Empire Life has made important changes to its segregated fund line-up effective June 7, 2009. These changes were sent out May 29, 2009 to their broker network via information circular and are as a result of the increased volatility in the stock market over the past year.
Here’s how the changes may affect you:
New Account Holders
Deposits to two segregated funds will not be permitted after December 31 of the year the annuitant turns 81.
Transfers from other investment options (i.e. treasury interest options, or guaranteed interest options [G.I.O.]) will not be permitted after December 31 of the year the annuitant turns 80.
No resets will be permitted after December 31 of the year the annuitant turns 80. Empire Life’s reset feature allows the annuitant to reset their death benefit guarantee and their maturity benefit guarantee twice a year free of charge. This is a terrific feature, especially in a rising market. For example, if an investor puts $100,000 into an Empire Elite Fund and the value rises to $125,000. If they take advantage of the reset, the new value becomes their death and maturity benefits.
Existing Account Holders
There will be no change to the maximum deposit age.
There will be no change to the transfer of new money.
No resets will be permitted after December 31 of the year the annuitant turns 80 years old, effective Oct. 1, 2009.
Empire Life will not be making any changes to their G.I.O.s or treasury accounts. Empire Life has one of the better segregated fund portfolios in Canada, offering very competitively priced Management Expense Ratios (MERs). Empire Life’s MERs are much lower than many of the competing segregated funds and compare very favourably to mainstream mutual funds.
For more details, feel free to contact us at info@lsminsurance.ca or 1.866.899.4849.
