Industrial Alliance Insurance and Financial Services (iA Financial Group) has launched EquiBuild, a new universal life insurance policy.
The insurer describes EquiBuild as a flexible universal life insurance that is meant for clients who want long-term asset growth. The product offers a number of guarantees, including guaranteed surrender values, an annual bonus, and a variety of investment options.
Clients can use the bonus feature to purchase paid-up additional insurance or they can invest it in an accumulation fund; the bonus is calculated annually and is based on the declared return on the EquiBuild Fund less a threshold of 3.5%. The EquiBuild Fund offers a guaranteed return of 5.5% through 2019.
The product has investment accounts that are based on fixed-term guaranteed interest rates, accounts based on the main stock-market indices, as well as the EquiBuild Account (based on the EquiBuild Fund) and the Life Investment Account.
"The return on the EquiBuild Account is linked to that of the EquiBuild Fund, managed by an experienced team of fund managers at iA Financial Group. The EquiBuild Fund is designed to provide stable returns with low volatility over the long term," explains Industrial Alliance. "This fund is composed of fixed-income securities, mortgage securities, real estate assets and stocks. Clients who invest in the EquiBuild Account will enjoy a guaranteed return of 4.25% through 2019. Thereafter, the return credited will be equal to the declared return on the EquiBuild Fund less a management expense ratio of 1.5%."
The insurer says its Life Investment Account is unique on the market; it becomes available on either the tenth policy anniversary or the insured's 40th birthday (whichever is later) and offers a fixed monthly return that can be used to offset insurance costs.
In a separate news release announcing EquiBuild, PPI, a national marketer of insurance solutions, noted its involvement in the product’s design in conjunction with iA. James Burton, Chairman and CEO of PPI says the new product is adaptable to clients’ changing needs. “Canadian consumers need insurance for protection, but as their life develops they may need assets to satisfy retirement income needs, to grow their business, or simply to deal with whatever life throws at them,” he explains, adding that “the new hybrid universal life product can be easily adapted to meet those needs whether it be to add more (paid-up) coverage, take a premium holiday, free up cash for a new business opportunity or to maximize growth within the product when there’s a change in market interest rates.”