New dividend scale effective July 1, 2012
Equitable Life® is the largest federally regulated mutual life
insurance company in Canada. 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. Determining the dividends takes into consideration various
components of the participating block of policies. These include
the investment performance of the Participating Account as well as
death claims and lapses, taxes, and other expenses that are
associated with the sale and administration of the participating
block of policies.
Despite the decline in the economy and interest
rates over the past few years, the long-term investment strategy of
Equitable Life's Participating Account has maintained positive
yields. However, the prolonged low interest rate environment
continues to put downward pressure on those yields, which needs to
be reflected in the dividend scale.
As a result, Equitable Life's Board of Directors
has approved a change to the dividend scales effective July 1,
2012. The change consists of a reduction to the dividend interest
rate and an improvement in the expense component of the
Participating Account. What does this mean to
you?
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 customer-service@equitable.ca
