I prefer to view the Ideal Term Funds Product Disclosure document in PDF format (full version).
Product Features and Benefits
Savings Plans
Ideal Term Funds offer a secure, guaranteed alternative to GICs and Canada Savings Bonds that can also safeguard your capital and deliver predictable income. Ideal Term Funds are flexible enough to meet your needs at every stage of your life – whether you are saving for retirement or drawing a retirement income. In addition, they offer you a smooth transition from the savings stage to the payout phase of your life.
Ideal Term Funds are offered under The Standard Life Assurance Company of Canada’s savings and retirement income plans, which are insurance products. You can choose from a wide range of plans and options.
Ideal Term Funds for Registered and Non-Registered Savings Plans
(Registered savings plans include Registered Retirement Savings Plans, Locked-in Retirement Accounts, Locked-in Retirement Savings Plans)
Daily Interest Fund
- Secure, short-term holding fund that accumulates premiums paid until the balance is large enough to transfer to a term fund
- Fully redeemable
Redeemable Term Fund
- Terms of 1 month to 10 years, including customized terms
- Redeemable at any time (surrender charges could apply – see Surrender Charges below)
- 5-year laddering option available
Non-redeemable Term Fund
- Terms of 1 to 10 years, including customized terms
- Offer higher interest rates than our Redeemable Term Funds
- Not redeemable until maturity
- 5-year laddering option available
Term Fund Plus
- Offers our highest interest rates for amounts of at least $25,000 per fund
- Terms of 5 to 10 years, including customized terms
- Redeemable at any time (surrender charges could apply, including a positive or negative market value adjustment – see Surrender Charges below)
UpScale RRSP
- Terms of 3, 5 and 10 years
- Redeemable at any time (surrender charges could apply, including a positive or negative market value adjustment – see Surrender Charges below)
- Compound interest rates that increase each year
- Average interest rate for the term is higher than the Redeemable Term Fund base rate for an equivalent term
Key features
- Simple and compound interest
- Client-based rate banding by plan type (total registered vs. non-registered term fund assets)
- Potential for creditor protection with preferred class beneficiary designation1
- Opportunity to bypass probate fees and delays upon death if a beneficiary other than the estate is named2
1 Since there are some circumstances where creditor protection may not apply, it is recommended that policyholders consult a legal advisor to find out if they are eligible for this kind of protection.
2 Not applicable in Québec as notarial wills do not need to be probated by the court and, for holograph wills or wills made in the presence of witnesses, probate fees are minimal.
Retirement Income Plans
Ideal Term Funds offer a secure, guaranteed alternative to GICs and Canada Savings Bonds that can also safeguard your capital and deliver predictable income. Ideal Term Funds are flexible enough to meet your needs at every stage of your life – whether you are saving for retirement or drawing a retirement income. In addition, they offer you a smooth transition from the savings stage to the payout phase of your life.
Ideal Term Funds are offered under The Standard Life Assurance Company of Canada’s savings and retirement income plans, which are insurance products. You can choose from a wide range of plans and options.
Ideal Term Funds for Retirement Income Plans
(Retirement income plans include Registered Retirement Income Funds, Life Income Funds, Locked-in Retirement Income Funds, Prescribed Registered Retirement Income Funds)
Daily Interest Fund
- Short term holding fund
- Fully redeemable
Redeemable Term Fund
- Terms of 30 days to 30 years, including customized terms
- Compound interest only
Key features
- Policy-based sequence of withdrawals – income payments are taken from term funds nearest to maturity first, then from the Daily Interest Fund
- Client-based rate banding takes into account all assets held under Ideal Term Funds for retirement income plans
- Low minimum premiums per fund
- Monthly, quarterly, semi-annual or annual income payments deposited directly to policyholder’s bank account
- Potential for creditor protection with a preferred class beneficiary designation1
- Opportunity to bypass probate fees and delays upon death if a beneficiary other than the estate is named2
1 Since there are some circumstances where creditor protection may not apply, it is recommended that policyholders consult a legal advisor to find out if they are eligible for this kind of protection.
2 Not applicable in Québec as notarial wills do not need to be probated by the court and, for holograph wills or wills made in the presence of witnesses, probate fees are minimal.
Guaranteed and Non-guaranteed Product Features
On the maturity date of the Ideal Term Fund, the premium paid and accumulated interest is guaranteed. This assumes no surrenders or payments were made from the Ideal Term Fund.
Premiums and Fees Information
Savings Plans
| Minimum premiums | |
|---|---|
| Daily Interest Fund | $50 per month (Pre-Authorized Chequing – PAC) or $1,000 lump sum ($250 for additional premiums) |
| Term Funds of less than 1 year and 1 to 10 year Term Funds with simple interest paid monthly or quarterly | $5,000 |
| 1 to 10 year Term Funds including Term Funds with simple interest paid semi-annually or annually | $1,000 |
| Term Fund Plus | $25,000 |
| UpScale RRSP | $1,000 |
Fees
Full or partial surrenders from Redeemable Term Funds, Term Fund Plus and UpScale RRSP may be subject to surrender charges (see Surrender Charges below).
We reserve the right to charge for any expenses or losses caused by NSF (non-sufficient funds) payments, incorrect instructions or multiple Systematic Withdrawal Plan (SWP) payment changes.
Surrender Charges
Full or partial surrenders of redeemable Ideal Term Funds prior to a maturity date would be subject to surrender charges. Based on the plan type, surrender charges may include: a market value adjustment (see below), a charge for the term remaining, a penalty factor, and/or an expense recovery.
On all Ideal Term Fund redeemable plans a market value adjustment would apply when the Term Fund from which the surrender is being made is earning a lower interest rate than the same or a similar Term Fund with a term equal to the remainder of the term that the surrender is being made from. In addition, for the Term Fund Plus and UpScale RRSP plans only, full or partial surrenders prior to their maturity dates could result in a positive market value adjustment. A positive market value adjustment occurs when the rate on the Term Fund Plus or UpScale RRSP from which the surrender is being made is higher than the same or a similar Term Fund with a term equal to the remainder of the term that the surrender is being made from. A positive market value adjustment could imply that the value of the Term Fund Plus or UpScale RRSP from which the surrender is being made increases in value.
Retirement Income Plans
| Minimum premiums | |
|---|---|
| Per Policy | $10,000 |
| Term Funds of less than 1 year | $5,000 |
| 1 to 30 year Term Funds | $1,000 |
| Daily Interest Fund | $250 |
Fees
There are no fees or charges on scheduled income payments.
The following applies to changes to the income stream (the payment amount or frequency):
- one free change per calendar year
- $50 per each subsequent change
Lump sum surrenders (full or partial) from Term Funds can be done at any time and may be subject to surrender charges (see Surrender Charges below).
We reserve the right to charge for any expenses or losses caused by incorrect instructions.
Surrender Charges
Full or partial surrenders of redeemable Ideal Term Funds prior to a maturity date would be subject to surrender charges. Based on the plan type, surrender charges may include: a market value adjustment (see below), a charge for the term remaining, a penalty factor, and/or an expense recovery.
On all Ideal Term Fund redeemable plans a market value adjustment would apply when the Term Fund from which the surrender is being made is earning a lower interest rate than the same or a similar Term Fund with a term equal to the remainder of the term that the surrender is being made from. In addition, for the Term Fund Plus and UpScale RRSP plans only, full or partial surrenders prior to their maturity dates could result in a positive market value adjustment. A positive market value adjustment occurs when the rate on the Term Fund Plus or UpScale RRSP from which the surrender is being made is higher than the same or a similar Term Fund with a term equal to the remainder of the term that the surrender is being made from. A positive market value adjustment could imply that the value of the Term Fund Plus or UpScale RRSP from which the surrender is being made increases in value.
Limitations, Reductions and Exclusions
Before settling any claims, we require proof that is satisfactory to us.
Consumer Rights and Responsibilities
Under our Total Customer Satisfaction Guarantee, the policyholder has the right to return the policy if unsatisfied with the sales process, at any time within 6 months of the issue date. The policy will then be deemed void. A refund will be made equal to the total book value of the policy (premiums paid plus accumulated interest less any amounts surrendered and/or payments made). The refund may be subject to a market value adjustment to reflect fluctuations in interest rates and may also be subject to taxation legislation.
The refund under the Total Customer Satisfaction Guarantee will not apply if the policy has been issued in lieu of a previous policy or as a result of exercising an option contained in the previous policy.
For complete details see our Total Customer Satisfaction Guarantee.
Effective Date of Coverage
The policy takes effect when The Standard Life Assurance Company of Canada receives the completed Ideal Term Fund Policy Application form and the premium payment.
Learn more about our Ideal Term Funds in our client pamphlet entitled This is all about Ideal Term Funds with Standard Life.
For complete details on our Ideal Term Funds, take a look at our Application for your Ideal Term Fund Policy, which includes the Ideal Term Fund Policy Provisions.
