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The Great-West Life Assurance Company, London Life Insurance Company and The Canada Life Assurance Company have become one company – The Canada Life Assurance Company. Discover the new Canada Life

The Great-West Life Assurance Company, London Life Insurance Company and The Canada Life Assurance Company have become one company – The Canada Life Assurance Company. Discover the new Canada Life

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Freedom 55 Financial is a division of The Canada Life Assurance Company and the information you requested can be found here.

Waiver of premiums: protecting your participating life insurance policy

Key takeaways

  • A death or disability can affect whether the policyowner or the person making the premium payments can earn income and continue making their payments.
  • Waiver of premium can help protect your participating life insurance policy in these circumstances.
  • Add this benefit to your policy so your long-term plan to grow your wealth can continue without interruption.

Protect your plan when life changes

People often get participating life insurance to support long-term financial goals over their lifetime. It can build cash value over time and may generate dividends.

But what if the policyowner or the person making the premium payments becomes disabled or dies? Without a strategy to protect the policy, those goals could be thrown off course.

What is waiver of premiums?

Death or disability can reduce income or eliminate it altogether. Making premium payments may suddenly become more challenging.

Waiver of premiums is an optional benefit you can add to eligible participating life insurance policies. It will cover your payments and keep your policy active (provided it meets certain conditions), so its value can continue to grow without interruption.

How does waiver of premiums support your participating life insurance strategy?

It helps preserve your coverage

Coverage can remain in place if the person insured under this benefit has a qualifying disability or after they die.

It helps preserve your policy’s value

Keeping your policy active enables steady progress toward building wealth with potential cash value. You also still have access to the policy’s features and benefits.

It helps preserve your legacy

Waiver of premiums can help keep your plans on track to support family members, charities, estates or business succession plans.

It helps preserve your future

The last thing you need when there’s a death or period of disability is to figure out how to pay your life insurance. Waiver of premiums is there to help ensure your coverage can continue and you can focus on managing your situation.

Are there other options for protecting your policy?

Yes. Waiver of premiums is one of several ways to cover your premium payments. Others include:

  • Premium offset.
  • Reduced paid-up insurance – where you reduce your coverage to stop paying premiums.
  • Automatic policy loans.

Who may want to consider waiver of premiums?

This option might be right for you if you:

  • Want to ensure long-term coverage remains in place for your loved ones or your business.
  • Have limited income for insurance premiums after meeting basic needs.
  • Want an option for maintaining stability in your financial portfolio.
  • Have many more years of premium payments remaining.
  • Own a business where participating life insurance supports planning for succession or protecting shareholders.

Help protect the plan you’ve built

Participating life insurance is a solid choice to help build wealth and create a legacy for life. The protection it offers doesn’t have to change just because your circumstances have. With waiver of premiums, your plan stays intact.

 

What’s next?

  • Discover the types of participating life insurance Canada Life offers.
  • Talk to your advisor about whether waiver of premium or other benefit options would fit your needs.
  • Deepen your knowledge of the different types of life insurance to see what might work best within your financial plan.

The information provided is accurate to the best of our knowledge as of the date of publication, but rules and interpretations may change. This information is general in nature, and is intended for informational purposes only. For specific situations you should consult the appropriate legal, accounting or tax advisor.