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Canada Life Premium Deposit Account – Now Limited to $100,000
Posted in Canada Life · · (permalink)
Effective immediately, Canada Life is limiting the amount that can be deposited into a premium deposit account. The maximum that will be accepted is $100,000 annually for any one policy.
Why the Change
The option to pre-pay premiums through a premium deposit account is a non contractual feature offered to all policy owners. The guaranteed rate of 2.75%on deposits is no longer sustainable given the current low interest rate environment. This $100,000 deposit limit is an interim measure, as rate reviews are underway.
Because this is an interim measure, illustration software will not be adjusted. This means advisors can still illustrate a premium deposit account in excess of $100,000. If a premium payment greater that $100,000 is submitted, the advisor will be contacted about returning the amount to the policy owner.