The Great-West Life Assurance Company is a Canadian based company also known as Great-West Life or La Great-West, compagnie d'assurance-vie. This company, which was founded 120 years ago in 1891, is run by CEO and President Allen Loney, and its headquarters are in Winnipeg. Great-West Life is owned by parent company Great-West Lifeco, which in turn is owned by Power Corporation of Canada. Great-West Life’s sister companies include Canada Life Financial, Putnam Investments, London Life Insurance Company and Canada Life Financial.
The two main types of life insurance offered by Great-West Life are term life insurance and permanent life insurance. Term life insurance is available through Great-West Life as a 5 year, 10 year or 20 year policy. This type of insurance policy is well suited for people who have short-term coverage needs. Couples with children or a mortgage are an example of the kind of people who find term life insurance attractive. Through term life insurance, an insuree can acquire a large amount of coverage for a relatively short period of time at the lowest initial cost. Many term life insurance policies have the option of renewing once the period of time is up, although once an insuree reaches the age of 75 or 80, the option to renew may be terminated by the company. As the years go by, the premiums for term life insurance will rise.
People looking into purchasing permanent life insurance have a choice between participating life insurance and universal life insurance. When an insuree pays premiums for a participating life insurance policy, what they are doing is depositing money into a participating account. Within this account, the money mingles with money from other people that also have participating life insurance. Over the years, policyholders are able to earn policyholder dividends. Dividends are given to policyholders when, during a particular year, the participating account earns more money than anticipated.
Universal life insurance works differently as it has nothing to do with dividends; rather, it is used as a way to build up cash value in a policy. The insuree gets to control the cash buildup by determining how much and how often they will pay into the policy. Once there is cash value to speak of, the insuree has the option of taking money out of the policy or borrowing against it.