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Class of beneficiary designated in the Helios Contract |
During the Owner’s lifetime with the Helios Contract |
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“Privileged” revocable beneficiary
· married spouse*
· ascendants*: parent (or grandparent, in Quebec only)
· descendants*: child or grandchild |
Exempt from seizure |
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Any irrevocable beneficiary |
Exempt from seizure |
*In Quebec: the relationship is between the person(s) named in the table and the Owner. Elsewhere in Canada: the relationship is between the person(s) named in the table and the individual whose life is insured under the contract.
Thus, a single person, without children, who designated his/her parents as the revocable beneficiaries, has protected his/her guaranteed investment fund contract from being seized.
Estate Planning
Your clients are concerned about protecting the value of their assets? They need a long-term estate-planning tool. The designation of a beneficiary involved in a guaranteed investment fund eliminates:
- The delays to pay the capital
- The delays and charges associated with executing a will
Joint Ownership with Right of Survivorship and Tenants in Common
In the case where more than one person is designated as the Annuitant, the death benefit is payable on the death of the last survivor. In addition, for the purposes of calculating the death benefit and the guarantees, the measuring life will be the younger annuitant.
No Surrender Charges After 3 or 6 Years!
Series 5B units are subject to the following surrender charges, staged over 3 years.
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Period |
Fees |
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Year 1* |
3.0 % |
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Year 2* |
2.5% |
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Year 3* |
2.0% |
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Thereafter |
None |
* Year refers to the calendar year, not the contract year.
Series 5C units are subject to the following surrender charges, staged over 6 years:
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Period |
Fees |
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Year 1* |
5.5 % |
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Year 2* |
5.0% |
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Year 3* |
4.0% |
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Year 4* |
3.0% |
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Year 5* |
2.5% |
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Year 6* |
2.0% |
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Thereafter |
None |
* Year refers to the calendar year, not the contract year.
Waiver or Refund of Surrender Charges (2)
Surrender charges in respect of Series 5B or Series 5C units will be waived or refunded in the following situations:
- Withdrawals up to a maximum each year of 12% of the value of Series 5 units (as calculated on the last market day in the preceding calendar year);
- Total or partial withdrawals, if the annuitant, at the time of such withdrawals, had a permanent and irreversible disability.
Surrender charges are waived on the death of the annuitant.
| (2) |
You should refer to the contract itself which sets out in full the rules governing the application of these waiver and refund privileges. |