Exciting Changes to Empire Life’s Universal Life Plan

Posted on July 9, 2009 and updated August 9, 2010 in Life Insurance Canada News 2 min read
empire life

Empire Life announced increases in the minimum guaranteed interest rate in its Universal Life policies it coined Trilogy and Trilogy Plus. The increase will be on its 20-year guaranteed interest option within the Trilogy and Trilogy Plus plans, for deposits or transfers after June 30, 2009.

Interest rates will increase from 2.625% to 2.825%. On the surface, that may not sound like such an aggressive increase, but combine that with Trilogy’s 1.2% policy bonus and Trilogy Plus’s 1.5% policy bonus, giving you a total interest rate increase of 4.375%.

Considering historically low interest rates, and the fact that extra deposits in the account can grow on a tax sheltered basis, the after-tax rate of return is a very attractive feature to risk adverse applicants. 

Interest rates will increase from 2.625% to 2.825%. On the surface, that may not sound like such an aggressive increase, but combine that with Trilogy’s 1.2% policy bonus and Trilogy Plus’s 1.5% policy bonus, giving you a total interest rate increase of 4.375%.

Below is an example of how the 4.375% guaranteed interest rate would benefit clients who are looking for a guaranteed investment with their Universal Life policy:

A 45-year-old male, non-smoker applying for $250,000 of Universal Life Trilogy Plus coverage, with a level cost-of-insurance, would have a minimum premium of $182.13/month. At this premium, the applicant’s cost-of-insurance never increases. If the individual wanted to put in funds beyond the minimum premium, and had a policy which could be paid-up in a limited number of years, they could add to this premium. An extra $93.26/month (pushing the total premium to $275.39) invested at the guaranteed interest rate of 4.375% would provide a cash value of $36,667 after 20 years.

The cash value would be sufficient to offset future premiums for the insured’s lifetime. As an added benefit, if the insured were to pass away prior to the cash value being depleted, the remaining amount would be paid on top of the original $250,000 to the beneficiary. 

You can get a free online Universal Life quote from our Universal Life Instant Quote Page.

avatar
LSM Insurance
LSM Insurance

Thanks for the kind words. I’m glad you find the information relevant and useful.

I
I

I’m very interested in any posts with you, I respect and often try to visit you. Thank you.