May 7, 2021 -

The Equitable Life Insurance Company of Canada Board of Directors has approved a change to the dividend scale for the period July 1, 2021 to June 30, 2022. 

  • The dividend scale interest rate* will decrease from 6.2% to 6.05%.
  • All series of participating whole life policies issued in the 2012 series and beyond other than the most recent Equimax Estate Builder® series will see an improvement in the mortality component. The most recent Equimax Estate Builder series, for sale as of September 12, 2020, already incorporated better mortality and its mortality component will remain unchanged. Series issued prior to 2012 will see an increase in the overall dividends but results will vary by series and policy.
  • Other factors that are used to calculate the dividend scale will remain unchanged.

*The dividend scale interest rate is not the same as the participating account rate of return in any given calendar year. The dividend scale interest rate smooths out the ups and downs experienced by the participating account.

Policyholder dividends in the next dividend scale year would be approximately $85.4 million, compared to $67.4 million in the prior dividend scale year. Equimax® participating whole life continues to deliver excellent value by providing lifetime protection and an opportunity for tax-advantaged growth.

As a participating whole life policyholder, you are eligible to participate in the earnings in the participating account. The dividend scale is reviewed to ensure that it is set at an appropriate level. We use the dividend scale to determine the dividend payment. If a dividend is declared, it is credited to your policy as a dividend payment. Dividends are sensitive to all the factors that affect the participating account, but especially changes in investment returns.

The sustained low interest rate environment continues to put downward pressure on the experience in the participating account. If low interest rates continue, investment returns in the participating account will also be lower, and we may need to decrease the dividend scale in the future. The dividend scale and dividend payments are not guaranteed.

® denotes a registered trademark of The Equitable Life Insurance Company of Canada.