Product Disclosure - Guaranteed and Non-Guaranteed Product Features



Perspecta universal life insurance is more than just insurance; it provides a complete portfolio with financial security all in one policy. It can be used for traditional protection purposes, or when used to its fullest potential, for investment purposes as well. Perspecta allows policyholders considerable control and flexibility by letting them select and modify the amount of insurance coverage, the amount of premiums to be deposited, the premium payment period and the investment options.


A) Guaranteed features


COI types

All COI rates are guaranteed for the duration of the policy and are based on the initial insured, sum insured and death benefit option.


Investment Options

Term Investment Accounts:

The minimum Term Investment Account interest rate for each term is guaranteed to equal the greater of 90% of the Government of Canada Bond rate for the same term, less 1.75%, and the percentage minimums as follows:

  • 0% for the 1- and 3-Year Term Investment Accounts
  • 1% for the 5-Year Term Investment Account
  • 2% for the 10-, 15- and 20-Year Term Investment Accounts

These guarantees apply to each Term Investment Account mentioned above, as long as the account is available. We also guarantee to offer, as long as the policy is in force, at least one Term Investment Account.

  • Daily Interest Account: as long as the account is available, we guarantee the interest rate will never be less than zero.
  • Management Fees on Indexed Accounts (IAs) and Strategic Asset Allocation Accounts (SAAAs) are guaranteed never to increase. Management Fees on Managed Accounts (MAs) and Predetermined Portfolio Accounts are subject to change without prior notice, but are guaranteed never to exceed 2.5% per year.
  • If the Investment Account Value (IAV) is paid as a Death Benefit, we guarantee that the value of the sum of the SAAAs and the IA will never be less than 75% of all net Deposits minus any Account Benefit, any Disability Benefit Payout, any Investment Account Value paid as part of a Death Benefit, any other fees and total monthly deductions from Indexed Accounts and Strategic Asset Allocation Accounts. This guarantee does not apply to the Science and Technology Equity Account, to the Managed Accounts and the Predetermined Portfolio Accounts.
  • Transit Account: The minimum daily interest rate is guaranteed to be 90% of the rate on 3-month Government of Canada Treasury Bills, less 2%, but never less than zero.

Bonus

  • Unconditional and guaranteed Loyalty Bonus on the first policy anniversary and on each subsequent policy anniversary, as long as the policy is in force. This Loyalty Bonus is equal to 0.70% of the Investment Account Value less any Outstanding Loan Balance on the anniversary date.
  • There is also an Enhanced bonus at two levels and it is equal to a percentage of the Investment Account Value (IAV). It is paid at the end of the policy year if certain conditions are met. If all conditions are met, when added together, level 1 and level 2 can equal up to 0.8% of the IAV.


B) Features subject to change


  • We reserve the right, at our discretion, to introduce additional Investment Accounts or to withdraw existing ones from time to time. We also reserve the right, at our discretion, to transfer funds out of an investment account, which is terminated or ceases to be marketed. In the case where a Term Investment Account (TIA) is withdrawn, affected funds will only be transferred at the end of the term.
  • The return on investment will affect the investment account value and therefore the premium payment period.
  • Past performance may not be repeated.
  • The Terminal Illness Benefit (Compassionate Benefit) is a non-contractual benefit.