On April 1, Empire Life announced that it has introduced a permanent life insurance product that combines guaranteed and adjustable features and can allow customers to benefit from lower insurance premiums should long-term interest rates rise.
“Hybrid Solution 100 is the first of its kind in Canada and a timely addition to the permanent insurance marketplace. Canadian consumers and their advisors have dealt with multiple price increases and more limited permanent insurance product choices over the past two years due to prolonged low interest rates,” said Sean Kilburn, senior vice-president, Life Insurance in a company statement.
“We keep hearing that interest rates are going to rise and mortgages and other costs will go up,” he added. Hybrid Solution 100 could help offset these increasing costs with lower insurance premiums. “It truly offers downside protection with upside potential to those who believe long-term interest rates will rise.”
Coverage amounts are guaranteed and the product offers maximum and minimum price and value limits. Premiums can move up or down only as a result of changes in an interest rate range that is determined annually using a Government of Canada long-term bond yield benchmark. No other factors influence any premium increase or decrease. Customers and their advisors have the transparency and security of knowing when and how insurance premiums change every year, says the company.