Additional Deposit Option (ADO)

• Access short-term liquidity to finance special projects
• Use the dividends and cash surrender values accumulated to benefit from the premium offset more quickly
• Enhance retirement income
• Increase the value of family assets

Depends on the base product ADO is added to:

• 10 Pay: 0 - 75
• 20 Pay: 0 - 75
• To 100: 0 - 80

• Paid-up additions
• Enhanced insurance

Maximum permanent extra premium: +200%
Above this percentage, ADO cannot be added to the policy. .

ADO cannot be added if the initial policy has an extra premium expressed as a dollar amount per $1,000 of insurance.

Minimum deposit: $10/month or $100/year

Permitted annual deposit: The maximum amount of deposits that the policyowner may make during a given year. The sum of the deposits made during the first insurance year determines the permitted annual deposit for subsequent years. Evidence of insurability may be required.

Future deposits are determined based on actual deposits made in the first year, not the amount indicated in the illustration.

The minimum and permitted annual deposits indicated in the illustration are determined based on tax room, the base product and the insured person’s sex, smoker or non-smoker status and age at policy acquisition. Permitted annual deposits are determined to maintain the policy’s tax-exempt status.

The permitted annual deposit may be limited based on available insurance and reinsurance capacity.

The permitted annual deposit limit may also be adjusted if certain changes are made to the policy, such as a reduction in the amount of insurance.

One-time or deposits, or a combination of both, may be made:

• To age 100 (or the equivalent age for joint coverage)
• Even after premiums are paid up for products payable in 10 and 20 years

Deposits must comply with the minimum deposit and permitted annual deposit.

Regular deposits are recurring deposits made at the same frequency as the policy’s guaranteed premium payments. One-time deposits are not part of regular deposits. They can be made at any time and are allowed during the premium offset period.

• A 10% fee applies to each deposit and is not guaranteed
• Additional fees apply to permanent extra premiums

The deposit net of fees is used to purchase paid-up additions.

After making the deposits for the first year of insurance, the policyowner may, without having to provide evidence of insurability:

• Pause and resume deposits at their convenience
• Reduce and subsequently increase the amount of their deposits

Missed deposits in a given year cannot be carried forward to the following year.

If deposits are made by pre-authorized payment, it’s essential to let us know if any adjustments are required.

Regular deposits are suspended in the following situations:

• When premiums for the policy are waived in the event of total disability (if additional coverage for disability waiver of premiums is part of the policy)
• When the premium offset begins
• When premiums are paid under the automatic premium loan clause

One-time deposits are permitted.

The policyowner will lose the right to make deposits if:

• They make a policy change to reduce paid-up insurance
• They make a change to the dividend option for cash payment, reduced premiums or dividends on deposit

ADO can be added to a policy created when a right is exercised, for example when using a conversion or insurability option or a guaranteed insurability benefit.

Evidence of insurability may be required.

ADO can be added to eligible in-force policies issued since 2017. However, evidence of insurability may be required.

A special quote is required to determine the maximum deposit and the rate.

Changes to ADO deposits are permitted.

• Reduction: The minimum limit must be respected. The reduction will have an impact on future deposits.
• Increase: Evidence of insurability may be required. A new illustration is required to ensure that the new deposit complies with tax rules to maintain the policy’s exempt status.

At each policy anniversary, after dividend payments, we ensure that the tax room in the policy is respected. If not, the policyowner will receive a letter to inform them of the consequences and propose solutions.

To maintain the policy’s tax exemption, several solutions are available:

• Surrender PUAs
• Stop or reduce ADO deposits
• Adjust the deposit amount to limit management fee payments