Cash surrender value (CSV) line of credit

Permanent life insurance can be a powerful tool in your financial security portfolio because of its unique structure. You buy life insurance so that your loved ones are financially protected. Did you know you can use the cash value in your permanent insurance policy to provide a source of retirement income, finance personal or business opportunities, or deal with unforeseen financial emergencies?

The cash surrender value (CSV) line of credit allows you to use personally-owned or corporately-owned permanent non-registered life insurance policies issued by London Life as security for financing. Use your policy as security and produce a cash flow during your lifetime while maintaining a net benefit payable at your death. Talk to your financial security advisor to find out if this strategy is suitable within your financial security plan.

The cash surrender value of your permanent non-registered life insurance policy issued by London Life secures the loan.

• Minimum loan amount is $10,000
• Maximum loan-to-cash value ratio is:
  • 90 per cent, if the CSV is from a participating life insurance policy or fixed-income accounts within a universal life insurance policy
  • 60 per cent, if the CSV is in equity-linked accounts with a universal life insurance policy

Features

• Interest on the loan is payable each month or you can add the interest to the loan balance
• Flexible payment options
• Access your line of credit with all the same convenient features of a chequing account including bill payments, transfers, pre-authorized withdrawals, Interac™ direct payment purchases and cash withdrawals at any National Bank or THE EXCHANGE^® Network automated banking machines
• No fees for transactions
• Receive monthly statements
• No registration fees for individual policy owners

Want to learn more about the CSV line of credit?

Contact a financial security advisor to find out if the CSV line of credit is right for you. Or if you're already a Solutions Banking client, call 1-866-888-1379 to find out more.