Solution to increasing rates on permanent life insurance
For the past little while it seems that insurance companies have been increasing rates left and right due to the low interest rate environment we are in. Premiums have only been getting more expensive and in this new world of prolonged interest rates premiums are at record highs.
Empire’s Hybrid Solution 100
There is a new life insurance solution offered by Empire Life called the Hybrid Solution 100. It is a unique product for those that believe the long term interest rates will increase. The insurance contract allows policy owners to pay lower premiums when interest rates go up.
- Level coverage, paid-up at age 100
- Easy process regarding how premiums change
- Premiums tied to a set of interest rate ranges
- Maximum premium limit
- Minimum value limits
- Values starting after the 4th year
The beauty of Hybrid Solution 100 is that it 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. - Sean Kilburn, Senior Vice-President, Life Insurance, Empire Life.
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.
About the Author
Neil Lecky is a Life Insurance Advisor, Group Employee Benefit Specialist and an Investment Funds Advisor with Alliance Financial Group. He is also a Branch Manager and Investment Funds Advisor with Investia Financial Services Inc., a mutual fund dealer.