Read your policy illustration
like an actuary would

The breakeven answers: “what pre-tax return must a GIC earn, every single year, for its after-tax value to match this policy's cash value at the age you picked?” It moves with the comparison age — matching at 60 and matching at 85 are different questions — which is why the chart below shows the whole curve. GIC interest is taxed annually at your full marginal rate; corporate passive interest in ON is ≈50.2%. Illustrated values use the carrier's current dividend scale and are not guaranteed. Educational estimate, not advice.

This models a collateral loan from a third-party bank, secured by the policy — not a policy loan from the insurer. The difference matters for tax: under current rules a bank collateral loan is not income, while a policy loan can become taxable once advances exceed the policy's adjusted cost basis (ACB). Bank terms (rate, lending limit, minimum loan size) are the bank's, not guaranteed, and can change — talk to an advisor before borrowing against a policy. Mechanics: you draw a level amount each year, interest capitalizes, and the balance must stay within the lending limit every year until the death benefit repays the loan — so the assumed age at death also sizes the income (this is how Manulife's IRP binds at life expectancy; with death set to the last draw year it reproduces Equitable's Preferred Retirement Solution). Nothing drawn counts toward the OAS clawback threshold. The comparison asks what fully-taxable income — an RRSP/RRIF withdrawal, rent, interest — must be, pre-tax, to net the same cash on top of your other income (2026 ON brackets; OAS clawback threshold $95,323, 15%; assumes draws at 65+). Educational estimate, not advice.