Dividend Notice    

New dividend scale for July 1, 2024

The Equitable Life Insurance Company of Canada (Equitable®) is pleased to announce that its Board of Directors has approved a new dividend scale for the period of July 1, 2024, to June 30, 2025.

  • The interest rate we use for the dividend scale will change. It will go from 6.25% to 6.40% on July 1, 2024.
  • Other factors used to decide the dividend scale will remain the same.
  • The interest rate for participating whole life insurance policies with dividends on deposit will change. It will go from 2.25% to 3.50% on July 1, 2024.
  • The interest rate for most policy loans will remain at 6.50%. This applies to both new and existing policy loans, and automatic premium loans. It specifically applies to Equimax® policies with a 9-digit policy number that starts with either "3" or "8". Older policies may have different loan rates as they are based on the prime interest rate.

We expect to pay close to $140 million in dividends between July 1, 2024, and the end of June 2025.

As a participating policyholder, you can get some of the participating account earnings as dividends. Every year, we look at how much was earned by the participating account. We use a formula called a dividend scale to figure out how much of the earnings can be paid as dividends. From that, we determine the dividend payment. If a dividend is declared, it will get paid towards your policy.

Many factors, like the death benefits we paid and how our investments did, can affect the earnings of the participating account. These affect how much is paid as dividends. Each year, we make sure the dividend scale reflects how all these things did in the participating account.

Equimax® participating whole life is a strong solution with excellent value. It gives you guaranteed lifetime protection with earnings.

 

How do I get dividends?

You pay your premiums for your policy. Your premiums go into what’s called a participating account. Benefits, expenses, and the company’s contributions to its surplus account are all paid from the participating account. The cash that’s left then gets invested.

Each year, we watch how the participating account performs. We look at investments and other factors that affect the account. These include death benefits, taxes, expenses, policy loans and terminated policies. All these things can change how the account is doing. We compare how we thought each of these factors might perform over the year to the real results. If results were better or worse than we thought for a factor, this can have a positive or negative effect on the dividend paid.

Dividends are not guaranteed. They could change and be different based on how well the investments do, how many claims are made, and other factors. Dividends are paid at the sole discretion of the Board of Directors. How much you are paid will depend on the dividend scale.

The illustration given to you when you bought your participating whole life policy was based on the dividend scale at that time. It was not a projection or an estimate of future performance. It was meant to show that performance is based on values that are guaranteed and those that are not. An illustration shows how a policy would do if the dividend scale in the illustration stayed the same for the life of the policy. The illustration also shows other examples of dividend scales that can affect non-guaranteed values. It is not meant to show the largest dividend scale change that could happen during the life of your policy.

 

Want to know more?

Visit Our Products >> Individual insurance >> Whole Life.

You may also contact your advisor or reach out to us anytime by phone or email:

Email: customerservice@equitable.ca               Phone: 1-800-668-4095

 

We work for you! 

As one of Canada’s oldest and largest mutual life insurance companies, we provide financial security differently by focusing exclusively on our clients. We work with you and independent advisors across Canada to find the best ways to meet your financial needs. Our life insurance, savings and retirement, and group benefits solutions help you protect what matters. Together with you, our purpose is protecting today and preparing tomorrow.

At Equitable, we pay attention to all the details and deliver on our promises. Your trust in our knowledge, experience, and financial strength helps us keep our commitments to you. Our company is owned by people like you who count on us and use our services. This lets us focus on plans that help our company grow and stay strong now and in the future.

 

Thank you for trusting Equitable to help you protect what matters most.

 

TOGETHER – Protecting Today – Preparing for tomorrow™

As a MUTUAL we provide financial security DIFFERENTLY by focusing exclusively on our CLIENTS.

 

 

® and TM denote trademarks of The Equitable Life Insurance Company of Canada.