Rating Reduction program
To make coverage more accessible and beneficial!
Each situation should be assessed as a whole. When certain risk factors are present, your clients may benefit from more favourable pricing conditions.
Depending on its eligibility conditions, the program may provide access to a standard decision or an extra premium adjustment.
Advantages
-
Savings for your clients
-
Contracts placed more easily
-
No calculations required
2 ways to save
NEW! Improved access to a standard decision
When an individual extra premium of 50% or less is assessed, a standard decision is granted.
Eligibility:
- All life insurance products
- Coverage amount of ≤$1 million1
- Age: 18–65
Extra premium adjustment
A reduction of up to 80% of the assessed extra premium is automatically granted.
Eligibility:
- All permanent life and critical illness insurance products
1 Maximum total amount per proposed insured, for all insurance applications submitted during the previous 12 months. Other conditions may apply.
Examples
Improved access to a standard decision
- Insured person, age 45, non-smoker
- Product selected: Term 20 life insurance of $750,000
- The blood pressure reading from less than three months ago is 163/110 mm Hg
- The insured person is following the treatment prescribed by their doctor
- Cholesterol levels and body mass index are within normal limits
- Extra premium assessed: 50%
With our program, the standard rate is granted without an extra premium, and you don’t need to do anything.
Extra premium adjustment
- Insured person, age 40
- Product selected: 10 Pay participating life insurance2
- Annual premium: $5,040 (including $40 contract fees)
- Extra premium: 100% of the base premium, or $5,000
- Applicable reduction percentage: 80%
With our program, the policyowner saves $4,000!
No calculation required: The illustration tool does the work for you when you enter the extra premium.
Extra premium assessed by the underwriting team
$5,000
Multiplied by
(x)
Adjustment percentage that applies to the extra premium2
80%
Savings
$4,000
The total annual premium will be:
$5,000 (base premium) + $40 (contract fees) + $1,000 (extra premium after savings) = $6,040
2 Depending on the product – see the sections below.
The examples presented are fictional and only intended to show how the Rating Reduction program works.
Extra premium adjustment percentage based on the product
| Product | Extra premium adjustment* |
|---|---|
| Whole life guaranteed 10 Pay | 50% |
| Whole life guaranteed 15 Pay | 45% |
| Whole life guaranteed 20 Pay | 40% |
| Whole life guaranteed to 65 | - |
|
35% |
|
40% |
| Whole life guaranteed to 100 | 30% |
| Term to 100* | 20% |
| Universal Life Term to 100* | 20% |
* The adjustment percentage does not apply to contract fees.
The extra premium does not affect the dividend amounts, one-year term insurance or the paid-up additions.
Estate Enhancer and Accelerated Growth
| Issue age | Extra premium adjustment* | ||
|---|---|---|---|
| 10 Pay | 20 Pay | To 100 | |
| 0 to 50 | 80% | 75% | 65% |
| 51 | 78,5% | 73,25% | 63,25% |
| 52 | 77% | 71,5% | 61,5% |
| 53 | 75,5% | 69,75% | 59,75% |
| 54 | 74% | 68% | 58% |
| 55 | 72,5% | 66,25% | 56,25% |
| 56 | 71% | 64,5% | 54,5% |
| 57 | 69,5% | 62,75% | 52,75% |
| 58 | 68% | 61% | 51% |
| 59 | 66,5% | 59,25% | 49,25% |
| 60 | 65% | 57,5% | 47,5% |
| 61 | 63,5% | 55,75% | 45,75% |
| 62 | 62 % | 54 % | 44 % |
| 63 | 60,5% | 52,25% | 42,25% |
| 64 | 59 % | 50,5 % | 40,5 % |
| 65 | 57,5% | 48,75% | 38,75% |
| 66 | 56% | 47% | 37% |
| 67 | 54,5% | 45,25% | 35,25% |
| 68 | 53% | 43,5% | 33,5% |
| 69 | 51,5% | 41,75% | 31,75% |
| 70 and older |
50% | 40% | 30% |
5 Pay PAR
| Issue age | Extra premium adjustment* | ||
|---|---|---|---|
| 5 Pay | |||
| 0 to 50 | 80% | ||
| 51 | 79% | ||
| 52 | 78% | ||
| 53 | 77% | ||
| 54 | 76% | ||
| 55 | 75% | ||
| 56 | 74% | ||
| 57 | 73% | ||
| 58 | 72% | ||
| 59 | 71% | ||
| 60 | 70% | ||
| 61 | 69% | ||
| 62 | 68% | ||
| 63 | 67% | ||
| 64 | 66% | ||
| 65 | 65% | ||
* The adjustment percentage does not apply to contract fees.
| Product | Extra premium adjustment* |
|---|---|
| Health priorities – 10 Pay | 25% |
| Health priorities – 20 Pay | 20% |
| Health priorities – Child, 20 pay | 20% |
* The adjustment percentage does not apply to contract fees.
Health Priorites – to 100
- The rating applies to the premium of critical illness and the return of premium on death.
- The premium for the return of premium on cancellation is exempt from rating.
Health priorities - Business (EHP)
Company:
- The rating applies to the portion of the premiums paid by the company.
Shareholder / key employee
- The rating applies only to the portion of the premium paid by the shareholder / key employee for critical illness and death benefits after the coverage duration chosen by the company.
- The health benefit premium is exempt from rating.
Your illustration tool automatically calculates the premium allocation between the company and the shareholder or key employee based on the coverage period.