The Canada Life Assurance Co. and B2B Trust, a subsidiary of Laurentian Bank of Canada, announced the launch of a new agreement whereby advisors and investors can use B2B Trust’s leveraged loan program and invest the proceeds in Canada Life investment products.

The Canada Life segregated funds in which clients can invest also have maturity and death benefit guarantees attached to them, further securing the savings amount a client or beneficiary can rely upon after maturity or death.

There are a variety of loan options available through B2B Trust, a 100% loan, a 1 for 1 loan and a 2 for 1 loan. Some loans are available in margin call or no margin call versions, allowing clients to choose the option and interest rate combination that best suits their needs. Interest rates are highly competitive and, if the loan is used properly, interest payments can be tax deductible.

“A leveraged loan strategy can play an important role in a financial plan,” said Mark Cummings, VP individual wealth management at Canada Life. “Some investors can’t save enough within their RSP to retire comfortably, so they need to build up their non-registered savings. And what could be more convenient than building up that savings by using someone else’s money.”

This launch represents another step in Canada Life’s strategy to increase its commitment to the individual investment market in Canada, and to be a full range provider of investment solutions, it says.