News from Desjardins Insurance
Submitted by Victoria on November 23, 2020 - 9:58am
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| PRODUCT DEVELOPMENT AND PRICING |
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NEW! PARTICIPATING WHOLE LIFE 10 PAY ON NOVEMBER 28 AND DIVIDEND SCALE RATE INCREASE |
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Participating whole life insurance products are a hit with clients! You told us they wanted to be able to pay up their insurance more quickly, and we listened. We’re proud to launch participating whole life insurance payable in 10 years on November 28! A comprehensive and flexible whole life insurance line |
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2 products | 3 payment periods | 5 dividend options | - Accelerated Growth
- Estate Enhancer
| - 10 years – New!
- 20 years
- To age 100
| - Paid-up additions (PUAs)
- Enhanced insurance
- Annual premium reduction
- Cash payment
- Dividends on deposit
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Dividend scale interest rate increasing to 5.75% |
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Our dividend scale interest rate is going from 5% to 5.75% on January 1, 2021! |
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The new rate will apply to new sales starting November 28, 2020! It’ll also apply to Accelerated Growth and Estate Enhancer products purchased after August 2017, starting January 1, 2021. Please note that we’ll be able to produce new illustrations for these cases in the first quarter of 2021. We’ll send instructions when we’re ready. Alternate scenarios added to the Insurance Illustration We’re adding 4 alternate scenarios to help you better demonstrate the effects of a dividend scale interest rate increase. Choose one to present alongside the 2 required scenarios. |
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Required scenarios | Alternate scenarios – New!
(Choose 1) | - Current dividend scenario
- Reduced dividend scenario (-1%)
| - Alternate dividend scenario (+0.5%)
- Alternate dividend scenario (-0.5%)
- Alternate dividend scenario (-1.5%)
- Alternate dividend scenario (-2%)
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Asset classes | Target | Min. | Max. | Fixed income | 60% | | | Cash and short-term investments | 0% | 0% | 10% | Bonds | 29.5% | 20% | 50% | • Government bonds | 7% | | | • Corporate bonds | 22.5% | | | Commercial mortgages | 24.5% | 10% | 35% | Preferred shares | 6% | 0% | 10% | Variable income | 40% | | | Common shares | 10% | 5% | 30% | Alternative investments | 30% | 10% | 40% | • Real estate | 9% | 5% | 25% | • Private equity and infrastructure | 16% | 5% | 25% | • Specialized strategies | 5% | 0% | 10% | Total | 100% | | |
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Market ranking Estate Enhancer Total death benefit at age 80 – Paid-up additions (PUA) option |
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Profile – Issue age | Payment period | 10 years | 20 years | To age 100 | FNS $250,000 – 0 years | 3rd | 4th | 4th | FNS $250,000 – 40 years | 4th | 3rd | 3rd | MNS $250,000 – 0 years | 3rd | 3rd | 2nd | MNS $250,000 – 40 years | 4th | 4th | 4th | | | | | Number of companies on the market | 7 | 8 | 8 |
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Sales materials Updated product documents will be available on Webi on Monday November 30, 2020. |
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Training
Learn more about participating life insurance and hone your skills to offer clients the right products and services. Webinar
Enhancements with PAR Life & CI: Increase your market reach |
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Click on the link to download the webinar invitation and add it to your calendar. |
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Commission rate – Par life 10 Year | Rate | 1 | 35% | 2-5 | 4% | 6-10 | 2% | | |
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| PRODUCT DEVELOPMENT AND PRICING |
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GOOD NEWS: LOWER CRITICAL ILLNESS INSURANCE PREMIUMS STARTING NOVEMBER 28 |
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We're pleased to announce lower premiums for 3 of our term critical illness insurance products starting November 28. In addition to offering the most comprehensive coverage—including all types of cancer and exclusive cardiovascular procedures—our Health Priorities products will be even more competitive. Our critical illness insurance products also qualify for a multi-coverage discount. |
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Reduced rates Product | Average
reduction | Female NS
age 40
$50,000
(without ROPD) | Male NS
age 40
50,000
(without ROPD) | Health Priorities – Term 10 | -6% | -9% | -10% | Health Priorities – Term 20 | -4% | -5% | -4% | Health Priorities – Term to 65 | -1% | -3% | -3% |
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Market positions Without refund of premiums upon death (ROPD) Female NS, age 40 | $50,000 | $100,000 | $250,000 | Term 10 | 1st | 3rd | 3rd | Term 20 | 1st | 3rd | 3rd | Term to 65 | 1st | 2nd | 3rd |
Male NS, age 40 | $50,000 | $100,000 | $250,000 | Term 10 | 1st | 2nd | 2nd | Term 20 | 1st | 3rd | 3rd | Term to 65 | 1st | 1st | 2nd |
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Transition rules Status | Which rate applies? | Application is still under review when the new rate takes effect | The new rate, unless you specify otherwise
If needed, you’ll receive a new illustration request in the Pending Business tool | Application arrives at head office after 11:59 p.m. (ET) on November 27, 2020 | The new rate (no exceptions) | Reopened application that was previously cancelled, declined or deferred | The rate in effect when the application is reopened | Contract settled before November 28, 2020 | The old rate. No requests for rate changes will be accepted |
Need to use a paper application? |
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We strongly recommend scanning your applications and emailing themprovided you use a secure email address . |
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| 2020 YEAR-END HOUSEKEEPING NOTES |
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The year-end closing date for our administrative systems is December 18, 2020. To help you plan your year-end activities, here are a few things to keep in mind. |
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Opening hours (ET) for our client relation centres |
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Date | Insurance
1‑800‑278‑0669 | Investments
1‑877‑647‑5435 | Contract and financial operations management
1‑888‑480‑5387 | Merchandising Technology
1‑888‑647‑5455 | Monday, December 21 | 8 a.m. to 7 p.m. | 8 a.m. to 5 p.m. | 8:30 a.m. to 4:30 p.m. | 8 a.m. to 8 p.m. | Tuesday, December 22 | 8 a.m. to 7 p.m. | 8 a.m. to 5 p.m. | 8:30 a.m. to 4:30 p.m. | 8 a.m. to 8 p.m. | Wednesday, December 23 | 8 a.m. to 7 p.m. | 8 a.m. to 5 p.m. | 8:30 a.m. to 4:30 p.m. | 8 a.m. to 8 p.m. | Thursday, December 24 | 9 a.m. to 1 p.m. | 8 a.m. to 4 p.m. | 9 a.m. to 2 p.m. | 8 a.m. to 4 p.m. | Friday, December 25 | Closed | Closed | Closed | Closed | Monday, December 28 | Closed | Closed | Closed | Closed | Tuesday, December 29 | 8 a.m. to 7 p.m. | 8 a.m. to 5 p.m. | 8:30 a.m. to 4:30 p.m. | 8 a.m. to 8 p.m. | Wednesday, December 30 | 8 a.m. to 7 p.m. | 8 a.m. to 5 p.m. | 8:30 a.m. to 4:30 p.m. | 8 a.m. to 8 p.m. | Thursday, December 31 | 9 a.m. to 1 p.m. | 8 a.m. to 4 p.m. | 9 a.m. to 2 p.m. | 8 a.m. to 4 p.m. | Friday, January 1 | Closed | Closed | Closed | Closed | Monday, January 4 | Closed | 10 a.m. to 4 p.m. | Closed | 10 a.m. to 6 p.m. |
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Insurance policy administration Direct withdrawals
Direct withdrawals for 2020 cannot be stopped starting December 15, 2020.
Disbursements
Cheques and direct deposits made after December 18, 2020, will be dated 2021.
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Guaranteed investment funds and Annuities Please note that the information pertaining to year-end processing for the current year has been added to the Year-End Processing 2020 section. |
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New Business and Underwriting For your new business to be counted for 2020, we will do everything we can to enter applications received up to December 15, 2020, while prioritizing cases for the benefit of your clients. |
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Due to COVID-19, we anticipate additional delays to obtain medical requirements. We recommend that you prioritize meetings with your clients for whom the requirements will be necessary (50 years of age or older, insurance amount of more than $1 million, etc.). |
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- If the illustration shows any medical requirements, submit the DSign electronic application by Friday, November 20, 2020.
- Paper applications should be fully complete and received no later than Friday, November 20, 2020.
- Non-medical electronic applications that can potentially be issued via Point of Sale should be submitted by Friday, November 27, 2020.
These dates are subject to change according to the evolution of the COVID-19 pandemic. |
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Compensation Here is the schedule for the upcoming pays: Pay of | Deposit dates (into representatives’ accounts) | December 10, 2020 | December 16, 2020 | December 18, 2020 | December 24, 2020 | December 23, 2020 | December 30, 2020 | December 30, 2020 | January 7, 2021 | January 7, 2021 | January 13, 2021 |
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| MODIFICATION OF THE ADVANCE NOTICE OF CHANGE ‒ CLOSING OF 6 GUARANTEED INVESTMENT FUNDS (GIFS) POSTPONED |
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Last August, Desjardins Insurance announced its intention to permanently close 6 Guaranteed Investment Funds (GIFs) in 2022. However, due to concerns shared by advisors, we have decided to postpone the final closure of these GIFs to a later date. With the exception of this amendment, the content of the advance notices of change sent to clients remains the same… |
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| ILLUSTRATION TOOL—DESKTOP MODE ON THE WAY OUT |
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Very few people use the Illustration tool in desktop mode, which is why we’ve decided to remove this feature to focus our efforts on technology updates that will benefit everyone. |
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The desktop mode of the Illustration tool will cease to be available on November 28, 2020. |
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Will I be able to access illustrations saved locally after November 27? No. If you’ve used the desktop mode to create illustrations since July 5, 2020, please synchronize the desktop version with the online tool to make sure they’re saved. |
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| NOVEMBER 28: DSIGN ELECTRONIC APPLICATION AND ILLUSTRATION SOFTWARE WILL BE TEMPORARILY UNAVAILABLE |
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We’ll be working from 8:00 a.m. to 10:00 p.m. (ET) to integrate the lower premium rates for critical illness insurance and the participating whole life 10 pay products. Alternative available during the update Instead of the electronic application, you can use the paper form. We strongly recommend scanning your applications and emailing them provided you use a secure email address (for example, one that ends with @dfsin.ca or @desjardins.com). |
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| ELECTRONIC APPLICATIONS SUBMITTED NOVEMBER 8 TO 11: DISPLAY ISSUE |
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From November 8 to 11, a technical issue corrupted some special and accented characters in e-apps that were submitted. You may have noticed that upon opening the completed application, some words contained garbled characters.
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Example Insured’s name: Dorimène Desjardins Insured's name: Dorimène Desjardins |
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The fix The issue for electronic applications has been resolved as of November 12. New applications and applications that were started during this period are displaying text correctly. We’re working on a fix for the submitted applications affected by this issue. We’re confident that we’ll be able to print a normal version of these applications when the contracts are issued.
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