Trend - A New Wind in Life Insurance
QUEBEC CITY, May 28, 2013 /CNW Telbec/ - On June 3, Industrial Alliance
Insurance and Financial Services Inc. (TSX: IAG) launches its new
universal life insurance product that will allow clients to take
advantage of premium reductions should long-term interest rates go up.
An innovative new product, Trend is an advantageous alternative to the permanent life insurance products
on the market today. It provides clients with the protection they need,
all the while saving them money. Policyholders benefit from a
guaranteed premium discount for the first 10 years of the contract, and
they can save even more starting year 11 if long-term interest rates
are higher at that time.
Trend is intended as a breath of fresh air for consumers. Over the past few
years, guaranteed level-premium permanent life insurance products have
seen several price increases given the persistently low level of
long-term interest rates. The coverage currently provided by these
products offers no opportunity for clients to regain ground and pay
lower premiums in the future should interest rates go back up. Trend is turning things around to the benefit of the consumer.
"Interest rates are currently at an all-time low," states Clément
Gignac, Senior Vice-President and Chief Economist. "But Canadians can
expect them to rise once the U.S. economic recovery has firmly taken
"We have designed an affordable permanent life insurance product in
comparison to the level-premium permanent solutions currently on the
market," adds Marie-Élaine Gaudreault, Senior Director of Marketing in
Individual Insurance and Annuities. "Right from the start, clients get
a rate discount that is guaranteed for 10 years. Then, in addition to
this savings, policyholders can benefit from potential further savings
should interest rates increase down the road."
After the first 10 years, the premium is adjusted using a formula
specified in the initial contract and based on a reference index. The
index value is equal to the average of long-term provincial bond yields
over the previous five years.
When the Trend contract is issued, a maximum premium is also established and
guaranteed to the client. This guaranteed maximum premium acts as a
buffer for the insured, who will never pay more than the amount
specified in the contract. Trend also offers the opportunity to take advantage of tax-sheltered savings.
A promotional video for this new product is available on YouTube: http://youtu.be/JHVcprqoMtw
About Industrial Alliance
Founded in 1892, Industrial Alliance Insurance and Financial Services
Inc. is a life and health insurance company with operations in all
regions of Canada as well as in the United States. The Company offers a
wide range of life and health insurance products, savings and
retirement plans, RRSPs, mutual and segregated funds, securities, auto
and home insurance, mortgage loans and other financial products and
services for both individuals and groups. The fourth largest life and
health insurance company in Canada, Industrial Alliance contributes to
the financial wellbeing of over three million Canadians, employs 4,300
people and has assets under management and administration of more than
$87 billion. Industrial Alliance stock is listed on the Toronto Stock
Exchange under the ticker symbol IAG.
SOURCE: INDUSTRIAL ALLIANCE INSURANCE AND FINANCIAL SERVICES INC.
For further information:
Pierre Picard, Manager, Public Relations
Office: 418-684-5000, extension 1660