Canada Life My Term reprice details and updates
On Oct. 10, Canada Life My Term™ rates will become even more competitive across all term lengths.
Highlights include:
- Rates have been reduced for key segments such as clients 30 years and under and clients 55 years and older.
- 30-year terms will have a weighted average decrease of 4.2% with certain amounts reduced as much as 13%.
- Term riders on universal life and participating life insurance will also be included in the reprice.
With this new price offering, the reduction in term premium that took effect June 26, ends on Oct. 9. This means prices will either decrease or remain unchanged compared to rates before the reduction in term premium took effect on June 26, 2023.
We’re also adding a new rate band for policies with face amounts of $2,000,000 to $4,999,999. This means even lower costs for clients looking for these coverage amounts. Some reductions could be as high as 16%.
Our preferred underwriting limits are changing too. We’ve kept preferred availability where clients will see more significant impact to their savings.
Other updates include changes to our illustrations, and SimpleProtect and web applications. With these updates you’ll be able to illustrate and apply for up to $25 million, an increase from $20 million.
With the most flexible term lengths in the market, reducing our rates helps your clients get the insurance protection they need, at a more affordable price.
Web-based Canada Life Illustrations will be updated automatically, and a new desktop version 5.0 software will be available on Oct. 10, 2023, reflecting these new premium rates and band rates.
With this update, you’ll also be able to illustrate up to $25 million in face amount, up from $20 million.
Effective Oct. 10, we’ll remove the “Head office approved reduction of premium” selection option from Canada Life Illustrations. Any saved cases that included the reduction in term premium will be removed with this illustration update.
Check out the software landing page for system requirement details. Advisor Solutions | MGA | NA
| Current term band structure (face amount splits) | New term band structure (face amount splits) |
|---|---|
| <$250,000 | <$250,000 |
| $250,000-$499,999 | $250,000-$499,999 |
| $500,000-$999,999 | $500,000-$999,999 |
| $1,000,000-$4,999,999 | $1,000,000-$1,999,999 |
| $1,000,000-$4,999,999 | $2,000,000-$4,999,999 |
| $5,000,000-$9,999,999 | $5,000,000-$9,999,999 |
| $10,000,000+ | $10,000,000+ |
With the introduction of this new rate band, clients will see a weighted average rate decrease of 4% with some rate reductions as high as 16%.
In addition to the new term rates, we’re adding a new rate band for policies with coverage amounts from $2,000,000 to $4,999,999. The rate band price updates apply to standalone policies only and is not applied to term additional benefits on permanent policies.
- Ages 18 to 45 – available for face amounts of $2,000,000 and higher.
- Age 46+ – available for face amounts of $500,000 and higher.
Canada Life continues to be a strong competitor in the market where other providers may offer preferred pricing at $5,000,000.
We’ve kept preferred availability where clients will see more significant impact to their savings. Enhanced accelerated underwriting removes application complexity and streamlines the experience for clients. You no longer need to decide whether to provide labs for potentially small savings.
This means your clients will get coverage faster and save time from having their labs completed. With accelerated underwriting available up to $5,000,000 for key age groups, many more cases will go through straight through processing (STP), which means clients get coverage faster and makes it easier for you to finalize applications and get approvals – plus you get paid faster too!
Important: The new preferred availability range will also apply to term-to-term conversions. Preferred rates will only be applied to the new policy if they are currently available for the age and coverage amount being requested. Additionally, the client could lose preferred rates on the retained portion of a partial conversion, if the coverage amount is below the preferred availability range in effect when the in-force policy was originally issued. No exceptions will be made.
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If |
Then |
|---|---|
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Web and SimpleProtect™ applications received before 11:59 P.M. CST on Oct. 9, 2023.
OR
Paper applications received at head office on or before Oct. 9, 2023.
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Will be issued as applied for (old rates), including term reduction in premium rates, where eligible. May request new rates. Advisor must submit a new illustration prepared Oct. 10, 2023 or later. New rates can’t be combined with the term reduction in premium rates or old preferred rate/health class. |
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Web and SimpleProtect applications received on, or after Oct. 10, 2023 (Oct. 10, 2023 at 12:00 A.M. CST).
OR
Paper applications received at head office on or after Oct. 10, 2023.
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New rates apply. |
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Backdating to save age.
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Regular backdating rules will apply.
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As with any product change, you should re-evaluate how these changes may better serve your clients and could impact your clients’ needs.
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If |
Then |
|---|---|
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An application is in pending status on Oct. 10, 2023.
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Will be issued as applied for (old rates), including term reduction in premium rates, where eligible. May request new rates. Advisor must submit a new illustration prepared Oct. 10, 2023, or later. New rates can’t be combined with the term reduction in premium rates offer or old preferred rate/health class. |
For reissue requests received Oct. 10, 2023 or later:
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If |
Then |
|---|---|
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A policy has been issued but not placed in force yet.
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May request new rates and will be handled as a reissue. Advisor must submit a new illustration prepared Oct. 10 or later. New rates can’t be combined with the term reduction in premium rates or old preferred rate/health class. The policy will be current dated, unless backdating to save age. May request changes to the original contract issued. To keep old rates, including term reduction in premium where eligible or old preferred rate/health class, the policy must retain original issue date. |
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A policy is in force with old rates.
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May request new rates and will be handled as a policy replacement.1 New rates can’t be combined with the term reduction in premium rates offer or old preferred rate/health class. The new policy will be current dated, unless backdating to save age. |
1 Applicable provincial legislative replacement requirements (e.g. LIRD, written explanation) as well as the Authorization to transfer funds/replace existing insurance (form 17—8913) will be required.
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If |
Then |
|---|---|
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Request to re-open is received on Oct. 10, 2023, or later and the policy is postponed/declined/NPW/Not Taken.
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New rates apply. Advisor must submit a new illustration prepared Oct. 10 or later. New rates can’t be combined with the term reduction in premium rates offer or old preferred rate/health class. The policy is current dated, unless backdating to save age. |
Important: The new preferred availability range will also apply to term-to-term conversions. Preferred rates will only be applied to the new policy if they are currently available for the age and coverage amount being requested. Additionally, the client could lose preferred rates on the retained portion of a partial conversion, if the coverage amount is below the preferred availability range in effect when the in-force policy was originally issued. No exceptions will be made.
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If |
Then |
|---|---|
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Applications received at head office on or before Oct. 9th, 2023.
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Old rates apply. Will be issued as applied for, including term reduction in premium rates, where eligible. May request new rates. Advisor must submit a new illustration prepared Oct. 10 or later. New rates can’t be combined with the term reduction in premium rates or old preferred rate class. |
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Applications received at head office on or after Oct. 10, 2023.
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New rates apply. Advisor must submit a new illustration prepared Oct. 10, 2023 or later. |
| Guaranteed issue applications. | Rates that were in effect on the option date. |
| Backdating to save age. | Regular backdating rules will apply. |
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If |
Then |
|---|---|
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An application is in pending status on Oct. 10, 2023 or a policy has been issued but not placed in force.
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Old rates apply. Will be issued as applied for, including term reduction in premium rates, where eligible. May request new rates. Advisor must submit a new illustration prepared Oct. 10, 2023 or later. New rates can’t be combined with the term reduction in premium rates or old preferred rate class. |
| A policy is in force. | Old rates will apply. |
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If |
Then |
|---|---|
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Quotes processed on or before Oct. 9, 2023.
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Old rates apply. |
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Quotes processed on or after Oct. 10, 2023.
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New rates apply. |
| Policy change applications received at head office on or before Oct. 9, 2023. |
Old rates apply. May request new rates. New rates can’t be combined with the term reduction in premium rates or old preferred rate class. |
| Policy change applications received at head office on or after Oct. 10, 2023. |
New rates apply. If an illustration is dated on or before Oct. 10, 2023 the rates illustrated are not valid. |
Key highlight: With the Canada Life My Term™ reduction in premium ending on October 9, our new product transition rules can help you get the correct rates to your clients. All applications received on or after Oct. 10 will receive new rates.
Please note some rates may be higher than what was offered during the reduction in premium.
Contact a member of the Canada Life insurance sales team for more information.