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

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

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

It’s temporary coverage that provides a one-time tax-free payout if the person who’s insured – you, your business partner or a key employee – dies within the term you choose.* It can help your business continue to operate by covering its debt, expenses or a partner buyout.

Business-owned term life insurance is different from personal term life insurance, which helps protect your loved ones. With both, the payments you make, called premiums, are set for the term you choose and won’t change during that period.

Here are some ways that life insurance can help your business:

In general, term life insurance is the most affordable type of life insurance available. There are a few factors that can affect the price of your policy, including:

There are 2 main types of life insurance for business ownersterm life insurance and permanent life insurance.

Term life insurance
Permanent life insurance

What does it provide?

Protection for a set length of time

Permanent protection

Needs it can meet

  • Loan coverage
  • Protect business from an unexpected death
  • Protecting key people
  • Funding a buyout agreement
  • Additional cash flow
  • Funding a buyout agreement
  • Business has funds not needed for operations
  • Succession planning
How long does it last?

Specific period of time

Lifetime protection

Cost

Usually more affordable than permanent

Usually more expensive than term

Benefits

  • You name a beneficiary who receives a tax-free one-time payment when you die*
  • If your plans change, your coverage can change with them
  • You name a beneficiary who receives a tax-free one-time payment when you die*
  • Build wealth inside your policy, within limits, that you can access while you're alive

Savings component

No

Yes

View permanent life insurance

Renew  

With most traditional term insurance products, your policy would automatically renew for the same length of time as the original term. With Canada Life My Term™, your policy renews on a yearly basis at a lower initial rate than traditional term products. This allows you to keep your coverage longer if you need it.

Convert to a longer term

You may be able to convert to a term that is 10 or more years longer than your original term. Your premiums will increase gradually each year.

Convert to permanent insurance

Choose this option if you want insurance that lasts a lifetime and may grow in value over time, with tax advantages. Your premiums will be based on the coverage you choose.

This refers to named beneficiaries (people). Probate fees (estate administration tax), if any, may apply on money paid to an estate. All comments related to taxation are general in nature and are based on current Canadian tax legislation and interpretations for Canadian residents, which are subject to change.

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