New dividend scale effective July 1, 2013
Equitable Life® is one of Canada's largest mutual life insurance
companies. Our participating policyholders are our owners. We
have no shareholders.
Participating whole life
policyholders are entitled to share in Equitable Life's
distributable earnings of the Participating Account through a
credit of annual dividends to their policy. Equitable Life's
Account yield has remained strong despite challenging economic
times and a low interest rate environment. The prolonged low
interest rate environment continues to put pressure on those
yields, which needs to be reflected in the dividend scale and could
require reductions to the dividend scale in the future for all
classes of participating policies within the participating
Determining the dividends takes into consideration various
components. These include the investment performance of the
Participating Account as well as death claims, policy lapses,
taxes, and other expenses. An objective of each year's
dividend is to maintain reasonable equity between classes and
generations of policyholders. This means that different
classes of policies may have different adjustments to the dividends
they receive. Dividends are not guaranteed and future
dividends can be higher or lower than previously projected.
Equitable Life's Board of Directors has approved a change to the
dividend scale effective July 1, 2013. Most Equimax®
Participating Whole Life policies purchased from November 2004 to
February 2012 will be affected. The change consists of a
reduction to the dividend interest rate. Other components
will remain unchanged.
What does this mean to you?
If you purchased an Equimax® Participating Whole Life policy
before November 2004 or after February 2012, you are not affected
by this dividend scale change.
Would you like more information?
If you have any questions regarding the
dividend scale change, your policy or Equitable Life, or if you
would like an updated illustration to show how your cash values
will grow given the new dividend scale, please call your advisor or
contact us at 1.800.668.4095 or email email@example.com