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Desjardins | Upcoming Permanent Life Insurance Changes

As an important business partner of Desjardins Financial Security we wish to make you aware of several important changes that will be taking place at the beginning of April.

1. Changes to the rate structure of permanent insurance products

In light of the continuation of historically low interest rates, Desjardins Financial Security  will be revising the  premium rates for some of the plans of the permanent life insurance portfolio. The new rates will come into effect on April 4th 2012.

The products with increased rates are:

Traditional life insurance PACE – Universal Life (UL)
MaxLife (T100) Foundation (T100)
Life 10 Precision 10
Life 20 Precision 20
Guaranteed Whole Life Precision

The average increase rate is 6%.  Despite these changes, our permanent insurance rates are still competitive.

Please note that; Life Start and Health Care Advance are not affected by the changes.

2. Foundation (T100 UL) Commission Changes

The First Year Commissions, Accelerated scale will be reduced by 2.5% and renewal commissions and for both Accelerated and Career scales, will be reduced by 1% from the second year.

3. Transition rule

The changes announced will take effect on April 4th, 2012. Please note the following:

  • Contracts will be issued based on the old rates if the application and illustration are received by Head Office no later than April 16th 2012 by mail, fax or e-mail.
  • A contract issued with the old rates must be settled within 40 days following the approval date from the underwriting department.

If the above conditions are not met, the new rates will apply to the contract. No exception will be made.

After April 16th 2012, only illustrations produced with the Fusion illustration software version 14.4.0 will be accepted, otherwise they will be returned to you.

Don’t miss the next edition of the Marketing Flash, on April 4th 2012 where you will read good news about DFS products, Webi, improved underwriting requirements and Fusion illustration software.

Please share this communication with your advisors.

Marketing Communication
Individual Insurance and Savings
Desjardins Financial Security

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