CanInvest Select Account Investment solutions designed for you

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1 INVESTMENTS PENSIONS INTERNATIONAL ESTATE PLANNING CanInvest Select Account Investment solutions designed for you Investing in your future

2 The CanInvest Select Account Our Select Account is all about transparency, simplicity and flexibility an investment that is easy to understand and which can adapt, over time, to changing goals and objectives. As an investment bond, everything about the Select Account has been designed to make it as easy as possible for the policyholder to understand. Its aim is to provide policyholders, whether they are individuals, trustees or companies, with the potential for capital growth over the medium to long term, with the flexibility of allowing a tax-efficient income to be drawn as and when required. If one of the objectives is to reduce the amount of inheritance tax payable on death, the Select Account can be held in a discounted gift trust from outset. This arrangement allows an individual to reduce the value of their estate whilst retaining a fixed lifetime income, subject to investment performance. Part of the original investment is outside of their estate immediately with the balance falling outside after seven years and any investment remaining after death can be held under trust or paid to the chosen beneficiaries. 2

3 Investment Analyser Transparent Charging Phased Investment Online fund centre Free switching Investment choice The Select Account provides a flexible approach to investing. Whilst the investment return cannot be guaranteed, the money in the Account can be invested in one or more of a high quality range of investment funds. These funds are managed by Canada Life s own award-winning investment team, its Global Partner Series and recognised investment partners, who are some of the biggest and most respected investment companies from around the world, with whom we have been working for many years. This range includes funds focusing on specific areas of the world, specific types of investments or different styles of investment; protected or total return for example. A portfolio can be built to meet the investment objectives of the policyholder or alternatively there is the ability to invest in one or more multi-asset funds. These include access to our popular and well-established risk profiled funds. For a simplified approach to investment we offer a process using Investment Planner from Distribution Technology. This process will help identify the risk profile and select a suitable portfolio fund, monitored and re-balanced to ensure the level of risk remains constant. There is also an option to phase the investment, allowing the policyholder to drip-feed the money from one range of funds into another over a period of time. This facility can help reduce volatility. Investment solutions designed for you Build your own portfolio Managing your investments When it comes to monitoring, you can access our free-to-use Investment Analyser tool to help track the funds you invest into. You will find our online fund centre is full of useful information to help you keep up to date. We also help support your adviser through our range of planning tools and awardwinning Technical Support Team. We also offer free switching and phased investment. The phased investment option could be particularly attractive when markets are volatile. At a time like that you may be concerned about investing all your money at once, so you could choose to drip-feed your money into your chosen funds if you re looking to preserve your capital by gradually moving your investment into less volatile funds, perhaps as you near retirement. It is always important to discuss the underlying investment with your professional adviser to ensure that you fully understand the nature of the investment and the risks involved, and to be clear it is suitable for you and your objectives. CanInvest Investment Partners Select Account Canada Life Investments Global Partner Series Please note that past performance is not a guide for the future. The value of units can fall as well as rise and currency fluctuations may also affect performance. 3 3

4 Transparent, flexible and tax-efficient There are a number of easy ways you can withdraw money from the Select Account, and the charges you pay are simple to understand. With the added benefit of tax efficiency, the Select Account has a lot going for it. Taking money out There is no charge for taking money out of the Select Account. If you are planning on taking money out of the Select Account we strongly recommend that you discuss the tax implications with your professional adviser before taking any action. Discounted gift trust option Under this option the only money that can be taken out, during your lifetime, are the regular fixed withdrawals. No other withdrawals can be taken from the Select Account, during your lifetime, except for any on-going adviser charges. The trust under which the Select Account is placed is designed to provide you with a series of regular fixed withdrawals which cannot be stopped or varied during your lifetime. As the trustees have an obligation to provide these withdrawals it is also not possible for any policies to be surrendered during your lifetime. Regular withdrawals You can arrange to take a regular amount of money out of your Select Account. These withdrawals can be set up at outset or added, varied or stopped at any time. The minimum amount you can withdraw each year is 250, and payments can be taken monthly, quarterly, half-yearly, yearly, or termly for school fees planning. There is no maximum amount you can withdraw, however you must leave at least 250 in the Select Account. Partial surrender You can cash in part of the value of your Select Account at any time. You must take a minimum of 250, and at least 250 must be left in the Select Account. Policy surrender As the Select Account consists of a number of individual policies, you can surrender some of these fully to provide a lump sum. Using individual policies can provide tax advantages when taking money out. Full surrender You can choose to surrender the whole Select Account in full at any time. If you are planning on withdrawing any money, we strongly recommend that you discuss the tax implications with your professional adviser. What happens if you die Where you are the only life assured or are the last life assured to die, we will pay a cash sum called a death benefit. This will be 100.1% of the value of the units within the Select Account at the time of your death. Where the Select Account is not written in trust, if you die before the last surviving life assured then the death benefit will form part of your estate. An Account written with the discounted gift option is always placed in trust. When you die the Select Account will continue but the regular withdrawals will stop. 4

5 The charges Monthly management charge We will take a monthly charge, which is a percentage of the value of your investment. The greater the amount you have invested, the lower the percentage charge. This is done by deducting the units in your funds. The more your funds increase in value, the lower the percentage charge we deduct. Investment management charge These charges are made by the investment managers, and vary depending on the fund(s) you are investing in. The charge is calculated daily, and is reflected in the unit price of each fund. Loyalty bonuses To reward longer-term investors we add a loyalty bonus equal to 0.5% of your Select Account value at the end of year five, and every five years after that. Tax The Select Account is designed to provide tax efficiency; here s a summary of the position with regards to your tax liability. Tax within the funds As a UK-based provider we pay some corporation tax in our funds and in return HMRC treat this as being equal to basic rate income tax. UK dividend income is received tax-free although other income, such as interest and rental income is taxed. Any capital gains made in the fund are also taxed, but only on the part of the gain that is above inflation. Income tax A liability to income tax may arise on any gains you have made when you take money out of the Select Account. However, one of the main advantages of the Select Account is that each year you can withdraw an amount equal to 5% of the money you ve paid in, without any immediate personal liability to tax. This can continue until an amount equal to the original investment has been returned, for example 5% each year for twenty years, 4% each year for 25 years, and so on. The 5% allowance is cumulative, so any unused amount can be carried forward. When the Select Account is surrendered, or withdrawals exceed the 5% allowance, there may be a tax liability if you are a higher or additional rate taxpayer, or become one when the gain or excess withdrawals is added to your income. This may affect your personal allowance. The tax payable will be the difference between basic rate tax and your higher rate of tax. Inheritance tax Unless the Select Account is held in a suitable trust it will form part of your estate when you die. The value of the Select Account immediately prior to death will be included as part of your estate. Capital gains tax As any profit or gain from the Select Account is taxed under income tax, generally there will not be any capital gains tax to pay. If you have any questions about the Select Account, or would like to know more about setting up a trust, please contact your professional adviser. 5

6 Paying your professional adviser You can pay your professional adviser in the way that suits you. All in all, the Select Account puts you in control. Your payment options If there is a fee due to your professional adviser you can pay it direct, or you can ask us to pay it on your behalf by deducting the required amount from your Select Account. It s up to you how this adviser charge is paid. There are typically three types of fees to bear in mind, which we have listed here. 1. Initial adviser charges This covers the initial advice you receive. We can deduct this charge before applying any money to the Select Account, in which case the net amount will be invested. If this charge is deducted after the Select Account has been set up, then the gross amount will be invested, and the adviser charge deduction will form part of your 5% annual withdrawal allowance. Where the discounted gift option has been selected any initial adviser charge must be deducted before applying any money to the Select Account. 2. Ongoing adviser charges If you or, if applicable, the trustees have agreed an ongoing service with your adviser, we can deduct regular amounts from your Select Account to meet these fees. The deductions will use up part of your 5% annual withdrawal allowance, and you can stop, start or vary them at any time. 3. Single/ad hoc adviser charges Once your Select Account is up and running, you or, if applicable, the trustees can request an ad hoc deduction to cover any fees due to your adviser. This can be taken by using the 5% annual withdrawal allowance, or by surrendering individual policies (except under the discounted gift option) within the Select Account. Any withdrawals or surrenders from your Select Account may generate a tax liability. So it s important that you discuss this with your professional adviser before issuing any instructions. Instructions to deduct any money must come from you or, if applicable, the trustees as the owner of the Select Account. We will accept an instruction from your professional adviser to stop or reduce the payments, but not to start or increase them. Canada Life The 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. Canada Life is a subsidiary of The Great-West Life Assurance Company, and a member of the Power Financial Corporation group of companies. Strength and stability We understand that you want to invest in 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 724 billion (as at 31 December 2016) we have a strong platform for continued growth as a world-class financial services provider. Ratings are another reflection of our financial strength; Great-West and its subsidiaries have received strong scores from the major ratings agencies. You can view our latest ratings on the About us part of our website Service charter We are committed to providing superior levels of service, and to demonstrate this we have published a service charter, incorporating our service standards and non-performance penalties we pay out. If you d like a copy of our service charter, please ask your professional adviser for a copy. Please note that past performance is not a guide for the future. The value of units can fall as well as rise and currency fluctuations may also affect performance. 6 6

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8 For further information about Canada Life Limited, please visit or call us on Canada Life Limited, registered in England no Registered office: Canada Life Place, Potters Bar, Hertfordshire EN6 5BA. Telephone: Fax: Member of the Association of British Insurers. Canada Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. This paper is made from recycled materials ID R