Foresters Financial is launching three non-participating permanent life insurance products on December 12, 2016: Non-Par Whole Life, Simplified Non-Par Whole Life, and Child Non-Par Whole Life. The three products are aimed at the family market.
The insurer says the products will have competitive premiums, guaranteed cash values and flexible options, including both first- and last-to-die joint coverage. Among the various built-in features, the three whole life products will provide at no additional cost Bereavement Assistance, Advanced Medical's Expert Medical Opinion Program, Quit Smoking Incentive Plan and Survivor Privilege.
No connection with the new tax
Foresters says the launch of these three whole life products has nothing to do with the new tax legislation for life insurance policies, which will bring about a number of changes when it comes into force on January 1st.
"This is a product with guaranteed values and several features that make it even more competitive and flexible, and it does so for different age groups. It is not the result of the new tax rules, but rather to meet a real need for Canadians who are much more comfortable with this form of insurance," explained Aziz Rguigue, Foresters' director of sales for Quebec, in an interview with The Insurance and Investment Journal.
Withdrawal and adjustment of products
Because of changes related to the new tax laws, Rguigue notes that that Foresters withdrew its Passport universal life plan from the market, as well as its guaranteed issue whole life product and its Easylife product.
He adds that the changes will result in adjustments to other products. "Like other insurers, we will be adjusting the non-guaranteed cash values of our Advantage Plus participating whole life insurance," he says. On the other hand, Rguigue says this product's premiums and guaranteed values will remain the same. This will work in favour of the product, since he believes several other insurers have decided to increase their premium rates; Rguigue suggests that the 20 pay version will have a marked advantage over its competitors.
