While some companies have exited the participating life insurance market, Canada Life promises to continue to be a leader in this area. They believe in participating life insurance and know the value it has delivered to policyowners. Canada Life is part of an organization that is the leading provider of participating life insurance in Canada. In 2007, the organization's collective participating life insurance sales grew by 15 per cent, surpassing $100 million in premium. Their extensive portfolio of life insurance products gives advisors choice in how best to serve their clients' financial security needs.
Participating life insurance policies are eligible for a periodic policyholder dividend. A review has been completed of the Canada Life participating account experience. Regarding the company statement, the 2008 dividend scale for Canada Life individual life insurance participating policies will continue to apply in 2009.
- Participating policyholder dividends are estimated to be $168 million in 2009.
- The interest rate for dividends on deposit will remain at 2.75 per cent or if greater, the minimum guaranteed interest rate in the contract.
- The policy loan interest rate will remain at 7.5 per cent, or if lower, the guaranteed interest rate in the contract.