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2012 Sun Life Dividend Scale

Posted in Software, Sun Life  ·    ·  (permalink)

At the December board meeting, the Board of Directors of Sun Life Assurance Company of Canada (‘Sun Life”) approved a recommendation to decrease the dividend scale for most participating policies issued by Sun Life Financial.

This dividend scale will be in effect from April.01, 2012 to March 31, 2013.

Inforce Business

  • The 2012 dividend scale interest rate* will decrease by 25 basis points (bps), resulting in a new dividend scale interest rate of 7.15%
  • The dividend on deposit rate will be 3.75%, except for RRSP policies and Bermuda policies with a variable loan clause.

New Business

Sun Par Protector and Sun Par Accumulator continue to be very competitive product offerings, providing clients with lifetime protection.  In many cases, our competitive positioning has improved despite this modest dividend scale decrease as several other carriers have announced their own dividend scale reductions.

  • The 2012 dividend scale interest rate* will decrease by 25 bps, resulting in a new dividend interest rate of 7.15%
  • On average Sun Par Protector and Sun Par Accumulator will see a decrease of approximately 3% in their annual dividend with the 2012 dividend scale.
  • The dividend on deposit rate will decrease by 25 bps to a rate of 3.75%

New software reflecting these changes will be available January 27, 2012.

*The dividend scale interest rate is nor the portfolio yield of the Sun Life Participating account.  The rate is based on the portfolio yield and is used in calculating the dividend scale.  The dividend scale interest rate is only one component of many that are used to calculate the dividend scale that is applicable to a specific policy.  Other factors include mortality, expenses and lapse experience.

Canada Life Rate Changes

Posted in Canada Life  ·    ·  (permalink)

 

Changes to Canada Life Millennium Universal Life and Canada Life Critical Illness insurance, effective Feb.13, 2012

Life Insurance

  • Cost of insurance rates will increase for level and limited pay options.
  • Minimum guaranteed interest rates are being reduced on 5 an 10 year guaranteed interest options
  • The rates will increase an average of 8% for all ages for Level COI
  • The rates will increase an average of  6% for limited pay  COI for all ages
  • The rates will increase an average of  13% for Level COI for ages 20 – 50
  • The rates will increase an average of  11% for limited pay COI for ages 20 – 50
  • 5 Year GIO will decrease from 2.0% to 1.50%
  • 10 Year GIO will decrease from 2.5% to 2.0%

Critical Illness

  • Increases to Critical illness insurance rates (Permanent Plans)
  • T100 rates will increase by an average of 8%
  • T75 rates will increase by an average of 9%
  • T75 paid up at 65 rates will increase by an average of 11.5%
  • Plans paid up in 15 years will increase by an average of 13.5%
  • Decrease to Critical illness insurance rates (T10)
  • T10 rates will decrease on average by 1%
  • New rate band premium reduction for amounts of $500,000 and higher

Transition Rules

  • New rates in the illustration software will be in effect Feb.13.2012
  • There will be no exceptions to the rules stated below, including extensions to the final placement date: 
  1.   Canada Life will not accept applications sent by fax or email.
  2. All requests for product changes or increases in coverage during underwriting will be at new rates
  3. All requests for reissues will be at new rates
  4. To be eligible for old rates applications must be received at Canada life no later than Feb 13 2012 5 pm ET
  5. Applications that are eligible for old rates must be issued by May 11 2012
  6. All policies must be placed no later than 30 days after issue 

 

New IA Excellence Software

Posted in IA Excellence, Software  ·    ·  (permalink)

Effective January 1, 2012, the premium rates for IA Excellence Whole Life insurance products will increase.  This increase has been made necessary by recent economic circumstances and, more specifically, by lower interest rates.  The products affected by the rate increase are 10 year, 15 year, and 20 year paid up products as well as the payable to 100 product.

 

 

SSQ Life Insurance Company Inc. concludes the acquisition of AXA Life Insurance Inc.

Posted in AXA, SSQ LIfe  ·    ·  (permalink)

 

The press release published yesterday by SSQ Financial Group is now available for you to read on SSQ Site.

We are pleased to announce that on January 1, 2012, SSQ, Life Insurance Company Inc. concluded the acquisition of AXA Life Insurance Inc.: the new entity will be called SSQ Insurance Company Inc.

In addition to continuing to supervise all the activities of SSQ Financial Group’s Investment and Retirement sector in his capacity of Senior Vice-President, Mr. Bernard Tanguay has been appointed to the position of Senior Vice-President of SSQ Insurance Company Inc. (AXA Life Insurance Inc.). He is succeeding Mr. Robert Landry, who headed up AXA Life Insurance in recent years. We would like to take this opportunity to thank Mr. Landry sincerely for everything he has done and wish him much success in his future endeavours.

There are no changes to activities for the partners and agencies that were already doing business with AXA Life Insurance. You may therefore continue to deal with the different entities of SSQ (if you were already doing so prior to the transaction), as well as with the new business line, SSQ Insurance.