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Canada Life Critical Illness Rates

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

Effective November 26^th, 2012 Canada Life will be making changes to their Critical Illness insurance plans.

 What’s Changing?

• Increase to Critical Illness rates
• Removal of Critical illness insurance premier value premium reduction and the dual solutions premium reduction for Critical illness and disability insurance.

 Transition Rules

There will be no exceptions to the rules stated below, including extensions to the final placement date. Canada Life will not accept applications sent by fax or email. All requests for changes or increases in coverage during underwriting will be at new rates.  All requests to reissue will be at new rates.

             To be Eligible for old rates:

• Applications must be received at Audis Canada by 2:00 pm Friday November 23^th to ensure they arrive the following Monday November 26^th at Canada Life. Canada Life will not accept scanned or faxed copies.
• All requirements (including medical evidence) must be received in Canada Life Head office on or before March 1^st, 2013.
• All policies must be placed no later than 30 days after issue (No exceptions will be made)

 Rate Change Overview Base Plan:

• Term 10 CI – Minor increases & Decreases
• Term 75 CI – Average increase of 5.5%
• Term 100 CI – Average increase of 13.5%
• Permanent CI Paid up in 15 Years – Average increase of 7%

 Rate Change Overview Plans with ROP

• T10 – Average increase of 30%
• T100, T75 and limited pay 15 – Average increase of 22%

 Child Critical illness Rate Change Overview

• Base Plan will not see any changes
• Plans with ROP at expiry will see an average increase of 30%

 *All percentages are an estimate only and represent an average of age 30 – 50 rates and are based on standard risk $100,000, non smoker plans.

Canada Life Rate Change on Level COI

Posted in Canada Life  ·  August 1, 2012  ·  (permalink)

The continuing low interest rate environment has caused Canadian insurers to re evaluate the pricing of their products with long term guarantees.  As a result, Canada Life will be increasing Millennium Universal Life insurance Level and Limited Pay cost of insurance rates effective September 17, 2012.

Details about these changes, including transition rules will be communicated in late August.

 

Canada Life Premium Deposit Account – Now Limited to $100,000

Posted in Canada Life  ·  July 18, 2012  ·  (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.

 

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%

 

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.

 

Canada Life Rate Changes

Posted in Canada Life  ·  January 10, 2012  ·  (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