No. To allocate premiums to a GIO or DIO (whether through a stand-alone policy or within a segregated funds policy), a digital application can’t be submitted.

Three guaranteed interest types are available under the GIO option:

1. Simple interest paid monthly to DIO (non-registered and TFSA only) – each month, the interest earned during the previous month will be paid to the DIO.
2. Simple interest paid annually to DIO (non-registered and TFSA only) – each year on the investment anniversary, the interest earned during the previous year will be paid to the DIO.
3. Compound interest: interest earned annually remains within the term until it ends.

You’ll need to enter the rate under the applicable interest rate type column on the application.

• Minimum investment amount and minimum additional premium amount in Guaranteed Interest Option: $500
• Minimum investment amount and minimum additional premium amount in Daily Interest Option: $25

Yes, a new application for a segregated fund policy will be required in this case.

You can now access your clients’ GIO and DIO details and historical statements on Workspace: MGA advisors can also email ISP_Customer_Care@canadalife.com, for inquiries.

Yes, you can add additional money by submitting the Subsequent premium – Guaranteed interest and daily interest option (70-0265) form. Each new deposit will create a new GIO certificate under the chosen term.

No. This can be completed by submitting the Change automatic instructions, renewals and banking Guaranteed interest and daily interest option (70-0262) form.

• An early-cash-out charge (ECC) will be applied to withdrawals/payment changes to a GIO term before the renewal date.
• An ECC won’t be charged in the following instances:
  • Intact transfers from savings to income policies
  • Year-to-date withdrawals processed from an income policy up to the legislated minimum amount
  • Death claim

The interest remains in the policy, going either monthly or annually to DIO. If the client wishes to receive the interest as a payment, a scheduled redemption will need to be set up from the DIO.

*Minimum redemption amounts apply. Please refer to the GIO/DIO resources for details. 

The ECC is made up of two parts: an expense recovery fee and a market value adjustment. The expense recovery fee decreases over the guaranteed term; it’s highest at policy issue and zero at the end of the term. The market value adjustment depends on the current interest rate at the time of withdrawal and can’t be predicted at policy issue.

If your client makes a redemption within the first 90 days from when the premium was first allocated to a GIO/DIO, you may have to return all, or a portion, of your commission to Canada Life .

ECC example:

Let’s assume a client purchases a 1-year GIO with $100,000 premium and a guaranteed rate of 4.50%.

If the client withdraws the full amount six months after issue, they’ll receive the accrued interest at the time of withdrawal, minus the ECC:  

• If rates stay the same or decrease: ECC = $260
• If rates increase by 0.25%: ECC = $380
• If rates increase by 0.50%: ECC = $510

All GIOs are redeemable. However, if your client withdraws cash before renewal, they’ll be subject to an ECC.

Clients will have the choice of receiving a specified income amount (net or gross). We’ll withdraw income from the DIO first and then the GIO term closest to renewal; an ECC will be applicable if withdrawals are made from a GIO.