Analysis of Canada Life Universal Life Rate Increase

Canada Life increased rates on its Universal Life Level Cost of Insurance, and Limited Cost of Insurance policies, as of February 7, 2011.

The increases followed rate hikes by Manulife, Industrial Alliance, and Equitable Life. Many Canadian insurers have had to re-evaluate the pricing of their Universal Life policies as a result of continually, historically low interest rates. As a result, clients will see the following changes:

a.) Canada Life’s Universal Life Level Cost of Insurance rates have increased by an average of 10%.

b.) Limited Pay Cost of Insurance policies have increased by an average of 5%.

The following is a further breakdown of their rate increases for each policy by gender and age:

Level Cost of Insurance

  • Rates for males ages 25 to 60 increased by 8.6%.
  • Rates for females ages 25 to 60 increased by 10.1%.
  • There has been no increase for insured persons age 70 years and older.

Limited Pay Cost of Insurance

  • Rates for males ages 0 to 15 have increased 2.2% on average.
  • Rates for males ages 20 to 55 have increased 4.9% on average.
  • Rates for males ages 65 and older have not increased.
  • Rates for females ages 0 to 15 have gone up 2.1%.
  • Rates for females ages 20 to 55 have gone up 4.4%.
  • Rates for females ages 65 and older have not increased.

For more details on universal life rates in Canada, please contact us at 1-866-899-4849, or visit our Universal Life Quote Page.

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