FAQs

Are you looking to understand more about one of our products, or do you need further information on the processes and practices at Canada Life? Use this page to easily select the category and/or product region to find what you need. We also have a glossary that may help with some of the key terms used across the site. 

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134 FAQs found

To qualify for The Retirement Account you must be at least 18. 

You must be 55 for crystallisation unless there is an entitlement to take benefits at an earlier protected age, in which case it’s 50.

There is no maximum age for Pension Drawdown or Pension Savings options. The maximum age at entry for Guaranteed Income is 85.

You and your financial adviser may need to provide us with some information about your health and lifestyle as part of your application, or we can call you to collect the relevant information. We will then provide you with a personally tailored quote, to get you the highest level of guaranteed income.

All of our products come with access to support services to help employees and employers make the most of the benefits every day, not just when a claim needs to be made.

Group Life Assurance

Bereavement Counselling - a 24/7 helpline offering bereavement counselling and information about probate (known as a grant of confirmation in Scotland).

Group Income Protection

EmployeeCare - a fully-featured Employee Assistance Programme.

Second Medical Opinion - It gives employees and their immediate family access to the best available medical advice in the world.

BusinessCare - legal and HR advice and an expert-reviewed document creation tool for businesses.

Treatment Sourcing - The service is offered to help employees and their immediate family access convenient private healthcare at competitive prices.

Group Critical Illness

Personal Nurse Service - emotional and practical support for claimants provided by dedicated Personal Nurse Advisers.

Second Medical Opinion and Treatment Sourcing are also available to Group Critical Illness customers.

Since the UK voted to leave the European Union (EU), the two sides have been negotiating the terms of the UK's withdrawal and its future relationship with the EU. There is still a great deal of uncertainty about the final outcome and we continue to monitor the situation closely, including ensuring that our international business can continue to offer the choice of Isle of Man and Ireland jurisdictions to advisers and clients, and to be able to service our customers as we do now.

The answers in this Brexit Q&A are based on our current understanding of the situation and are subject to change as the date of withdrawal comes nearer. If you have any other questions you should speak to your adviser as they will have the best understanding of your personal financial situation.

Yes. A life assured can be added to a plan with a completed Request to add an additional life/lives assured for all except Flexible Life Plan form, however adding or removing a life assured may trigger a chargeable event so the completed form will always be referred to Technical for review prior to processing.  

Once done we will issue an account endorsement which should be kept by the clients with the original policy documentation.

"Pension Investment Plan (PIP) / Flexible Drawdown Plan (FDP) - Our contact details section provides you with the ways in which you can contact us. To change the frequency of your payments, you can use any of these methods. We will then send you a quotation and the relevant form.

Fixed Term Income Plan (FTIP) - The frequency or due date of the payments cannot be amended."

Yes, if you don’t need your pension income you can defer it. This needs to be confirmed in writing or by email together with the age the benefits are being deferred to.

Unfortunately, plans prefixed with SGL, SLC, JLC, JFC, JFD or JFS may not increase the life cover other than using the Annual Increase or Guaranteed Insurability Options.  Please refer to your policy provisions to determine whether these options are applicable. For other plans, the sum assured may be increased at the policy anniversary, subject to further underwriting.  Please contact us 8 weeks prior to the anniversary on 01624 820200 or by email to FOCUS@canadalifeint.com.

Flexible Drawdown Plan (FDP) and Fixed Term Income Plan (FTIP) do not allow personal or employer contributions.

Pension Investment Plan (PIP) will allow single contributions from a client or their employer. Any personal contributions are paid net and will have an additional 20% tax relief added. Higher rate tax-payers can claim the difference between higher and basic rate tax relief by completing a self-assessment tax return. 

A minimum initial investment of  £5,000 is required  as a transfer payment or contribution. Thereafter a minimum single contributions of £500 are allowed but transfer payments remain at £5,000.

The actual amount you can pay in a tax year for tax relief purposes is the greater of:

A gross contribution of £3,600.

100% of your earnings, subject to the annual allowance.

Annual Allowance - If you are subject to the Money Purchase Annual Allowance (MPAA), you can pay in a maximum of £10,000 per year. If you are not subject to the MPAA then you are able to pay in up to £40,000 per year. If you have unused annual allowances from the previous three tax years, you may be able to pay more.

If you earn over £110,000 this amount may be restricted. 

We suggest you speak to a professional adviser for more information.  If you do not have a professional adviser you can find one by going to www.unbiased.co.uk or by calling them on 0330 1000 755. Alternatively please advise us how much you would like to pay by contacting us on any of the methods provided on our contact details section. We will then send you a quotation and an application form.

This depends on what type of plan you have. Please contact us and we will let you know whether this is an option available to you.

Before you put any money into an investment plan we suggest you speak to a professional adviser. If you do not have a professional adviser you can find one by going to www.unbiased.co.uk or by calling them on 0330 1000 755.

Yes. Only at the policy anniversary and once the establishment period has ended.

Yes, but only for lower sums assured.  You will need to contact us well before the review date.  You should be aware that there may be a delay as the figures need to be calculated and verified by our actuaries.

Yes. The plan can hold up to 4 funds from the Core range. Switches are free.

We strongly suggest that you speak to a professional adviser before making any fund switches within the plan.

You can invest in a maximum of 10 funds. You can switch funds by completing our Pension Investment Plan and Flexible Drawdown Plan Fund Switch request form and returning it to Canada Life in the post or by a scanned email. Switch requests have to be received by 3pm to get the next working days price date. See our contact details page for our postal and email address.

Fixed Term Income Plans (FTIP) – Your policy does not have a switching facility as it is not invested in unit linked funds.

We strongly suggest that you speak to a professional adviser before making any changes to where your funds are invested. If you do not have a professional adviser you can find one by going to www.unbiased.co.uk or by calling them on 0330 1000 755.

You can switch funds by completing our Fund switch and redirection request form and returning it to us in the post or by a scanned email. Switch requests have to be received by 3pm to get the next working day's price date.

WARNING – Not all of our funds are available to all of our plans to invest in. If you are not sure which funds are available for your plan, please contact our Customer Service team on 0345 606 0708.

With the Open Market Option, we pay you up to 25% tax free cash and the remaining amount is transferred to another provider to provide a guaranteed income for life.

If you are interested in using the Open Market Option, please contact us and we will send you a claim form.

Under the new pension rules you can take all your pension savings as cash in one go. The first 25% will be tax-free and the rest will be taxed. If you are in serious ill health with life expectancy of less than 1 year you may qualify to have all the cash tax free.

This depends on what type of policy you have. Please contact us and we will let you know whether this is an option available to you.

Before you take any money out of an investment plan we suggest you speak to a professional adviser. If you do not have a professional adviser you can find one by going to www.unbiased.co.uk or by calling them on 0330 1000 755.

Transfers can be made from UK registered pension schemes into our CanRetire range.

Pension Investment Plans (PIP) can only hold uncrystallised funds. We will allow a pension held by another provider to be transferred in.

Flexible Drawdown Plans (FDP) can only hold crystallised funds. We will allow a pension held by another provider to be transferred in.

Fixed Term Income Plans (FTIP) can only hold crystallised funds. We will not allow a top up into this product via a transfer from another provider. A new product would have to be taken out.

We suggest you speak to a professional adviser for more information.

If you are transferring more than one source of monies, we will hold all monies in our pension holding account until all the transfers are received.

Our contact details section provides you with the ways in which you can contact us. To get a quotation and an application form you can use any of these methods. Please include the amount you are looking to transfer into your CanRetire product in your enquiry.

Pension Investment Plan (PIP) / Flexible Drawdown Plan (FDP) - You are able to transfer your pension to another company. The new company has to have a registered pension scheme and be willing to accept the funds from us. We may be required to carry out some extra checks to make sure the receiving company is authorised to accept payments. To request a transfer pack please contact us on any of the methods provided on our contact details section.

If the pension scheme you are transferring your pension savings to (known as the receiving scheme) uses the Origo Options service, they can request the payment from us online.

Fixed Term Income Plans (FTIP) – You are unable to transfer your plan to another company. If you have selected a guaranteed maturity value, you may transfer this amount to another company once you have reached your maturity date. We will contact you before this date with your options.

You can transfer your investment (Pension Drawdown and Pension Savings) funds to another registered pension scheme at any time. If you decide to transfer these funds, we may take a charge that will include any outstanding adviser charges. You can’t transfer the value of any Guaranteed Annuity.

Yes, but the surrender proceeds will not be released until full settlement is reached.

Yes, but the surrender proceeds will not be released until full settlement is reached.

Yes, but the proceeds will be released minus the value of the suspended Arch Cru units.

No, only the liquid funds can be withdrawn.

You can choose to have your Guaranteed Annuity and Pension Drawdown income paid to you monthly, quarterly or yearly. You can choose to have your payments made to you on the 12th, 20th or 28th of the month, although you may receive your payments earlier than your chosen date. For example if your payment falls over a weekend or bank holiday.

Please write to Canada Life International, email focus@canadalifeint.com or phone 01624 820399 to request this information. 

Correspondence can be sent to Canada Life International, Canada Life House, Douglas Business Park, Douglas, ISLE OF MAN, IM2 2QJ.

Please write to Canada Life International, email focus@canadalifeint.com or phone 01624 820399 to request this information. 

Correspondence can be sent to Canada Life International, Canada Life House, Douglas Business Park, Douglas, ISLE OF MAN, IM2 2QJ.

Please write to Canada Life International, email focus@canadalifeint.com or phone 01624 820399 to request this information. 

Correspondence can be sent to Canada Life International, Canada Life House, Douglas Business Park, Douglas, ISLE OF MAN, IM2 2QJ.

Please write to Canada Life International or email focus@canadalifeint.com for a written quote.

Correspondence can be sent to Canada Life International, Canada Life House, Douglas Business Park, Douglas, ISLE OF MAN, IM2 2QJ.

Premiums are most commonly paid monthly or yearly. We accept Direct Debit payments, though monthly Direct Debits incur a 2% loading to the premium. We also accept cheques for yearly premium payments only.

If a company changes its financial adviser, we need written confirmation in the form of a letter of appointment. To be accepted, this letter needs to be on company-headed paper and be signed by a senior figure whose job title is specified on the letter. The letter should confirm the new adviser and the date from which their appointment takes effect, and be posted to our Bristol office:

Canada Life Group Insurance, 3 Rivergate, Temple Quay, Bristol BS1 6ER.

We need a signed letter from all policyholders / trustees and we are able to accept scanned or faxed copies. Alternatively please complete the Change of Servicing Agent form.

If we do not have all the required signatures we will write out to the main correspondence address and request the remaining signatures. 

Please note that if there is existing servicing commission being paid on the policy we are able to transfer this to the new professional adviser however this amount cannot be altered, it must be the same, and the instruction must clearly state that this is to be transferred. If it does not then it will cease and no longer be available on that plan. 

For existing ongoing adviser charges, we are able to transfer as long as the instruction clearly states this however if the amount is to be altered we will require a separate instruction.  

If there are no servicing commission or adviser charges currently being paid on the policy then an instruction to commence adviser charges will be required and if PRE RDR the plan will need to be converted to RDR compliant (dependant on if product allows).  

Correspondence can be sent to Canada Life International, Canada Life House, Douglas Business Park, Douglas, ISLE OF MAN, IM2 2QJ.

If you have any questions, you can contact us in the following ways:

By phone – 0345 6060708 (lines are open Monday to Friday 9am-5pm)

By email - customer.services@canadalife.co.uk

By fax – 01707 668431

By letter – Customer Services Department, Canada Life Limited, Canada Life Place, Potters Bar, Hertfordshire, EN6 5BA. 

We need a signed letter from all trustees to facilitate or cancel an adviser charge or please complete and sign the Change of Servicing Agent form.

Correspondence can be sent to Canada Life International, Canada Life House, Douglas Business Park, Douglas, ISLE OF MAN, IM2 2QJ.

Visit our Fund Centre to see current fund prices. View fund fact sheets showing recent performance and fund information, and information about our Fund Managers.

To let us know that somebody has passed away, please contact our customer services team on 0345 606 0708.

Please have available:

  • Policy or Payroll Number
  • Full Name of Deceased
  • Date of Birth
  • Date of Death

We require a completed and signed Surrender/ Withdrawal Request Form which can be obtained here.

We may need Anti-Money Laundering documentation, our requirements are detailed on our ‘Guide to anti-money laundering’ which can be viewed here

Correspondence can be sent to:

Canada Life International, Canada Life House, 
Douglas Business Park, Douglas
ISLE OF MAN
IM2 2QJ

Pension Investment Plan (PIP) / Flexible Drawdown Plan (FDP) - We strongly suggest you contact Pension Wise which is a free and impartial government service that helps you understand your pension options. You can get guidance on the Pension Wise website, over the phone, or face to face.

We also strongly suggest that you get financial advice from an authorised professional adviser who will be able to discuss the various options with you.

Our contact details section provides you with the ways in which you can contact us. To get a quotation and an application form you can use any of these methods. Please let us know the new level of income you want to take.

Fixed Term Income plans (FTIP) – the income being paid from the plan cannot be amended.

 

We require a completed and signed Surrender/ Withdrawal Request Form which can be obtained here.

We may need Anti-Money Laundering documentation, our requirements are detailed on our ‘Guide to anti-money laundering’ which can be viewed here

Correspondence can be sent to:

Canada Life International, Canada Life House,
Douglas Business Park, Douglas
ISLE OF MAN
IM2 2QJ

You can add a beneficiary to any of our CanRetire products. Canada Life will however have discretion on what type of benefit is paid and who it is paid to.

Our contact details section provides you with the ways in which you can contact us. To add a beneficiary, you can either write to us, or send us a scanned copy with your signature.

We need Solicitor certified copies of the Power of Attorney documentation with a written instruction of the Power of Attorney address details including up to date Anti-Money Laundering documentation, our requirements are detailed on our ‘Guide to anti-money laundering’ which can be viewed by clicking here.

Correspondence can be sent to Canada Life International, Canada Life House, Douglas Business Park, Douglas, ISLE OF MAN, IM2 2QJ.

If any insured company moves office, we need to be advised in writing. This can be emailed to groupcsc@canadalife.co.uk or by physical post to our Bristol office:

Canada Life Group Insurance, 3 Rivergate, Temple Quay, Bristol BS1 6ER.

We will advise if the change of location has any effect on the policy terms and conditions.How-do-I-change-my-address

We need a signed letter by the policyholder(s) and / or all trustees or complete the change of contact details form.

If we receive an instruction from a Professional Adviser which isn’t signed by the client(s) we write to the client(s) at their new address requesting that they sign the letter and return to our office to confirm.

If the policy is held in trust we can accept signed confirmation from the lead trustee in order to change the main correspondence address. We do not need signed confirmation of the change of address from all trustees.

Correspondence can be sent to:

Canada Life International 
Canada Life House
Douglas Business Park
Douglas
ISLE OF MAN
IM2 2QJ
How-do-I-change-my-address

To change your address you can call our Customer Services team on 0345 606 0708 or complete and sign the change of address form and:

  • Post it to: Canada Life Ltd, Canada Life Place, Potters Bar, Hertfordshire EN6 5BA.
  • Fax it to: 01707 668 431, or
  • Email a scanned copy of the form, or a letter requesting a change of address with policy holder signatures, to services@canadalife.co.uk

Please note that if the policy is in joint names, we require both signatures. If contacting us by telephone, we will need to speak to both policy holders.How-do-I-change-my-address

Please complete and return our change of bank details form and return it to us by post. Alternatively, you can write to us with your new bank account number, sort code and account holder’s name, but please make sure your letter includes your signature.

We can only make payments to a bank account in your name. We cannot make payments to a third party.

Please complete and return our direct debit mandate form and return it to us. Alternatively, you can write to us with your new bank account number, sort code and account holder’s name, but please make sure your letter includes your signature.

If your policy premium changes for any reason, we will amend the Direct Debit. We always send a letter no less than two weeks before collecting any payments, in case there are any questions or concerns which need to be addressed.

For our Direct Debit Mandate, please click here

Correspondence can be sent to Canada Life International, Canada Life House, Douglas Business Park, Douglas, ISLE OF MAN, IM2 2QJ.

Should you need to contact Canada Life, you can do so in the following way:

Write to us at: Customer Services Department, Canada Life Limited, Canada Life Place, Potters Bar, Hertfordshire, EN6 5BA

Phone: 0345 6060708 (lines are open Monday to Friday 9am-5pm)

Email: customer.services@canadalife.co.uk

Website: www.canadalife.co.uk

Adviser Zone: 0345 36 53 456

Employers or their financial advisers can request a quote by email detailing the benefits and people to be covered. Alternatively, financial advisers can use the online CLASS system to get a quote for clients with up to 100 employees.

You can request a valuation over the phone, email or in writing. Click here to contact us.

Employers or their financial advisers can place a policy on risk by accepting a quote in writing. Every quote we provide will have a reference number which should be included in the confirmation.

"In the event of a claim, please contact our Customer Services Department for a claim form.

We may make further enquires about the cause and nature of the claim. Failure to provide the correct information could mean a delay in the payment of a valid claim."

We regret that you have felt the need to make a complaint. However, we do have a complaints handling process in place which can help you. Or telephone +44 (0) 1624 820200 for a copy to be sent to you in the post. Alternatively, you can email us at complaints@canadalifeint.com

Please be assured that all complaints are taken seriously and a thorough investigation into your concerns will be conducted.

You can also see a summary of the information we report to the FCA about the complaints we receive.

What we will do:

On receipt

We will acknowledge the complaint within five working days and provide contact details should the person making the complaint wish to communicate with us at any time during the investigation.

Investigation of a complaint

A complaint is immediately assigned to a nominated investigator who will seek all relevant facts, which may result in us contacting you again. They will also refer to documentation held and reports from consultants and any relevant third parties, where appropriate. Depending on the nature of your complaint, it may take some time to fully investigate.

Keeping you informed

If after four weeks we have been unable to resolve the complaint, we will provide a written update on our progress. We will always try to reach a conclusion within eight weeks, our company standard. If we are unable to do this, perhaps due to the complexities of the case, we will write to you again with details of the progress of our investigation. At 8 weeks the person making the claim will be advised that if he/she is not satisfied with the progress made, he/she may refer the matter to the Financial Services Ombudsman Scheme for the Isle of Man.

Informing you of the outcome of our investigation

Once all the information available has been reviewed, we will issue a decision letter which will provide a full account of our investigation and of our conclusion.

Complaints we cannot settle

Complaints we cannot settle can be referred to the Financial Services Ombudsman Scheme for the Isle of Man. This scheme provides an independent service for consumers with unresolved complaints. In our final response letter or at the 8 week point, we will provide you with details of how to contact the scheme, or you can view its website at: http://www.gov.im/oft

  1. To make a complaint, please contact us by one of the following ways:
    Email customers.ra@canadalife.co.uk 
    Call 0800 032 7690 - 8am to 6pm Monday to Friday. If we’ve been able to resolve your complaint immediately we will send you a written resolution letter within 3 working days.
  2. If we cannot resolve your complaint immediately, we’ll write to you within 5 working days acknowledging your complaint and explaining the next steps. We will investigate your complaint thoroughly. We’ll write to you again if your complaint is still unresolved after eight weeks of initially receiving your complaint. Our letter will explain the reason for the further delay and let you know when we expect to be able to provide a final response. We’ll also explain what action you may take if you are dissatisfied with the progress of the investigation.
  3. When we’ve concluded our investigation into your complaint, we’ll explain our decision in writing.
  4. If after 8 weeks we have been unable to satisfy your complaint, or haven’t sent you our final response, you can write to the Financial Ombudsman:

    Financial Ombudsman Service, Exchange Tower, London, E14 9SR.
    Website: financial-ombudsman.org.uk
    Email: complaint.info@financial-ombudsman.org.uk
    Telephone:  0800 023 4567

    However, the Financial Ombudsman is unable to deal with your complaint unless you’ve first given us the chance to put things right. 

We’ve made our complaints procedure easy to follow, so that you should not have to use a solicitor or seek professional help. If you choose to do this, you’ll be responsible for the costs. 

For further information please talk to your financial adviser.

At Canada Life our customers are key to our business and we are committed to having them at the forefront of our strategy and service. However even in the best organisation mistakes can occasionally happen or expectations may not always be met.

We regret that you have felt the need to make a complaint. However, we do have a complaints handling process in place which can help you. Or telephone 0345 606 0708 for a copy to be sent to you in the post. Alternatively, you can write to us at the following address:

Customer Services Department, Canada Life, Canada Life Place, Potters Bar, Herts, EN6 5BA

Please be assured that all complaints are taken seriously and a thorough investigation into your concerns will be conducted.

You can also see a summary of the information we report to the FCA about the complaints we receive.

Complaints we cannot settle can be referred to the Financial Ombudsman Service. The Financial Ombudsman Service is an independent service for consumers with unresolved complaints about financial firms. We will provide you with a copy of their leaflet, which gives guidance and details of how to contact them or you can view their website at http://www.financial-ombudsman.org.uk/.

Employers or their financial advisers may request changes to a policy in writing. Please note that we cannot change a policy from a date earlier than when we are first notified, so it is important to make us aware of any changes as early as possible. It is acceptable to advise us of an upcoming change even if the details are not completely final.

You can request a copy of your P60 by contacting us by any of the methods provided on our Contact Us section.

 

"Natural child; or
Legally adopted child (who will be covered from the date of their adoption); or step child by marriage or registered civil partnership (who will be covered from the date of marriage or civil partnership).

All claims must be in respect of a child who is:
at least 30 days old when symptoms began, the condition becomes evident or death occurs (children’s funeral cover), and
younger than 18 years, or
younger than 22 years and attending school, college or university full time during the period of cover (this includes work placements but excludes breaks from education, such as a gap year)."

HM Revenue and Customs (HMRC) let us know directly of any changes to your tax code. If you would like to query the tax code we are using you should call HMRC on 0300 200 3300.

 

Employers choose a date when the policy is set up on which we will produce a statement of account each year. We will need updated membership data to complete the statement. The statement will also include a review of the previous year and provide a final cost including any changes which happened in that period of time.

The specific requirements will vary between products, but the process begins with the employer submitting a claim form and any supporting information we require. You can find more information for each product by clicking the following links:

Group Life Assurance claims

Group Income Protection claims

Group Critical Illness claims

 

While the ultimate recipient of the benefit payment is different for each product because of the legal frameworks surrounding each, wherever possible we will make benefit payments by bank transfer.

The proceeds of any withdrawal will be released upon completion of our internal procedures, within 3 days of receipt of the last outstanding requirement. Requirements that commonly slow the withdrawal process include the following:

Receipt of an original Surrender/Withdrawal Form – although we are able to begin processing a withdrawal on receipt of an appropriately signed copy of the form, we must be in receipt of the original ‘wet ink’ version before any proceeds can be released.

Receipt of anti-money laundering documentation (AML) – each transaction constitutes a ‘trigger event’ in the life cycle of a plan and forces a review of the AML documentation held on file for all parties involved. Please refer to our 'Guide to anti-money laundering document' for details of documentation required and how they should be certified to ensure they comply with current regulatory requirements.

Receipt of funds from external sources – Where the proceeds of a withdrawal are being raised from a Nominee holding or an external platform, we must receive the money from them before forwarding it to you. To expedite the process, it is possible to place a dealing instruction before submitting your withdrawal request to ensure there is sufficient cash already available.

"Pension Investment Plan (PIP) / Flexible Drawdown Plan (FDP) are designed so that you can take out as much or as little income as you like from your overall fund value. This income can be taken whenever you want for a FDP and from age 55 for a PIP.

Fixed Term Income Plans (FTIP) have fixed payments and these cannot be changed."

 

"All plans - Income payments from all 3 of our products are subject to PAYE Income Tax. We are required to deduct income tax at source. HM Revenue & Customs (HMRC) rules mean that your income will be taxed using an emergency tax code unless we receive a current valid P45 or we hold a tax code from HMRC on your account. Any excess tax deducted must be reclaimed by you from HMRC directly.

If you make a large withdrawal this could push you into a higher tax bracket."

We will send you a yearly statement to show you how your Retirement Account is performing. You should review your Retirement Account on a regular basis to ensure it continues to meet your needs. Your financial adviser can help you with this. You can check the prices of funds online and you can obtain your Retirement Account value by phoning our customer services team on 0800 032 7690.

For Canada Life Limited

For individuals residing outside the UK we are no longer accepting new business applications for Annuities, Pensions, Drawdown (including the Fixed Term Income Plan) or Onshore Bonds. This follows guidance from the European Insurance and Occupational Pensions Association (EIOPA) suggesting that in the event of a no-deal Brexit, UK providers would need to apply for direct authorisation to sell to residents within each member state.  Whilst the original date for the UK’s departure from the EU has passed, the final terms of a negotiated or no-deal withdrawal are not yet clear.  We will maintain our current position of not accepting new business from non-UK residents for annuities, pensions, drawdown (including the Fixed Term Income Plan) and onshore bonds.  We continue to monitor the situation and, once the terms of the withdrawal are finalised, we will be able to make a decision on whether to accept applications from non-UK residents.

If you bought your policy in the UK and have since permanently relocated to a different country in the EU or the wider European Economic Area (EEA) (which includes Norway, Iceland and Liechtenstein, as well as all countries in the EU), or if you think you will do so in the future, or if you bought your policy while living in the EU/EEA, the outcome of the Brexit negotiations and the approach taken by the EU/EEA regulators may affect your policy. We don’t yet know what the approach of these regulators will be but we are committed to meeting our contractual obligations, including making payments to policyholders.  We will consider any changes that may be required when we have more clarity.

Group Protection

A no-deal withdrawal would not change our Group Protection range. Seconded employees would remain covered by their UK plan but permanent employees will require further consideration. The approach is to consider permanent employees as an exception, rather than standard, and we will continue to consider requests on a case by case basis.

You can find more information here:

Life assurance (death in service pensions)

Income protection

For Canada Life International Limited and CLI Institutional Limited policyholders

The Isle of Man is not part of the EU/EEA today and therefore we see no change to the trading relationship between the Isle of Man and the UK as a result of Brexit, a view shared by the Isle of Man government. As such we expect business to carry on as normal through Canada Life International Ltd and CLI Institutional Ltd.

For Canada Life International Assurance (Ireland) DAC policyholders

Canada Life International Assurance (Ireland) DAC (CLIAI) is an Irish authorised life assurance company and will continue to be Irish-authorised post-Brexit. It will therefore be subject to the same EU regulatory regime as currently applies. It will also remain open to new business in the event of a negotiated or a no-deal Brexit. We believe it is important to provide comfort to both our policyholders and advisers of our commitment to ensuring that existing policies will remain valid and enforceable after Brexit and that new policies post-Brexit will also be valid and enforceable. We aim to ensure that our international business can continue to offer the choice of Isle of Man and Ireland jurisdictions to advisers and clients, and to be able to service our customers as we do now.

One aspect we expect will change relates to the Financial Services Compensation Scheme (FSCS). The FSCS currently provides protection for UK-resident policyholders of EU-authorised life assurance companies, such as CLIAI, in the event that the company is unable to meet its financial commitments. The regulators and UK government are still consulting on whether this scheme will continue to apply to policyholders of companies such as CLIAI following Brexit.  However, it is our current planning assumption that CLIAI policyholders resident in the UK will no longer be covered by the FSCS once the UK leaves the EU fully, whether on the exit date in the event of a no-deal withdrawal or, if applicable, at the end of any implementation period. You can be reassured that CLIAI is a well-capitalised company and benefits from being a part of a strong group. Its parent, the Great-West Lifeco Group, has over £807bn in consolidated assets under administration (as at 31 Dec 2018), and we are confident that the risk of policyholder loss from being unable to meet our financial commitments is remote.

Where an individual is unable to provide one of the above documents to verify identity, such as a valid passport or driving licence, we will accept two other government issued documents carrying the personal details of the individual which include verifiable reference numbers. Where the individual’s current address is included, we will at our discretion count that as verification of address but in some circumstances we may ask for three documents to enable us to verify your identity and residential address.

Yes, you can have a further 30 days but the default option will be exercised if we don’t hear from you.

Most customers’ policies will not be affected by Brexit. If you bought your policy in the UK, still live in the UK and intend to stay in the UK then we are not expecting Brexit to have any impact on your policy.

If you bought your policy in the UK and have since permanently relocated to a different country in the EU or the wider European Economic Area (EEA) (which includes Norway, Iceland and Liechtenstein, as well as all countries in the EU), or if you think you will do so in the future, or if you bought your policy while living in the EU/EEA, the outcome of the Brexit negotiations and the approach taken by the EU/EEA regulators may affect your policy. We don’t yet know what the approach of these regulators will be but we are committed to meeting our contractual obligations, including making payments to policyholders.  We may need to transfer the policy to one of our Ireland based insurance affiliates to service.  For policyholders whose policies transfer in these circumstances, there would be no change to the way their policy works or the level of service they receive.

"Pension Investment Plan (PIP) / Flexible Drawdown Plan (FDP) - You can request a payment history by contacting us by any of the methods provided on our contact details section.

Fixed Term Income Plans (FTIP) - You can request a benefits letter by contacting us by any of the methods provided on our contact details section."

For Canada Life Limited policyholders

Most customers’ policies will not be affected by Brexit. If you bought your policy in the UK, still live in the UK and intend to stay in the UK then we are not expecting Brexit to have any impact on your policy.

If you bought your policy in the UK and have since permanently relocated to a different country in the EU or the wider European Economic Area (EEA) (which includes Norway, Iceland and Liechtenstein, as well as all countries in the EU), or if you think you will do so in the future, or if you bought your policy while living in the EU/EEA, the outcome of the Brexit negotiations and the approach taken by the EU/EEA regulators may affect your policy. We don’t yet know what the approach of these regulators will be but we are committed to meeting our contractual obligations, including making payments to policyholders.  We will consider any changes that may be required when we have more clarity.

For Canada Life International Limited and CLI Institutional Limited policyholders

The Isle of Man is not part of the EU/EEA today and therefore we see no change to the trading relationship between the Isle of Man and the UK as a result of Brexit, a view shared by the Isle of Man government. As such we expect business to carry on as normal through Canada Life International Ltd and CLI Institutional Ltd.

For Canada Life International Assurance (Ireland) DAC policyholders

Canada Life International Assurance (Ireland) DAC (CLIAI) is an Irish authorised life assurance company and will continue to be Irish-authorised post-Brexit. It will therefore be subject to the same EU regulatory regime as currently applies. It will also remain open to new business in the event of a negotiated or a no-deal Brexit. We believe it is important to provide comfort to both our policyholders and advisers of our commitment to ensuring that existing policies will remain valid and enforceable after Brexit and that new policies post-Brexit will also be valid and enforceable. We aim to ensure that our international business can continue to offer the choice of Isle of Man and Ireland jurisdictions to advisers and clients, and to be able to service our customers as we do now.

One aspect we expect will change relates to the Financial Services Compensation Scheme (FSCS). The FSCS currently provides protection for UK-resident policyholders of EU-authorised life assurance companies, such as CLIAI, in the event that the company is unable to meet its financial commitments. The regulators and UK government are still consulting on whether this scheme will continue to apply to policyholders of companies such as CLIAI following Brexit.  However, it is our current planning assumption that CLIAI policyholders resident in the UK will no longer be covered by the FSCS once the UK leaves the EU fully, whether on the exit date in the event of a no-deal withdrawal or, if applicable, at the end of any implementation period. You can be reassured that CLIAI is a well-capitalised company and benefits from being a part of a strong group. Its parent, the Great-West Lifeco Group, has over £807bn in consolidated assets under administration (as at 31 Dec 2018), and we are confident that the risk of policyholder loss from being unable to meet our financial commitments is remote.

Canada Life always recommends seeking specialist tax advice if there is any question of whether tax is payable. Our understanding of the tax positions of our products is:

Group Life Assurance - lump sum benefits payable to trustees are not subject to tax, but ongoing pension payments are considered earned income and taxed as such.

Group Income Protection - salary replacement benefits are treated as earned income and taxed as such.

Group Critical Illness - lump sum benefits are paid tax-free, but the premiums paid on the policy are a P11D benefit.

Please write to Canada Life International, email focus@canadalifeint.com or phone 01624 820399 to request this information. 

Correspondence can be sent to Canada Life International, Canada Life House, Douglas Business Park, Douglas, ISLE OF MAN, IM2 2QJ.

The current maximum amount is £3 million, which may change in the future. The maximum amount applies to all guaranteed annuities (purchased within The Retirement Account or standalone Guaranteed Annuity) you have bought with MGM Advantage Life Limited (Previously trading as MGM Advantage or Retirement Advantage).

At the start of your plan you can choose to pay an additional premium which will mean that once you have been unable to do your usual job for at least 13 weeks due to illness or disability, then you won’t have to pay any premiums. This benefit will continue for as long as you are unable to work, but expires when you reach the age of seventy or the plan ends.

No, HMRC rules require that if no instruction has been received prior to the maturity date the transaction cannot be reversed.

We cannot provide advice, so if you are concerned about any potential impacts of Brexit on investments, or are thinking about making any changes, you should speak to your adviser first.

The proceeds of any surrender will be released upon completion of our internal procedures, within 3 days of receipt of the last outstanding requirement.

"Pension Investment Plan (PIP) / Flexible Drawdown Plan (FDP) - We strongly suggest you contact Pension Wise which is a free and impartial government service that helps you understand your pension options. You can get guidance on the Pension Wise website, over the phone, or face to face. We also strongly suggest that you speak to an FCA authorised professional adviser who will be able to discuss the various options with you. From age 55 you can:
-       Use your policy to provide a flexible retirement income.
-       Use it to buy a guaranteed income for life.
-       Take it all as cash in one go.
-       Take it as smaller cash sums in stages.
-       Combine any of the above options.

If you would like Canada Life to provide you with more information on your options, please contact us on any of the methods provided on our contact details section.

Fixed Term Income Plans (FTIP) – These plans have fixed payments that cannot be changed. If you have selected a guaranteed maturity value, then once you have reached your maturity date the same options as the PIP and FDP (shown above) are available to you."

All of the charges outlined below are detailed in your personal illustration.

Adviser Fees

Adviser fees are charges for the financial advice you have received. You can pay for the advice by agreeing to have it deducted from the fund we receive from the transferring scheme(s). This will reduce the amount available to buy benefits in your Retirement Account. If you hold investments in your Retirement Account you may also agree a regular ongoing fee and there may be other one-off fees that you’ll need to agree with your adviser. These fees will be paid for by deductions from your investments which will affect the value of your funds in the future.

Product Charges

We make a drawdown charge when you move any uncrystallised funds under your Retirement Account into Pension Drawdown. This could be at the outset of your Retirement Account or later when you crystallise any Pension Savings you hold. The charge will also apply separately to each Pension Drawdown arrangement that originates from already crystallised pension transfer monies.

If you hold investments under your Account there is also an annual charge, which is deducted monthly and is taken from your investments. Both charges are outlined in your personal illustration and The Retirement Account Technical Summary.

We can make changes to the drawdown charge and annual charge and to other charges associated with your Retirement Account such as the cost of making ad-hoc income payments by electronic bank transfer, or to the cost of the investment funds available. We will give you notice of any change at least 60 days in advance. Our current charges can be viewed here

Annual Management Charge (AMC) 

An annual investment charge will be deducted, on a daily basis, in determining the unit price of each investment fund. There may also be additional expenses which are taken directly from the investment funds, or from the underlying investments of the investment funds. These additional expenses are the normal costs, taxes, duties and other charges incurred in holding, purchasing, managing and selling the assets of the investment funds. Find out our charges that are currently applied to any investment funds here.  

You can rest assured that we are committed to protecting our customers and continue to monitor political developments and engage with all relevant stakeholders (including professional advisers, discretionary fund managers, external legal and tax advisers and regulators), to ensure that we can continue to provide the service our customers expect whatever the Brexit outcome.  We will update this website with further information as soon as there is greater certainty. Whatever the outcome, we recommend that you keep in touch with your adviser to monitor any developments that may affect you.

If a Policyholder, Trustee, Life Assured or Settlor dies, we must be informed in writing as soon as possible after the event. Please refer to Our Guide to Making a Death Claim (document reference 6955) for all the information you will require.

We require the relevant sections of the Investment Administration Form to be completed in order for us to update the indictors on the plan which will then enable the nominated Adviser to access online dealing.  We will then provide confirmation that our records have been updated.

We require the relevant sections of the Investment Administration Form to be completed in order to appoint a Fund Adviser on the plan.  Once this has been received we will update the plan accordingly and issue confirmation letters.

We cannot accept a client letter or instruction on a change of broker request to switch Fund Adviser. We must have an investment admin form.

We require a fully completed Deed of Assignment (DOA) and full anti-money laundering for all parties to the assignment.  If the DOA has been drafted outside of Canada Life International then it will be checked upon receipt to ensure that it is ‘fit for purpose’.  We will also require the relevant Foreign Account Tax Compliance Act (FATCA) form(s) to be completed.

NOTE – Existing withdrawals will cease and if there is an adviser charge arrangement in place that is to continue then the new owner(s) must sign to confirm that the adviser charging is to continue.

We require a fully completed Deed of Assignment for each of the Assignee(s) and full anti-money laundering for the Assignor(s) and Assignee(s) in all instances.  We also need to establish whether it is the Assignee(s) intention to surrender immediately upon assignment. 

If the segments being assigned are to be surrendered immediately we will require a completed Surrender Form.

Please note that we require the assignment and surrender forms to be submitted at the same time so that they can be processed at the same time so that the client is not inconvenienced by any unnecessary administration fees associated with the set up of a new policy.

If the segments being assigned are to be kept in force we will require the following in addition to the above:

  • Agreement from each Assignee to the quarterly administration fee on the new plans. This will be product dependant so you must ensure that the correct administration fee is referenced.
  • A completed dealing instruction for each Assignee advising how the assets/cash are to be transferred into the new bond (units or cash figures).
  • (Optional) If a Nominee/Platform is held already on the existing plan and they wish to split this we will need an Investment Administration Form to be completed by each Assignee. The clients may also be required to pay additional non CLI costs that are involved in the setup of a new account and it would be beneficial for them to set these accounts up with the Platform prior to submitting the assignment paperwork. 
  • (Optional – if WPA/EPA etc.) Confirmation of whether the maturity dates on the segments will remain the same.

We will also require the relevant Foreign Account Tax Compliance Act (FATCA) forms to be completed in both instances however this will not hold up the processing of the assignment/surrender and can be submitted retrospectively.

NOTE – Existing withdrawals will cease and if there is an adviser charge arrangement in place that is to continue then the new owner(s) must sign to confirm that the adviser charging is to continue.

We require a clear instruction stating that the relevant individual / company is authorised to receive information only.  We do not require all policyholder / trustee signatures but we do require at least one. 

When this has been received we will make a note on the plan to state that the relevant company is authorised to receive information and note the date on the instruction.  This way, when a request for information is received by telephone, email or post the individual dealing with the request can see that there is authority on file.

We require a fully completed trust document (which does not have to be a Canada Life International Limited (CLI) branded trust document) and full anti-money laundering for all parties to the trust (apart from the beneficiaries, but this will be required prior to any distribution to a beneficiary).  If the trust is one of our own we require the original document however if it is one that has been drafted outside of CLI then we require either the original or a suitably certified copy and this will be checked upon receipt to ensure that it can be linked to the product.  We will also require the relevant Foreign Account Tax Compliance Act (FATCA) form(s) to be completed.

NOTE – If there is an adviser charge arrangement in place that is to continue then the trustees must sign to confirm that the adviser charging is to continue.

For additional information on acceptable anti-money laundering documentation please click here.

If a company changes name, we need to be advised in writing. This can be by email to groupcsc@canadalife.co.uk or by physical post to our Bristol office:

Canada Life Group Insurance, 3 Rivergate, Temple Quay, Bristol BS1 6ER.

If cover is transferring to a different company, such as after an acquisition, we may have additional requirements.

We need a signed letter (including new and old signature) to change the name, along with up to date anti-money laundering.  In addition, please complete the form found by clicking here.

In order to change a client’s name we require either the original or a suitably certified copy of the evidence of the change of name i.e. Marriage Certificate for surname, along with a Specimen Signature Form if they hold a role on the policy where they are required to sign any instructions i.e. policyholder, trustee.

Correspondence can be sent to Canada Life International, Canada Life House, Douglas Business Park, Douglas, ISLE OF MAN, IM2 2QJ.

You will need to provide us with formal documentation confirming the change of name. This should be sent to us with either a signed letter or a completed change of name form. Please read our Change of name guidance notes for further information.

Please send these documents by post, to Customer Services Department, Canada Life Limited, Canada Life Place, Potters Bar, Hertfordshire, EN6 5BA.

We will return any original documents by recorded delivery.

"Canada Life began operating in the United Kingdom in 1903, and has developed a wide offering of products and services to suit our clients.

Canada Life Assurance Company provides insurance and wealth management products and services through domestic operations in the UK, and international operations in the Republic of Ireland, the Isle of Man, Germany and, of course, Canada, as well as branch and subsidiary operations in other countries.

We understand that you want to be protected by a company that is strong, safe and secure. As part of the Great-West Lifeco group we are a constituent of the Financial Times Global 500 world’s largest companies. With combined assets under administration of more than £590 billion (as at 30 September 2015) we have a strong platform for continued growth as a world-class financial services provider."

If an employer or their financial adviser does not agree with a decision we have made regarding a claim, they can appeal the decision. The appeal can be by any route, including over the telephone, but it is generally best to submit an appeal in writing and provide any additional information which we may not have had. We have a rigorous process for reviewing claims and always aim to achieve the best outcome for all parties, so without further clarification of the circumstances surrounding a claim it is unlikely an appeal will overturn our original decision.

Appeals are reviewed by a panel of senior executives who were not involved with the original decision.

For Canada Life Limited policyholders

If you bought your policy in the UK and have since permanently relocated to a different country in the EU or the wider European Economic Area (EEA) (which includes Norway, Iceland and Liechtenstein, as well as all countries in the EU), or if you think you will do so in the future, or if you bought your policy while living in the EU/EEA, the outcome of the Brexit negotiations and the approach taken by the EU/EEA regulators may affect your policy. We don’t yet know what the approach of these regulators will be but we are committed to meeting our contractual obligations, including making payments to policyholders.  We will consider any changes that may be required when we have more clarity.

For Canada Life International Limited and CLI Institutional Limited policyholders

The Isle of Man is not part of the EU/EEA today and therefore we see no change to the trading relationship between the Isle of Man and the UK as a result of Brexit, a view shared by the Isle of Man government. As such we expect business to carry on as normal through Canada Life International Ltd and CLI Institutional Ltd.

For Canada Life International Assurance (Ireland) DAC policyholders

Canada Life International Assurance (Ireland) DAC (CLIAI) is an Irish authorised life assurance company and will continue to be Irish-authorised post-Brexit. It will therefore be subject to the same EU regulatory regime as currently applies. It will also remain open to new business in the event of a negotiated or a no-deal Brexit. We believe it is important to provide comfort to both our policyholders and advisers of our commitment to ensuring that existing policies will remain valid and enforceable after Brexit and that new policies post-Brexit will also be valid and enforceable. We aim to ensure that our international business can continue to offer the choice of Isle of Man and Ireland jurisdictions to advisers and clients, and to be able to service our customers as we do now.

One aspect we expect will change relates to the Financial Services Compensation Scheme (FSCS). The FSCS currently provides protection for UK-resident policyholders of EU-authorised life assurance companies, such as CLIAI, in the event that the company is unable to meet its financial commitments. The regulators and UK government are still consulting on whether this scheme will continue to apply to policyholders of companies such as CLIAI following Brexit.  However, it is our current planning assumption that CLIAI policyholders resident in the UK will no longer be covered by the FSCS once the UK leaves the EU fully, whether on the exit date in the event of a no-deal withdrawal or, if applicable, at the end of any implementation period. You can be reassured that CLIAI is a well-capitalised company and benefits from being a part of a strong group. Its parent, the Great-West Lifeco Group, has over £807bn in consolidated assets under administration (as at 31 Dec 2018), and we are confident that the risk of policyholder loss from being unable to meet our financial commitments is remote.

"Pension Investment Plan (PIP) / Flexible Drawdown Plan (FDP) - You are responsible for ensuring that there are always sufficient funds in your plan to cover your payment. Where there are insufficient funds in your plan, the payment will not be made.

If you are taking regular payments from your plan, we will warn you before you run out of funds.

Fixed Term Income Plans (FTIP) - You will always receive the guaranteed payment."

You have the right to cancel at any time up to 30 days from receiving your schedule of benefits. We will write to you and provide a notice about your right to cancel. You need only return this cancellation notice if you wish to cancel your Retirement Account.

If you decide to cancel your Retirement Account, you must return the cancellation notice within 30 days. You must also return any money received, including any tax-free cash payments. Cancellation notices must be returned to:

Canada Life Customer Services, PO Box 4993, Worthing, BN99 4AE.

The bereavement and probate line is open 24 hours a day 365 days a year and provides support when you need it the most.

The final outcome of Brexit is unclear so any impact on investments is unknown. Investments are generally for the medium to long term and values can fall as well as rise and you should speak to your financial adviser before making any investment decisions.

Group Critical Illness is an employee benefit which pays a lump sum if an employee is diagnosed with an illness or undergoes a procedure from a set list. More information can be found here.

Group Income Protection helps employers to manage absence in the workplace and pays a proportion of salary if an employee is off work long-term due to illness or injury. More information can be found here.

Group Life Assurance is an employee benefit which pays out a lump sum and/or pension benefits if an employee dies while employed. More information can be found here.

"All plans - You can request details of your current tax code by contacting us by any of the methods provided on our contact details section.

We receive your tax code directly from HMRC. Your tax code with us may not be the same as what you have with other providers. If you would like to query the tax code you should call HMRC on 0300 200 3300."

Our Group policies are intended for UK individuals and are governed by English law. If a company moved out of the UK, the availability of cover would need to be reviewed.

If individuals within a company leave the UK on a temporary or permanent basis, we may be able to continue cover in certain circumstances.

If a client has changed their country of residence please call us on 01624 820200. We will need to review our requirements and confirm any additional paperwork required against the specific country they have moved to.

Our EIS is a bespoke absence management service. It is available from the first day of an employee's absence, and the process is started with a simple telephone call. For more information, please click here.

This is also referred to as FATCA and further information can be found here.

To invest in the Retirement Account you need a minimum of £20,000 in pension funds after any tax-free cash has been paid to you and any initial adviser fee has been paid to your financial adviser. You must also be a resident in the UK when you apply, and when the policy starts.

This is completely dependent on the plan type and the deceased's role within it. The informant should provide written confirmation of the death in the first instance and full requirements will then be provided in response.

An original Death Certificate is required rather than a certified copy as Crown Copyright dictates reproduction of a Death Certificate is restricted. Reproduction of certificates potentially removes unique security features and they therefore cannot be used to provide evidence of any event (birth, marriage or death).

Please write to Canada Life International, email focus@canadalifeint.com or phone 01624 820399 to request this information. 

Correspondence can be sent to Canada Life International, Canada Life House, Douglas Business Park, Douglas, ISLE OF MAN, IM2 2QJ.

The term can be anything from 3 years to 40 years.

FOCUS only co-ordinate or respond to queries on existing business on behalf of Occupational teams.

FOCUS can be contacted at focus@canadalifeint.com.

The UK and EU have negotiated a withdrawal agreement which must now be approved by the UK.  If the withdrawal agreement is approved, it provides for an implementation period to 31 December 2020, during which time existing EU laws and regulations will continue to apply in the UK.  If the approval is not given, the position is considerably less clear.

Pension Investment Plans (PIP) are designed to invest for your retirement. At age 55 you can start taking your benefits from this plan. If you are in ill health it may be possible to take your benefits before age 55.

Flexible Drawdown Plans (FDP) - you can take your benefits at any stage.

Fixed Term Income Plans (FTIP) are set up to pay a guaranteed income and cannot be changed.

 

We require the relevant FATCA form to be completed at any ‘trigger event’. The information should be submitted for both the old, new and on-going policyholders.  From a Policy Servicing point of view we require them to be completed in the following instances:

  • Placing a policy into Trust.
  • Adding/Removing a trustee.
  • Adding Beneficiary (if US national/resident).
  • Assignment.
  • Bank Assignment.
  • Power of Attorney appointment.
  • Change of address when they are changing their country of residence.
  • Change of name (if US national/resident).

The cover starts as soon as the professional adviser completes the online application process.

Other useful sources of information include:

Alternatively we recommend that you contact your adviser who will have the best understanding of your personal financial situation.

If you know the type of plan that you hold, you can view our product factsheets. If you don’t know, or the factsheets don’t answer your specific question, please contact us.

For additional information on acceptable certifiers please refer to our Specimen signatures form by clicking here

Correspondence can be sent to Canada Life International, Canada Life House, Douglas Business Park, Douglas, ISLE OF MAN, IM2 2QJ.

For additional information on acceptable certifiers please click here.

We will require copy documents for verification of identity and address certified by an individual within an appropriately authorised introducer firm (“suitable certifier”). Such a firm must be authorised by a regulatory body in one of the following countries:

Argentina, Australia, Austria, Belgium, Bermuda, Brazil, British Virgin Islands, Canada, Germany, Gibraltar, Guernsey, Hong Kong, Iceland, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, South Africa, Spain, Sweden

Alternative suitable certifiers include:

  • an authorised representative of an embassy or consulate of the country which issued the document;
  • a notary public, commissioner for oaths, lawyer or advocate, other formally appointed member of the judiciary, registrar or other civil or public servant authorised to issue or certify copy documents, or a serving police officer;
  • a regulated accountant.

Please contact your professional adviser if you have further questions.

Certain transactions that take place constitute ‘trigger events’ in the life cycle of any plan. This forces a review of the anti-money laundering (AML) documentation currently held on our files for all parties involved. We then analyse the documents and assess their suitability to satisfy the Isle of Man Financial Services Authority (FSA) Anti-Money Laundering Standards for Insurance Businesses.

The FSA regulates all Manx insurance companies and all companies are required to fully comply with the regulations. It is also important to note that the Isle of Man anti-money laundering law requirements differ from those of the United Kingdom and can, in some cases, be more stringent.

The note below should be read in conjunction with our guide to anti-money laundering requirements.

We require anti-money laundering in order to satisfy our regulatory obligations, Canada Life International Limited must make sure that it complies with the Insurance (Anti-Money Laundering) Regulations 2008 and the Insurance and Pensions Authority’s Guidance Notes on Anti-Money Laundering and Preventing the Financing of Terrorism – for Insurers.

The Insurance (Anti-Money Laundering) Regulations 2008 comprise a body of secondary legislation (and therefore have the force of law, and are not mere guidance) which, in conjunction with the Guidance Notes on Anti-Money Laundering and Preventing the Financing of Terrorism – for Insurers, detail how insurance businesses authorised by the Insurance and Pensions Authority must meet the requirements of the Money Laundering and Terrorist Financing Code 2013.

For the avoidance of doubt, it should be noted that the requirements of Isle of Man anti-money laundering law differ from those of the United Kingdom and may, in some cases, be more stringent.

We would need an instruction from the client / professional adviser to request that we send information/details to the General Practitioner (GP).

Correspondence can be sent to Canada Life International, Canada Life House, Douglas Business Park, Douglas, ISLE OF MAN, IM2 2QJ.

Our records are checked when a claim is received and we may ask for anti-money laundering documentation retrospectively to ensure that our records are brought up to date to comply with current regulatory requirements. If the requested evidence in not supplied prior to the next claim, we may withhold payment until it is received.

The maturity process commences on the segment maturity date. The segments will be valued as at that date and the proceeds released upon completion of internal procedures and on receipt of all requirements.

By signing the form you are confirming that you have read and understood the terms & conditions of the transaction. This includes confirmation that the tax consequences are understood, data protection notices and other regulatory facts have been acknowledged.

Potential tax consequences are something that you should discuss with your financial adviser who will have the best understanding of your personal financial situation.

We will write to customers when there is greater clarity on the post-Brexit position and if there are any changes that impact their policy.

Glossary of terms

Absolute Trust

Another name for a Bare Trust. A trust where the beneficiaries have a fixed interest in the trust fund and the sole duty of the trustees is to hold that property for the beneficiary. Is also known as a Bare Gift Trust.

Account

The arrangement where investment funds and charges are processed.

Accrual rate

The rate at which an individual builds up pension benefits, and is usually expressed as a percentage or a fraction.

Accrued Benefit 

The financial benefit you have earned to date, payable on your Normal Retirement Date.

Accumulation units

Units where net income is automatically reinvested to purchase more underlying investments for the fund. This is reflected in an increase in the unit price.

Actively at work requirements

A set of terms which can be applied to groups of employees when full medical underwriting is not warranted.

Additional Policy Schedule

The separate document that may be issued when an Additional Premium is accepted. It contains specific information relevant to the Additional Premium.

Additional Premium

Any additional payments invested in a policy after it has started. Also known as a top-up.

Additional Rate Tax

The income tax rate (45%) payable on income above £150,000 a year.

Additional Voluntary Contributions (AVCs)

Members of defined benefits pension schemes are able to pay more into their scheme via AVCs, and can gain greater benefits in return.

Adviser Charge

The fee charged (where applicable) by a professional adviser in relation to the investment made or any other service provided which has been arranged in advance with a professional adviser.

Age 18 to 25 trust

This is a discretionary trust where the property is held on trust for the benefit of someone aged between 18 and 25. When the property leaves the trust on or before the 25th birthday an inheritance tax charge may occur.

Alcohol abuse

Inappropriate use of alcohol which leads to an insured illness. (Group Critical Illness)

Amount Invested

The amount of the payment applied to an investment policy.

Anniversary Date

The anniversary of when a policy began.

Annual Allowance

The annual limit set by HM Revenue & Customs on the amount of pension savings that benefit from tax relief.

Annual revision date

The date from which premiums are recalculated each year.

Annuitant

The person receiving annuity payments.

Annuity

An annuity is a guaranteed regular income payable to you for your lifetime and, if chosen, the lifetime of your spouse. It can be paid on a monthly, quarterly, half-yearly or yearly basis and can include a number of features such as guaranteed payment periods. Income from an annuity can remain level or escalate if so chosen at outset.

Annuity Commencement Date

The date on which annuity payments begin.

Annuity Rate

The rate applied to the amount invested to calculate an annuity.

Asset Allocation

Dividing an investment among several securities or asset classes (for example: shares, commercial property, a deposit account or fixed income stock) in order to pursue investment objectives, such as producing income, targeting future expenditure or balancing risk and return.

Asset Class

Category of investments that have similar risk and return characteristics; for example, equities.

Assets

The investments that make up a fund. For example, shares, commercial property, a deposit account or fixed income stock.

Assignment

A way of legally transferring the ownership of a policy to someone else; to do this a deed of assignment has to be completed.

Assignment into trust

An existing policy can be put under trust by the policyholder assigning the policy to the trustees for the benefit of the intended beneficiaries.

Automatic enrolment

The compulsory government scheme for employers which decrees that they automatically enrol all eligible workers into a pension scheme; the scheme is gradually being rolled out, starting with the largest employers in the UK. All organisations must also pay money into these agreements.

Bare Gift and Loan Trust

A special type of trust used for estate planning, where you initially make a small gift (£10) to set up the trust and then lend money to the trustees. The advantage is that the growth of the value in the investment will be allocated to the beneficiaries.

Bare Trust

A trust where the beneficiaries have a fixed interest in the trust fund and the sole duty of the trustees is to hold that property for the beneficiary. Is also known as a Bare Gift Trust.

Basic Benefit

The benefit to be covered which does not include pension scheme or National Insurance contributions, or any employer's lump sum. (Group Income Protection)

Basic Rate Tax

The income tax rate (20%) payable on income above your personal allowances and below the level at which higher rate tax is paid.

Basic State Pension

A government payment made to all British citizens over the State Pension age, so long as they have met minimum National Insurance contribution requirements over their lifetime. The payment is usually made every four weeks.

Beneficiary

A person or one of a class of persons (for example, grandchildren) who is named under a trust as the future recipient of the trust fund (or a share of it). However, with a discretionary trust it is at the complete discretion of the trustees if they actually receive anything (see potential beneficiary).

Benefit Crystallisation Event

The circumstances when there is a test to see if the pension benefits exceed the lifetime allowance. The events are when any pension benefits are taken; for example, the payment of a lump sum, drawing an income or death benefits are payable before age 75.

Benefits (under a pension)

Under a pension arrangement, this is the amount of lump sum a person might receive, the income payable or the death benefits payable.

Benefits (under a trust)

The share of a trust fund to which a person is, or might be, entitled at a future date.

Bid Price

The price used to credit or cancel units under a policy.

Bid-Offer Spread

The difference between the bid and the offer price. The size of the spread is affected by several factors, including current trading volumes and market conditions. Some units do not have a spread and only have a single price for both bid and offer.

Bond

A Bond is a shortened name for Investment Bond, which is a lump sum life assurance investment policy.

Bond Currency

The currency in which the bond investment fund is set up. UK bonds are in Sterling, but international investment bond funds can be set up as Sterling (British Pounds), Euros or US Dollars.

Breach of Trust

This occurs when the trustees fail to act in accordance with the conditions of the trust deed. Any financial loss suffered by the beneficiaries may be remedied by suing the trustees.

Business Day

Any working day for the stock market. The stock market is generally open each weekday except Bank Holidays.

Buy-to-Let mortgage

A mortgage that allows you to release equity from your Buy-to-Let property, leaving your property intact.

Canada Life

A general name applying to Canada Life Limited and/or Canada Life International Limited and/or CLI Institutional Limited and/or Canada Life International Assurance (Ireland) DAC.

Cancellation of Units

The process whereby units are cancelled to pay for certain expenses and charges.

Cancellation Rules

You have a minimum 30-day cooling-off period during which you can cancel a policy for any reason. You will get a refund of any payments you have already paid. For investment related policies this will be less any fall there may have been in the value of the investments.

Capital Gains Tax (CGT)

Individuals may be subject to CGT when they sell assets such as shares, unit trusts, OEICS and investment property.

Capitalisation factor

A number that death in service pension benefits are multiplied by when we need to estimate the total value of the benefit over the life of a claim. The number used relates to the basis of cover and can change. (Group Life Assurance)

Capped Drawdown

A type of income drawdown product that was available before 6 April 2015. If you already have a capped drawdown product, it will continue under its existing rules until the next review date.

Carve Out

A feature of a trust where the settlor has retained ownership of specific benefits (such as withdrawals) as defined in the trust and cannot benefit from any of the other benefits payable under the trust (such as the surrender value). That is, the settlor has 'carved out' specific benefits for themselves.

Cash Account

The part of an Account which is held in a cash deposit and is used to pay expenses, charges, withdrawals and adviser charges.

Cash gift

A cash amount given by a person to another individual (often their children or grandchildren).

Cash reserve facility

If you have a Home Finance mortgage and you think that you’d like to borrow more money in the future, you may be able to add a cash reserve facility to your mortgage at the outset. This facility will allow you to withdraw further funds at a later date, without taking further financial advice.

Catastrophic event

One event, or a series of related events, which results in the death of multiple members. (Group Life Assurance)

Catastrophic event limit

The maximum benefit we will pay to cover all the claims arising from a catastrophic event. (Group Life Assurance)

Cease age

The agreed age at which cover under the policy will end for each individual.

Chargeable Lifetime Transfer (CLT)

A CLT is a transfer of value, such as an investment in a discretionary trust. Inheritance tax at 20% is payable at the time of the transfer if, when added with previous chargeable transfers made in the last seven years, it is more than the current nil rate band.

Child

Any natural, legally adopted or Step child who is under 18 years of age or under 22 if they are in full time education. (Group Life Assurance) See "eligible child". (Group Critical Illness)

Circulatory system illnesses

A defined set of insured illnesses which relate to the mechanisms by which blood is transported around the body. (Group Critical Illness)

Civil partner

A person that the member has entered into a civil partnership with, as defined in Section 1 of the Civil Partnership Act 2004.

Claim

Notification to an insurance company requesting payment of an amount due under the terms of the policy.

Claim benefit

The amount of insured benefit we have agreed to pay.

Collective Investment

A collective investment is a fund that is operated by an investment provider. Collective investment funds combine the assets of various individuals and organisations to create a larger, well-diversified portfolio fund. Typical examples are unit trusts and OEICS.

Commencement date

The date on which the policy starts.

Commission

This is the amount payable to an adviser to cover their costs for setting up a life assurance policy.

Completion fee (Home Finance)

A fee to cover the costs of setting up a mortgage. This can be paid at the point of completion or added to the mortgage balance.

Compound interest

Interest that is charged on interest.

Constitution of the trust

The establishment of a trust by the transfer of assets to the trustees.

Consumer Price Index (CPI)

The CPI is a measure of consumer price inflation and is used by the government as a guide to by how much it should increase certain state benefits (such as the State Pension).

Contingent interest

This is a legal term for a situation which depends on the happening of a particular event which may in fact never happen.

Contribution

Any payments invested in a pension policy.

Corporation Tax

The tax levied on companies' profits.

Creator of trust

The creator of a trust (for income tax purposes) is the person who started up the trust. They are also known as the 'settlor'.

Crystallised Fund

This is the term given to pension funds that have been used to provide benefits or have been allocated to an annuity product.

Death Benefit

The amount paid out under a policy on the death of the life assured, last life assured (joint life, last survivor policy) or the first life assured (joint life, first death policy).

Decision Letter

Written confirmation of our decision following medical underwriting of an individual.

Deferred period

The agreed period of incapacity before a claim will be considered. (Group Income Protection)

Defined benefits pension scheme

An employer-sponsored scheme where retirement income is based on length of employment, lifetime earnings, and the scheme's accrual rate.

Defined contribution pension scheme (or ‘money purchase scheme’)

A pension plan where the final agreed retirement income is based on the amount of money paid in, as well as the rate the money has grown within the pot. There are several varieties of this scheme, such as company, stakeholder, personal, and group personal pension plans.

Dependant

People who are financially dependent upon another person.

Deposit Account

An investment where you place a sum of money and regular interest is paid to you or added to the account.

Designation

The adding of a note to an account, policy or investment that you want the proceeds to benefit another person or persons.

Disclosure Of Tax Avoidance Schemes (DOTAS)

A requirement to notify HMRC that you are operating, or a participant in, what they define as a tax avoidance scheme. Failure to do so will result in penalties and fines.

Discount

In the context of estate planning, the reduction in the inheritance tax value of a gift into a certain type of trust: the discounted gift trust.

Discounted gift

The actual inheritance tax value of a gift into a discounted gift trust

Discounted Value

The actual reduction in the inheritance tax value of a gift into a discounted gift trust

Discretionary benefit

A benefit for an individual which is larger or smaller than they would normally be eligible for.

Discretionary entrant

An individual who is joining the policy outside the normal eligibility for entry.

Discretionary Fund Manager (DFM)

A professional third party investment manager choosing the investments for a portfolio, who will work to set parameters in terms of portfolio choices (risk profile, client preferences and so on).

Discretionary Gift and Loan Trust

A special type of trust used for estate planning, where you initially make a small gift (£10) to set up the trust and then lend money to the trustees. The advantage is that the growth of the value in the investment will be allocated to the beneficiaries. See also Discretionary Trust.

Discretionary Investment Manager (DIM)

A discretionary investment manager is someone who is involved in discretionary fund management.

Discretionary Trust

A trust where the trustees decide at their complete discretion as to who should get a share of the trust fund. They are guided by the people named or described on the trust deed.

Dividend(s)

The payment by a company to its shareholders.

Domicile

The country in which a person is, or is legally deemed to be, permanently resident and in which it is their intention to remain.

Donee

A person who receives a gift .

Donor

A person making a gift.

Drawdown

An investment made with a portion of a pension that allows a person to benefit from an uncapped income, accessible at any time it is requested. Money from a drawdown is taxed in the same way as a standard income, and can be taken instead of, or alongside, a fixed income from an annuity.

Drug abuse

Inappropriate use of drugs, legal or otherwise, which leads to an insured illness.

Earlier claim

Any previous claim paid under our or any other Group Critical Illness policy an individual has been a member of due to employment. (Group Critical Illness)

Early repayment charge (ERC)

A charge for repaying some or all of your mortgage early.

Earmarking

This is a term used for sharing pension benefits on divorce. If you decide to opt for pension earmarking then when you start to draw retirement benefits, part of them are paid to your ex-spouse or partner or vice versa.

Elements

This is each separate, identifiable investment set up under a policy.

Eligible child

A natural or legally adopted child, or any child who is financially dependent on the member, who is under the age of 23 or dependent on the member due to disability. (Group Critical Illness) See "child". (Group Life Assurance)

Eligible dependant

Someone who is eligible for a pension when a member dies. (Group Life Assurance)

Eligible employee

Anyone who meets the agreed eligibility criteria for inclusion in a policy. These will be specific to each policy.

Employer

Any company, partnership or organisation we agree to include in a policy.

Employer's benefits

Benefits provided by an employer for their employees, such as a pension scheme, life cover or permanent health insurance.

Employer's lump sum

A single payment due at the end of an agreed claim payment period if an employee continues to meet the agreed definition of incapacity. (Group Income Protection)

Endorsement

A written record of any change to the provisions or details of a policy.

Equities

Shares issued by a company to the people who have invested in that company.

Equity

The value stored up in your property, minus any secured charges against it (such as a mortgage).

Equity Release

A range of products that allow you to release some of the cash stored up in your property without needing to move. The money released is tax-free and can be spent on whatever you choose. There are two types of equity release: Lifetime mortgages and home reversions.

Equivalent lump sum

The annual value of a pension multiplied by a capitalisation factor. (Group Life Assurance)

ESA

Employment and Support Allowance, described in Chapter 5, Part 1 of the Welfare Reform Act 2007.

Establishment Charge

The charge deducted from a policy to cover the cost of establishing it. Typically, these are taken at regular intervals over the first five years.

Estate

The total of all assets a person possesses and is beneficially entitled to.

Estate Planning

For inheritance tax (IHT) purposes, the process of anticipating and arranging, during a person's life, for the disposal of their estate. Estate planning can be used to eliminate uncertainties over the administration of a probate and to maximize the value of the estate by reducing taxes and other expenses.

Ethical investments

The term given to investment in companies where the companies have been selected because of a certain ethical stance that they have. For example, a fund may avoid investing in alcohol or in companies that exploit labour from poor countries but may invest in tobacco.

Evidence of insurability

Any documentary or medical evidence we may require to include someone in the policy.

Exempt Transfer

A transfer that does not count as a chargeable transfer for inheritance tax purposes and therefore is not subject to tax. An example of an exempt transfers is the transfer of investments between spouses or registered civil partners.

Existed

An insured illness or related condition that was first diagnosed, treated or known about before a member was included in a policy or their benefit under a policy increases. (Group Critical Illness)

Exit Charge

When money leaves a discretionary trust, there may be an IHT exit charge.

Expected normal pension age

The age at which a member would be expected to receive a pension from their employer's registered occupational pension scheme. (Group Life Assurance)

External Fund

Any unit linked fund that is not managed by Canada Life but instead is managed by a third party investment management company.

Final salary pension scheme

A pension that is paid to workers in the public sector and some larger companies; they are based on their salary at the point of retirement, an accrual rate, and the number of years a person has been involved with a scheme. These schemes were once abundant, but are now being phased out due to the high cost of their maintenance (also known as Defined Benefit Scheme).

Financial Conduct Authority (FCA)

The FCA is the independent financial services regulator. Their objectives are to protect consumers, to secure an appropriate degree of protection for consumers and to protect financial markets. They also promote effective competition in the interests of consumers.

Financial Ombudsman Service

An organisation established by the government to remedy any consumer issues caused by banks and financial organisations, such as insurance, loans, mortgages, pensions, the PPI scandal and other money-related complaints.

Financial Services Compensation Scheme (FSCS)

FSCS is the compensation scheme for customers of UK authorised financial services firms.

Fixed income stock

Fixed income stock are investments that provides a yearly return in the form of fixed payments and return a set amount at a specified maturity date.

Flexi-Access Drawdown (FAD)

Flexi-Access Drawdown allows you to take money out of your pension fund; part of which will be tax-free cash and part taxed as income. The remaining fund will still benefit from investment growth. This arrangement is also called Uncrystallised Fund Pension Lump Sum (UFPLS).

Flexible Drawdown

Flexible Drawdown allows you to take all your tax-free cash entitlement out of your pension arrangement, with the remainder being available as taxable income, as and when you draw it down. The remaining fund will still benefit from investment growth.

Flexible mortgage

This term usually means that you have chosen to add a cash reserve, or ‘drawdown’, facility to your mortgage.

Flexible Trust

This is a trust where certain individuals will receive any income that is generated. With investment bonds, the income is reinvested so will not actually be paid out. The trustees or settlor have the option to alter the individuals of the income or replace them with others. The trust capital may also be due to these individuals or other people instead.

Free cover limit

The amount of benefit we will normally accept on standard terms without requiring evidence of insurability.

FTSE

A range of indices, operated by FTSE International Limited, which record the performance of certain groups of shares (such as the top 100 UK shares - the FTSE 100 Index). The value of the index is derived from the values of the underlying shares and provides an up-to-the minute indicator of how share prices are performing in that group. (Note: FTSE originally stood for 'Financial Times - Stock Exchange).

Fund Adviser Fee

Where the policyholder has agreed a fee for fund advice, this is the agreed amount can be deducted from the policy or investment and paid as a fee to the fund adviser.

Fund Manager

The person responsible for managing an investment fund or the investments of a customer in accordance with agreed investment objectives and guidelines.

Fund of Funds

An investment fund which holds investments in other funds. The idea is that the fund of funds manager will use their expertise to select the best funds in each sector.

Fund(s)

Any investment fund offered within a policy.

GAAR

The General Anti-Abuse Rule (GAAR) was introduced by the Government to catch tax arrangements which they deemed to be abusive, such as the tax avoidance schemes widely reported in the newspapers.

Gainful occupation

Any activity which has the potential to provide a member with some form of tangible gain. (Group Income Protection)

Gift with reservation

This is where an individual disposes of property by way of a gift and either possession or enjoyment of the property is not taken by the donee fully or it is not enjoyed to the exclusion of the donor.

Gilts

Gilt-edged securities are bonds issued by the UK Government, which provide a guaranteed fixed rate of interest and a high degree of security.

Gross Roll-Up

The compounding of interest where no tax has been deducted.

Group personal pension scheme

A collection of personal pension plans given to employees by a single employer. Contributions are usually deducted through wages, and employers often make contributions on behalf of their employees.

Growth Fund

A fund aiming to provide capital growth rather than income.

Growth rate

The possible percentage return on an investment, where all investment returns and income are accumulated.

Guarantee Period

This in relation to an annuity is the minimum number of years it will be paid for, normally 5 or 10 years, even though the annuitant may die in that period.

Guaranteed Maturity Value (GMV)

The amount paid under a policy on the Maturity Date, as stated in the policy schedule.

Her Majesty's Revenue & Customs (HMRC)

Her Majesty's Revenue & Customs are responsible for collecting tax in the UK.

Higher Rate Tax

The income tax rate (40%) payable on income above the basic rate limit and below the level at which additional rate tax is paid.

HMRC

See Her Majesty's Revenue & Customs, above.

Home reversion

A type of equity release. All or part of your property is sold in return for a tax-free lump sum. You remain in your home as a tenant for an agreed amount of time, usually paying no rent.

IFA Promotion

The old name for unbiased.co.uk.

Illustration

A document that forms part of the Key Features and gives you a guide to how much you might get back from your investment.

Illustration (Home Finance)

An illustration is a document that explains the Buy-to-Let mortgage to you, including any risks, features and fees.

Incapacity

Illness or injury which meets a definition agreed with us. (Group Income Protection)

Income Drawdown

Income Drawdown allows you to take money out of your pension arrangement as and when you want it.

Income Tax

A tax you pay on your earnings, pensions, interest and all other types of income – unless it is exempt, such as ISA income.

Independent Financial Adviser (IFA)

Professionals who offer independent advice on financial matters to their clients and recommend suitable financial products from the whole of the market.

Inflation

Inflation measures the rate at which general prices for goods and services are rising. One measure in the UK is the Consumer Price Index (CPI).

Inflation Rate

The percentage change in the price level between two periods.

Inheritance guarantee

You can choose to protect, or ‘guarantee’, a percentage of the eventual sale value of your home at the outset. This means that the percentage you choose to protect is guaranteed to be available to you or your beneficiaries as an inheritance in the future.

Inheritance Tax (IHT)

A tax levied on property and money acquired by gift or inheritance.

Initial advance

The loan amount that is released to you when your mortgage completes. This does not include the amount in your cash reserve facility, if you have one.

Inland Revenue

The old name of HMRC (see above).

Insurance Policies

A contract which usually provides a lump sum or regular payments on the occurrence of a specified event; for example, death, illness etc.

Insured benefit

The amount of benefit for which a member has been accepted in a policy.

Insured illness

(Group Critical Illness) A condition or operation on the agreed list to be covered by a policy.

Insured person

A member, or a member's spouse or civil partner covered by the policy. (Group Critical Illness)

Interest in possession

The legal right to any income that arises from a trust fund.

Internal Fund

Any investment fund that is managed by Canada Life.

International Investment Bond

Investment Bonds issued outside of the UK, for example in the Isle of Man or Dublin, where there is little or no tax charged on the investment funds.

Investment

This is an asset, financial product or fund of money, which may generate income or grow in value over a period of time.

Investment Bond

A lump sum life assurance investment policy.

Investment Funds

These are groups of different investments which have been selected by the Investment Manager to match the objectives of the Investment Fund.

Investment Return

This is the change in value of an investment or amount of income generated by that investment over a given time period – normally expressed as a percentage.

Irreversible

An insured illness which cannot reasonably be improved by medical treatment and/or surgical procedures used by the NHS. (Group Critical Illness)

ISA

An ISA is an Individual Savings Account; a scheme allowing individuals to hold cash, shares, and OEICS free of tax on dividends, interest, and capital gains.

Joint Tenants

A term used to denote that the asset is jointly owned by two (or more) people and if one of them dies it will automatically continue in the name of the survivor(s). This is irrespective of what the deceased's person's will might say.

Key Features Document

These are documents that set out the key facts for a particular investment, including its aims, your commitment and risk factors. It also has questions and answers about the policy.

Keyman Insurance

This is life insurance on a key person in a business. In a small business, this is usually the owner, the founders or perhaps a key employee or two. These are the people who are crucial to a business and the ones whose absence would financially harm the company.

KFI (Home Finance)

A Key Facts Illustration (KFI) is a document that explains the lifetime mortgage to you, including any risks, features and fees.

Late entrant

Anyone who joins a pension scheme which provides access to benefits under a Group Insurance policy after they were first eligible to do so.

Law Society

The organisation in charge of solicitors.

Level Term Assurance

A term assurance policy where an insurance amount could be payable during the policy term and the premiums don't change. The insurance amount is paid out if you die during the term. If it hasn't been paid by the end of the term, the policy ends and nothing is paid out. There is no cash in value at any time.

Life Assured or Lives Assured

The life/lives assured are the persons on whose death a life assurance policy would pay out.

Life Cover

This is the amount of insurance that would be payable on a person's death.

Life interest

An interest in possession whereby an individual is entitled to trust income only, but not the capital, for the remainder of their life.

Life Policy

A general term covering a contract between a life assurance company and a person, subject to various conditions as set out in the policy provisions.

Life Tennant

The name given to an individual with an interest in possession.

Lifetime allowance

A limit defined in the Glossary of the HMRC Registered Pension Schemes Manual.

Lifetime Allowance (LTA)

This is a limit on the amount of pension benefit that can be drawn from pension schemes – whether lump sums or retirement income – and can be paid without triggering an extra penalty charge.

Lifetime Annuity

These are annuity policies that use the money you have saved in your registered pension scheme to provide you with a guaranteed, regular income for your lifetime and, if you so choose at the outset, your partner’s lifetime.

Lifetime Annuity Rate

The rate used to calculate how much lifetime annuity you would receive for each £1,000 invested.

Lifetime Income

The amount of money provided by a Lifetime Annuity.

Lifetime mortgage

A type of equity release. The amount borrowed (along with any charges or interest accumulated) will be repaid at the time of your death or when you move into long term care, usually using the cash generated from the sale of your home.

Limited period

An agreed maximum duration for a claim, after which an employer's lump sum may be payable (if insured). (Group Income Protection)

Loan to Value (LTV)

How much mortgage you have in relation to how much your property is worth. This is normally a percentage figure. For example, if your home is valued at £100,000 and the maximum LTV offered is 44%, you can borrow a maximum of £44,000.

Long-term Care

Long-term care is a range of services and support for a person who is unable to manage daily living unaided.

Loyalty Bonus

An additional amount added to a policy once it has been in force for a set period.

Management Charge

A charge paid by the policyholder, based on a set percentage of the value of the fund.

Manx Law

The legal system on the Isle of Man.

Material and substantial duties

The tasks a member is expected to perform in their normal occupation, which cannot reasonably be omitted or modified. (Group Income Protection)

Maturity Date

The date on which the proceeds become payable under an investment or insurance policy.

Member

The person who is entitled to benefits under a pension scheme.

Member's earnings

The total income of a member from all sources. For non-salary income, we may average earnings over a period of 3 years. (Group Income Protection)

Money Laundering

A process whereby money generated by criminal activity is run through a series of financial transactions to hide the original source.

Money Purchase Annual Allowance (MPAA)

This is the Annual Allowance for people who have taken taxable benefits from their pension plan.

Monthly Management Charge

A charge of a pre-determined amount that is deducted monthly form a policy.

Mortgage term

The number of years the mortgage lasts for. With a lifetime mortgage, an estimated term is given to you because the lifetime mortgage term is not fixed – it could last for a longer or shorter period of time.

National Insurance (NI)

The system of compulsory payments by employees and employers to provide state assistance for people who are sick, unemployed, or retired.

National Insurance contributions

The annual amount of employer's National Insurance contributions which would be payable if the employer was paying a member an income equal to the basic benefit they are covered for. (Group income Protection)

Neurological illnesses

A defined set of insured illnesses which relate to the nerves and nervous system. (Group Critical Illness)

Nil Rate Band

The amount of an individual’s taxable estate which is subject to a 0% inheritance tax rate.

No negative equity guarantee

A guarantee that when your property is sold, if the proceeds after solicitors and estate agents fees are not enough to pay the mount owed to us, we will not ask you or your beneficiaries to pay the shortfall.

Nominated Professional Adviser

A professional adviser that you have authorised to act on your behalf.

Nominee

A person or organisation that holds legal title of the assets on behalf of an investor (who is still the beneficial owner of the assets).

Non-qualifying Policy

A policy that does not satisfy the qualifying rules for life assurance policies. This means that any profit on the happening of a Chargeable Event could give rise to an income tax charge.

Normal entrant

An eligible employee who is included in the policy for normal benefits as soon as they are eligible to join.

Normal inclusion date

The first day an eligible employee qualifies for inclusion in a policy.

Normal occupation

The job which a member was employed in or engaged to do immediately prior to their incapacity. (Group Income Protection)

Normal place of business

(Group Life Assurance) A place where one or more of your employees perform their duties on a regular basis.

Offer Price

The price at which an investor buys shares or units.

Offshore Bond

Investment Bonds issued outside of the UK, for example in the Isle of Man or Dublin, where there is little or no tax charged on the investment funds. Also known as International Investment Bonds.

Ongoing Charges Figure (OCF)

The OCF is the overall total of the charge made by the fund manager for running the fund and all expenses and fees deducted from the fund. The OCF is reflected in the unit price of the fund.

Onshore Bond

Investment Bonds issued in the UK.

Open market option

The opportunity to buy an annuity with money in a pension fund from any provider upon retirement.

Open-Ended Investment Companies (OEICs)

OEICs are collective investment vehicles, similar to unit trusts and investment trusts. An OEIC issues shares rather than units. These shares are increased or reduced in number by the fund managers, according to the demand for investing in the OEIC.

Organisation for Economic Co-operation and Development (OECD)

The mission of the Organisation for Economic Co-operation and Development (OECD) is to promote policies that will improve the economic and social well-being of people around the world.

Other benefits

Any benefits a member receives for incapacity from other sources, such as a mortgage protection policy. (Group Income Protection)

Other income

Any payment that a member receives from a salary or other payment from an employer, self-employment or pension. (Group Income Protection)

Partial Surrender

The withdrawal of part of the value of the investment in a policy. Also known as a Withdrawal.

Partnership partner

An equity partner, or person listed in the incorporation document of a Limited Liability Partnership.

Pension Commencement Lump Sum (PCLS)

This is the amount of money that you can take as a lump sum from your pension fund without paying tax.

Pension freedoms

The opportunity for anyone over the age of 55 to take the whole amount of their pension as a lump sum, and receiving tax-free benefits on the first 25%; the rest is taxed at their income tax rate. The initiative was announced in 2014 by the British government, and became available from the 2015-16 tax year.

Pension Fund

A sum of money, accumulated individually or in conjunction with an employer, to provide pension benefits to a person at a later date, usually upon retirement.

Pension Input Period (PIP)

The period of time over which the amount paid into a pension scheme is measured, so that a check can be made to see if the Annual Allowance has been exceeded.

Pension scheme contributions

An agreed contribution to an employer's sponsored pension scheme on behalf of an employee as part of their claim benefit. This could include employer and employee contributions. (Group Income Protection)

Periodic Charge

An inheritance tax payment made by trustees of discretionary trusts after a ten-yearly anniversary of the trust starting.

Periodic review date

The date on which we can amend the terms and conditions and premium rates charged for the policy.

Permanent

An insured illness which is expected to last throughout life with no prospect of improvement. (Group Critical Illness)

Permanent neurological deficit with persistent clinical symptoms

Problems with the nervous system which are present on clinical examination and expected to last throughout life.

Perpetuity Period

The maximum period that a trust can last. English law allows a perpetuity period of 125 years.

Personal Allowance

The amount of income that a person can receive before they will pay any income tax.

Personal Example

A personalised quotation, which includes important information about your policy, such as any guarantees, the amount invested (after charges), your chosen funds, adviser charge and so on. Also known as a Quote or an Illustration.

Personal Illustration

A personalised quotation, which includes important information about your policy, such as any guarantees, the amount invested (after charges), your chosen funds, adviser charge and so on. Also known as a Quote or a Personal Example.

Phased Investment Option

This allows a policyholder to ask that funds are switched to others, on a scheduled basis, for a period up to three years. At the end of the period , the policy will be entirely invested in the new fund(s).

Phasing Frequency

How often the Phased Investment Option happens.

PLC

A 'Public Limited Company'. This is a Company whose obligations to creditors are limited and who has fulfilled the legal requirements to attain public status (this does not necessarily mean their shares are tradable by the public).

Policy

A contract to provide insurance to an employer or Trustees.

Policy fee

A charge on each policy towards our costs.

Policy Provisions

The details of the contract between the insurance company and the policyholder.

Policy Year

A year beginning with the Commencement Date of the policy or any anniversary of that.

Policy/Policies

Each of the separate and identical different contracts into which an investment or the life assurance has been divided.

Policyholder

The owner(s) of the policy. This could be an individual but may also be trustees, administrators, executors and assignee's.

Porting

If you move to a new property that meets our lending criteria you can move your Buy-to-Let mortgage or lifetime mortgage to your new home under the same terms and conditions. Find out more about porting here.

Potential Beneficiary

Someone who is named on a trust deed who may possibly benefit from some of the trust fund in future.

Potentially Exempt Transfer (PET)

Most gifts you make to other people during your lifetime (unless they fall into the list of exempt gifts) are classified as PETs for inheritance tax purposes.

Power of Appointment

The ability to name someone as the person who will be receiving trust property in future. This may be 'irrevocable', meaning that it cannot be changed in future, or 'revocable', which means that the person named may or may not actually receive trust property.

Pre-existing conditions exclusion (PECE)

A clause which prevents claims being allowable for an insured illness which existed before an individual joined a policy or their benefits under a policy increased. (Group Critical Illness)

Premium

A payment into a policy for an amount of life assurance provided or as an investment.

Probate Bare Trust

A trust that avoids any delays in paying out the policy proceeds on a person's death. The beneficiaries will be the people named in the policyholder’s will.

Professional Adviser

Professionals who offer advice on financial matters to their clients and recommend suitable financial products.

Proper law

The law of a specified country, which governs the existence and administration of a trust.

Protected Pension Age

The age of certain people in specified professions, or under certain contractual circumstances, can take pension benefits before the standard minimum age of 55.

Protected Tax-free Lump Sum

The amount that people can receive before they will pay any income tax. The amount will be different from the standard amount because the individual has registered their protected amount with HMRC.

Qualifying Policy

A policy that under the rules for life assurance policies qualifies for no tax on any policy proceeds. There may be a requirement in certain circumstances that the premiums have been paid for a minimum period.

Quote

A personalised quotation, which includes important information about your policy, such as any guarantees, the amount invested (after charges), your chosen funds, adviser charge and so on. Also known as an Illustration or a Personal Example.

Rate of Growth

In a Personal Illustration or Example, the assumed yearly percentage increase in the value of an investment.

Real Rate of Return

The growth rate of an investment after taking into account inflation.

Reduced capacity

Work-related activity which may include fewer hours or less onerous duties. (Group Income Protection)

Registered occupational pension scheme

An occupational pension scheme (s.150 Finance Act 2004) set up under discretionary trust and registered with HMRC in accordance with Part 4, Chapter 2 of the Finance Act 2004.

Registered Office

The place that is a limited company's official legal address.

Registered Pension scheme

A scheme that has been reported to HMRC and is run in line with their rules.

Regular Premium

A premium that is paid every month or every year.

Related condition

A medical condition which is associated with, or likely to have led to, an insured illness. (Group Critical Illness)

Remaindermen

Beneficiaries who only get to benefit from a trust fund after the death of the Life Tenant.

Resulting Trust

Occurs automatically when a trust is invalid and the trust goes back to the settlor, or if he is dead, to the settlor’s estate.

Retained Trust

A trust where the settlor keeps part of the trust benefits for himself (for example, half of the trust fund) and gives away the rest.

Retirement Annuity

Old types of pension plans that were set up before 1 April 1988. They were replaced by personal pension plans.

Return to work plan

A schedule for a member suffering from incapacity to gradually return to their normal occupation. The plan will be agreed with the member and their employer, as well as any treating medical professionals if appropriate. (Group Income Protection)

Reversionary Interest Trust

A trust which is set up with multiple policies, the proceeds of which could be paid to the settlor on maturity dates if the trustees decide that should happen.

Risk profile

The evaluation made in regards to an individual or organisation's inclination to take risks. This measure also concerns the threats they may be exposed to.

RPI

The Retail Prices Index published by the Office for National Statistics.

Rules

The rules of a pension scheme, as to what can happen and who can benefit and when.

Schedule

The Schedule is attached to the policy provisions and records all policy details of your investment, pension or life assurance.

Scheduled territories

A defined set of countries which we typically treat less strictly with regards to providing overseas cover.

Scheme

An arrangement by which an employer sets up a pension fund for their employees.

Scheme benefit

The typical benefit provided under a scheme.

Scheme salary

The income which we have agreed to cover.

Second annuitant

A second person who you have chosen to receive an income from your annuity in the event of your death. This could be your spouse, civil partner or another person.

Secondment

A temporary period in which an employee is sent to work somewhere other than their normal place of work.

Section 226 Policies

Old types of pension plans that were set up before 1 April 1988. They were replaced by personal pension plans. Also known as a Retirement Annuity.

Security / Securities

Freely tradeable assets quoted on a stock exchange. There are many different types of securities, including stocks and shares, derivatives and bonds.

SEDOL Code

The code used by the stock exchange to distinguish shares and other securities on the 'Stock Exchange Daily Official List'.

Self-inflicted injury

Intentional harm to oneself which leads to an insured illness. (Group Critical Illness)

Self-Invested Personal Pension (SIPP)

A personal pension that can be invested into a wider range of assets, such as shares and commercial property.

Service Charter

A published no-quibble, non-performance penalty system. If we don’t keep our promises, we will pay either you or your adviser.

Set Up Charge

This is a one-off charge for setting up a policy.

Settlement

A transfer of property, whereby the property is held in trust (except for Bare Trusts).

Settlor

The person who sets up a trust.

Share class

Companies can issue different classes of share with different rights and obligations attached to them. A typical example is 'A' and 'B' shares, where 'A' shares allow the investor to vote at the company's AGM.

Share exchange scheme

A scheme whereby an investor's existing equity portfolio can be exchanged for another investment such as an investment bond.

SHIP

The Equity Release Council, formerly known as SHIP, are the trade body for the Equity Release industry.

Single Premium

A one-off single payment, usually made into an investment bond or a pension policy. Also known as an Additional or a Top-up.

Spousal Bypass Trust

A trust that can be used to protect pension death benefits from IHT on the subsequent death of a spouse/civil partner or dependant, and also to provide clients with some control over how their death benefits are paid.

Spouse

A person who is legally married to a member.

Stakeholder pension schemes

A type of pension scheme with a set of conditions laid down by the Government.

State Earnings-Related Pension Scheme (SERPS)

A state benefit paid in addition to the Basic State Pension. Entitlement to this scheme is based on a person's earnings during their working life. Entitlement is built up between the working years of 1978 and 1997.

State Pension

The Government old age pension. From April 2016, a new State Pension was introduced.

State pension age

The age at which a member is first entitled to the basic State pension.

Statutory leave

Any statutory parental leave taken from active employment.

Successor

The person who assumes control of a trust after the initial trustee dies or becomes unable to continue with his or her responsibilities.

Sum Assured

A secured, guaranteed amount under a life assurance policy to be paid on death.

Supplementary benefit

National Insurance and/or pension scheme contributions. (Group Income Protection)

Survival bonus

If all the annuitant(s) named on an Annuity Growth Account (AGA) are alive on the policy’s review date, a survival bonus is added to the Investment Element. The bonus will be a percentage of the Investment Element and will depend on the sex and age(s) of the annuitant(s). The percentage will be shown in the policy schedule when the AGA was set up or the endorsement that was issued at the last review.

Survival period

The amount of time that an insured person (or child) needs to survive after the diagnosis of, or undergoing surgery for, an insured illness. For the insured illness 'Major Organ Transplant' the survival period will start on the date that the insured person (or child) is included on an official UK transplant waiting list, or the date of surgery, if earlier. (Group Critical Illness)

Switch

Moving an investment from one fund to another.

Taper Relief

Tapering relief applies for inheritance tax when someone has made large gifts, but died within the following seven years.

Tax

A levy by the Government on income and business profits, capital assets, or added to the cost of some goods, services, and transactions.

Tax relief

A tax reduction allowed when you make payments to certain types of pension arrangements and investments.

Tax year

This runs from the 6th of April one year to the 5th of April the following year.

Tax-Free Cash

This is the amount of money that you can take as a lump sum from your pension fund without paying tax. Also known as a Pension Commencement Lump Sum (PCLS).

Term Assurance

A simple form of life insurance offering life assurance over a fixed number of years during which a lump sum will be paid out if the life insured dies.

Top-Up

Any additional payments invested in the policy after the policy date.

Total benefit

The combined total of all parts of an employee's benefits.

Transfer value

The value of a pension if it is being transferred to another pension plan.

Trust

A trust is a legal arrangement, whereby certain individuals (the trustees) deal with property over which they have legal control for the ultimate benefit of other persons (the beneficiaries).

Trust Deed

The provisions which govern how the trustees must run the Trust.

Trust Fund

The property held by the Trustees in the Trust.

Trustee

Individuals, or a trust corporation, who are named in the trust deed as being the legal owners responsible for holding the Trust Fund and dealing with the administration and tax affairs of the trust.

TUPE

The Transfer of Undertakings (Protection of Employment) Regulations 1981.

unbiased.co.uk

A website that holds information which can help you choose a financial adviser, mortgage broker, solicitor or an accountant in your local area.

Uncrystallised Fund

Uncrystallised is the term given to pension funds before they are cashed in.

Uncrystallised Funds Pension Lump Sum (UFPLS)

A way of taking pension benefits where 25% is tax free and the remaining 75% taxable at the member's marginal rate of tax.

Underwriting

The process that an insurance company uses to assess whether an applicant is in good health or not.

Unit Linked

A way of dividing pooled investments so that each individual will know what their investment in a fund will be worth.

Unit price

The price of a unit in an investment fund; it tends to be calculated on a daily basis by analysing the value of any assets that the fund invests in.

Unit Trust

A trust fund that is a collective investment vehicle pooling investors' money and therefore spreading the risks involved. It is an open-ended investment and therefore units can be created and cancelled depending on demand.

Unit Value

The value of the investment under a policy; it is the units allocated multiplied by the current unit price. Note: it may be different from the surrender value.

Units

One of the equal parts into which a fund is divided for the purpose of recording the value of your investment.

Valuation day

The day the Unit Value in a fund is calculated in order to process certain requests, pay claims and to carry out the normal functions of the policy.

Value Added Tax (VAT)

A consumption tax in the UK, which adds additional cost to an item or service.

Value of Units

The value of the investment under a policy; it is the units allocated multiplied by the current unit price. Note: it may be different from the surrender value.

Vested

An interest in a Trust is vested where the person in question has been given an absolute interest in the Trust Property.

Waiver Of Premium

A clause in an insurance policy that waives the policyholder's obligation to pay any further premiums should he or she become seriously ill or disabled.

War and civil commotion

War, invasion, hostilities (whether war is declared or not), civil war, rebellion, revolution or taking part in a riot or civil commotion, which leads to an insured illness. (Group Critical Illness)

Withdrawal

This is when you take a partial surrender from an investment bond.

Working Day

A day other than a Saturday, Sunday or a public holiday in the UK.

Yield

The dividend income last paid by a share of fund, expressed as a percentage of the current share or unit price.

Canada Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Canada Life International Limited and CLI Institutional Limited are Isle of Man registered companies authorised and regulated by the Isle of Man Financial Services Authority.

Canada Life International Assurance (Ireland) DAC is authorised and regulated by the Central Bank of Ireland.

Stonehaven UK Limited and MGM Advantage Life Limited, trading as Canada Life, are subsidiaries of The Canada Life Group (U.K.) Limited. Stonehaven UK Ltd is authorised and regulated by the Financial Conduct Authority. MGM Advantage Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority.