LONDON LIFE ESTATE PROTECTION FUNDS POLICY

Transcription

1 LONDON LIFE ESTATE PROTECTION FUNDS POLICY INFORMATION FOLDER OCTOBER 2015 London Life Insurance Company. This document is not an insurance contract.

2 This information folder is not an insurance contract. The information in this folder is subject to change from time to time. If there is a difference between this information folder and your contract, your contract will apply. In this information folder, you and your mean the policyholder of a London Life estate protection fund policy. We, us, our and London Life mean London Life Insurance Company. About London Life London Life Insurance Company was incorporated in 1874 by an act of the Legislature of Ontario to carry on the business of life and accident insurance. London Life was continued as a federal company in 1884 by an act of the Parliament of Canada. London Life carries on business under the Insurance Companies Act (Canada). The terms and conditions of the policies issued by London Life and the distribution of the policies are governed by the insurance acts of the provinces and territories in Canada where London Life carries on business. London Life is a subsidiary of The Great-West Life Assurance Company. Great-West Life and London Life are members of the Power Financial Corporation group of companies. London Life s administrative offices are located at: 255 Dufferin Avenue London, Ontario N6A 4K Robert-Bourassa Blvd, Suite 540 Montreal, Quebec H3A 1T9 London Life s head office is located at: 255 Dufferin Avenue London, Ontario N6A 4K1 Certification This information folder contains brief and plain disclosure of all material facts relating to the London Life estate protection funds policy issued by London Life Insurance Company. July 16, 2015 J. Dave Johnston Douglas A. Berberich President and Chief Operating Officer, Canada Vice-President and Associate General Counsel, Canada

3 Key facts about the London Life estate protection funds policy This summary provides a brief description of the basic things you should know before you apply for this individual variable insurance contract. This summary is not your contract. A full description of all the features and how they work is contained in this information folder and your contract. You should review these documents and discuss any questions you have with your financial security advisor. What am I getting? You are getting an insurance contract between you and London Life Insurance Company. It gives you a choice of investment funds and provides certain guarantees. You can: Only have a non-registered contract Only purchase the contract if the annuitant is at least 80 and no more than 90 years of age when the policy is issued Choose one or more investment funds Name a person to receive the death benefit Withdraw money from your contract Receive regular payments now or later The choices you make may affect your taxes, see the section Income tax considerations. They could also affect the guarantees, see the section Examples of how redeeming units affects the basic amount and reduces the guaranteed value. Ask your financial security advisor to help you make these choices. The value of your contract can go up or down subject to the guarantees. What guarantees are available? You get maturity and death benefit guarantees. These help protect your fund investments. For details about the guarantees, see the Guaranteed benefits section. You pay fees for this protection. The fees are included in the management expense ratio which is described in the Fees and expenses section. Any withdrawals you make will reduce the guarantees. For full details please see the Guaranteed benefits section. Maturity guarantee This protects the value of your investment at a specific date in the future. This date, known as the maturity date, is the date the annuitant attains age 100. For full details, please see the When your policy matures section. On this date, you will receive the greater of: The market value of the funds, or 75 per cent of the money you put in the funds Death benefit guarantee This protects the value of your investment if the insured person dies. It is paid to someone you name. The death benefit applies if the insured person dies before the maturity date. It pays the greater of: The market value of the funds, or 100 per cent of the money you put in the funds What investments are available? You can invest in the investment funds described in the Fund Facts section. Other than maturity and death benefit guarantees, London Life does not guarantee the performance of the investment funds. Carefully consider your tolerance for risk when you select a fund. How much will this cost? The investment funds you select affect your costs. The investment funds are only available as no-load units. For full details, see the section Sales charge option and the Fund Facts for each investment fund. Fees and expenses are deducted from the investment funds. They are shown as management expense ratios or MERs on the Fund Facts for each fund. If you make certain transactions or other requests, you may be charged separately for them and this includes a short-term trading fee. For full details, see the section Fees and expenses and the Fund Facts for each investment fund. London Life Insurance Company London Life estate protection funds policy information folder October

4 What can I do after I purchase this contract? If you wish, you can do any of the following: Exchanges You may exchange from one fund to another. See the section How to exchange investment fund units. Withdrawals You can withdraw money from your contract. If you decide to, this will affect your guarantees. You may also need to pay a fee or taxes. See the section How to redeem investment fund units. Premiums You may make lump-sum payments. See the section How to allocate premiums to investment fund units. Payout annuity At a certain time, unless you select another option, we will start making payments to you. See the section When your policy matures. Certain restrictions and other conditions may apply. Review the contract for your rights and obligations and discuss any questions with your financial security advisor. What information will I receive about my contract? We will tell you at least once a year the value of your investment and any transactions you have made during the year. You may request more detailed financial statements of the funds. These are updated at certain times during the year. For full details, see the section Administration of the investments funds. Can I change my mind? Yes, you can: Cancel the contract Cancel any additional lump-sum premium you make To do any of these, you must tell us in writing within two business days of the earlier of: The day you receive the confirmation of your transaction, or Five business days after we mail the confirmation to you The amount returned will be the lesser of the amount you invested or the value of the applicable units you acquired on the day we process your request. The amount returned will include a refund or any sales charge or other fees you paid. The transaction may generate a taxable result and you are responsible for any income tax reporting and payment that may be required as result of any transaction. If you change your mind about a specific additional premium the right to cancel only applies to that transaction. For full details, see the introductory page to the Fund Facts section. Where can I get more information? You may call us at or send us an . To send an please go to our website and then to the Contact Us section. Information about our company and the products and services we provide is on our website at For information about handling issues you are unable to resolve with us, contact the OmbudService for Life and Health Insurance at or on the Internet at Additionally, if you are a resident of Quebec contact the Information Centre of the Autorité des marchés financiers (AMF) at or at [email protected]. For information about additional protection available for all life insurance policyowners, contact Assuris, a company established by the Canadian life insurance industry. See for details. For information about how to contact the insurance regulator in your province visit the Canadian Council of Insurance Regulators website at 2 London Life Insurance Company London Life estate protection funds policy information folder October 2015

5 Table of contents Key facts about the London Life estate protection funds policy... 1 How London Life investment policies work... 4 Introduction... 4 Non-registered policies... 4 Beneficiaries... 5 How our investment funds work... 5 Profile funds... 6 Sales charge option... 6 How we value investment fund units... 6 Fund availability... 6 Fundamental changes to the investment funds... 7 Allocating premiums, redeeming and exchanging investment fund units... 7 How to allocate premiums to investment fund units... 8 How to redeem investment fund units... 8 Systematic redemption payments... 8 How to exchange investment fund units... 8 Short-term trading... 9 When the redemption of your units may be delayed... 9 When your policy matures... 9 Maturity date... 9 What happens to your policy on the maturity date... 9 Guaranteed benefits Basic amount Maturity guarantee Death benefit guarantee Examples of how redeeming units affects the basic amount and reduces the guaranteed value When the guaranteed benefits end Fees and expenses Fees and expenses paid by the investment fund Annual investment management fees Fees and expenses paid directly by you Income tax considerations Tax status of the investment funds Non-registered plans Administration of the investment funds Keeping you informed Requests for Fund Facts, financial statements and other documents Material contracts Material transactions Assuris protection Investment policy Investment managers Fund risks Fund Facts Asset allocation funds Conservative Profile (PSG) Profile (PSG) Balanced Profile (PSG) Income Profile (PSG) Cash and Cash Equivalent funds Money Market (Portico) Fixed income funds Fixed Income Profile (PSG) Core Bond (Portico) Core Plus Bond (Portico) Income (Portico) Mortgage (Portico) Government Bond (Portico) Balanced funds Income (Mackenzie) Diversified (London Capital) Balanced Growth (GWLIM) North American Balanced (London Capital) Equity/Bond (GWLIM) Canadian Balanced (Mackenzie) Growth and Income (Mackenzie) Growth and Income (AGF) Balanced (Beutel Goodman) Glossary of terms London Life Insurance Company London Life estate protection funds policy information folder October

6 How London Life investment policies work Introduction The London Life estate protection funds policy is an individual variable insurance contract based on the life of the insured person, also known as the annuitant, which you name on the application form. The annuitant must be at least age 80 and no more than 90 years when we issue the policy. If, at any time, it is determined the annuitant was less than 80 or more than 90 years of age as of the policy issue date, the policy will be void and the lesser of the original premiums paid and the then-current market value will be paid to you. London Life is the issuer of the policy and holds and administers the investment funds. The policy is not available as a registered savings plan (RSP) or retirement income fund (RIF). The policy allows you to allocate premiums to the investment funds we make available from time to time. This information folder describes the investment funds available and the maturity and death benefit guarantees that come with the policy. For more information about guaranteed interest options, please contact your financial security advisor. Your policy is a deferred annuity, which means annuity payments may commence following the maturity date. If you choose to make a redemption, this will reduce the amount available for annuity payments. Also, the performance of the investment funds you select will affect the amount available for annuity payments. For more information, see When your policy matures. We have the right to change any minimum amounts that are shown in this information folder without notice. This document is divided into two parts. The first part contains general information that applies to the policy. The second part provides specific information about the investment funds. A glossary of terms is located at the back of this information folder and provides an explanation of some of the terms used in the information folder. Non-registered policies A non-registered policy can be owned by a single individual or jointly by several individuals. When there are joint policyholders, we will require written instructions from all policyholders to take any action under the policy. The annuitant can be one of the policyholders or someone else. For information about tax implications, see Income tax considerations. Joint policyholders Ownership of the policy following the death of a joint policyholder depends on the type of the joint policyholder selected on the application. A) With right of survivorship When joint policyholders have been named with right of survivorship (subrogated policyholder in Quebec) on the death of a joint policyholder, who is not the annuitant, the other joint policyholder will become the sole policyholder. If the deceased joint policyholder is the annuitant, we will pay the death benefit to the beneficiary. For more information, see Death benefit guarantee. For information about tax implications, see Income tax considerations. B) Tenants in common Where joint policyholders have been named as tenants in common, on the death of a joint policyholder, who is not the annuitant, the estate of the deceased policyholder will take the place of the deceased joint policyholder. If the deceased joint policyholder is the annuitant, we will pay the death benefit to the beneficiary. For more information, see Death benefit guarantee. For information about tax implications, see Income tax considerations. Contingent policyholder If the annuitant is not one of the policyholders, you may name a contingent policyholder and may revoke or change a contingent policyholder as permitted by law. In the event of your death, the contingent policyholder, if living, becomes the new policyholder. If there is more than one policyholder, your death means the death of the last surviving policyholder. If a contingent policyholder has not been named, or if they are not living on your death, then your estate will become the policyholder. For information about tax implications, see Income tax considerations. 4 London Life Insurance Company London Life estate protection funds policy information folder October 2015

7 Features of these policies are summarized in the following table: Product feature Minimum issue age 80 Maximum issue age 90 Minimum initial premium Minimum additional lump sum premium Minimum systematic redemptions Minimum partial redemptions Minimum fund balance Minimum policy value London Life estate protection funds policy $10,000 $100 Scheduled $25 monthly $100 quarterly or semi-annually $200 annually Unscheduled $500 $300 $1,000 Current as of the date of the information folder subject to change Beneficiaries You may designate one or more beneficiaries to receive any death benefit payable under this policy. You may revoke or change the designation, subject to applicable law. If the designation is irrevocable, you cannot revoke or change it or exercise certain other specific rights without the written consent of the irrevocable beneficiary. How our investment funds work Each of our investment funds is a segregated fund, which is a pool of investments that is kept separate, or segregated, from the general assets of London Life. Each investment fund is divided into an unlimited number of notional units of equal value. For more information about unit value, see How we value investment fund units. When you allocate a premium to the investment funds, units are allocated to your policy, but you do not actually own, buy or sell any part of the investment funds or any units. Instead, we hold the assets of the investment funds. This also means that you don t have any voting rights associated with the investment funds. We calculate the value and the benefits to which you are entitled based on the value of the units allocated to your policy on a particular date less any applicable fees and charges (policy value). Neither your policy nor your units give you an ownership interest in London Life or voting rights in connection with London Life. When you select an investment fund that invests in units of a mutual fund, you will not be a unitholder of the mutual fund. We have the right to subdivide or consolidate the units of an investment fund. This will not, apart from changes in the market value, result in a change to your policy value. We ll give you advance written notice if we have decided to do so. It s important to diversify investments, which means investing in investment funds that have a variety of assets and investment styles. You can currently choose from 20 different investment funds. Currently, five of our investment funds are asset-allocation funds that are specially designed to increase diversification. We refer to our asset-allocation funds as Profile funds. All the investment funds currently available are described in detail later in this information folder; see the Fund Facts section. The performance of the various investment selections will affect the amount available for annuity payments. For more information, see When your policy matures. London Life Insurance Company London Life estate protection funds policy information folder October

8 Profile funds Each profile fund invests in a variety of our other funds. They offer you an easy way to diversify investments by investing in a single investment fund. A profile fund may offer you diversification among: Types of assets, such as shares, bonds, mortgages and real estate The entities that issue the assets, such as shares in large, small or resource-based companies, and bonds issued by governments or companies Assets in different countries Investment advisors with different investment styles We may review the composition of the profile funds from time to time. When required, we may change: The funds the profile fund holds The percentages of each fund the profile fund intends to hold The number of funds the profile fund may hold Sales charge option No-load units There are no sales charges payable when a premium is paid to the policy. How we value investment fund units Generally, the value of each investment fund is determined at the close of business on each day the Toronto Stock Exchange is open for business and a value is available for any applicable underlying fund. We refer to any day that we value units as a valuation day. On each valuation day we calculate the unit value for each investment fund. When we value units, we calculate the unit value by dividing the total market value of that investment fund by the number of units in that investment fund. The market value of an investment fund is the total market value of the assets of the investment fund less the applicable investment management fees and other expenses. For more information about management fees and other expenses, see Fees and expenses. We have the right to change how often we value our investment fund units. We ll tell you in writing 60 days before we decrease the frequency that we value the units. For more information, see Fundamental changes to the investment funds. When we calculate the market value of an asset held in an investment fund, we use the closing price of that asset. If a closing price is not available, we ll determine the fair market value of the asset. If we subdivide the units of an investment fund, there will be a decrease in the unit value. If we consolidate the units of an investment fund, there will be an increase in the unit value. If we subdivide or consolidate the units of an investment fund, the market value of the investment fund and the market value of your policy will not change. The value of investment fund units is not guaranteed because it fluctuates with the market value of the assets in the investment fund. Fund availability We have the right to restrict the amount and allocation of premiums or exchanges to any investment fund. We may add or remove an investment fund from the list of available investment funds without notice to you. If an investment fund is removed from the list, you are not able to allocate any additional premium or make exchanges to the removed investment fund. We may close or terminate an investment fund and will provide notice of our intent to do so at least 60 days in advance. A closed investment fund may later be re-opened for investment at our discretion without notice to you. If we terminate an investment fund completely, you have the right to exchange the value to a similar investment fund. We may also change the investment strategies of an investment fund without notice to you. We will notify you in writing 60 days before we make a material change to the fundamental investment objectives of an investment fund. For more information, see Fundamental changes to the investment funds. All the investment funds currently available are described in detail later in this information folder. For more information about a specific fund, see the applicable investment fund page. Currently the available investments funds are: Conservative Profile (PSG) Profile (PSG) Balanced Profile (PSG) Income Profile (PSG) Money Market (Portico) Fixed Income Profile (PSG) Income (Portico) Core Bond (Portico) 6 London Life Insurance Company London Life estate protection funds policy information folder October 2015

9 Core Plus Bond (Portico) Mortgage (Portico) Government Bond (Portico) Income (Mackenzie) Diversified (London Capital) Balanced Growth (GWLIM) North American Balanced (London Capital) Equity/Bond (GWLIM) Canadian Balanced (Mackenzie) Growth & Income (Mackenzie) Growth & Income (AGF) Balanced (Beutel Goodman) Fundamental changes to the investment funds If we make any of the following changes to an investment fund, we will notify you in writing at least 60 days before the change occurs. The notice will be sent by regular mail to the most recent address we have for you in our records. Increase the investment management fee Material change to the fundamental investment objectives Decrease the frequency with which the investment fund is valued During the notice period, you will have the right to exchange the value of your units from the affected investment fund to a similar investment fund that is not subject to the fundamental change without charge provided you advise us at least five days prior to the change happening. We ll advise you of similar investment funds that are available to you at that time. A similar investment fund is a fund within the same investment fund category that has a comparable investment objective and the same or lower investment management fee. If we do not offer a similar investment fund, you may have the right to redeem the investment fund without charge provided you advise us at least five days prior to the change happening. We ll advise you if this applies to you. The redemption of units or exchange of units from one investment fund to another may trigger a capital gain or loss. For information about tax implications, see Your income tax considerations. During the transition period between the announcement and the effective date of the fundamental change, you will not be permitted to allocate premiums to or exchange into the affected investment fund unless you agree to waive your rights under the fundamental change provision for that particular fundamental change. When an investment fund invests in an underlying mutual fund, an increase in the investment management fee of the underlying mutual fund, which also results in an increase in the investment management fee of the investment fund, would be treated as a fundamental change. Allocating premiums, redeeming and exchanging investment fund units You can allocate premiums to an investment fund up to the earlier of when the annuitant reaches age 91 and commencement of annuity payments. You can request to redeem or exchange units at any time, however you may be subject to a short-term trading fee. We only process allocations, redemptions or exchanges on valuation days. We have the right to limit or refuse allocations to the investment funds. If we receive your request to allocate your premium to an investment fund or to redeem or exchange units at our administrative office in London, Ontario or Montreal, Quebec before 4 p.m. Eastern Time or before the Toronto Stock Exchange closes, whichever is earlier, on a valuation day, we ll process the request on that day using that day s unit value. If we receive your request after that time, we ll process it on the next valuation day using that day s unit value. For more information, see How we value investment fund units. When you ask us to allocate premiums to an investment fund or to redeem or exchange units, your instructions must be complete and in a manner acceptable to us, otherwise we will not be able to complete the transaction for you. You can invest in up to 18 investment funds over the life of your policy. If you choose to make a redemption, this will reduce the amount available for annuity payments. For more information, see When your policy matures. London Life Insurance Company London Life estate protection funds policy information folder October

10 How to allocate premiums to investment fund units When you pay a premium to an investment fund, we allocate units to your policy. We determine the number of units to allocate to your policy by dividing the amount of the premium, by the appropriate unit value of the investment fund. For more information, see How we value investment fund units. If the investment instruction or accompanying documentation is incomplete, the premium will be held in accordance with our then- current administrative rules until satisfactory documentation has been supplied. If you allocate a premium to an investment fund, which is not available under this policy ( restricted investment fund ), we will exchange the units in the restricted investment fund based upon the unit values on the day we process the exchange and allocate the value of the units in the restricted investment fund to the Money Market (Portico) Fund (or to another investment fund as determined by our administrative rules). How to redeem investment fund units Upon request and subject to our administrative rules, you can redeem investment fund units on any valuation day. The value of your guarantees will be proportionally reduced when you redeem units. For more information, see Examples of how redeeming units affects the basic amount and reduces the guaranteed value. When you request money from your policy, we will redeem the number of units required to fulfil your redemption request. You must keep a minimum dollar amount in the policy. Currently, if you have less than $1,000 in the policy, we may require that you surrender the policy. We will redeem units to fund a redemption based upon the age of the units held in the applicable investment funds, with the oldest units being redeemed first. We will charge a short-term trading fee on any redemption when the units have not been held in the investment fund for the applicable period of time. For more information, see Short-term trading. When you redeem investment fund units, the value of those units is not guaranteed because it fluctuates with the market value of the assets in the investment fund. Under unusual circumstances, we may have to delay redemption of any units. For more information, see When the redemption of your units may be delayed. There may be income tax consequences if you redeem units. For more information, see Income tax considerations. Systematic redemption payments You can receive regular scheduled income payments from your policy. You can choose when to redeem (i.e., monthly, quarterly, semi-annually or annually) and how much to redeem each time. Systematic redemptions may eventually deplete your policy and will reduce your guaranteed benefits. We will make periodic scheduled payments to you from your policy subject to our then-current administrative rules. You may, subject to our rules, change the amount or discontinue payments by advising us in writing. When you redeem investment fund units, the value of those units is not guaranteed because it fluctuates with the market value of the assets in the investment fund. There may be income tax consequences for each payment since they are redemptions. For more information, see Income tax considerations. How to exchange investment fund units You can exchange units of one investment fund in your policy for units of another investment fund subject to our then-current administrative rules. When you exchange units, you re redeeming units of one or more investment funds and allocating their value to units of other investment funds. The values of your guarantees are not affected when you exchange units. If the value of the units of one investment fund is exchanged to another investment fund, which is not available under this policy, we will reverse the transaction in accordance with our administrative rules. We may charge a short-term trading fee on any exchange when the units to be redeemed have not been held in the investment fund for the applicable period of time. For more information, see Short-term trading. When investment fund units are exchanged, the value of those units is not guaranteed because it fluctuates with the market value of the assets in the investment fund. There may be income tax consequences from any exchange of units. For more information, see Income tax considerations. 8 London Life Insurance Company London Life estate protection funds policy information folder October 2015

11 Under unusual circumstances, we may have to delay the exchange of units if we ve had to delay the redemption of any units. For more information, see When the redemption of your units may be delayed. Short-term trading Using investment funds to time the market or trading on a frequent basis is not consistent with a long-term investment approach based on financial planning principles. In order to limit such activities, we will charge a short-term trading fee. The short-term trading fee is retained by the investment fund as compensation for the costs associated with the exchange or redemption request. We may take such additional actions as we consider appropriate to prevent further similar activity by you. These actions may include the delivery of a warning, placing you on a watch list to monitor activity, declining to accept further allocations to and exchange and redemption requests from the investment funds, delay trades by one valuation day and suspend trading under the policy. We reserve the right to change our administrative practices or introduce new ones when we determine it is appropriate. We will charge a fee of up to two per cent of the amount exchanged or redeemed if you allocate premiums to an investment fund for less than 90 consecutive days. The fee is subject to change. Our right to charge this fee is not affected by the fact that we may have waived it at any time previously. We reserve the right to increase the period of time a premium must remain in an investment fund from 90 consecutive days to up to 365 consecutive days. We will give you written notice of our intent to increase the time period at least 60 days in advance. Our notice to you will specify the investment fund(s) and the new period of time. We will send the notice to your most recent address for this policy on our records. When the redemption of your units may be delayed Under unusual circumstances, we may have to delay the redemption of units or postpone the date of a transfer or payment. This may happen if: Normal trading is suspended on a stock exchange where the investment fund has a significant percentage of its assets, or We believe it s not practical to dispose of investments held in an investment fund or that it would be unfair to other unitholders During such a delay, we ll administer the redemption of units according to the applicable rules and laws and in a manner that we consider fair. We may have to wait until there are enough assets in the investment fund that can be easily converted to cash. If there are more requests to redeem units than we can accommodate, we ll redeem as many units as we think is appropriate and allocate the proceeds proportionally among the investors who asked to redeem units. We ll redeem any remaining units as soon as we can reasonably do so. When your policy matures Maturity date The maturity date is the date on which the annuitant attains age 100, but not later than the twenty-eighth day of that month. If the annuitant attains age 100 after the twenty-eighth of the month, they will be deemed to have attained age 100 on the twenty-eighth of the month. If the twenty-eighth is not a valuation day, then the maturity date will be the valuation day prior to the twenty-eighth in that month. What happens to your policy on the maturity date On the maturity date, unless you have provided alternative direction, we will redeem all investment fund units allocated to your policy and annuity payments will commence. You may have to pay income tax as a result of the redemption. If you do not indicate a preference for another type of annuity offered by us, following the maturity date we will commence life annuity payments with a guarantee period of 10 years. The annuity payments are conditional on the annuitant being alive, and will be in equal annual or more frequent periodic amounts. If the annuitant dies prior to the expiry of the guarantee period, any remaining unpaid guaranteed annuity payments due after the death of the annuitant will be paid to the beneficiary, if living or if the beneficiary is not living or no beneficiary designation has been made, to your estate. The beneficiary may elect to have the remaining payments commuted and paid in one sum or continue to receive the payments until the end of the guarantee period. If the beneficiary elects to receive the remaining payments and dies prior to the end of the guarantee period, the remaining unpaid guaranteed payments will be commuted and paid in one sum to the beneficiary s estate. We may require evidence the annuitant or the beneficiary is living when any payment becomes due. You will have to pay income tax on the annuity payments. Payments are not London Life Insurance Company London Life estate protection funds policy information folder October

12 commutable during the annuitant s lifetime. Premiums will not be accepted under the policy after the annuity payments commence. If on the issue date of the policy, you are not a resident of Quebec, the amount of the annuity payments will be determined using the annuity rate in effect when the annuity payments commence. If on the issue date of the policy, you are a resident of Quebec, the amount of the annuity payments will be determined by the greater of the annuity rate in effect when the annuity payments commence and the rate established in the policy. Guaranteed benefits This policy provides two types of guaranteed benefits: a maturity guarantee and a death benefit guarantee. These guarantees have specific dates upon which they become effective. Please read this section thoroughly so you understand your investment fund guarantees. Before the maturity date or the death of the annuitant, the value of investment fund units is not guaranteed because it fluctuates with the market value of the assets in the investment fund. Basic amount The basic amount is used to calculate the value of the guaranteed benefits. In general, the basic amount is: The total of all amounts allocated to units and received by us before the annuitant attains age 91 Minus a proportional reduction for any redemption To calculate the proportional reduction for any units redeemed, we use the following formula: A x B C = reduction in the basic amount when: A is the basic amount before the redemption B is the value of the units redeemed C is the value of the investment funds before the redemption If short-term trading fees or other charges apply, they are included as a redemption. For more information, see Fees and expenses paid directly by you. The basic amount is not affected by the exchanges between investment funds. Maturity guarantee On the maturity date, we ll pay you the greater of: The policy value; or 75 per cent of the basic amount The maturity guarantee no longer applies once annuity payments commence or the policy is surrendered. Death benefit guarantee We will make a one-time, lump-sum payment of the death benefit if the annuitant dies before your policy matures. We make this payment to the beneficiary of the policy. If there is no beneficiary, we make the payment to you (as the policyholder) or to your estate. This payment will be made upon receipt by us of satisfactory proof of death. The amount of the death benefit will be calculated as of the valuation day we receive notification of the death of the annuitant if received at our administrative office in London, Ontario or Montreal, Quebec before 4 p.m. Eastern Time. If received after that time, we ll calculate the death benefit as of the next valuation day. The death benefit is the greater of: The policy value; or 100 per cent of the basic amount The death benefit may be adjusted for payments made between the date of death and the date we are notified of the death of the annuitant. The death benefit guarantee no longer applies once annuity payments commence or the policy is surrendered. Payment of the death benefit satisfies all of our obligations under the policy and ends our contract with you. Examples of how redeeming units affects the basic amount and reduces the guaranteed value Let s assume you are age 83 and you allocated the following premiums to the investment fund: Date July 1, 2015 July 1, 2016 Investment Fund Core Bond Fund (Portico) Core Bond Fund (Portico) Amount you allocated to the investment fund $10,000 $10, London Life Insurance Company London Life estate protection funds policy information folder October 2015

13 After the second premium allocation, your policy will have the following values: Basic amount $20,000 Maturity guarantee Death benefit guarantee $20,000 x 75% = $15,000 $20,000 x 100% = $20,000 Let s also assume that on July 1, 2017, you redeem units of the Core Bond Fund (Portico) for $4,950. If the market value is greater than the basic amount Let s assume on July 1, 2017 before you redeem the units, the market value of your Core Bond Fund (Portico) units is $22,000. Your basic amount would be reduced according to the formula: A x B C = reduction in the basic amount when: A = the basic amount before the redemption ($20,000) B = the value of the units redeemed ($4,950) C = the market value of the investment funds before the redemption ($22,000) $20,000 x $4,950 $22,000 = $4,500 Your policy would now have the following values: Basic amount $20,000 - $4,500 = $15,500 Maturity $15,500 x 75% = $11,625 guarantee Death benefit $15,500 x 100% = $15,500 guarantee Basic amount $20,000 - $5,500 = $14,500 Maturity $14,500 x 75% = $10,785 guarantee Death benefit $14,500 x 100% = $14,500 guarantee Note the reduction in the value of your guarantees is greater when you redeem units while the market value is less than the basic amount. When the guaranteed benefits end These benefits end on the earlier of one of the following dates: The maturity date, once we ve paid the maturity benefit The date the annuitant dies, once we ve paid the death benefit, or The date the policy is surrendered for its full value If the market value is less than the basic amount Let s assume that on July 1, 2017 before you redeem the units, the market value of your Core Bond Fund (Portico) units is $18,000. Your basic amount would be reduced according to the formula: A x B C = reduction in the basic amount when: A = the basic amount before the redemption ($20,000) B = the value of the units redeemed ($4,950) C = the market value of the investment funds before the redemption ($18,000) $20,000 x $4,950 $18,000 = $5,500 Your policy would now have the following values: London Life Insurance Company London Life estate protection funds policy information folder October

14 Fees and expenses This section explains the fees and expenses that you pay to us for managing the investment fund and paying for the guarantees (see Fees and expenses paid directly by the investment fund). The total cost of investing in an investment fund (known as the management expense ratio or MER) is the sum of the investment management fee and the expenses to operate the investment fund. This is further explained below, but in order to find out how much each investment fund will cost you to hold in your policy, you want to look at the MER. For the MERs of each investment fund available under the policy, see its Fund Facts, which is located in the second half of this information folder. You may also have to pay other fees and expenses as described under Fees and expenses paid directly by you, but these are generally costs that depend on actions taken by you, and will not be imposed unless you do something specific (for example, changing the frequency of your scheduled periodic income payments), or request a specific additional service (for example, extra copies of annual statements). Fees and expenses paid by the investment fund Management expense ratio (MER) The MER is made up of the investment management fee and operating expenses (see below), expressed as an annualized percentage of the investment fund s average net asset for the year. You do not directly pay the MER. The investment management fee and operating expenses are paid from the investment fund before the unit value of an investment fund is calculated. The MER of an investment fund is subject to change without notice. The current MER for an investment fund is found on its Fund Facts, which is located in the second half of this information folder. The updated MER is published each year in the audited financial statements, which are available on or about April 30 of each year. For more information on how to obtain these statements, see Requests for annual audited and semi-annual unaudited financial statements and other documents. Investment management fees An investment management fee, which is a percentage of the market value of each investment fund, plus applicable taxes, is deducted from each investment fund on a valuation day and paid to us before we calculate that investment fund s unit value. The amount of the investment management fee varies depending on the investment fund. The current investment management fee rates are shown below in the table, Annual investment management fees. When an investment funds invests in an underlying fund, there is no duplication of management fees. See Fund-of-Fund. Operating expenses In addition to investment management fees, we charge other expenses to the investment funds. These expenses are for the operation of the investment funds and your policy. They include legal, safekeeping, brokerage, administration, audit fees and taxes. These expenses vary from year to year and from investment fund to investment fund. We deduct these other expenses, plus applicable taxes, from each investment fund on a valuation day, before we calculate that investment fund s unit value. Fund-of-fund When an investment fund invests in an underlying fund, the fees and expenses payable in connection with the management, operation and administration of the underlying fund are in addition to those payable by the investment fund. As a result, the investment fund pays its own fees and expenses and its proportionate share of the fees and expenses of the underlying fund, and accordingly this is reflected in the total investment management fee and management expense ratio charged by the investment fund. However, there will be no duplication in the payment of investment management fees in such circumstances. 12 London Life Insurance Company London Life estate protection funds policy information folder October 2015

15 Annual investment management fees The following table shows the current investment management fee. We have the right to change the investment management fee at any time. If we increase the investment management fee, we ll tell you in writing 60 days before we make the change. For more information, see Fundamental changes to the investment funds. Fund name Asset-allocation funds Conservative Profile (PSG) 2.20% Profile (PSG) 2.40% Balanced Profile (PSG) 2.55% Income Profile (PSG) 2.35% Cash and cash equivalent funds Money Market (Portico) 1.05% Fixed-income funds Fixed-Income Profile (PSG) 2.00% Core Bond (Portico) 1.65% Core Plus Bond (Portico) 1.85% Income (Portico) 1.85% Mortgage (Portico) 2.05% Government Bond (Portico) 1.65% Balanced funds Income (Mackenzie) 1.90% Diversified (London Capital) 2.35% Balanced Growth (GWLIM) 2.30% North American Balanced (London Capital) 2.30% Equity/Bond (GWLIM) 2.30% Canadian Balanced (Mackenzie) 2.45% Growth & Income (Mackenzie) 2.25% Growth & Income (AGF) 2.45% Balanced (Beutel Goodman) 2.45% Investment management fee London Life Insurance Company London Life estate protection funds policy information folder October

16 Fees and expenses paid directly by you You may have to pay the following fees and expenses directly when you invest in a policy: Charge for changing the amount or frequency of your scheduled periodic income payments Charge for duplicate RRSP receipts and tax slips Policy research fee Short-term trading fee Courier fee These fees and expenses are explained in more detail below. You do not pay for the following services: Scheduled periodic income payment. Exchanges between investment funds unless you have been in the investment fund for less than the indicated periods. For more information, see Shortterm trading. We reserve the right to charge fees for additional services from time to time and to change the amount or the nature of the fees and expenses paid by you at any time. Charge for changing the amount or frequency of your scheduled periodic income payments. We may charge up to $60 if you change the amount or frequency of your scheduled periodic income payments more than once per year. Charge for tax slips We will give you one duplicate RRSP receipt or tax slip for the current tax year without charge, if you ask for it. We may charge $25 for duplicates of RRSP receipts and tax slips issued in all prior years. Policy research fee We may charge up to $15 per year of policy history or $35 per hour for researching your policy. You will be advised of the fee before the research begins. Short-term trading fee We will charge a short-term trading fee of up to two per cent of the amount exchanged or redeemed if you invest in an investment fund for less than the applicable period. The fee is subject to change. For more information, see Short-term trading. Courier fee If you request a cheque be sent via courier, we may charge a courier fee. Income tax considerations This is a general summary of income tax considerations for Canadian residents. It is based on the current Income Tax Act (Canada) and does not take into account any provincial or territorial tax laws. The summary does not include all possible tax considerations. The taxation of certain benefits available with these annuities is not certain at this time. You are responsible for the proper reporting of all taxable income and payment of all related taxes. This summary is not intended to offer you tax advice. You should consult your tax advisor about the tax treatment of these annuities for your personal circumstances. Tax status of the investment funds The investment funds are not separate legal entities. They fall under the definition of segregated funds in the Income Tax Act (Canada). For tax purposes, our investments funds are deemed to be trusts that are separate entities from London Life. The assets of the investment funds are kept separate from our general assets. The investment funds generally do not pay income tax because, throughout the year, all their income and realized capital gains and losses are allocated to you and other investment fund policyholders. The investment funds may have foreign tax withheld on income that is earned on their foreign investments. Non-registered plans For income tax purposes, you must report the following investment income that is allocated to you by the investment funds: Interest Dividends from taxable Canadian companies Taxable capital gains or losses Any other investment income allocated to you When you redeem units of an investment fund, you will realize a capital gain or a capital loss, which you must report. Your capital gain (loss) generally will be the amount by which the value of the redemption exceeds (is less than) the adjusted cost base of the units being redeemed. Death of the policyholder or transfer of ownership of the policy may create capital gains that must be reported. 14 London Life Insurance Company London Life estate protection funds policy information folder October 2015

17 Once a year, we ll send you tax reporting slips that show amounts that must be reported for income tax purposes. These slips will include the capital gain or loss on the redemption or exchange of your units as well as allocations from the investment funds. The slips will also include any capital gain or loss arising from rebalancing of investment fund assets, investment fund discontinuance or an underlying fund substitution. The tax information we provide to you will not include adjustments for transactions that generate superficial losses under the Income Tax Act (Canada). To avoid the creation of superficial losses that will be denied for income tax purposes, we recommend that you avoid allocating premiums to an investment fund within 30 days before or after redeeming units of that same investment fund. Any premiums you allocate to a non-registered policy are not tax deductible. The tax treatment of a top-up maturity or death benefit guarantee payment is not certain at this time. We recommend that you contact your tax advisor regarding the tax treatment of top-up payments for your particular circumstances. We will report top-up guarantee payments based on our understanding of the tax legislation and the Canada Revenue Agency (CRA) assessing practices at that time. You are responsible for any tax liabilities arising from any change in law, interpretation or CRA assessing practices. Administration of the investment funds Keeping you informed You ll be sent a statement as at the end of June and December. The statement will give you the following information: The total number of units, unit value and market value for all the investment funds in your policy on the statement date Dollar amount and number of units transferred to and from each investment fund for the statement period Any written communications will be sent to the most recent address in our records for the policy. Please tell us promptly if your address changes. Please review your statement and advise your financial security advisor or our administrative office at the address located on the inside front cover if they do not agree with your records. Any discrepancies must be reported in writing within 60 days of the statement date. We may change the frequency or content of your statement, subject to applicable laws. Requests for Fund Facts, financial statements and other documents The most current Fund Facts for each investment fund is available upon request to London Life at the address on the inside front cover or by visiting our website at The most recent annual audited financial statements and semi-annual unaudited financial statements for the investment funds are available upon request from your financial security advisor or by writing to London Life s head office at the address on the inside front cover or by visiting our website at The annual audited financial statements will be available to you after April 30 and the semi-annual unaudited financial statements will be available after Sept. 30 of each year. London Life Insurance Company London Life estate protection funds policy information folder October

18 In addition, copies of the simplified prospectus, annual information form, unaudited semi-annual financial statements, audited financial statements and interim and annual management reports of fund performance of the underlying funds are available upon request from your financial security advisor. Material contracts In the last two years, we have not entered or amended any contracts that are material to policyholders who invest in our investment funds. There are no material facts of which London Life is aware which relate to the policy that are not disclosed in this information folder. The auditor of the investment funds is Deloitte & Touche LLP. Deloitte is located at 360 Main Street, Suite 2300, Winnipeg, Manitoba, R3C 3Z3. Material transactions In the last three years, no director, senior officer, associate or affiliate of London Life has had any material interest, direct or indirect, in any transaction or in any proposed transaction that would materially affect the investment funds. We don t retain a principal broker for buying or selling the underlying investments in the investment funds. We usually arrange these investment transactions through many different brokerage houses. Assuris protection Assuris is a not-for-profit corporation, funded by the life insurance industry that protects Canadian policyowners against loss of benefits due to the financial failure of a member company. Details about the extent of Assuris s protection are available at or in its brochure, which can be obtained from your financial security advisor, life insurance company, or by contacting Assuris at [email protected] or by calling Investment policy We have established investment and lending policies that we believe are reasonable and prudent. The investment policies comply with: Federal and provincial pension benefits standards laws Canadian Life and Health Insurance Association Inc. (CLHIA) Guidelines on Individual Variable Insurance Contracts Relating to Segregated Funds approved by the Canadian Council of Insurance Regulators, as may be amended from time to time Autorité des marches financiers (AMF) Guideline on Individual Variable Insurance Contracts Relating to Segregated Funds, as amended, and approved by Autorité des marches financiers all as may be amended from time to time. The investment funds may achieve their investment objectives and/or investment strategies by either investing directly in securities or in units of one or more underlying funds that have similar investment objectives of the investment fund. If the underlying fund is a mutual fund, the fundamental investment objectives of the mutual fund cannot be changed unless approved by the mutual fund unitholders. If such a change is approved, we will give you notice of the change. We may update an investment fund s investment strategy, including the removal or substitution of underlying funds, without notice to you. The earnings of each investment fund are reinvested in the same investment fund according to its investment objectives and investment strategies. The investment funds may lend securities in a manner that is prudent, in the interest of the investment fund, and in compliance with any applicable laws. For a summary of an investment fund s investment policy, see the Fund Facts section. A detailed description of each segregated fund s investment objective and strategies is available upon request from London Life at the address on the inside of the front cover. In addition, you may request information about the underlying funds, including audited financial statements of the underlying funds by contacting your financial security advisor. The sum of an investment fund s exposure to any one corporate entity will not exceed 10 per cent of the value of the investment fund at the time of investment. Furthermore, the percentage of securities of any one corporate issue that may be acquired is limited to London Life Insurance Company London Life estate protection funds policy information folder October 2015

19 per cent of each class of securities of any one corporate issuer, except for any corporate issue of, or a government security guaranteed by, any government authority in Canada. We will not, in respect of any investment fund, invest in securities of an issuer for the purpose of exercising control or management. Performance of investment funds and underlying funds The investment objectives and investment strategies of the investment funds are in many cases similar to the objectives and strategies of a corresponding fund sponsored by our investment managers. Although the funds have these similar objectives and strategies, and in most cases will have investment portfolios managed by the same individuals, the performance of the underlying funds and the corresponding investment funds will not be identical. Investment managers We have the right to appoint or change investment managers to provide investment management, investment advisory and related services necessary for the investment and management of the investment fund property. We currently retain the following investment managers for our funds. AGF Investments Inc. located at P.O. Box 50, Suite 3100, Toronto-Dominion Bank Tower, Toronto, Ontario, M5K 1E9. Beutel, Goodman & Company Ltd. located at 20 Eglinton Avenue West, Suite 2000, P.O. Box 2005, Toronto, Ontario, M4R 1K8. GLC Asset Management Group Ltd. located at 255 Dufferin Avenue, London, Ontario, N6A 4K1. GLC Asset Management Group Ltd. manages their investment mandates through three investment management divisions London Capital Management (London Capital), GWL Investment Management (GWLIM) and Portico Investment Management (Portico). Mackenzie Financial Corporation located at 180 Queen Street West, Toronto, Ontario, M5S 3B5. Portfolio Solutions Group located at 255 Dufferin Avenue, London, Ontario, N6A 4K1. GLC Asset Management Group Ltd. is a wholly owned subsidiary of The Great-West Life Assurance Company. Portfolio Solutions Group is a division of London Life Insurance Company. The Great-West Life Assurance Company and Mackenzie Financial Corporation are members of the Power Financial Corporation group of companies. Policies are in place to avoid any potential conflicts of interest. We will advise you of any change to an investment manager. We may update an investment fund s investment strategy, including the removal or substitution of underlying funds, without notice to you. Investment manager review process We offer a wide range of investment funds diversified by investment management style, asset class, market capitalization and region. London Life employs a disciplined review process to select and monitor its investment managers. London Life Insurance Company London Life estate protection funds policy information folder October

20 Through our investment manager review process, we regularly review and monitor investment managers against our standards and established expectations. These reviews include: A review of performance absolute and riskadjusted and the consistency of this performance relative to their peer group and benchmark. A review of the investment policies and procedures of the investment fund to ensure the fund objectives, risk tolerances and investment constraints are being met. A review of qualitative factors, such as portfolio turnover and consistency of style. Our review is carried out by our investment manager review committee. This committee consists of members of senior management with a wide variety of business and investment qualifications. Fund risks Investment funds hold different types of investments stocks, bonds, other funds, cash depending on what the fund invests in. Different kinds of investment funds are subject to different risks. The value of the investment funds will vary from day to day because of various factors including changes in interest rates, economic conditions, and market and company news. As a result, the value of investment fund units may go up and down, and the value of your investment may have increased or decreased when you redeem it. Although you can never eliminate risk, you can reduce the risk through diversification, which means investing in a variety of different investments. You can achieve diversification by investing in an asset allocation fund or investing in several investment funds with different risks. In certain circumstances, an investment fund may suspend redemptions. For more information, see When the redemption of your units may be delayed. On each Fund Facts page the section Who is this fund for? can help you decide if the investment fund might be suitable for you. As well, on each Fund Facts page the investment funds have been rated as to how risky they are very low to high in the section How risky is it? This rating, where applicable, has been determined using historical volatility risk as measured by the standard deviation of fund performance. Other types of risk, both measurable and non-measurable, may exist and an investment fund s historical volatility may not capture all potential risks or be indicative of its future volatility. For example, a fund with a very low or low risk level would be more appropriate for an investor with a short time horizon and seeking capital preservation. A fund with a high risk level would be more appropriate for a long-term investor seeking to grow their capital and can tolerate the up and downs of the stock market. These ratings are meant as a general guide only. You should consult with your financial security advisor who can help you determine your appropriate risk level. Below is a summary of the various types of risks that may apply to the investment funds. Commodity risk An investment fund that invests in energy and natural resource companies, such as oil, gas, mining and gold, will be affected by changes in commodity prices. Commodity prices tend to be cyclical and can move dramatically in short periods of time. In addition, new 18 London Life Insurance Company London Life estate protection funds policy information folder October 2015

21 discoveries or changes in government regulations can affect the price of commodities. Credit risk Credit risk is comprised of default risk, credit spread risk and downgrade risk. Each can have a negative impact on the value of a fixed-income security. Default risk is the risk the issuer of a bond or other fixed income security may not be able to pay the interest or the principal at maturity. This risk can change during the term of the fixed income investment. Credit spread risk is the risk there will be an increase in the difference between the interest rate of an issuer s bond and the interest rate of a bond that is considered to have little associated risk, such as a government bond. The difference between these interest rates is called credit spread. An increase in credit spread will decrease the value of that security. Downgrade risk is the risk that a specialized credit rating agency, such as Standard & Poor s or Dominion Bond Rating Services will reduce the credit rating of an issuer s securities. Downgrades in credit rating or other adverse news regarding an issuer can decrease a security s market value. Derivative risk Derivatives are securities whose values are based on, or derived from, an underlying asset, interest rate, exchange rate or market index. They are used to reduce the risks associated with changes in interest rates and exchange rates and to enhance returns. When derivatives are used for a non-hedging purpose, it allows the investment funds to invest indirectly in the returns of one or more stocks or an entire index without actually buying the stock(s) or all the stocks in the index. There are a number of risks associated with derivatives: The value of a derivative may change due to changes in the market price of securities, interest rates or exchange rates. It may be difficult to sell a derivative in time to avoid a loss or realize a gain, because there aren t enough securities trading in the market. There is also a risk that one party to a derivative may fail to make a promised payment. The profile funds and investment funds that invest directly in an underlying fund don t invest directly in derivatives. Most of the other investment funds may use derivatives for hedging or reducing risk. They may also use derivative instruments for non-hedging purposes in order to invest indirectly in securities or financial markets and gain exposure to other currencies provided the use of derivative instruments is consistent with the investment fund s investment objectives. The investment manager may not use derivatives for leverage or pledge the fund s assets as part of any derivative transaction. Derivatives fall into four basic groups: interest rate contracts, foreign exchange contracts, equity contracts and commodity contracts. Within each of these groups, there are different types of derivatives. The most common types are: Options Interest rate swaps An option is a contract that gives the holder of the option the right, but not the obligation, to buy or sell an asset at a specified price within a certain period of time. An interest rate swap is an agreement to trade the interest payments from one security for those of another over a certain period of time. The principal amount of a security is not exchanged in an interest rate swap. The investment advisors may use derivatives that are traded on exchanges and sold over the counter. Overthe-counter derivatives are subject to additional restrictions set by guidelines and regulations. Equity risk Equity investments, such as stocks, carry several risks. The value of shares is affected by stock market conditions when the company s shares trade, by factors related to each specific company, in terms of its business, prospects, management and capitalization and by general economic and financial conditions in the countries where the company operates. Equity investment funds generally tend to be more volatile than fixed income investment funds and the value of their securities can vary widely. Fixed income investment risk Fixed income investments, such as bonds, carry several risks. In addition to credit risk and interest rate risk, a number of other factors may cause the price of a fixed income investment to fall. For investments in corporate fixed income instruments factors include developments related to each specific company and general financial, economic (other than interest rates) and political conditions in the countries where the company operates. For government fixed income investments, factors include general financial, economic and political conditions. Foreign currency risk The net asset value of a segregated fund is calculated London Life Insurance Company London Life estate protection funds policy information folder October

22 in Canadian dollars. The value of securities issued in foreign currencies is affected by changes in the value of the Canadian dollar relative to those currencies. If the Canadian dollar goes down relative to a foreign currency, the value of an investment held in that currency goes up. This change results in an increase in the unit value of the investment fund. The reverse occurs when the dollar goes up against a currency. Foreign investment risk Foreign market risk is the risk of financial loss due to investing in foreign markets. The value of the securities of the investment fund may be affected by general global economic conditions and specific economic conditions in a particular country. The regulatory environment may be less stringent than in North America and many of these companies and governments do not have the same accounting, auditing and reporting standards that apply in North America. The legal systems of some foreign countries may not adequately protect investors. Some foreign stock markets have less trading volume than North American markets, making it more difficult to buy or sell investments. Trading large orders in foreign countries may cause the price to fluctuate more than it would in North America. A country may impose withholding or other taxes that could reduce the return on the investment or it may have foreign investment or exchange laws that make it difficult to sell an investment. There may be political or social instability in the countries in which an investment fund invests. Interest rate risk Interest rate risk is the risk of economic loss caused by changes in interest rates. The value of fixed-income securities will change inversely with a corresponding change in interest rates: as interest rates decrease, the value of fixed-income securities will increase, and as interest rates increase, the value of fixed-income securities will decrease. Fixed-income securities with longer terms-to-maturity are generally more sensitive to interest rate changes than those of shorter terms-tomaturity. Large redemption risk Some investment funds may have particular investors, including other investment funds, who own a large proportion of the outstanding units. If one of those investors redeems a large amount of his or her investment, the investment fund may have to sell its portfolio investments at unfavourable prices to meet the redemption request. This can result in significant price fluctuations to the net asset value of the investment fund, and may potentially reduce the returns of the investment fund. Real estate risk The Real Estate Fund (GWLRA) is the only investment fund, which invests directly in real estate. Profile funds invest in the Real Estate Fund (GWLRA). The Real Estate Fund (GWLRA) and investment funds, which invest in the Real Estate Fund (GWLRA) could experience a delay when a redemption request is made due to the relative illiquidity of its real estate holdings. Real estate by nature is not a liquid asset. There is no formal market for trading in real property and very few records are available to the public which give terms and conditions of real property transactions. It may take time to sell real estate investments at a reasonable price. This could limit the fund s ability to respond quickly to changes in economic or investment conditions. It could also affect the fund s ability to pay policyholders who want to redeem their units. The fund will keep enough cash on hand to be able to pay for the normal amount of redemption requests in a timely manner. However, redemptions may be suspended during any period the investment fund does not have sufficient cash or readily marketable securities to meet requests for redemptions. For more information, see When the redemption of your units may be delayed. The unit value of the Real Estate Fund (GWLRA) will vary with changes in the real estate market and in the appraised values of the properties the fund holds. The value of real estate investments can vary with competition, how attractive the property is to tenants and the level of maintenance. The timing of the appraisal may also affect the value of the fund units. The Real Estate Fund (GWLRA) should be considered as a long-term investment and is not suitable for investors who may need to quickly convert their holdings to cash. In the event the Real Estate Fund (GWLRA) was dissolved, policyholders may receive less than the unit value because the unit value is based on appraisals, which may be greater than the amounts received upon the sale of properties pursuant to a liquidation. Securities lending, repurchase and reverse repurchase transaction risk In securities lending transactions, the investment fund lends its portfolio securities to another party (often called counterparty) in exchange for a fee and a form of acceptable collateral. In a repurchase transaction, the investment fund sells its portfolio securities for cash while at the same time it assumes an obligation to repurchase the same securities for cash, usually at a lower cost, at a later date. In a reverse repurchase transaction, the investment fund buys securities for cash while agreeing to resell the same securities for 20 London Life Insurance Company London Life estate protection funds policy information folder October 2015

23 cash, usually at a higher price, at a later date. Below are some of the general risks associated with entering into securities lending, repurchase and reverse repurchase transactions: When entering into securities lending repurchase and reverse repurchase transactions, the investment fund is subject to the credit risk that the counterparty may default under the agreement and the investment fund would be forced to make a claim in order to recover the investment. When recovering its investment on a default, the investment fund could incur a loss if the value of the securities loaned (in a securities lending transaction) or sold (in a repurchase transaction) has increased in value relative to the value of the collateral held by the investment fund. Similarly, an investment fund could incur a loss if the value of the portfolio securities it has purchased (in a reverse repurchase transaction) decreases below the amount of cash paid by the investment fund to the counterparty. Short selling risk Certain funds may engage in a disciplined amount of short selling. A short sale is when a fund borrows securities from a lender and then sells the borrowed securities in the open market. The fund must repurchase the securities at a later date in order to return them to the lender. In the interim, the proceeds from the short sale are deposited with the lender and the fund pays interest to the lender in respect of the borrowed securities. If the value of the securities declines between the time that the fund borrows the securities and the time it repurchases and returns the securities, the fund makes a profit for the difference (less any interest the fund pays to the lender). However, there is a risk that the prices of the borrowed securities will rise, and the fund will experience a loss. The fund may also experience difficulties repurchasing and returning the borrowed securities if a liquid market for the securities does not exist. In addition, there is a risk that the lender from whom the fund has borrowed securities may go bankrupt before the repurchase transaction is completed, causing the fund to forfeit the collateral it has deposited with the lender for the borrowed securities. When a fund engages in short selling it adheres to controls and limits that are intended to offset these risks by selling short only securities of larger issuers for which a liquid market is expected to be maintained and by limiting the amount of exposure for short sales. The fund also deposits collateral only with lenders that meet certain criteria for creditworthiness and only up to certain limits. Although segregated funds may not themselves engage in short selling, they may be exposed to short selling risk because the underlying funds in which they invest may be engaged in short selling. Smaller company risk Investing in securities of smaller companies may be riskier than investing in larger, more established companies. Smaller companies may have limited financial resources, a less established market for their shares and fewer shares issued. This can cause the share prices of smaller companies to fluctuate more than those of larger companies. The market for the shares of small companies may be less liquid. Investments in smaller companies are generally more volatile in the short term but offer the potential for higher returns over the longer term. Sovereign risk Sovereign risk is the risk of financial loss due to the government seizure of any assets held in a country. This may be more prevalent in foreign markets that experience great political, social or economic instability. Sovereign risk also arises due to the possibility of less stringent accounting practices and regulatory supervision standards and practices in foreign jurisdictions. Specialization risk If an investment fund invests only in specific countries, or in particular types of securities, or in specific markets, the fund s ability to diversify its investments may be limited. This limited diversification may mean the fund can t avoid poor market conditions, causing the value of its investments to fall. Underlying fund risk All of the Profile funds and some of the other investment funds use a fund on fund structure whereby the investment fund invests all of its assets in a secondary or underlying fund. Depending on the size of the investment being made by the investment fund in an underlying fund and the timing of the redemption of this investment, an underlying fund could be forced to sell significant assets prematurely to accommodate a large redemption request. This may negatively impact the unit price of the underlying fund. London Life Insurance Company London Life estate protection funds policy information folder October

24 This page has been left intentionally blank. 22 London Life Insurance Company London Life estate protection funds policy information folder October 2015

25 Fund Facts This section of the information folder contains individual Fund Facts for each investment fund available to you. You can choose to invest in one or more of these funds. The individual Fund Facts give you an idea of what each investment fund invests in, how it has performed and what fees or charges may apply. The description of each investment fund in the individual Fund Facts is not complete without the following description of What if I change my mind? and For more information. What if I change my mind? You can change your mind and cancel the investment fund contract or any lump-sum premium you apply by telling us in writing within two business days of the earlier of the date you received confirmation of the transaction or five business days after it is mailed. Your cancellation request has to be in writing, which can include , fax or letter. The amount returned will be the lesser of the amount of the premium being cancelled or the value of the applicable units acquired on the day we process your request. The amount returned only applies to the specific transaction and will include a refund of any sales charges or other fees you paid. For more information The Fund Facts may not contain all the information you need. Please read the contract and the information folder or you may contact us at: London Life Insurance Company 255 Dufferin Avenue London, ON N6A 4K1 Web: On our website please go to the Contact Us section Telephone: London Life Insurance Company London Life estate protection funds policy information folder October

26 Conservative Profile (PSG) Quick facts: Date fund available: October 18, 1999 Date fund created: October 18, 1999 Managed by: Portfolio Solutions Group Total fund value: $1,781,462,531 Portfolio turnover rate: 7.36% Management expense ratio (MER) (%) Net asset value per unit ($) Units outstanding 75% maturity and 100% death benefit guarantee ,565,871 Minimum investment Non-registered policies: $10,000 What does the fund invest in? This segregated fund, through investments in other funds, invests primarily in fixed-income securities but includes Canadian and foreign equities. It targets an asset mix of 75 per cent fixed income and 25 per cent equities. Top 10 investments Core Bond (Portico) Core Plus Bond (Portico) Mortgage (Portico) Corporate Bond (Portico) 6.98 International Bond (Brandywine) 5.00 Real Estate (GWLRA) 4.99 Canadian Equity (London Capital) 4.54 U.S. Value (London Capital) 3.55 U.S. Dividend (GWLIM) 3.04 Dividend (GWLIM) 3.02 Total Total investments: 12 Investment segmentation Bond Canadian Equity United States Equity 6.99 Cash 5.04 International Equity 4.59 Other 0.92 Are there any guarantees? This segregated fund is being offered under an insurance contract. It comes with guarantees that may protect your investment if the markets go down. The MER includes the insurance cost for the guarantee. For details, please refer to the information folder and contract. How has the fund performed? This section tells you how the fund has performed over the past 10 years for a policyowner. Returns are after the MER has been deducted. It's important to note that this does not tell you how the fund will perform in the future. Also, your actual return will depend on your personal tax situation. Average return A person who invested $1,000 in the fund on December 31, 2004 would have $1, on December 31, This works out to an average of 3.47 per cent a year. Year-by-year returns (%) This chart shows how the fund would have performed in each of the past 10 years for a policyowner. In the past 10 years, the fund was up in value 9 years and down in value 1 year of the How risky is it? Very low Low Low to moderate to high High The value of your investments can go down. Please see the Fund risks section of the information folder for further details. Who is this fund for? A person who is investing for the medium to longer term, wants exposure to multi-managers in one fund with a target of no more than 25 per cent invested in equities and is comfortable with low risk. 24

27 Conservative Profile (PSG) How much does it cost? The following sales charge option will apply. For details, refer to the Fees and expenses section of the information folder and discuss with your financial security advisor. 1. Sales charges: Sales charge option What you pay How it works No-load units There is no fee to invest or redeem You can redeem units without paying an early redemption fee. units. You can exchange to units of other funds under the contract at any time. 2. Ongoing expenses: The MER includes the management fee and operating expenses of the fund. The MER includes the insurance cost for the guarantee. You do not pay these expenses directly. They affect you because they reduce the return you get on your investment. For details about how the guarantees work, see your insurance contract. MER (Annual rate as a % of the fund's value) 75% maturity and 100% death benefit guarantee 2.65 Trailing commission London Life pays a trailing commission of up to one per cent of the value of your investments for the services and advice provided to you. The trailing commission is paid out of the management fee for as long as you hold the fund. 3. Other fees: You may have to pay other fees when you redeem or exchange units of the fund. Fee Short-term trading fee What you pay Up to 2% of the value of units you redeem or exchange within 90 days of investing in the fund. What if I change my mind? You can change your mind and cancel the investment fund contract or any lump-sum premium you apply by telling us in writing within two business days of the earlier of the date you received confirmation of the transaction or five business days after it is mailed. Your cancellation request has to be in writing, which can include , fax or letter. The amount returned will be the lesser of the amount of the premium being cancelled or the value of the applicable units acquired on the day we process your request. The amount returned only applies to the specific transaction and will include a refund of any sales charges or other fees you paid. For more information The Fund Facts may not contain all the information you need. Please read the contract and the information folder or you may contact us at: London Life Insurance Company 255 Dufferin Avenue London, ON N6A 4K1 Web: On our website please go to the "Contact Us" section Telephone: All Rights Reserved. Source: The Globe and Mail Inc. 25

28 Profile (PSG) Quick facts: Date fund available: October 18, 1999 Date fund created: October 18, 1999 Managed by: Portfolio Solutions Group Total fund value: $1,651,748,466 Portfolio turnover rate: 3.19% Management expense ratio (MER) (%) Net asset value per unit ($) Units outstanding 75% maturity and 100% death benefit guarantee ,523,264 Minimum investment Non-registered policies: $10,000 What does the fund invest in? This segregated fund, through investments in other funds, invests primarily in fixed-income securities but includes Canadian and foreign equities. It targets an asset mix of 60 per cent fixed income and 40 per cent equities. Top 10 investments Core Bond (Portico) Core Plus Bond (Portico) Mortgage (Portico) Canadian Equity (London Capital) 6.02 Corporate Bond (Portico) 5.47 U.S. Value (London Capital) 5.13 Canadian All Cap Value (Mackenzie) 5.01 Real Estate (GWLRA) 4.97 Global Infrastructure Equity (London Capital) 4.97 Foreign Equity (Mackenzie) 4.06 Total Total investments: 14 Investment segmentation Bond Canadian Equity United States Equity International Equity 7.26 Cash 5.44 Other 0.68 Are there any guarantees? This segregated fund is being offered under an insurance contract. It comes with guarantees that may protect your investment if the markets go down. The MER includes the insurance cost for the guarantee. For details, please refer to the information folder and contract. How has the fund performed? This section tells you how the fund has performed over the past 10 years for a policyowner. Returns are after the MER has been deducted. It's important to note that this does not tell you how the fund will perform in the future. Also, your actual return will depend on your personal tax situation. Average return A person who invested $1,000 in the fund on December 31, 2004 would have $1, on December 31, This works out to an average of 3.64 per cent a year. Year-by-year returns (%) This chart shows how the fund would have performed in each of the past 10 years for a policyowner. In the past 10 years, the fund was up in value 9 years and down in value 1 year of the How risky is it? Very low Low Low to moderate to high High The value of your investments can go down. Please see the Fund risks section of the information folder for further details. Who is this fund for? A person who is investing for the medium to longer term, wants exposure to multi-managers in one fund with a target of no more than 40 per cent invested in equities and is comfortable with low to moderate risk. 26

29 Profile (PSG) How much does it cost? The following sales charge option will apply. For details, refer to the Fees and expenses section of the information folder and discuss with your financial security advisor. 1. Sales charges: Sales charge option What you pay How it works No-load units There is no fee to invest or redeem You can redeem units without paying an early redemption fee. units. You can exchange to units of other funds under the contract at any time. 2. Ongoing expenses: The MER includes the management fee and operating expenses of the fund. The MER includes the insurance cost for the guarantee. You do not pay these expenses directly. They affect you because they reduce the return you get on your investment. For details about how the guarantees work, see your insurance contract. MER (Annual rate as a % of the fund's value) 75% maturity and 100% death benefit guarantee 2.87 Trailing commission London Life pays a trailing commission of up to one per cent of the value of your investments for the services and advice provided to you. The trailing commission is paid out of the management fee for as long as you hold the fund. 3. Other fees: You may have to pay other fees when you redeem or exchange units of the fund. Fee Short-term trading fee What you pay Up to 2% of the value of units you redeem or exchange within 90 days of investing in the fund. What if I change my mind? You can change your mind and cancel the investment fund contract or any lump-sum premium you apply by telling us in writing within two business days of the earlier of the date you received confirmation of the transaction or five business days after it is mailed. Your cancellation request has to be in writing, which can include , fax or letter. The amount returned will be the lesser of the amount of the premium being cancelled or the value of the applicable units acquired on the day we process your request. The amount returned only applies to the specific transaction and will include a refund of any sales charges or other fees you paid. For more information The Fund Facts may not contain all the information you need. Please read the contract and the information folder or you may contact us at: London Life Insurance Company 255 Dufferin Avenue London, ON N6A 4K1 Web: On our website please go to the "Contact Us" section Telephone: All Rights Reserved. Source: The Globe and Mail Inc. 27

30 Balanced Profile (PSG) Quick facts: Date fund available: October 18, 1999 Date fund created: October 18, 1999 Managed by: Portfolio Solutions Group Total fund value: $2,053,192,863 Portfolio turnover rate: 1.98% Management expense ratio (MER) (%) Net asset value per unit ($) Units outstanding 75% maturity and 100% death benefit guarantee ,742,343 Minimum investment Non-registered policies: $10,000 What does the fund invest in? This segregated fund, through investments in other funds, invests primarily in Canadian and foreign equities but includes fixed-income securities. It targets an asset mix of 40 per cent fixed income and 60 per cent equities. Top 10 investments Core Bond (Portico) Core Plus Bond (Portico) U.S. Value (London Capital) 9.30 Mortgage (Portico) 7.93 International Equity (Setanta) 6.38 Canadian Equity (London Capital) 5.97 Canadian All Cap Value (Mackenzie) 5.94 Canadian Equity (CI/Synergy) 5.93 Real Estate (GWLRA) 4.97 Global Equity (Putnam) 4.54 Total Total investments: 17 Investment segmentation Bond Canadian Equity United States Equity International Equity Cash 5.56 Other 0.68 Are there any guarantees? This segregated fund is being offered under an insurance contract. It comes with guarantees that may protect your investment if the markets go down. The MER includes the insurance cost for the guarantee. For details, please refer to the information folder and contract. How has the fund performed? This section tells you how the fund has performed over the past 10 years for a policyowner. Returns are after the MER has been deducted. It's important to note that this does not tell you how the fund will perform in the future. Also, your actual return will depend on your personal tax situation. Average return A person who invested $1,000 in the fund on December 31, 2004 would have $1, on December 31, This works out to an average of 3.90 per cent a year. Year-by-year returns (%) This chart shows how the fund would have performed in each of the past 10 years for a policyowner. In the past 10 years, the fund was up in value 7 years and down in value 3 years of the How risky is it? Very low Low Low to moderate to high High The value of your investments can go down. Please see the Fund risks section of the information folder for further details. Who is this fund for? A person who is investing for the medium to longer term, wants exposure to multi-managers in one fund with a target of no more than 40 per cent invested in fixed income and is comfortable with low to moderate risk. 28

31 Balanced Profile (PSG) How much does it cost? The following sales charge option will apply. For details, refer to the Fees and expenses section of the information folder and discuss with your financial security advisor. 1. Sales charges: Sales charge option What you pay How it works No-load units There is no fee to invest or redeem You can redeem units without paying an early redemption fee. units. You can exchange to units of other funds under the contract at any time. 2. Ongoing expenses: The MER includes the management fee and operating expenses of the fund. The MER includes the insurance cost for the guarantee. You do not pay these expenses directly. They affect you because they reduce the return you get on your investment. For details about how the guarantees work, see your insurance contract. MER (Annual rate as a % of the fund's value) 75% maturity and 100% death benefit guarantee 3.03 Trailing commission London Life pays a trailing commission of up to one per cent of the value of your investments for the services and advice provided to you. The trailing commission is paid out of the management fee for as long as you hold the fund. 3. Other fees: You may have to pay other fees when you redeem or exchange units of the fund. Fee Short-term trading fee What you pay Up to 2% of the value of units you redeem or exchange within 90 days of investing in the fund. What if I change my mind? You can change your mind and cancel the investment fund contract or any lump-sum premium you apply by telling us in writing within two business days of the earlier of the date you received confirmation of the transaction or five business days after it is mailed. Your cancellation request has to be in writing, which can include , fax or letter. The amount returned will be the lesser of the amount of the premium being cancelled or the value of the applicable units acquired on the day we process your request. The amount returned only applies to the specific transaction and will include a refund of any sales charges or other fees you paid. For more information The Fund Facts may not contain all the information you need. Please read the contract and the information folder or you may contact us at: London Life Insurance Company 255 Dufferin Avenue London, ON N6A 4K1 Web: On our website please go to the "Contact Us" section Telephone: All Rights Reserved. Source: The Globe and Mail Inc. 29

32 Income Profile (PSG) Quick facts: Date fund available: December 4, 2006 Date fund created: December 4, 2006 Managed by: Portfolio Solutions Group Total fund value: $57,562,628 Portfolio turnover rate: 12.31% Management expense ratio (MER) (%) Net asset value per unit ($) Units outstanding 75% maturity and 100% death benefit guarantee ,645,345 Minimum investment Non-registered policies: $10,000 What does the fund invest in? This segregated fund, through investments in other funds, invests primarily in fixed-income securities but includes Canadian and foreign equities. It targets an asset mix of 64 per cent fixed income and 36 per cent equities. Top 10 investments Core Bond (Portico) Fixed Income (Laketon) Mortgage (Portico) 9.47 Real Estate (GWLRA) 7.98 Global Infrastructure Equity (London Capital) 6.02 Dividend (GWLIM) 5.77 International Bond (Brandywine) 5.00 Corporate Bond (Portico) 4.99 Foreign Equity (Mackenzie) 4.39 Canadian All Cap Value (Mackenzie) 4.06 Total Total investments: 13 Investment segmentation Bond Canadian Equity United States Equity 8.45 International Equity 7.14 Cash 6.41 Other 0.60 Are there any guarantees? This segregated fund is being offered under an insurance contract. It comes with guarantees that may protect your investment if the markets go down. The MER includes the insurance cost for the guarantee. For details, please refer to the information folder and contract. How has the fund performed? This section tells you how the fund has performed over the past 8 years for a policyowner. Returns are after the MER has been deducted. It's important to note that this does not tell you how the fund will perform in the future. Also, your actual return will depend on your personal tax situation. Average return A person who invested $1,000 in the fund on December 4, 2006 would have $1, on December 31, This works out to an average of 3.09 per cent a year. Year-by-year returns (%) This chart shows how the fund would have performed in each of the past 8 years for a policyowner. In the past 8 years, the fund was up in value 7 years and down in value 1 year of the How risky is it? Very low Low Low to moderate to high High The value of your investments can go down. Please see the Fund risks section of the information folder for further details. Who is this fund for? A person who is investing for the medium to longer term, wants exposure to multi-managers in one fund with a target of no more than 36 per cent invested in equities and is comfortable with low risk. 30

33 Income Profile (PSG) How much does it cost? The following sales charge option will apply. For details, refer to the Fees and expenses section of the information folder and discuss with your financial security advisor. 1. Sales charges: Sales charge option What you pay How it works No-load units There is no fee to invest or redeem You can redeem units without paying an early redemption fee. units. You can exchange to units of other funds under the contract at any time. 2. Ongoing expenses: The MER includes the management fee and operating expenses of the fund. The MER includes the insurance cost for the guarantee. You do not pay these expenses directly. They affect you because they reduce the return you get on your investment. For details about how the guarantees work, see your insurance contract. MER (Annual rate as a % of the fund's value) 75% maturity and 100% death benefit guarantee 2.84 Trailing commission London Life pays a trailing commission of up to one per cent of the value of your investments for the services and advice provided to you. The trailing commission is paid out of the management fee for as long as you hold the fund. 3. Other fees: You may have to pay other fees when you redeem or exchange units of the fund. Fee Short-term trading fee What you pay Up to 2% of the value of units you redeem or exchange within 90 days of investing in the fund. What if I change my mind? You can change your mind and cancel the investment fund contract or any lump-sum premium you apply by telling us in writing within two business days of the earlier of the date you received confirmation of the transaction or five business days after it is mailed. Your cancellation request has to be in writing, which can include , fax or letter. The amount returned will be the lesser of the amount of the premium being cancelled or the value of the applicable units acquired on the day we process your request. The amount returned only applies to the specific transaction and will include a refund of any sales charges or other fees you paid. For more information The Fund Facts may not contain all the information you need. Please read the contract and the information folder or you may contact us at: London Life Insurance Company 255 Dufferin Avenue London, ON N6A 4K1 Web: On our website please go to the "Contact Us" section Telephone: All Rights Reserved. Source: The Globe and Mail Inc. 31

34 Money Market (Portico) Quick facts: Date fund available: November 1, 1988 Date fund created: November 1, 1988 Managed by: GLC Asset Management Group Ltd. Total fund value: $885,934,913 Portfolio turnover rate: Management expense ratio (MER) (%) Net asset value per unit ($) Units outstanding 75% maturity and 100% death benefit guarantee ,063,637 Minimum investment Non-registered policies: $10,000 What does the fund invest in? This segregated fund invests primarily in Canadian money market instruments such as high-quality commercial paper and short-term government debt securities. Top 10 investments Gov't of Canada, August 27, Gov't of Canada, July 30, Bank of Montreal, June 4, Gov't of Canada, October 22, CIBC, August 20, Enbridge Inc., February 26, Bank of Montreal, January 15, Bank of Nova Scotia, July 14, TD Bank, January 7, Toyota Motor Credit Corp. Cda, March 13, Total Total investments: 93 Investment segmentation Cash Other 0.88 How has the fund performed? This section tells you how the fund has performed over the past 10 years for a policyowner. Returns are after the MER has been deducted. It's important to note that this does not tell you how the fund will perform in the future. Also, your actual return will depend on your personal tax situation. Average return A person who invested $1,000 in the fund on December 31, 2004 would have $1, on December 31, This works out to an average of 0.99 per cent a year. Year-by-year returns (%) This chart shows how the fund would have performed in each of the past 10 years for a policyowner. In the past 10 years, the fund was up in value 10 years and down in value 0 years of the How risky is it? Are there any guarantees? This segregated fund is being offered under an insurance contract. It comes with guarantees that may protect your investment if the markets go down. The MER includes the insurance cost for the guarantee. For details, please refer to the information folder and contract. Very low Low Low to moderate to high High The value of your investments can go down. Please see the Fund risks section of the information folder for further details. Who is this fund for? A person seeking short-term safety and planning to hold their investment for a short period of time. Notes London Life is currently waiving a portion of the fees for this fund. There is no obligation on London Life to continue waiving these fees and it may cease to do so at any time without notice. During 2014 London Life waived fees equal to 0.27 per cent. 32

35 Money Market (Portico) How much does it cost? The following sales charge option will apply. For details, refer to the Fees and expenses section of the information folder and discuss with your financial security advisor. 1. Sales charges: Sales charge option What you pay How it works No-load units There is no fee to invest or redeem You can redeem units without paying an early redemption fee. units. You can exchange to units of other funds under the contract at any time. 2. Ongoing expenses: The MER includes the management fee and operating expenses of the fund. The MER includes the insurance cost for the guarantee. You do not pay these expenses directly. They affect you because they reduce the return you get on your investment. For details about how the guarantees work, see your insurance contract. MER (Annual rate as a % of the fund's value) 75% maturity and 100% death benefit guarantee 1.08 Trailing commission London Life pays a trailing commission of up to one per cent of the value of your investments for the services and advice provided to you. The trailing commission is paid out of the management fee for as long as you hold the fund. 3. Other fees: You may have to pay other fees when you redeem or exchange units of the fund. Fee Short-term trading fee What you pay Up to 2% of the value of units you redeem or exchange within 90 days of investing in the fund. What if I change my mind? You can change your mind and cancel the investment fund contract or any lump-sum premium you apply by telling us in writing within two business days of the earlier of the date you received confirmation of the transaction or five business days after it is mailed. Your cancellation request has to be in writing, which can include , fax or letter. The amount returned will be the lesser of the amount of the premium being cancelled or the value of the applicable units acquired on the day we process your request. The amount returned only applies to the specific transaction and will include a refund of any sales charges or other fees you paid. For more information The Fund Facts may not contain all the information you need. Please read the contract and the information folder or you may contact us at: London Life Insurance Company 255 Dufferin Avenue London, ON N6A 4K1 Web: On our website please go to the "Contact Us" section Telephone: All Rights Reserved. Source: The Globe and Mail Inc. 33

36 Fixed Income Profile (PSG) Quick facts: Date fund available: November 5, 2001 Date fund created: November 5, 2001 Managed by: Portfolio Solutions Group Total fund value: $128,058,448 Portfolio turnover rate: 5.99% Management expense ratio (MER) (%) Net asset value per unit ($) Units outstanding 75% maturity and 100% death benefit guarantee ,020,674 Minimum investment Non-registered policies: $10,000 What does the fund invest in? This segregated fund, through investments in other funds, invests primarily in Canadian fixed-income securities It targets an asset mix of 100 per cent fixed income. Top 10 investments Core Bond (Portico) Core Plus Bond (Portico) Mortgage (Portico) Government Bond (Portico) Long Term Bond (Portico) International Bond (Brandywine) 9.98 North American High Yield Bond (Putnam) 8.00 Real Return Bond (Portico) 3.01 Short Term Bond (Portico) 3.00 Total Total investments: 9 Investment segmentation Bond Cash 4.27 United States Equity 0.18 International Equity 0.01 Other 0.60 Are there any guarantees? This segregated fund is being offered under an insurance contract. It comes with guarantees that may protect your investment if the markets go down. The MER includes the insurance cost for the guarantee. For details, please refer to the information folder and contract. How has the fund performed? This section tells you how the fund has performed over the past 10 years for a policyowner. Returns are after the MER has been deducted. It's important to note that this does not tell you how the fund will perform in the future. Also, your actual return will depend on your personal tax situation. Average return A person who invested $1,000 in the fund on December 31, 2004 would have $1, on December 31, This works out to an average of 3.07 per cent a year. Year-by-year returns (%) This chart shows how the fund would have performed in each of the past 10 years for a policyowner. In the past 10 years, the fund was up in value 9 years and down in value 1 year of the How risky is it? Very low Low Low to moderate to high High The value of your investments can go down. Please see the Fund risks section of the information folder for further details. Who is this fund for? A person who is investing for the medium to longer term, wants exposure to multi-managers in one fund with a target of 100 per cent invested in fixed income and is comfortable with low risk. 34

37 Fixed Income Profile (PSG) How much does it cost? The following sales charge option will apply. For details, refer to the Fees and expenses section of the information folder and discuss with your financial security advisor. 1. Sales charges: Sales charge option What you pay How it works No-load units There is no fee to invest or redeem You can redeem units without paying an early redemption fee. units. You can exchange to units of other funds under the contract at any time. 2. Ongoing expenses: The MER includes the management fee and operating expenses of the fund. The MER includes the insurance cost for the guarantee. You do not pay these expenses directly. They affect you because they reduce the return you get on your investment. For details about how the guarantees work, see your insurance contract. MER (Annual rate as a % of the fund's value) 75% maturity and 100% death benefit guarantee 2.44 Trailing commission London Life pays a trailing commission of up to one per cent of the value of your investments for the services and advice provided to you. The trailing commission is paid out of the management fee for as long as you hold the fund. 3. Other fees: You may have to pay other fees when you redeem or exchange units of the fund. Fee Short-term trading fee What you pay Up to 2% of the value of units you redeem or exchange within 90 days of investing in the fund. What if I change my mind? You can change your mind and cancel the investment fund contract or any lump-sum premium you apply by telling us in writing within two business days of the earlier of the date you received confirmation of the transaction or five business days after it is mailed. Your cancellation request has to be in writing, which can include , fax or letter. The amount returned will be the lesser of the amount of the premium being cancelled or the value of the applicable units acquired on the day we process your request. The amount returned only applies to the specific transaction and will include a refund of any sales charges or other fees you paid. For more information The Fund Facts may not contain all the information you need. Please read the contract and the information folder or you may contact us at: London Life Insurance Company 255 Dufferin Avenue London, ON N6A 4K1 Web: On our website please go to the "Contact Us" section Telephone: All Rights Reserved. Source: The Globe and Mail Inc. 35

38 Core Bond (Portico) Quick facts: Date fund available: December 31, 1961 Date fund created: December 31, 1961 Managed by: GLC Asset Management Group Ltd. Total fund value: $2,811,177,166 Portfolio turnover rate: 19.60% Management expense ratio (MER) (%) Net asset value per unit ($) Units outstanding 75% maturity and 100% death benefit guarantee ,106 Minimum investment Non-registered policies: $10,000 What does the fund invest in? This segregated fund invests primarily in Canadian fixed income securities issued by governments and corporations. Top 10 investments Gov't of Canada, 4.00%, June 1, Gov't of Canada, 2.75%, September 1, Gov't of Canada, 3.50%, June 1, Gov't of Canada, 4.00%, June 1, Gov't of Canada, 2.75%, June 1, Gov't of Canada, 3.25%, June 1, Gov't of Canada, 3.75%, June 1, Gov't of Canada, 5.75%, June 1, Province of Ontario, 4.70%, June 2, Province of Quebec, 3.50%, December 1, Total Total investments: 163 Investment segmentation Bond Cash 2.25 Other 0.74 Are there any guarantees? This segregated fund is being offered under an insurance contract. It comes with guarantees that may protect your investment if the markets go down. The MER includes the insurance cost for the guarantee. For details, please refer to the information folder and contract. How has the fund performed? This section tells you how the fund has performed over the past 10 years for a policyowner. Returns are after the MER has been deducted. It's important to note that this does not tell you how the fund will perform in the future. Also, your actual return will depend on your personal tax situation. Average return A person who invested $1,000 in the fund on December 31, 2004 would have $1, on December 31, This works out to an average of 3.38 per cent a year. Year-by-year returns (%) This chart shows how the fund would have performed in each of the past 10 years for a policyowner. In the past 10 years, the fund was up in value 9 years and down in value 1 year of the How risky is it? Very low Low Low to moderate to high High The value of your investments can go down. Please see the Fund risks section of the information folder for further details. Who is this fund for? A person who is investing for the medium to longer term and seeking potential for interest income in their portfolio and is comfortable with low risk. Since the fund invests in bonds its value is affected by changes in interest rates. Notes GLC Asset Management Group Ltd. renamed the segregated fund from Bond (Portico) to Core Bond (Portico) in October No other changes were made to the segregated fund. 36

39 Core Bond (Portico) How much does it cost? The following sales charge option will apply. For details, refer to the Fees and expenses section of the information folder and discuss with your financial security advisor. 1. Sales charges: Sales charge option What you pay How it works No-load units There is no fee to invest or redeem You can redeem units without paying an early redemption fee. units. You can exchange to units of other funds under the contract at any time. 2. Ongoing expenses: The MER includes the management fee and operating expenses of the fund. The MER includes the insurance cost for the guarantee. You do not pay these expenses directly. They affect you because they reduce the return you get on your investment. For details about how the guarantees work, see your insurance contract. MER (Annual rate as a % of the fund's value) 75% maturity and 100% death benefit guarantee 2.03 Trailing commission London Life pays a trailing commission of up to one per cent of the value of your investments for the services and advice provided to you. The trailing commission is paid out of the management fee for as long as you hold the fund. 3. Other fees: You may have to pay other fees when you redeem or exchange units of the fund. Fee Short-term trading fee What you pay Up to 2% of the value of units you redeem or exchange within 90 days of investing in the fund. What if I change my mind? You can change your mind and cancel the investment fund contract or any lump-sum premium you apply by telling us in writing within two business days of the earlier of the date you received confirmation of the transaction or five business days after it is mailed. Your cancellation request has to be in writing, which can include , fax or letter. The amount returned will be the lesser of the amount of the premium being cancelled or the value of the applicable units acquired on the day we process your request. The amount returned only applies to the specific transaction and will include a refund of any sales charges or other fees you paid. For more information The Fund Facts may not contain all the information you need. Please read the contract and the information folder or you may contact us at: London Life Insurance Company 255 Dufferin Avenue London, ON N6A 4K1 Web: On our website please go to the "Contact Us" section Telephone: All Rights Reserved. Source: The Globe and Mail Inc. 37

40 Core Plus Bond (Portico) Quick facts: Date fund available: July 27, 1998 Date fund created: July 27, 1998 Managed by: GLC Asset Management Group Ltd. Total fund value: $1,246,311,700 Portfolio turnover rate: 2.37% Management expense ratio (MER) (%) Net asset value per unit ($) Units outstanding 75% maturity and 100% death benefit guarantee ,480,734 Minimum investment Non-registered policies: $10,000 What does the fund invest in? This segregated fund invests primarily in Canadian fixed income securities currently through the Quadrus Fixed Income Fund (Portico). Top 10 investments (of the underlying fund) Canada Housing Trust, 3.15%, June 15, Province of Ontario, 3.50%, June 2, Province of Quebec, 4.25%, December 1, Province of Ontario, 4.65%, June 2, Province of Alberta, 3.50%, June 1, Canada Housing Trust, 1.70%, December 15, Ford Credit Canada, 2.63%, November 21, Bank of Montreal, 3.98%, July 8, Province of Quebec, 3.75%, September 1, Province of Ontario, 4.70%, June 2, Total Total investments: 80 Investment segmentation Bond Cash Other 0.83 Are there any guarantees? This segregated fund is being offered under an insurance contract. It comes with guarantees that may protect your investment if the markets go down. The MER includes the insurance cost for the guarantee. For details, please refer to the information folder and contract. How has the fund performed? This section tells you how the fund has performed over the past 10 years for a policyowner. Returns are after the MER has been deducted. It's important to note that this does not tell you how the fund will perform in the future. Also, your actual return will depend on your personal tax situation. Average return A person who invested $1,000 in the fund on December 31, 2004 would have $1, on December 31, This works out to an average of 3.08 per cent a year. Year-by-year returns (%) This chart shows how the fund would have performed in each of the past 10 years for a policyowner. In the past 10 years, the fund was up in value 9 years and down in value 1 year of the How risky is it? Very low Low Low to moderate to high High The value of your investments can go down. Please see the Fund risks section of the information folder for further details. Who is this fund for? A person who is investing for the medium to longer term and seeking potential for interest income in their portfolio and is comfortable with low risk. Since the fund invests in bonds its value is affected by changes in interest rates. Notes GLC Asset Management Group Ltd. renamed the segregated fund from Canadian Fixed Income (Portico) to Core Plus Bond (Portico) in October No other changes were made to the segregated fund. 38

41 Core Plus Bond (Portico) How much does it cost? The following sales charge option will apply. For details, refer to the Fees and expenses section of the information folder and discuss with your financial security advisor. 1. Sales charges: Sales charge option What you pay How it works No-load units There is no fee to invest or redeem You can redeem units without paying an early redemption fee. units. You can exchange to units of other funds under the contract at any time. 2. Ongoing expenses: The MER includes the management fee and operating expenses of the fund. The MER includes the insurance cost for the guarantee. You do not pay these expenses directly. They affect you because they reduce the return you get on your investment. For details about how the guarantees work, see your insurance contract. MER (Annual rate as a % of the fund's value) 75% maturity and 100% death benefit guarantee 2.26 Trailing commission London Life pays a trailing commission of up to one per cent of the value of your investments for the services and advice provided to you. The trailing commission is paid out of the management fee for as long as you hold the fund. 3. Other fees: You may have to pay other fees when you redeem or exchange units of the fund. Fee Short-term trading fee What you pay Up to 2% of the value of units you redeem or exchange within 90 days of investing in the fund. What if I change my mind? You can change your mind and cancel the investment fund contract or any lump-sum premium you apply by telling us in writing within two business days of the earlier of the date you received confirmation of the transaction or five business days after it is mailed. Your cancellation request has to be in writing, which can include , fax or letter. The amount returned will be the lesser of the amount of the premium being cancelled or the value of the applicable units acquired on the day we process your request. The amount returned only applies to the specific transaction and will include a refund of any sales charges or other fees you paid. For more information The Fund Facts may not contain all the information you need. Please read the contract and the information folder or you may contact us at: London Life Insurance Company 255 Dufferin Avenue London, ON N6A 4K1 Web: On our website please go to the "Contact Us" section Telephone: All Rights Reserved. Source: The Globe and Mail Inc. 39

42 Income (Portico) Quick facts: Date fund available: July 27, 1998 Date fund created: July 27, 1998 Managed by: GLC Asset Management Group Ltd. Total fund value: $1,040,375,986 Portfolio turnover rate: 24.69% Management expense ratio (MER) (%) Net asset value per unit ($) Units outstanding 75% maturity and 100% death benefit guarantee ,915,462 Minimum investment Non-registered policies: $10,000 What does the fund invest in? This segregated fund invests primarily in fixed income securities with some exposure to Canadian stocks. Top 10 investments TD Bank 1.84 Bank of Nova Scotia 1.82 Gov't of Canada, 3.75%, June 1, Royal Bank of Canada 1.66 Enbridge Inc Province of Quebec, 3.50%, December 1, Gov't of Canada, 3.50%, June 1, Province of Ontario, 4.65%, June 2, Gov't of Canada, 2.75%, September 1, Bell Canada, 4.95%, May 19, Total Total investments: 233 Investment segmentation Bond Canadian Equity Cash 1.07 Other 1.26 Are there any guarantees? This segregated fund is being offered under an insurance contract. It comes with guarantees that may protect your investment if the markets go down. The MER includes the insurance cost for the guarantee. For details, please refer to the information folder and contract. How has the fund performed? This section tells you how the fund has performed over the past 10 years for a policyowner. Returns are after the MER has been deducted. It's important to note that this does not tell you how the fund will perform in the future. Also, your actual return will depend on your personal tax situation. Average return A person who invested $1,000 in the fund on December 31, 2004 would have $1, on December 31, This works out to an average of 4.23 per cent a year. Year-by-year returns (%) This chart shows how the fund would have performed in each of the past 10 years for a policyowner. In the past 10 years, the fund was up in value 9 years and down in value 1 year of the How risky is it? Very low Low Low to moderate to high High The value of your investments can go down. Please see the Fund risks section of the information folder for further details. Who is this fund for? A person who is investing for the medium to longer term and seeking potential for interest income and modest growth from stocks and is comfortable with low risk. Since the fund invests in bonds its value is affected by changes in interest rates. Notes GLC Asset Management Group Ltd. renamed the segregated fund from Income (London Capital) to Income (Portico) in October No other changes were made to the segregated fund. 40

43 Income (Portico) How much does it cost? The following sales charge option will apply. For details, refer to the Fees and expenses section of the information folder and discuss with your financial security advisor. 1. Sales charges: Sales charge option What you pay How it works No-load units There is no fee to invest or redeem You can redeem units without paying an early redemption fee. units. You can exchange to units of other funds under the contract at any time. 2. Ongoing expenses: The MER includes the management fee and operating expenses of the fund. The MER includes the insurance cost for the guarantee. You do not pay these expenses directly. They affect you because they reduce the return you get on your investment. For details about how the guarantees work, see your insurance contract. MER (Annual rate as a % of the fund's value) 75% maturity and 100% death benefit guarantee 2.26 Trailing commission London Life pays a trailing commission of up to one per cent of the value of your investments for the services and advice provided to you. The trailing commission is paid out of the management fee for as long as you hold the fund. 3. Other fees: You may have to pay other fees when you redeem or exchange units of the fund. Fee Short-term trading fee What you pay Up to 2% of the value of units you redeem or exchange within 90 days of investing in the fund. What if I change my mind? You can change your mind and cancel the investment fund contract or any lump-sum premium you apply by telling us in writing within two business days of the earlier of the date you received confirmation of the transaction or five business days after it is mailed. Your cancellation request has to be in writing, which can include , fax or letter. The amount returned will be the lesser of the amount of the premium being cancelled or the value of the applicable units acquired on the day we process your request. The amount returned only applies to the specific transaction and will include a refund of any sales charges or other fees you paid. For more information The Fund Facts may not contain all the information you need. Please read the contract and the information folder or you may contact us at: London Life Insurance Company 255 Dufferin Avenue London, ON N6A 4K1 Web: On our website please go to the "Contact Us" section Telephone: All Rights Reserved. Source: The Globe and Mail Inc. 41

44 Mortgage (Portico) Quick facts: Date fund available: July 31, 1969 Date fund created: July 31, 1969 Managed by: GLC Asset Management Group Ltd. Total fund value: $1,678,922,139 Portfolio turnover rate: 11.38% Management expense ratio (MER) (%) Net asset value per unit ($) Units outstanding 75% maturity and 100% death benefit guarantee ,768 Minimum investment Non-registered policies: $10,000 What does the fund invest in? This segregated fund invests primarily in mortgages on Canadian residential and commercial properties. Top 10 investments Mortgage Gov't of Canada, 2.50%, June 1, Gov't of Canada, 1.50%, June 1, Canada Housing Trust, 3.80%, June 15, Canada Housing Trust, 3.35%, December 15, Canada Housing Trust, 2.65%, March 15, Canada Mortgage and Housing, 4.35%, February 1, Gov't of Canada, 2.75%, June 1, Canada Housing Trust, 2.40%, December 15, Canada Housing Trust, 2.00%, December 15, Total Total investments: 20 Investment segmentation Bond Cash 0.07 Other 0.98 How has the fund performed? This section tells you how the fund has performed over the past 10 years for a policyowner. Returns are after the MER has been deducted. It's important to note that this does not tell you how the fund will perform in the future. Also, your actual return will depend on your personal tax situation. Average return A person who invested $1,000 in the fund on December 31, 2004 would have $1, on December 31, This works out to an average of 2.21 per cent a year. Year-by-year returns (%) This chart shows how the fund would have performed in each of the past 10 years for a policyowner. In the past 10 years, the fund was up in value 9 years and down in value 1 year of the How risky is it? Are there any guarantees? This segregated fund is being offered under an insurance contract. It comes with guarantees that may protect your investment if the markets go down. The MER includes the insurance cost for the guarantee. For details, please refer to the information folder and contract. Very low Low Low to moderate to high High The value of your investments can go down. Please see the Fund risks section of the information folder for further details. Who is this fund for? A person who is investing for the medium to longer term and seeking potential for interest income in their portfolio and is comfortable with low risk. Since the fund invests in mortgages its value is affected by changes in interest rates. 42

45 Mortgage (Portico) How much does it cost? The following sales charge option will apply. For details, refer to the Fees and expenses section of the information folder and discuss with your financial security advisor. 1. Sales charges: Sales charge option What you pay How it works No-load units There is no fee to invest or redeem You can redeem units without paying an early redemption fee. units. You can exchange to units of other funds under the contract at any time. 2. Ongoing expenses: The MER includes the management fee and operating expenses of the fund. The MER includes the insurance cost for the guarantee. You do not pay these expenses directly. They affect you because they reduce the return you get on your investment. For details about how the guarantees work, see your insurance contract. MER (Annual rate as a % of the fund's value) 75% maturity and 100% death benefit guarantee 2.48 Trailing commission London Life pays a trailing commission of up to one per cent of the value of your investments for the services and advice provided to you. The trailing commission is paid out of the management fee for as long as you hold the fund. 3. Other fees: You may have to pay other fees when you redeem or exchange units of the fund. Fee Short-term trading fee What you pay Up to 2% of the value of units you redeem or exchange within 90 days of investing in the fund. What if I change my mind? You can change your mind and cancel the investment fund contract or any lump-sum premium you apply by telling us in writing within two business days of the earlier of the date you received confirmation of the transaction or five business days after it is mailed. Your cancellation request has to be in writing, which can include , fax or letter. The amount returned will be the lesser of the amount of the premium being cancelled or the value of the applicable units acquired on the day we process your request. The amount returned only applies to the specific transaction and will include a refund of any sales charges or other fees you paid. For more information The Fund Facts may not contain all the information you need. Please read the contract and the information folder or you may contact us at: London Life Insurance Company 255 Dufferin Avenue London, ON N6A 4K1 Web: On our website please go to the "Contact Us" section Telephone: All Rights Reserved. Source: The Globe and Mail Inc. 43

46 Government Bond (Portico) Quick facts: Date fund available: July 27, 1998 Date fund created: July 27, 1998 Managed by: GLC Asset Management Group Ltd. Total fund value: $76,888,363 Portfolio turnover rate: 92.14% Management expense ratio (MER) (%) Net asset value per unit ($) Units outstanding 75% maturity and 100% death benefit guarantee ,930,291 Minimum investment Non-registered policies: $10,000 What does the fund invest in? This segregated fund invests primarily in fixed income securities issued by Canadian governments. Top 10 investments Canada Housing Trust, 1.85%, December 15, Canada Housing Trust, 2.00%, December 15, Canada Housing Trust, 1.75%, June 15, Canada Housing Trust, 1.70%, December 15, Canada Housing Trust, 2.05%, June 15, Canada Housing Trust, 1.95%, June 15, Canada Housing Trust, 4.10%, December 15, Canada Housing Trust, 2.75%, June 15, Province of Ontario, 2.10%, September 8, B.C. Municipal Finance, 4.60%, April 23, Total Total investments: 26 Investment segmentation Bond Cash 4.58 Other 0.77 Are there any guarantees? This segregated fund is being offered under an insurance contract. It comes with guarantees that may protect your investment if the markets go down. The MER includes the insurance cost for the guarantee. For details, please refer to the information folder and contract. How has the fund performed? This section tells you how the fund has performed over the past 10 years for a policyowner. Returns are after the MER has been deducted. It's important to note that this does not tell you how the fund will perform in the future. Also, your actual return will depend on your personal tax situation. Average return A person who invested $1,000 in the fund on December 31, 2004 would have $1, on December 31, This works out to an average of 2.05 per cent a year. Year-by-year returns (%) This chart shows how the fund would have performed in each of the past 10 years for a policyowner. In the past 10 years, the fund was up in value 8 years and down in value 2 years of the How risky is it? Very low Low Low to moderate to high High The value of your investments can go down. Please see the Fund risks section of the information folder for further details. Who is this fund for? A person who is investing for the medium to longer term and seeking potential for interest income in their portfolio and is comfortable with low risk. Since the fund invests in bonds its value is affected by changes in interest rates. 44

47 Government Bond (Portico) How much does it cost? The following sales charge option will apply. For details, refer to the Fees and expenses section of the information folder and discuss with your financial security advisor. 1. Sales charges: Sales charge option What you pay How it works No-load units There is no fee to invest or redeem You can redeem units without paying an early redemption fee. units. You can exchange to units of other funds under the contract at any time. 2. Ongoing expenses: The MER includes the management fee and operating expenses of the fund. The MER includes the insurance cost for the guarantee. You do not pay these expenses directly. They affect you because they reduce the return you get on your investment. For details about how the guarantees work, see your insurance contract. MER (Annual rate as a % of the fund's value) 75% maturity and 100% death benefit guarantee 2.04 Trailing commission London Life pays a trailing commission of up to one per cent of the value of your investments for the services and advice provided to you. The trailing commission is paid out of the management fee for as long as you hold the fund. 3. Other fees: You may have to pay other fees when you redeem or exchange units of the fund. Fee Short-term trading fee What you pay Up to 2% of the value of units you redeem or exchange within 90 days of investing in the fund. What if I change my mind? You can change your mind and cancel the investment fund contract or any lump-sum premium you apply by telling us in writing within two business days of the earlier of the date you received confirmation of the transaction or five business days after it is mailed. Your cancellation request has to be in writing, which can include , fax or letter. The amount returned will be the lesser of the amount of the premium being cancelled or the value of the applicable units acquired on the day we process your request. The amount returned only applies to the specific transaction and will include a refund of any sales charges or other fees you paid. For more information The Fund Facts may not contain all the information you need. Please read the contract and the information folder or you may contact us at: London Life Insurance Company 255 Dufferin Avenue London, ON N6A 4K1 Web: On our website please go to the "Contact Us" section Telephone: All Rights Reserved. Source: The Globe and Mail Inc. 45

48 Income (Mackenzie) Quick facts: Date fund available: July 27, 1998 Date fund created: July 27, 1998 Managed by: Mackenzie Financial Corporation Total fund value: $212,599,679 Portfolio turnover rate: % Management expense ratio (MER) (%) Net asset value per unit ($) Units outstanding 75% maturity and 100% death benefit guarantee ,656,101 Minimum investment Non-registered policies: $10,000 What does the fund invest in? This segregated fund invests primarily in Canadian fixed income securities and stocks with exposure to foreign stocks. Top 10 investments Canada Housing Trust, 2.90%, June 15, Province of Quebec, 3.50%, December 1, Province of Ontario, 3.50%, June 2, Province of Ontario, 3.15%, June 2, Province of Ontario, 3.50%, June 2, Province of Quebec, 4.50%, December 1, Province of Ontario, 3.45%, June 2, Muskrat Falls, 3.86%, December 1, Bank of Nova Scotia, 2.24%, March 22, Province of Ontario, 7.60%, June 2, Total Total investments: 397 Investment segmentation Bond Canadian Equity United States Equity 7.87 International Equity 7.28 Other 2.48 Are there any guarantees? This segregated fund is being offered under an insurance contract. It comes with guarantees that may protect your investment if the markets go down. The MER includes the insurance cost for the guarantee. For details, please refer to the information folder and contract. How has the fund performed? This section tells you how the fund has performed over the past 10 years for a policyowner. Returns are after the MER has been deducted. It's important to note that this does not tell you how the fund will perform in the future. Also, your actual return will depend on your personal tax situation. Average return A person who invested $1,000 in the fund on December 31, 2004 would have $1, on December 31, This works out to an average of 4.11 per cent a year. Year-by-year returns (%) This chart shows how the fund would have performed in each of the past 10 years for a policyowner. In the past 10 years, the fund was up in value 8 years and down in value 2 years of the How risky is it? Very low Low Low to moderate to high High The value of your investments can go down. Please see the Fund risks section of the information folder for further details. Who is this fund for? A person who is investing for the medium to longer term and seeking exposure to bonds and Canadian and foreign stocks and is comfortable with low to moderate risk. Since the fund invests in stocks and bonds its value is affected by changes in interest rates and by stock prices, which can rise and fall in a short period of time. 46

49 Income (Mackenzie) How much does it cost? The following sales charge option will apply. For details, refer to the Fees and expenses section of the information folder and discuss with your financial security advisor. 1. Sales charges: Sales charge option What you pay How it works No-load units There is no fee to invest or redeem You can redeem units without paying an early redemption fee. units. You can exchange to units of other funds under the contract at any time. 2. Ongoing expenses: The MER includes the management fee and operating expenses of the fund. The MER includes the insurance cost for the guarantee. You do not pay these expenses directly. They affect you because they reduce the return you get on your investment. For details about how the guarantees work, see your insurance contract. MER (Annual rate as a % of the fund's value) 75% maturity and 100% death benefit guarantee 2.32 Trailing commission London Life pays a trailing commission of up to one per cent of the value of your investments for the services and advice provided to you. The trailing commission is paid out of the management fee for as long as you hold the fund. 3. Other fees: You may have to pay other fees when you redeem or exchange units of the fund. Fee Short-term trading fee What you pay Up to 2% of the value of units you redeem or exchange within 90 days of investing in the fund. What if I change my mind? You can change your mind and cancel the investment fund contract or any lump-sum premium you apply by telling us in writing within two business days of the earlier of the date you received confirmation of the transaction or five business days after it is mailed. Your cancellation request has to be in writing, which can include , fax or letter. The amount returned will be the lesser of the amount of the premium being cancelled or the value of the applicable units acquired on the day we process your request. The amount returned only applies to the specific transaction and will include a refund of any sales charges or other fees you paid. For more information The Fund Facts may not contain all the information you need. Please read the contract and the information folder or you may contact us at: London Life Insurance Company 255 Dufferin Avenue London, ON N6A 4K1 Web: On our website please go to the "Contact Us" section Telephone: All Rights Reserved. Source: The Globe and Mail Inc. 47

50 Diversified (London Capital) Quick facts: Date fund available: January 29, 1988 Date fund created: January 29, 1988 Managed by: GLC Asset Management Group Ltd. Total fund value: $1,390,239,377 Portfolio turnover rate: 4.09% Management expense ratio (MER) (%) Net asset value per unit ($) Units outstanding 75% maturity and 100% death benefit guarantee ,486,233 Minimum investment Non-registered policies: $10,000 What does the fund invest in? This segregated fund invests in Canadian fixed-income securities and Canadian and foreign equities through various segregated funds of London Life. Top 10 investments Core Bond (Portico) Canadian Equity (London Capital) U.S. Equity (London Capital) International Equity (JPMorgan) Money Market (Portico) 6.94 Mortgage (Portico) 5.96 Total Total investments: 6 Investment segmentation Bond Canadian Equity International Equity United States Equity Cash 7.90 Other 1.62 Are there any guarantees? This segregated fund is being offered under an insurance contract. It comes with guarantees that may protect your investment if the markets go down. The MER includes the insurance cost for the guarantee. For details, please refer to the information folder and contract. How has the fund performed? This section tells you how the fund has performed over the past 10 years for a policyowner. Returns are after the MER has been deducted. It's important to note that this does not tell you how the fund will perform in the future. Also, your actual return will depend on your personal tax situation. Average return A person who invested $1,000 in the fund on December 31, 2004 would have $1, on December 31, This works out to an average of 3.51 per cent a year. Year-by-year returns (%) This chart shows how the fund would have performed in each of the past 10 years for a policyowner. In the past 10 years, the fund was up in value 7 years and down in value 3 years of the How risky is it? Very low Low Low to moderate to high High The value of your investments can go down. Please see the Fund risks section of the information folder for further details. Who is this fund for? A person who is investing for the medium to longer term, wants exposure to fixed income and equities in a single fund and is comfortable with low to moderate risk. 48

51 Diversified (London Capital) How much does it cost? The following sales charge option will apply. For details, refer to the Fees and expenses section of the information folder and discuss with your financial security advisor. 1. Sales charges: Sales charge option What you pay How it works No-load units There is no fee to invest or redeem You can redeem units without paying an early redemption fee. units. You can exchange to units of other funds under the contract at any time. 2. Ongoing expenses: The MER includes the management fee and operating expenses of the fund. The MER includes the insurance cost for the guarantee. You do not pay these expenses directly. They affect you because they reduce the return you get on your investment. For details about how the guarantees work, see your insurance contract. MER (Annual rate as a % of the fund's value) 75% maturity and 100% death benefit guarantee 2.80 Trailing commission London Life pays a trailing commission of up to one per cent of the value of your investments for the services and advice provided to you. The trailing commission is paid out of the management fee for as long as you hold the fund. 3. Other fees: You may have to pay other fees when you redeem or exchange units of the fund. Fee Short-term trading fee What you pay Up to 2% of the value of units you redeem or exchange within 90 days of investing in the fund. What if I change my mind? You can change your mind and cancel the investment fund contract or any lump-sum premium you apply by telling us in writing within two business days of the earlier of the date you received confirmation of the transaction or five business days after it is mailed. Your cancellation request has to be in writing, which can include , fax or letter. The amount returned will be the lesser of the amount of the premium being cancelled or the value of the applicable units acquired on the day we process your request. The amount returned only applies to the specific transaction and will include a refund of any sales charges or other fees you paid. For more information The Fund Facts may not contain all the information you need. Please read the contract and the information folder or you may contact us at: London Life Insurance Company 255 Dufferin Avenue London, ON N6A 4K1 Web: On our website please go to the "Contact Us" section Telephone: All Rights Reserved. Source: The Globe and Mail Inc. 49

52 Balanced Growth (GWLIM) Quick facts: Date fund available: July 27, 1998 Date fund created: July 27, 1998 Managed by: GLC Asset Management Group Ltd. Total fund value: $67,927,883 Portfolio turnover rate: 44.01% Management expense ratio (MER) (%) Net asset value per unit ($) Units outstanding 75% maturity and 100% death benefit guarantee ,820,585 Minimum investment Non-registered policies: $10,000 What does the fund invest in? This segregated fund invests primarily in Canadian fixed income securities and stocks with exposure to foreign stocks. Top 10 investments Royal Bank of Canada 3.55 TD Bank 3.53 Bank of Nova Scotia 3.03 Canadian National Railway 1.90 Alimentation Couche-Tard 1.49 Gov't of Canada, 2.75%, September 1, Gov't of Canada, 4.00%, June 1, Enbridge Inc Gov't of Canada, 3.50%, June 1, Manulife Financial 1.17 Total Total investments: 282 Investment segmentation Canadian Equity Bond United States Equity Cash 3.11 International Equity 0.39 Other 0.88 Are there any guarantees? This segregated fund is being offered under an insurance contract. It comes with guarantees that may protect your investment if the markets go down. The MER includes the insurance cost for the guarantee. For details, please refer to the information folder and contract. How has the fund performed? This section tells you how the fund has performed over the past 10 years for a policyowner. Returns are after the MER has been deducted. It's important to note that this does not tell you how the fund will perform in the future. Also, your actual return will depend on your personal tax situation. Average return A person who invested $1,000 in the fund on December 31, 2004 would have $1, on December 31, This works out to an average of 3.69 per cent a year. Year-by-year returns (%) This chart shows how the fund would have performed in each of the past 10 years for a policyowner. In the past 10 years, the fund was up in value 7 years and down in value 3 years of the How risky is it? Very low Low Low to moderate to high High The value of your investments can go down. Please see the Fund risks section of the information folder for further details. Who is this fund for? A person who is investing for the medium to longer term and seeking exposure to bonds and Canadian and foreign stocks and is comfortable with low to moderate risk. Since the fund invests in stocks and bonds its value is affected by changes in interest rates and by stock prices, which can rise and fall in a short period of time. 50

53 Balanced Growth (GWLIM) How much does it cost? The following sales charge option will apply. For details, refer to the Fees and expenses section of the information folder and discuss with your financial security advisor. 1. Sales charges: Sales charge option What you pay How it works No-load units There is no fee to invest or redeem You can redeem units without paying an early redemption fee. units. You can exchange to units of other funds under the contract at any time. 2. Ongoing expenses: The MER includes the management fee and operating expenses of the fund. The MER includes the insurance cost for the guarantee. You do not pay these expenses directly. They affect you because they reduce the return you get on your investment. For details about how the guarantees work, see your insurance contract. MER (Annual rate as a % of the fund's value) 75% maturity and 100% death benefit guarantee 2.75 Trailing commission London Life pays a trailing commission of up to one per cent of the value of your investments for the services and advice provided to you. The trailing commission is paid out of the management fee for as long as you hold the fund. 3. Other fees: You may have to pay other fees when you redeem or exchange units of the fund. Fee Short-term trading fee What you pay Up to 2% of the value of units you redeem or exchange within 90 days of investing in the fund. What if I change my mind? You can change your mind and cancel the investment fund contract or any lump-sum premium you apply by telling us in writing within two business days of the earlier of the date you received confirmation of the transaction or five business days after it is mailed. Your cancellation request has to be in writing, which can include , fax or letter. The amount returned will be the lesser of the amount of the premium being cancelled or the value of the applicable units acquired on the day we process your request. The amount returned only applies to the specific transaction and will include a refund of any sales charges or other fees you paid. For more information The Fund Facts may not contain all the information you need. Please read the contract and the information folder or you may contact us at: London Life Insurance Company 255 Dufferin Avenue London, ON N6A 4K1 Web: On our website please go to the "Contact Us" section Telephone: All Rights Reserved. Source: The Globe and Mail Inc. 51

54 North American Balanced (London Capital) Quick facts: Date fund available: July 27, 1998 Date fund created: July 27, 1998 Managed by: GLC Asset Management Group Ltd. Total fund value: $85,816,243 Portfolio turnover rate: 46.78% Management expense ratio (MER) (%) Net asset value per unit ($) Units outstanding 75% maturity and 100% death benefit guarantee ,297,178 Minimum investment Non-registered policies: $10,000 What does the fund invest in? This segregated fund invests primarily in Canadian fixed income securities and stocks with exposure to foreign stocks. Top 10 investments TD Bank 2.56 Royal Bank of Canada 2.09 Bank of Montreal 1.58 Manulife Financial 1.46 Valeant Pharmaceuticals Intl Canadian National Railway 1.42 Gov't of Canada, 3.25%, June 1, Gov't of Canada, 2.75%, September 1, Bank of Nova Scotia 1.32 Gov't of Canada, 2.75%, June 1, Total Total investments: 270 Investment segmentation Bond Canadian Equity United States Equity Cash 2.76 Other 1.63 Are there any guarantees? This segregated fund is being offered under an insurance contract. It comes with guarantees that may protect your investment if the markets go down. The MER includes the insurance cost for the guarantee. For details, please refer to the information folder and contract. How has the fund performed? This section tells you how the fund has performed over the past 10 years for a policyowner. Returns are after the MER has been deducted. It's important to note that this does not tell you how the fund will perform in the future. Also, your actual return will depend on your personal tax situation. Average return A person who invested $1,000 in the fund on December 31, 2004 would have $1, on December 31, This works out to an average of 3.96 per cent a year. Year-by-year returns (%) This chart shows how the fund would have performed in each of the past 10 years for a policyowner. In the past 10 years, the fund was up in value 7 years and down in value 3 years of the How risky is it? Very low Low Low to moderate to high High The value of your investments can go down. Please see the Fund risks section of the information folder for further details. Who is this fund for? A person who is investing for the medium to longer term and seeking exposure to bonds and Canadian and foreign stocks and is comfortable with low to moderate risk. Since the fund invests in stocks and bonds its value is affected by changes in interest rates and by stock prices, which can rise and fall in a short period of time. 52

55 North American Balanced (London Capital) How much does it cost? The following sales charge option will apply. For details, refer to the Fees and expenses section of the information folder and discuss with your financial security advisor. 1. Sales charges: Sales charge option What you pay How it works No-load units There is no fee to invest or redeem You can redeem units without paying an early redemption fee. units. You can exchange to units of other funds under the contract at any time. 2. Ongoing expenses: The MER includes the management fee and operating expenses of the fund. The MER includes the insurance cost for the guarantee. You do not pay these expenses directly. They affect you because they reduce the return you get on your investment. For details about how the guarantees work, see your insurance contract. MER (Annual rate as a % of the fund's value) 75% maturity and 100% death benefit guarantee 2.74 Trailing commission London Life pays a trailing commission of up to one per cent of the value of your investments for the services and advice provided to you. The trailing commission is paid out of the management fee for as long as you hold the fund. 3. Other fees: You may have to pay other fees when you redeem or exchange units of the fund. Fee Short-term trading fee What you pay Up to 2% of the value of units you redeem or exchange within 90 days of investing in the fund. What if I change my mind? You can change your mind and cancel the investment fund contract or any lump-sum premium you apply by telling us in writing within two business days of the earlier of the date you received confirmation of the transaction or five business days after it is mailed. Your cancellation request has to be in writing, which can include , fax or letter. The amount returned will be the lesser of the amount of the premium being cancelled or the value of the applicable units acquired on the day we process your request. The amount returned only applies to the specific transaction and will include a refund of any sales charges or other fees you paid. For more information The Fund Facts may not contain all the information you need. Please read the contract and the information folder or you may contact us at: London Life Insurance Company 255 Dufferin Avenue London, ON N6A 4K1 Web: On our website please go to the "Contact Us" section Telephone: All Rights Reserved. Source: The Globe and Mail Inc. 53

56 Equity/Bond (GWLIM) Quick facts: Date fund available: July 27, 1998 Date fund created: July 27, 1998 Managed by: GLC Asset Management Group Ltd. Total fund value: $102,529,917 Portfolio turnover rate: 49.15% Management expense ratio (MER) (%) Net asset value per unit ($) Units outstanding 75% maturity and 100% death benefit guarantee ,445,072 Minimum investment Non-registered policies: $10,000 What does the fund invest in? This segregated fund invests primarily in Canadian fixed income securities and stocks with exposure to foreign stocks. Top 10 investments LL International Equity (JPMorgan) BEL 9.75 Royal Bank of Canada 3.16 TD Bank 3.10 Bank of Nova Scotia 2.82 Canada Housing Trust, 3.15%, June 15, Canadian National Railway 1.69 Province of Ontario, 4.70%, June 2, Alimentation Couche-Tard 1.30 Province of Ontario, 3.50%, June 2, Province of Quebec, 4.25%, December 1, Total Total investments: 197 Investment segmentation Canadian Equity Bond United States Equity International Equity 9.99 Cash 5.86 Other 0.21 Are there any guarantees? This segregated fund is being offered under an insurance contract. It comes with guarantees that may protect your investment if the markets go down. The MER includes the insurance cost for the guarantee. For details, please refer to the information folder and contract. How has the fund performed? This section tells you how the fund has performed over the past 10 years for a policyowner. Returns are after the MER has been deducted. It's important to note that this does not tell you how the fund will perform in the future. Also, your actual return will depend on your personal tax situation. Average return A person who invested $1,000 in the fund on December 31, 2004 would have $1, on December 31, This works out to an average of 3.83 per cent a year. Year-by-year returns (%) This chart shows how the fund would have performed in each of the past 10 years for a policyowner. In the past 10 years, the fund was up in value 8 years and down in value 2 years of the How risky is it? Very low Low Low to moderate to high High The value of your investments can go down. Please see the Fund risks section of the information folder for further details. Who is this fund for? A person who is investing for the medium to longer term and seeking exposure to bonds and Canadian and foreign stocks and is comfortable with low to moderate risk. Since the fund invests in stocks and bonds its value is affected by changes in interest rates and by stock prices, which can rise and fall in a short period of time. 54

57 Equity/Bond (GWLIM) How much does it cost? The following sales charge option will apply. For details, refer to the Fees and expenses section of the information folder and discuss with your financial security advisor. 1. Sales charges: Sales charge option What you pay How it works No-load units There is no fee to invest or redeem You can redeem units without paying an early redemption fee. units. You can exchange to units of other funds under the contract at any time. 2. Ongoing expenses: The MER includes the management fee and operating expenses of the fund. The MER includes the insurance cost for the guarantee. You do not pay these expenses directly. They affect you because they reduce the return you get on your investment. For details about how the guarantees work, see your insurance contract. MER (Annual rate as a % of the fund's value) 75% maturity and 100% death benefit guarantee 2.74 Trailing commission London Life pays a trailing commission of up to one per cent of the value of your investments for the services and advice provided to you. The trailing commission is paid out of the management fee for as long as you hold the fund. 3. Other fees: You may have to pay other fees when you redeem or exchange units of the fund. Fee Short-term trading fee What you pay Up to 2% of the value of units you redeem or exchange within 90 days of investing in the fund. What if I change my mind? You can change your mind and cancel the investment fund contract or any lump-sum premium you apply by telling us in writing within two business days of the earlier of the date you received confirmation of the transaction or five business days after it is mailed. Your cancellation request has to be in writing, which can include , fax or letter. The amount returned will be the lesser of the amount of the premium being cancelled or the value of the applicable units acquired on the day we process your request. The amount returned only applies to the specific transaction and will include a refund of any sales charges or other fees you paid. For more information The Fund Facts may not contain all the information you need. Please read the contract and the information folder or you may contact us at: London Life Insurance Company 255 Dufferin Avenue London, ON N6A 4K1 Web: On our website please go to the "Contact Us" section Telephone: All Rights Reserved. Source: The Globe and Mail Inc. 55

58 Canadian Balanced (Mackenzie) Quick facts: Date fund available: July 27, 1998 Date fund created: July 27, 1998 Managed by: Mackenzie Financial Corporation Total fund value: $142,632,677 Portfolio turnover rate: 3.30% Management expense ratio (MER) (%) Net asset value per unit ($) Units outstanding 75% maturity and 100% death benefit guarantee ,742,550 Minimum investment Non-registered policies: $10,000 What does the fund invest in? This segregated fund invests primarily in Canadian fixed income securities and stocks currently through the Mackenzie Canadian Large Cap Balanced Fund. Top 10 investments (of the underlying fund) Canada Housing Trust, 2.90%, June 15, Canadian National Railway 2.25 Royal Bank of Canada 2.12 Province of Ontario, 3.50%, June 2, Bank of Nova Scotia 1.99 Province of Quebec, 4.50%, December 1, TD Bank 1.63 McKesson Corp Province of Ontario, 3.45%, June 2, Enbridge Inc Total Total investments: 314 Investment segmentation Bond Canadian Equity United States Equity International Equity 1.06 Cash 0.44 Other 0.16 Are there any guarantees? This segregated fund is being offered under an insurance contract. It comes with guarantees that may protect your investment if the markets go down. The MER includes the insurance cost for the guarantee. For details, please refer to the information folder and contract. How has the fund performed? This section tells you how the fund has performed over the past 10 years for a policyowner. Returns are after the MER has been deducted. It's important to note that this does not tell you how the fund will perform in the future. Also, your actual return will depend on your personal tax situation. Average return A person who invested $1,000 in the fund on December 31, 2004 would have $1, on December 31, This works out to an average of 4.51 per cent a year. Year-by-year returns (%) This chart shows how the fund would have performed in each of the past 10 years for a policyowner. In the past 10 years, the fund was up in value 8 years and down in value 2 years of the How risky is it? Very low Low Low to moderate to high High The value of your investments can go down. Please see the Fund risks section of the information folder for further details. Who is this fund for? A person who is investing for the medium to longer term and seeking exposure to stocks and bonds and is comfortable with low to moderate risk. Since the fund invests in stocks and bonds its value is affected by changes in interest rates and by stock prices, which can rise and fall in a short period of time. 56

59 Canadian Balanced (Mackenzie) How much does it cost? The following sales charge option will apply. For details, refer to the Fees and expenses section of the information folder and discuss with your financial security advisor. 1. Sales charges: Sales charge option What you pay How it works No-load units There is no fee to invest or redeem You can redeem units without paying an early redemption fee. units. You can exchange to units of other funds under the contract at any time. 2. Ongoing expenses: The MER includes the management fee and operating expenses of the fund. The MER includes the insurance cost for the guarantee. You do not pay these expenses directly. They affect you because they reduce the return you get on your investment. For details about how the guarantees work, see your insurance contract. MER (Annual rate as a % of the fund's value) 75% maturity and 100% death benefit guarantee 2.93 Trailing commission London Life pays a trailing commission of up to one per cent of the value of your investments for the services and advice provided to you. The trailing commission is paid out of the management fee for as long as you hold the fund. 3. Other fees: You may have to pay other fees when you redeem or exchange units of the fund. Fee Short-term trading fee What you pay Up to 2% of the value of units you redeem or exchange within 90 days of investing in the fund. What if I change my mind? You can change your mind and cancel the investment fund contract or any lump-sum premium you apply by telling us in writing within two business days of the earlier of the date you received confirmation of the transaction or five business days after it is mailed. Your cancellation request has to be in writing, which can include , fax or letter. The amount returned will be the lesser of the amount of the premium being cancelled or the value of the applicable units acquired on the day we process your request. The amount returned only applies to the specific transaction and will include a refund of any sales charges or other fees you paid. For more information The Fund Facts may not contain all the information you need. Please read the contract and the information folder or you may contact us at: London Life Insurance Company 255 Dufferin Avenue London, ON N6A 4K1 Web: On our website please go to the "Contact Us" section Telephone: All Rights Reserved. Source: The Globe and Mail Inc. 57

60 Growth & Income (Mackenzie) Quick facts: Date fund available: July 27, 1998 Date fund created: July 27, 1998 Managed by: Mackenzie Financial Corporation Total fund value: $159,390,527 Portfolio turnover rate: 76.91% Management expense ratio (MER) (%) Net asset value per unit ($) Units outstanding 75% maturity and 100% death benefit guarantee ,789,107 Minimum investment Non-registered policies: $10,000 What does the fund invest in? This segregated fund invests primarily in Canadian fixed income securities and stocks with exposure to foreign stocks. Top 10 investments Loblaw Companies 6.69 United Parcel Service 4.15 Suncor Energy 3.97 Brookfield Asset Management 3.87 TD Bank 3.87 SNC-Lavalin Group 3.77 Canadian Natural Resources 3.69 Bank of Nova Scotia 3.52 Saputo Inc Imperial Oil 3.09 Total Total investments: 242 Investment segmentation Canadian Equity Bond United States Equity International Equity Cash 1.05 Other 2.64 Are there any guarantees? This segregated fund is being offered under an insurance contract. It comes with guarantees that may protect your investment if the markets go down. The MER includes the insurance cost for the guarantee. For details, please refer to the information folder and contract. How has the fund performed? This section tells you how the fund has performed over the past 10 years for a policyowner. Returns are after the MER has been deducted. It's important to note that this does not tell you how the fund will perform in the future. Also, your actual return will depend on your personal tax situation. Average return A person who invested $1,000 in the fund on December 31, 2004 would have $1, on December 31, This works out to an average of 3.75 per cent a year. Year-by-year returns (%) This chart shows how the fund would have performed in each of the past 10 years for a policyowner. In the past 10 years, the fund was up in value 8 years and down in value 2 years of the How risky is it? Very low Low Low to moderate to high High The value of your investments can go down. Please see the Fund risks section of the information folder for further details. Who is this fund for? A person who is investing for the medium to longer term and seeking exposure to bonds and Canadian and foreign stocks and is comfortable with low to moderate risk. Since the fund invests in stocks and bonds its value is affected by changes in interest rates and by stock prices, which can rise and fall in a short period of time. 58

61 Growth & Income (Mackenzie) How much does it cost? The following sales charge option will apply. For details, refer to the Fees and expenses section of the information folder and discuss with your financial security advisor. 1. Sales charges: Sales charge option What you pay How it works No-load units There is no fee to invest or redeem You can redeem units without paying an early redemption fee. units. You can exchange to units of other funds under the contract at any time. 2. Ongoing expenses: The MER includes the management fee and operating expenses of the fund. The MER includes the insurance cost for the guarantee. You do not pay these expenses directly. They affect you because they reduce the return you get on your investment. For details about how the guarantees work, see your insurance contract. MER (Annual rate as a % of the fund's value) 75% maturity and 100% death benefit guarantee 2.70 Trailing commission London Life pays a trailing commission of up to one per cent of the value of your investments for the services and advice provided to you. The trailing commission is paid out of the management fee for as long as you hold the fund. 3. Other fees: You may have to pay other fees when you redeem or exchange units of the fund. Fee Short-term trading fee What you pay Up to 2% of the value of units you redeem or exchange within 90 days of investing in the fund. What if I change my mind? You can change your mind and cancel the investment fund contract or any lump-sum premium you apply by telling us in writing within two business days of the earlier of the date you received confirmation of the transaction or five business days after it is mailed. Your cancellation request has to be in writing, which can include , fax or letter. The amount returned will be the lesser of the amount of the premium being cancelled or the value of the applicable units acquired on the day we process your request. The amount returned only applies to the specific transaction and will include a refund of any sales charges or other fees you paid. For more information The Fund Facts may not contain all the information you need. Please read the contract and the information folder or you may contact us at: London Life Insurance Company 255 Dufferin Avenue London, ON N6A 4K1 Web: On our website please go to the "Contact Us" section Telephone: All Rights Reserved. Source: The Globe and Mail Inc. 59

62 Growth & Income (AGF) Quick facts: Date fund available: July 27, 1998 Date fund created: July 27, 1998 Managed by: AGF Investments Inc. Total fund value: $161,835,703 Portfolio turnover rate: 91.69% Management expense ratio (MER) (%) Net asset value per unit ($) Units outstanding 75% maturity and 100% death benefit guarantee ,779,892 Minimum investment Non-registered policies: $10,000 What does the fund invest in? This segregated fund invests primarily in Canadian fixed income securities and stocks with exposure to foreign stocks. Top 10 investments Canada Housing Trust, 1.39%, March 15, Gov't of Canada, 1.25%, September 1, Alimentation Couche-Tard 3.58 CGI Group 2.66 TD Bank 2.28 American Water Works Co Bank of Nova Scotia 2.22 Gildan Activewear 2.18 Suncor Energy 2.08 Gov't of Canada, 2.75%, June 1, Total Total investments: 66 Investment segmentation Canadian Equity United States Equity Bond Cash Other 2.65 Are there any guarantees? This segregated fund is being offered under an insurance contract. It comes with guarantees that may protect your investment if the markets go down. The MER includes the insurance cost for the guarantee. For details, please refer to the information folder and contract. How has the fund performed? This section tells you how the fund has performed over the past 10 years for a policyowner. Returns are after the MER has been deducted. It's important to note that this does not tell you how the fund will perform in the future. Also, your actual return will depend on your personal tax situation. Average return A person who invested $1,000 in the fund on December 31, 2004 would have $1, on December 31, This works out to an average of 4.72 per cent a year. Year-by-year returns (%) This chart shows how the fund would have performed in each of the past 10 years for a policyowner. In the past 10 years, the fund was up in value 8 years and down in value 2 years of the How risky is it? Very low Low Low to moderate to high High The value of your investments can go down. Please see the Fund risks section of the information folder for further details. Who is this fund for? A person who is investing for the medium to longer term and seeking exposure to bonds and Canadian and foreign stocks and is comfortable with low to moderate risk. Since the fund invests in stocks and bonds its value is affected by changes in interest rates and by stock prices, which can rise and fall in a short period of time. 60

63 Growth & Income (AGF) How much does it cost? The following sales charge option will apply. For details, refer to the Fees and expenses section of the information folder and discuss with your financial security advisor. 1. Sales charges: Sales charge option What you pay How it works No-load units There is no fee to invest or redeem You can redeem units without paying an early redemption fee. units. You can exchange to units of other funds under the contract at any time. 2. Ongoing expenses: The MER includes the management fee and operating expenses of the fund. The MER includes the insurance cost for the guarantee. You do not pay these expenses directly. They affect you because they reduce the return you get on your investment. For details about how the guarantees work, see your insurance contract. MER (Annual rate as a % of the fund's value) 75% maturity and 100% death benefit guarantee 2.92 Trailing commission London Life pays a trailing commission of up to one per cent of the value of your investments for the services and advice provided to you. The trailing commission is paid out of the management fee for as long as you hold the fund. 3. Other fees: You may have to pay other fees when you redeem or exchange units of the fund. Fee Short-term trading fee What you pay Up to 2% of the value of units you redeem or exchange within 90 days of investing in the fund. What if I change my mind? You can change your mind and cancel the investment fund contract or any lump-sum premium you apply by telling us in writing within two business days of the earlier of the date you received confirmation of the transaction or five business days after it is mailed. Your cancellation request has to be in writing, which can include , fax or letter. The amount returned will be the lesser of the amount of the premium being cancelled or the value of the applicable units acquired on the day we process your request. The amount returned only applies to the specific transaction and will include a refund of any sales charges or other fees you paid. For more information The Fund Facts may not contain all the information you need. Please read the contract and the information folder or you may contact us at: London Life Insurance Company 255 Dufferin Avenue London, ON N6A 4K1 Web: On our website please go to the "Contact Us" section Telephone: All Rights Reserved. Source: The Globe and Mail Inc. 61

64 Balanced (Beutel Goodman) Quick facts: Date fund available: July 27, 1998 Date fund created: July 27, 1998 Managed by: Beutel, Goodman & Company Ltd. Total fund value: $551,842,662 Portfolio turnover rate: 54.80% Management expense ratio (MER) (%) Net asset value per unit ($) Units outstanding 75% maturity and 100% death benefit guarantee ,398,547 Minimum investment Non-registered policies: $10,000 What does the fund invest in? This segregated fund invests primarily in Canadian fixed income securities and stocks with exposure to foreign stocks. Top 10 investments TD Bank 3.76 Royal Bank of Canada 3.06 Bank of Nova Scotia 2.99 Rogers Communications 2.53 CIBC 2.23 Magna International 2.19 Canada Housing Trust, 2.45%, December 15, Canada Housing Trust, 2.05%, June 15, Canada Housing Trust, 2.75%, June 15, Oracle Corp Total Total investments: 241 Investment segmentation Canadian Equity United States Equity Bond Cash 9.86 International Equity 1.15 Are there any guarantees? This segregated fund is being offered under an insurance contract. It comes with guarantees that may protect your investment if the markets go down. The MER includes the insurance cost for the guarantee. For details, please refer to the information folder and contract. How has the fund performed? This section tells you how the fund has performed over the past 10 years for a policyowner. Returns are after the MER has been deducted. It's important to note that this does not tell you how the fund will perform in the future. Also, your actual return will depend on your personal tax situation. Average return A person who invested $1,000 in the fund on December 31, 2004 would have $1, on December 31, This works out to an average of 5.59 per cent a year. Year-by-year returns (%) This chart shows how the fund would have performed in each of the past 10 years for a policyowner. In the past 10 years, the fund was up in value 7 years and down in value 3 years of the How risky is it? Very low Low Low to moderate to high High The value of your investments can go down. Please see the Fund risks section of the information folder for further details. Who is this fund for? A person who is investing for the medium to longer term and seeking exposure to bonds and Canadian and foreign stocks and is comfortable with low to moderate risk. Since the fund invests in stocks and bonds its value is affected by changes in interest rates and by stock prices, which can rise and fall in a short period of time. 62

65 Balanced (Beutel Goodman) How much does it cost? The following sales charge option will apply. For details, refer to the Fees and expenses section of the information folder and discuss with your financial security advisor. 1. Sales charges: Sales charge option What you pay How it works No-load units There is no fee to invest or redeem You can redeem units without paying an early redemption fee. units. You can exchange to units of other funds under the contract at any time. 2. Ongoing expenses: The MER includes the management fee and operating expenses of the fund. The MER includes the insurance cost for the guarantee. You do not pay these expenses directly. They affect you because they reduce the return you get on your investment. For details about how the guarantees work, see your insurance contract. MER (Annual rate as a % of the fund's value) 75% maturity and 100% death benefit guarantee 2.92 Trailing commission London Life pays a trailing commission of up to one per cent of the value of your investments for the services and advice provided to you. The trailing commission is paid out of the management fee for as long as you hold the fund. 3. Other fees: You may have to pay other fees when you redeem or exchange units of the fund. Fee Short-term trading fee What you pay Up to 2% of the value of units you redeem or exchange within 90 days of investing in the fund. What if I change my mind? You can change your mind and cancel the investment fund contract or any lump-sum premium you apply by telling us in writing within two business days of the earlier of the date you received confirmation of the transaction or five business days after it is mailed. Your cancellation request has to be in writing, which can include , fax or letter. The amount returned will be the lesser of the amount of the premium being cancelled or the value of the applicable units acquired on the day we process your request. The amount returned only applies to the specific transaction and will include a refund of any sales charges or other fees you paid. For more information The Fund Facts may not contain all the information you need. Please read the contract and the information folder or you may contact us at: London Life Insurance Company 255 Dufferin Avenue London, ON N6A 4K1 Web: On our website please go to the "Contact Us" section Telephone: All Rights Reserved. Source: The Globe and Mail Inc. 63

66 Glossary of terms The section provides an understanding of some of the terms used in this information folder. Administrative rules Internal rules that govern our operations, including policies, guidelines, rules and practices of London Life, which can change at our sole discretion, without notice. Annuitant The annuitant is the individual on whose life the maturity and death benefit guarantees are based. Beneficiary The beneficiary is the person, persons or entity appointed to receive any amounts payable after the annuitant s death. If there is no living beneficiary, we will pay the death benefit to the policyholder s estate. Capital gains The profit that results when an asset is sold for more than its adjusted cost base. Capital loss The loss that results when an asset is sold for less than its adjusted cost base. Diversification Investing in a number of different securities, companies, industries or geographic locations in an attempt to reduce the risks inherent in investing. Guaranteed death benefit The minimum amount to be received upon the death of the annuitant. For more information, see Guaranteed benefits. Investment management fee The amount paid for supervising a portfolio and administering policy operations. This fee is a component of the MER. Management expense ratio (MER) The MER is the total of the annual investment management fee and operating expenses (including any applicable expenses of an underlying fund) paid by the investment fund, and is expressed as an annualized percentage of daily average net assets during the year. The MER includes applicable taxes and interest, where appropriate, for all years. Where the reporting period is less than one year, the MER has been annualized. Maturity date The contractual date the policy matures. Maturity guarantee The minimum amount to be received by the policyholder upon maturity of the policy. For more information, see Guaranteed benefits. Policyholder The policyholder is the individual who is the legal owner of the policy. One or more individuals may own non-registered policies. Registered policies can only be owned by one individual, the annuitant. All policy information is sent to the policyholder. Portfolio turnover rate The investment fund s portfolio turnover rate shown in the Fund Facts generally indicates how actively the investment manager manages the investments. A portfolio turnover rate of 100 per cent is equivalent to the investment fund buying and selling each security once in the course of the year. High portfolio turnover rates can increase portfolio costs and may also increase the likelihood of taxable capital gains being distributed by the investment fund. There is no proven relationship between a high turnover rate and the performance of an investment fund. Segregated fund For information, see How our investment funds work. Underlying fund An underlying fund is a secondary fund, usually a mutual or pooled fund, in which some of our investment funds may invest in. 64

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