At the Industrial-Alliance Sales Congress held at Living Arts Centre in Mississauga, ON on May 23 the organization unveiled the details of a new universal life product they’ve branded as “Trend” that will be made available to consumers as of June 3, 2013.
What’s unique about Trend is that it will combine the advantages of guaranteed permanent insurance with the possibility of premium reductions should interest rates go up. In this way, consumers will be pay premiums which reflect the current interest rate trends for the entirety of their coverage.
This should come as no surprise given the current low interest rate environment. According to the product literature Trend “… is an economical alternative to the permanent life insurance products currently on the market. It offers clients a competitive premium that’s guaranteed for the first 10 years of the contract.”
Essentially, on the 10th anniversary of the contract, and every 5th year thereafter, the premium will be adjusted according to the Trend index, which is linked to long-term interest rate levels. All of this will be made completely transparent to the client thanks to a personalized schedule in their policy. That schedule will include what they can expect from a premium perspective, including the highest possible amount, given changes to the index.
Lastly, clients will be given the freedom to choose if they would like to pay only the amount of premium required to maintain their coverage, or pay the maximum to take advantage of an investment bonus.
UPDATE: Check out this Video that gives a detailed overview of “Trend”
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