Oddly enough, as I was speaking with QFS advisors in Atlantic Canada last week, I said there has been no new investment products development for about two years. And now, Empire Life is changing its GMWB. Here are the salient points:
October 20th is the last day 2.1 will be for sale, with no deposit size limits between now and then
For the balance of 2017 after Oct 20, the most that can be deposited into a 2.1 contract is $25,000
For 2018 the most that can be deposited into a 2.1 contract will be $25,000
Thereafter, 2.1 will be closed to new deposits except PACs
PACs are included in the $25,000 caps.
They will honor T2033s signed before Oct 20 (arriving at Empire by December 8th) for deposit into version 2.1
The GMWB and MER fees are being reduced marginally in the new version
The bonus will now be 4% and only available for a maximum of 20 years
Resets will continue to be tri-annual
The bonus base will no longer enjoy the potential to reset
The maturity and death benefit guarantees will remain at 75/75
Each age will have its own payout rate rather than being increased every 5th year.
Here are links to the Empire announcement and two marketing pieces for version 3.0: Information Circular Marketing Piece Brochure Given these changes, it’s important now to compare version 3.0 to the competition. If you need help doing this, please let me know. I’m currently putting the agenda together for our next Money Monday, October 30th. I hope you can make it or join us at our Kingston, Montreal, Halifax or St. John PD days this month. QFS will also be hosting a training session for advisor assistants or office staff on October 27th. Assistants will learn topics such as compliance, using Insite to track your business, underwriting, new business, and much more. I'm certain this will be valuable to your business if you have an employee or assistant. Click here to learn more and to register. Take care, Scott Edgington Director of Wealth Qualified Financial Services firstname.lastname@example.org 416-786-4140