May 25, 2023 -
The Equitable Life Insurance Company of Canada is pleased to announce that its Board of Directors has approved a change to the dividend scale for the period of July 1, 2023, to June 30, 2024.
- The dividend scale interest rate will go from 6.05% to 6.25% on July 1, 2023.
- Other factors used to decide the dividend scale will stay the same.
- The interest rate for participating whole life insurance policies with dividends on deposit will also stay the same at 2.25%.
- The policy loan interest rate1 will go from 6.20% to 6.50% on June 30, 2023. This will apply to all new or active policy loans and automatic premium loans. The change is for Equimax® policies that have a 9-digit policy number starting with “3” or “8”. Some older policies may have other policy loan rates as they are based on the prime interest rate.
Once the next dividend scale year starts, we expect policyholder dividends to be close to $105 million until the end of June 2024.
Participating policyholders can get some of the participating account earnings back as dividends. Every year, we look at how much was earned from 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 find the dividend payment. If a dividend is declared, it will get paid towards the policy. Many things in the participating account, like death benefits we paid and how our investments did, can affect the earnings. This changes how much is paid as dividends. Each year, we make sure the dividend scale is set at a proper level to reflect how all these things did in the participating account.
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 is paid will depend on the dividend scale.
About Equitable Life of Canada
As a mutual we provide financial security differently by focusing only on our clients. We believe in the power of working together with you and independent advisor partners. Together we offer individual insurance, savings and retirement, and group benefits solutions. We help protect what matters today while preparing for tomorrow.
At Equitable Life, we are people with purpose. We are passionate to provide the right solutions for you through our partners. We have the knowledge, the experience, and the financial strength to ensure we meet our commitments to you now and in the future.
Protecting Today – Preparing Tomorrow™