

Certain segregated funds may not be availableunder all guarantee levels or sales charge options.

When you allocate money to segregated funds, unitsare allocated to your policy, but you do not actuallyown, buy or sell any part of the segregated funds orany units. Instead, we hold the assets of thesegregated funds. This also means that you dont

have any voting rights associated with thesegregated funds. We calculate the value and thebenefits to which you are entitled based on the valueof the units allocated to your policy on a particulardate less any applicable fees and charges.

Neither your policy nor your units give you anownership interest in Canada Life or voting rights inconnection with Canada Life. When you select asegregated fund that invests in units of a mutualfund, you will not be a unitholder of the mutual fund.

We have the right to subdivide or consolidate theunits of a segregated fund. If we subdivide the unitsof a segregated fund, there will be a decrease in theunit value. If we consolidate the units of asegregated fund, there will be an increase in the unitvalue. If we subdivide or consolidate the units of asegregated fund, the market value of the segregatedfund and the market value of your policy will notchange. We will give you advance written notice ifwe have decided to do so.

We have the right to add a guarantee level, salescharge option or segregated fund. We also have theright to restrict or close the allocation of premiums orswitches to a guarantee level, sales charge option orsegregated fund. If we do close a guarantee level,sales charge option or segregated fund, you cannotallocate a premium or switch to the guarantee level,sales charge option or segregated fund. If we doclose a guarantee level, sales charge option orsegregated fund, it may be re-opened for investment

at our discretion.

We may terminate a segregated fund. We will notifyyou in writing 60 days before we terminate asegregated fund or make a material change to thefundamental investment objectives of a segregatedfund. For more information, see Fundamentalchanges to the segregated funds.

If we terminate a segregated fund, you have theright to switch the value of your units to anothersegregated fund. We may automatically switch theunits in the terminated segregated fund to anothersegregated fund of our choosing. Our written noticeto you will specify the segregated fund(s) that will beterminated, the proposed segregated fund that willreceive the automatic switch and the date theautomatic switch will occur if we do not receive otherinstructions from you five (5) business days prior tothe date the segregated fund is to be terminated. Ashort-term trading fee will not apply. The redemptionof units in a non-registered policy because of atermination may produce a taxable capital gain orloss.

We may change the investment strategies of asegregated fund without notice to you.

Its important to diversify, which means investing insegregated funds that have a variety of assets andinvestment styles. For more information about therisks involved in segregated funds, see Fund risks.



You can choose from 70 different Canada Lifesegregated funds and this broad choice provides agood opportunity for you to diversify. In addition,currently, 12 of our 70 funds are asset allocationfunds that are specially designed to increasediversification. All the segregated funds currentlyavailable are described in detail later in thisinformation folder; see the Fund Facts section.

Asset and income allocation fundsEach allocation fund invests in a variety of otherfunds. They offer you an easy way to diversify yourinvestments by investing in a single fund. Eachallocation fund invests in other funds to reduce thelevel of risk without reducing the potential returns.An allocation fund chooses investments that mayreact differently to the same market conditions inorder to decrease your overall risk. Theseinvestment combinations form the basis for eachallocation fund.

An asset and income allocation fund may offer youdiversification among:

Types of assets, such as shares, bonds,mortgages and real estate

The entities that issue the assets, such as sharesin large, small or resource-based companies, andbonds issued by governments or companies

Assets in different countries

Investment managers with different investmentstyles

We may review the composition of the asset andincome allocation funds from time to time. Whenrequired, we may change:

The funds the allocation fund holds.

The percentages of each fund the allocation fundintends to hold.

The number of funds the allocation fund holds.

Each allocation fund usually invests in between eightand 12 funds.

How we value segregated fund unitsGenerally, the value of each class of the segregatedfund is determined at the close of business on eachday that The Toronto Stock Exchange is open forbusiness and a value is available for any applicableunderlying fund. We refer to any day that we valuethe segregated funds as a valuation day.

On each valuation day we calculate a separate unitvalue for each class of a segregated fund. Each unitvalue is calculated by dividing the total value of theassets attributed to the class less any liabilitiesattributed to the class (including investmentmanagement fees and operating expenses) by thenumber of units in that class. For more informationabout investment management fees and otherexpenses, see Fees and expenses.

We have the right to change how often we value oursegregated fund units. We will tell you in writing 60days before we decrease the valuation frequency.

For more information, see Fundamental changes tothe segregated funds.

If we subdivide the units of a segregated fund, therewill be a decrease in the unit value. If we consolidatethe units of a segregated fund, there will be anincrease in the unit value. If we subdivide orconsolidate the units of a segregated fund, themarket value of the segregated fund and the marketvalue of your policy will not change.

When we calculate the market value of an assetheld in a segregated fund, we use the closing priceof that asset. If a closing price is not available, wewill determine the fair market value of the asset.

Any amount that is allocated to a segregatedfund is invested at your risk and may increase ordecrease in value.



Fundamental changes to thesegregated fundsIf we make any of the following changes to asegregated fund, we will notify you in writing 60 daysbefore the change occurs. The notice will be sent byregular mail to the most recent address for thispolicy we have for you in our records.

Increase the investment management fee.

Material change to the investment objective.

Decrease the frequency with which the fund is valued.

If applicable, an increase by more than the greaterof 0.50 per cent per year or 50 per cent of thecurrent fee charged for the maturity guaranteereset option, the death benefit guarantee resetoption or the lifetime income benefit option. Formore information, see the Death benefitguarantee reset option fee under the 75/100guarantee policy section and 100/100 guarantee

policy section, Maturity guarantee reset fee underthe 100/100 guarantee policy section and Lifetimeincome benefit monthly charge under the Lifetimeincome benefitoption section.

During the notice period, you will have the right toswitch the value of your units from the affectedsegregated fund to a similar segregated fund that isnot subject to the fundamental change withoutcharge provided you advise us at least five businessdays prior to the change happening. We will adviseyou of similar segregated funds that are available toyou at that time. A similar fund is a fund within the

same segregated fund category that has acomparable investment objective and the same orlower investment management fee. The switch ofyour units from one segregated fund to another in anon-registered policy may produce a taxable capitalgain or loss. For information about tax implications,see Income tax considerations.

If we do not offer a similar segregated fund, you mayhave the right to redeem the segregated fund unitswithout incurring a redemption charge or similar feeprovided you advise us at least five business daysprior to the change happening. We will advise you ifthis applies to you. Any redemption of units from anon-registered policy may produce a taxable capitalgain or loss. For information about tax implications,see Income tax considerations.

During the transition period between theannouncement and the effective date of thefundamental change, you will not be permitted toallocate premiums to or switch into the affectedsegregated fund unless you agree to waive yourrights under this fundamental change provision.

Allocating premiums,redeeming and switchingsegregated fund units

Although you do not own the segregated fund units,

you are directing how we should allocate yourpremium amongst the segregated funds. You canallocate your premium to a segregated fund up tothe earlier of the day prior to the annuitant attainingage 91, subject to applicable legislation, or thecommencement of annuity payments. Premiumsallocated to the policy and to any sales chargeoption are subject to such minimum and maximumamounts in accordance with our then-currentadministrative rules.

You can request to redeem or switch units prior tothe commencement of annuity payments. Requests

to redeem or switch segregated fund units may bedelayed in unusual circumstances. For moreinformation, see When the redemption or switchof your units may be delayed. We only processallocations, redemptions or switches on a valuationday and subject to our then-current administrativerules. We have the right to limit or refuse allocationsand switches to, and redemptions from, segregatedfunds.

If we receive your request to allocate your premiumto a segregated fund, redeem or switch units at ouradministrative office before 4 p.m. eastern time or

before the Toronto Stock Exchange closes,whichever is earlier, on a valuation day (the cut-offtime), we will process the request on that day usingthat days unit value. If we receive your request after

that time, we will process it on the next valuation dayusing the next days unit value. For more

information, see How we value segregatedfund units.

When you ask us to allocate your premium to asegregated fund, redeem or switch units, yourinstructions must be complete and in a manneracceptable to us, otherwise we will not be able tocomplete the transaction for you.

If the investment instructions or accompanyingdocumentation is incomplete, the premium will beheld in accordance with our then-currentadministrative rules until we receive completedocumentation. On receipt of complete instructionsor documentation, we will process the request onthat day using that days unit value if received at ouradministrative office prior to the cut-off time. If wereceive your request after that time, we will process



it on the next valuation day using the next days

unit value.

We have the right to change any minimum amountsthat are given in this information folder.

How to allocate premiums to

segregated fund unitsWhen you apply a premium to a segregated fund,we allocate units to your policy. We determine thenumber of units to allocate to your policy by dividingthe net amount of the premium by the appropriateunit value of the segregated fund. For moreinformation, please see How we value segregatedfund units.

If your advisor has placed an electronic order onyour behalf, we will allocate units to your policy onthe valuation day noted above. We may require allnecessary and original documentation be provided

to us prior to the premium being allocated to asegregated fund.

If we have not received everything we require toprocess your request within ten valuation days afterthe order is placed, on the next valuation day we willreverse the order. If there is any loss incurred as aresult of reversing the transaction, the amount of theloss will be charged to you.

If on receipt of the required original documentation, itis incomplete or does not match the electronic instructions,your policy will be restricted and you will not be ableto switch units until the documentation is corrected

to our satisfaction. Once we receive satisfactorydocumentation, the restriction will be removed.

Pre-authorized chequing (PAC)

You can also allocate premiums to a non-registered,RRSP or TFSA policy by having money transferredautomatically from your bank account. The amountallocated to a segregated fund must be at least $25.You can select the frequency of your contributions(i.e. weekly, bi-weekly, monthly, bi-monthly,semi-monthly, quarterly, semi-annually, or annually).Pre-authorized chequing is not available underLRRSPs, LIRAs or RLSPs policies.

If the selected redemption date falls on a nonvaluation day, the redemption will be processed onthe next valuation day.

If any lump sum or PAC is not honoured for anyreason, we reserve the right to recover anyinvestment losses and charge you a returnedcheque fee to cover our expenses. The recovery ofany investment losses and returned cheque feewould be collected by redeeming units and you are

responsible for any income tax reporting andpayments that may be required. For information onthe returned cheque fee, see Returned cheque fee.

Sales charge optionsYou may choose from four sales charge optionswhen allocating premiums to the segregated funds:front-end load option, deferred sales charge option,low-load deferred sales charge option and preferredseries 1 front-end load option. You cannot hold front-end load, deferred sales charge or low-load deferredsales charge options at the same time you hold thepreferred series 1 front-end load option. Dependingon the sales charge option chosen, you will besubject to a minimum investment amount. For moreinformation, see Minimums to establish and maintaina policy.

If you switch or redeem units, you may be subject toa short-term trading fee and any applicable taxes orother charges. For more information, see Short-term

trading fee and How to redeem segregated fund units.

Some segregated funds may not be available underall sales charge options. We may add or remove asegregated fund from a sales charge option. If weremove a segregated fund, we will give you writtennotice if you hold units of that fund. If a segregatedfund is removed, you cannot allocate any additionalpremiums or make switches to a segregated fundunder the applicable sales charge option. Asegregated fund can be re-added at our discretionwithout notice to you. To find out if a segregatedfund is available under a sales charge option, see

the Fund Facts.

Front-end load option

If you choose the front-end load option, you mayhave to pay a fee at the time you allocate thepremium to the segregated fund. The fee will bededucted from the premium. The remaining amountwill be allocated to units of the segregated fund youselect. Where units allocated to a policy are heldunder either the deferred sales charge option or thelow-load deferred sales charge option and youswitch the value of those units for units under thefront-end load option, the front-end load fee you

agree to pay will be obtained by redeeming unitsfrom the segregated fund you choose. If you do notmake an election or the segregated fund you choosedoes not have sufficient market value, we willredeem units from a segregated fund in accordancewith our then-current administrative rules. Thefront-end load fee is negotiable with your advisorup to the maximum of five per cent. We maychange the maximum front-end load fee for futurepremiums on written notice to you.



If you subsequently redeem units held under thefront-end load option, you will not pay a redemptioncharge but you will have to pay any applicableshort-term trading fee, withholding taxes andother charges.

Deferred sales charge option

If you choose the deferred sales charge option, youdont pay a fee when you allocate a premium to a

segregated fund. If you redeem units within sevenyears of allocating a premium to this option, you willhave to pay a redemption charge, any applicableshort-term trading fee, withholding taxes and othercharges. For more information on the redemptioncharge, see Redemption charges.

Low-load deferred sales charge option

If you choose the low-load deferred sales chargeoption, you dont pay a fee when you allocate

premiums to a segregated fund. If you redeem units

within three years of allocating a premium to thisoption, you will have to pay a redemption charge,any applicable short-term trading fee, withholdingtaxes and other charges. For more information onthe redemption charge, see Redemption charges.

Preferred series 1 front-end load option

If you choose the preferred series 1 front-end loadoption, you may have to pay a fee at the time youallocate the premium to the segregated fund. Thefee will be deducted from the premium. Theremaining amount will be allocated to units of thesegregated fund you select. The front-end load fee

is negotiable with your advisor up to a maximumof two per cent. We may change the maximumfront-end load fee for future premiums on writtennotice to you.

If you subsequently redeem units held under thepreferred aeries 1 front-end load option, you will notpay a redemption charge but you will have to payany applicable short-term trading fees, withholdingtaxes and other charges.

How to redeem segregated fund unitsYou can redeem segregated fund units on any

valuation day by sending appropriate documentationacceptable to us at our administrative office.Unscheduled redemptions are subject to minimumamounts, currently set at $500. The value of yourguarantees will be proportionally reduced whenyou redeem units. For more information, seeExamples of how redeeming units affects the

guaranteed amount.

If units are redeemed from the preferred series 1front-end load option, which drops the policy valuebelow $100,000 and/or a redemption is made froman eligible product, which results in your totalholdings falling below $500,000, we may switch theremaining value of your preferred series 1 front-endload option units, held in all applicable policies, tofront-end load option units of the same segregatedfund or similar segregated fund in accordance withour then-current administrative rules. For moreinformation see Minimums to establish and maintaina policy.

When you request money from your policy, we willredeem the number of units required to fulfill yourredemption request. A cheque for the proceeds, lessany applicable withholding taxes, fees or charges,will be mailed or the proceeds will be directlydeposited to your bank account once alldocumentation required to process your request isreceived in a form acceptable to us.

If we do not receive everything we require toprocess your request within ten valuation days afterwe receive your request, we will reverse thetransaction based on the unit values on the day weprocess the reversal. If there is any loss incurred asa result of reversing the transaction, the amount ofthe loss will be charged to you.

We will redeem units from any available freeredemption amount first, and then based upon theage of the units held in the applicable segregatedfunds, with the oldest units being redeemed firstafter any free redemption amount. The freeredemption amount is not available to low-loaddeferred sales charge option units. For moreinformation, see Free redemption amount. Deferredsales charge option units older than seven yearsand low-load deferred sales charge option unitsolder than three years may be redeemed without aredemption charge. For more information, seeRedemption charges.

Currently you may make two unscheduledredemptions in each calendar year without payingan administrative fee. This practice is subject to ourthen-current administrative rules. You cannot carry

forward any unused unscheduled redemptions toanother year. Additional redemptions are subject toan administrative fee. We may increase or decreasethe allowed number of unscheduled redemptionswithout notice.

We will charge a short-term trading fee on anyredemption where the units have not been held inthe segregated fund for the applicable period of time.For more information, see Short-term trading fee.



Redemption requests involving transfers to or fromregistered plans may be delayed until alladministrative procedures involved with registeredplans are complete.

When you redeem segregated fund units, thevalue of those units is not guaranteed because itfluctuates with the market value of the assets in

the segregated fund.

Under unusual circumstances, we may have todelay redemptions. For more information, seeWhen the redemption or switch of your units may

be delayed.

There may be income tax consequences if youredeem units. For more information, see Income taxconsiderations.

Free redemption amountEach year, you may redeem a portion of your

deferred sales charge option units without having topay a redemption charge. We call this the freeredemption amount. The free redemption amountis not available for units acquired under thelow-load deferred sales charge option. You willhave to pay short-term trading fees and anyapplicable withholding taxes or other charges whenyou redeem units.

The free redemption amount is calculated as follows:

Up to 10 per cent of the value of deferred salescharge option units allocated to each segregatedfund as of Dec. 31 of the previous calendar year;

plus Up to 10 per cent of any premium allocated to

deferred sales charge option units in the currentcalendar year before we receive your redemptionrequest

You cannot carry forward any unused portion of thefree redemption amount to another year.

We may change the free redemption amount at anytime on written notice to you.

Automatic redemptions

You may request an automatic partial redemption(APR) in your non-registered or TFSA policy, if youhave a minimum policy value of $7,500 or scheduledincome redemptions in your RRIF, spousal RRIF,PRIF, LIF, RLIF or LRIF policy, subject to ourthen-current administrative rules and applicablelegislation.

When the policy is non-registered or a TFSA, youmay receive the proceeds of the APR or allocate theamount as a premium to another Canada Life policy.

If units are redeemed from the deferred sales chargeoption, any amount in excess of the free redemptionamount will be subject to a redemption charge. Formore information, see Free redemption amountandRedemption charges. If units are redeemed from thelow-load deferred sales charge option, they will besubject to a redemption charge. For moreinformation, see Redemption charges.

If units are redeemed from the preferred series 1front-end load option, which drops the policy valuebelow $100,000 and/or a redemption is made froman eligible product, which results in your totalholdings falling below $500,000, we may switch theremaining value of your preferred series 1 front-endload option units, held in all applicable policies, tofront-end load option units of the same segregatedfund or similar segregated fund in accordance withour then-current administrative rules. For moreinformation see Minimums to establish and maintaina policy.

APR and scheduled income redemption requestsmust be received at least 30 days prior to therequested start date. You can choose when toredeem in accordance with our then-currentadministrative rules, how much to redeem each timeand the segregated fund units to be redeemed.Regular redemptions will eventually deplete themarket value of your policy and each redemptionwill reduce your death benefit guarantee andmaturity guarantee and may reduce your lifetimeincome amount. You may, subject to ouradministrative rules and applicable legislation,

change the amount or discontinue redemptions byadvising us in writing.

If we cannot redeem sufficient units from asegregated fund or the segregated fund has beenclosed to redemptions under the suspension andpostponement rights, we will redeem units inaccordance with our then-current administrativerules. For more information, see When theredemption or switch of your units may be delayed.

If the selected redemption date falls on a nonvaluation day, the redemption will be processed onthe next valuation day, unless the next valuation day

occurs in the next calendar month in which case wewill process the redemption on the valuation daybefore the scheduled redemption day.

There may be income tax consequences when unitsare redeemed to make your automatic redemption.For more information, see Income taxconsiderations.



When you redeem segregated fund units, thevalue of those units is not guaranteed because itfluctuates with the market value of the assets inthe segregated fund.

How to switch segregated fund unitsSwitches between segregated funds

You can switch units of one segregated fund in yourpolicy for units of another segregated fund on anyvaluation day by sending appropriate documentationacceptable to us at our administrative office.

When you switch units, it is the oldest units of thesegregated fund that are switched first. Units of thenew segregated fund will be given the same issuedate as the units of the old segregated fund forpurposes of any guarantee. The value of thematurity and death benefit guarantees will notchange when you switch units.

We will charge a short-term trading fee on anyswitch when the units to be redeemed have notbeen held in the segregated fund for the applicableperiod of time. For more information, see Short-termtrading fee.

Switches within the same sales charge option willnot incur a redemption charge and the new units willhave the same redemption charge schedule as yourold units (as applicable).

In a non-registered policy, a switch between differentsegregated funds is a taxable disposition and mayresult in a capital gain or capital loss. For more

information, see Income tax considerations.

Switches between sales charge options

If you hold units of the front-end load, deferred salescharge or low-load deferred sales charge class andmeet eligibility requirements, you can switch to unitsof the preferred series 1 front-end load class,provided the total value of all units are switched.

Switches of units from the deferred sales chargeoption or low-load deferred sales charge option topreferred series 1 front-end load option prior to theexpiry of the redemption charge schedule will be

processed under our then-current administrativerules and you will have to pay an amount equal tothe redemption charge that would otherwise apply ifthe units had been redeemed.

Switches of units from the deferred sales chargeoption or low-load deferred sales charge option tothe front-end load option prior to the expiry of theredemption charge schedule will be processedunder our then-current administrative rules and youwill incur applicable redemption charges.

When units allocated to a policy are held undereither the deferred sales charge option or thelow-load deferred sales charge option and youswitch the value of those units for units under thefront-end load option, the front-end load fee youagree to pay will be obtained by redeeming unitsfrom the segregated fund you choose. If you do notmake an election or the segregated fund you choosedoes not have sufficient market value, we willredeem units from a segregated fund in accordancewith our then-current administrative rules.

For a non-registered policy, switches between salescharge options will not result in a capital gain or loss,unless you are switching between different funds orswitching from deferred sales charge option or low-load deferred sales charge option units prior to theexpiry of the redemption charge schedule. For moreinformation, see Income tax considerations.

Automatic switch program

Upon request and subject to our administrativerules, you can establish a scheduled switch of a setamount from one segregated fund to another ormultiple segregated funds in the policy. The switchwill occur in the amount and frequency specified byyou subject to our then-current administrative rules.If the day selected by you is not a valuation day,then the switch will occur on the next valuation day.When the day specified is a month-end date and thisday is not a valuation day, the switch will occur onthe valuation day immediately prior to the specifieddate. Scheduled switches are not allowed if thepolicy is a LRRSP, LIRA, RLSP, PRIF, LIF, RLIFor LRIF.

You cannot set up an automatic switch betweenfront-end load, deferred sales charge or low-loaddeferred sales charge options and the preferredseries 1 front-end load option.

Please remember that the value of thesegregated fund units held in your policy is onlyguaranteed at maturity and death. At other times,including when you switch segregated fundunits, the value of those units is not guaranteedbecause it fluctuates with the market value of the

underlying assets held in the segregated fund.Under unusual circumstances, we may have todelay switches. For more information, please seeWhen the redemption or switch of your units may

be delayed.



Short-term tradingUsing segregated funds to time the market or tradingon a frequent basis is not consistent with a long-terminvestment approach based on financial planningprinciples. In order to limit such activities, we willcharge a short-term trading fee as outlined below.The short-term trading fee is retained in the

segregated fund as compensation for the costsassociated with the switch or redemption request.

We will take such additional actions as we considerappropriate to prevent further similar activity by you.These actions may include the delivery of a warning,placing you on a watch list to monitor activity,declining to accept allocations to and switch andredemption requests from the segregated funds,delay trades by one valuation day and suspendtrading under the policy. We reserve the right tochange our administrative practices or introducenew ones when we determine it is appropriate.

We will charge a short-term trading fee of up to twopercent of the amount switched or redeemed if youallocate premiums to a segregated fund for less than90 consecutive days.

The fee is subject to change. This right is notaffected by the fact that we may have waived it atany time previously. We reserve the right to increasethe period of time a premium must remain in asegregated fund. We will give you written notice ofour intent to increase the time period at least60 days in advance. Our notice to you will specifythe affected segregated fund(s) and the new period

of time. We will send the notice to your most recentaddress on our records for this policy.

Rebalancing serviceThe rebalancing service is an automatic portfoliorebalancing service. This service allows you toinvest in any number of segregated funds andchoose specific fund target allocations. We willmonitor your segregated funds and rebalance thembased on the first rebalancing date, frequency andrebalancing range percentage you choose.

Currently, there are no separate fees for the

rebalancing service and no minimum amount isrequired other than our current product minimums.

You can request the rebalancing service either atthe time you complete the application or add it at alater date. When you elect this service you areauthorizing us to monitor your policy and torebalance it at the intervals you select. We will add

the rebalancing service to your policy whendocumentation acceptable to us has been receivedat our administrative office.

We will monitor and review the segregated funds tobe rebalanced against the target allocations on therebalance date and on every applicable anniversaryof the rebalance date, based on the rebalance

frequency (quarterly, semi-annually or annually) andthe rebalancing range percentage you select. Therebalancing range percentage is between two to10 percent.

On each rebalancing date, if the weightingsattributable to the selected segregated funds differby an amount equal to or greater than therebalancing range percentage you selected, thesegregated funds will be rebalanced to a point withinthe range in accordance with our administrativerules.

When you hold front-end load, deferred sales charge

or low-load deferred sales charge option units of thesame segregated fund in your policy, all of thosesales charge option units are taken intoconsideration when a rebalancing occurs.

Eligible segregated funds

Only rebalancing eligible segregated funds may beincluded in the rebalancing service. We can add orremove a segregated fund from the list of thoseavailable for the rebalancing service from time totime. If a segregated fund is not included or isremoved from the list, you are not able to select it inyour target allocation list. If we remove a segregatedfund, it will not be included in your scheduledrebalancing and any subsequent rebalancing willoccur in accordance with our administrativeguidelines.

Currently all segregated funds are eligible for therebalancing service.

You may also hold units of other segregated fundswithin the same policy, and not have them includedin the rebalancing service.

You can use the Money Market Rebalancing Series(Portico) segregated fund to direct your premium to

rebalancing eligible segregated funds.

When you direct a premium through the MoneyMarket Rebalancing Series (Portico) segregatedfund, we automatically switch the premium to therebalancing eligible segregated funds you select.This transaction occurs on the next valuation dayfollowing receipt of the premium, along withcompleted and acceptable documentation, ifreceived prior to the cut-off time at our administrative



office. If received after the cut-off time, the switchoccurs on the second valuation day followingreceipt. If the documentation is incomplete or yourinstructions are not clear to us, the premium will beheld in accordance with our then-currentadministrative rules. For more information, seeAllocating premiums, redeeming and switching

segregated fund units.

If you allocate premiums to the Money MarketRebalancing Series (Portico) segregated fund andhave not submitted instructions to us specifying yourtarget fund allocations and rebalancing preferenceswithin 30 days, we will redeem those units andallocate the value for units of the Money Market(Portico) segregated fund or another segregatedfund as determined by our administrative rules withthe same sales charge option.

Changes to target fund allocation

You can change your target allocation, rebalancing

ranges or rebalancing frequency by providingupdated written instructions at our administrativeoffice. You may also request a manual rebalancingof your segregated funds outside of the scheduledautomatic rebalancing period at any time. A manualrebalancing may trigger short-term trading fees. Formore information, see Short-term trading.

If you redeem all the units in a segregated fund thatwas part of your target allocation without providingus with amended instructions, we will rebalance theremaining segregated funds in your policy andproportionately reallocate the value of the units

amongst the same segregated funds in your statedtarget allocation, including the redeemed segregatedfund at the time of your next scheduled rebalancing,we may terminate the rebalancing service at anytime by providing notice to you.

In a non-registered policy, the rebalancing servicewill result in a capital gain or capital loss since theswitch creates a taxable disposition. For moreinformation, see Income tax considerations.

When the redemption or switch ofyour units may be delayedUnder unusual circumstances, we may have todelay redeeming units or postpone the date of aswitch or payment. This may happen if:

Normal trading is suspended on a stock exchange

where the segregated fund or underlying fund hasa significant percentage of its assets, or

We believe its not practical to dispose ofinvestments held in a segregated fund orunderlying fund or that it would be unfair to otherpolicyowners

During such a delay, we will administer theredemption of units according to the applicable rulesand laws and in a manner that we consider fair. Wemay have to wait until there are enough assets inthe fund that can be easily converted to cash. Ifthere are more requests to redeem units than we

can accommodate, we will redeem as many units aswe think is appropriate and allocate the proceedsproportionally among the investors who asked toredeem units. We will redeem any remaining unitsas soon as we can.



When your policy matures

Policy maturity dateThe policy maturity date is the date on which thepolicy matures and depends on the type of policyyou have. For a policy which is a RRSP, spousal

RRSP, LIRA, LRRSP or RLSP (subject to applicablepension legislation) payment will commence on aRRIF, spousal RRIF, PRIF, LIF or RLIF basis (asapplicable) on or about the fourth last valuation dayof the year you attain the maximum age, and thepolicy maturity date will be the policy maturity datefor a RRIF, spousal RRIF, PRIF, LIF, RLIF or LRIF(as applicable). Maximum age means the date andthe maximum age stipulated for a maturing RRSP asset out in the Income Tax Act (Canada) as amendedfrom time to time. As of the date of this informationfolder, the date and the maximum age stipulated inthe Income Tax Act (Canada) is Dec. 31 of the year

the annuitant attains age 71.

The policy maturity date for a non-registered, aTFSA, a RRIF, spousal RRIF, PRIF, RLIF or LRIFpolicy is Dec. 28 of the year the annuitant attainsage 105. If Dec. 28 is not a valuation day, then thepolicy maturity date will be the next valuation dayafter Dec. 28 in that year.

Policies, other than a TFSA policy, issued to Quebecresidents may be annuitized at age 80 or 90 as setout in the policy, but no maturity guarantee willapply. If no election is made, the policy will annuitizeon Dec. 28 of the year the annuitant attains age 105,and a maturity guarantee may apply.

If the policy is a LIF, the policy maturity date isdependent on the jurisdiction that regulates it. Whenapplicable pension legislation requires that youreceive payments from a life annuity, the policymaturity date will be Dec. 28 of the year in which youattain the age stipulated in the applicable pensionlegislation. Otherwise, the policy maturity date will beDec. 28 of the year in which you attain age 105. IfDec. 28 is not a valuation day, then the policymaturity date will be the next valuation day afterDec. 28 in that year.

Currently redemptions from a LIF under NewBrunswick pension legislation must exhaust thepolicy no later than Dec. 28 of the year you attainage 90.

Currently Newfoundland and Labr

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