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Canada Life T20 Rates Decrease FYC Increased!

Posted in Canada Life  ·  May 29, 2012  ·  (permalink)

 

Effective June 11, 2012, Canada Life’s Term 20 rates will be reduced. 

Changes at a Glance

• Term 20 life insurance premiums and Term 20 rider rates are reducing
• Joint First to Die conversions from Term 10 to Term 20 now available
• 25 % First year compensation
• Five year pass back period will be available
• Compensation
• Increase to the FYC on Term 20 from 45% to 50%
• Slight decrease to renewal commsiion rates from 4% to 3%

 

RBC Insurance Update on Service Providers

Posted in RBC, Underwriting  ·  May 23, 2012  ·  (permalink)

 

Please be advised effective immediately RBC has terminated their service contract held with Quality Underwriting Services.  RBC Insurance will no longer accept any services provided by Quality Underwriting.

Below is a list of RBC’s preferred Paramedical Service providers

• Examone
• First Financial
• Hooper Holmes
• MedAxio
• Medifast
• Watermark

 

New Limits on Minimum Interest Rate Guarantee Premiums

Posted in Canada Life  ·  May 14, 2012  ·  (permalink)

The continuing low interest rate environment has cause Canadian insurers to re-evaluate prices and policies related to products with guaranteed minimum interest rates.

Effective May 14, 2012, Canada Life will limit subsequent premium deposits to the guaranteed interest options, and daily interest options in contracts with guaranteed minimum interest rate provisions at $1,000 annually.

Contracts containing these provisions were generally issued in the late 1980s and early 1990s and include subsequent premiums related to these comprehensive annuity policies.

What’s Changing

• Lump sum premiums will be capped at $1,000 per year.
• Existing pre-authorized chequing (PACs) under $1,000 can only be increased to a total amount of $1,000 per year
• Existing PACs that exceed $1,000 per year can’t be increased
• If existing PACs are changed, they will be subject to the above limits

What isn’t Changing

• Canada Life will continue to provide minimum guaranteed interest rates on existing assets within these contracts.
• Existing PACs are unaffected as long as no chances are made.

Increases to PACs in excess of this limit will be declined. Lump sum premiums that exceed the limit will be returned to clients.