This fall, Empire Life will discontinue three insurance products and add three new ones.
Changes to the Income Tax Act have altered the rules governing what qualifies as a tax-exempt insurance policy and how much money may accumulate in it. This new legislation comes into effect on January 1, 2017.
In a recent message to advisors, Empire Life revealed that it is working to make sure its products align with the new tax guidelines; the insurer is taking its Trilogy, Optimax and Vital Link products off the shelf and adding three new ones. The three new plans are:
- Optimax Wealth, a participating life insurance product designed to provide high cash values in the early years for those who would like to draw funds from their life insurance policy sooner rather than later
- Solution ART, a term life insurance plan designed to provide low cost coverage for those with short term or changing needs, or who plan to improve their health status
- CI Protect Plus, a critical illness plan designed to cover all common covered conditions on the market, and which may be added to any life plan at issue
As for the products that are being phased out, Empire says its Trilogy, Optimax and Vital Link products will not be available for sale as of October 15, 2016. The insurer warns that applications for these products must be received no later than October 14th, and that all pending “in the mill” business must be issued on or before December 31, 2016.
Policy changes or conversions
"It is important that you and your clients are fully aware of the limited time remaining for purchasing these products," reads the message from Empire. "New policies and certain policy changes or conversions of existing products must be issued on or before December 31, 2016 to maintain current taxation rules. Please note that we cannot backdate any policy issued in 2017 to have an effective date in 2016."
