Desjardins | Upcoming Changes to Permanent Life Insurance Rates
Effective July 11, 2013 Desjardins Insurance will announce increasing Guaranteed Cash Values in order to remain a market leader. Also, because of the continuing economic environment, we are increasing premium rates on permanent life insurance coverages.
Good news – Increasing Guaranteed Cash Values
In order to keep its leadership position, Desjardins Insurance is increasing the Guaranteed Cash Values for all durations and years on the following life insurance coverages:
Traditional Life Insurances: Life 10 and Life 20
Pace Universal Life Insurances: Precision 10 and Precision 20
Premium Rate Changes
The average increases vary from 1% to 4% on the following life insurance coverages:
Traditional Life Insurances: Life 10, Life 20, MAXLife (T100) and Guaranteed Whole Life
Pace Universal Life Insurances: Precision 10, Precision 20, Foundation (T100) and Precision
The level cost for Flex 1 and Flex 1 paid-up at 85/20 years will also increase in order to harmonize the pricing between permanent life insurance coverages.
Transition Rule
Contracts will be issued based on the old rates if Head Office receives the application and illustration on or before July 12 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. Unfortunately no exceptions will be made and for this reason we are communicating this news well in advance of the implementation date.
Also, for a case which was previously declined, cancelled or postponed, the premium rate will be based on the re-opened date.
Important
After July 12, 2013, only illustrations produced with the Fusion illustration software version 15.0.0 will be accepted, otherwise they will be returned to you.
For your information, reminders of these changes will be made weekly until the publication of Marketing Flash Express on July 11, 2013. In an upcoming communication we will announce some good news.