Participating life insurance | Additional Deposit Option available March 23, 2025!

• After making deposits for the first year of insurance, clients can pause, resume or modify deposits without needing to provide evidence of insurability. They’ll still need to respect the minimum deposit and permitted annual deposit, though.
• They can make deposits up to age 100, even when premiums are paid up for the policy.
• The illustration tool is flexible and makes it easy to illustrate variable deposits with different durations.

The illustration tool is designed to make your tasks easier and improve your interactions with clients.

Watch this short 7-minute video to learn more about the new illustration features for ADO. You can create an illustration in 2 ways:

• Based on the desired insurance amount
• Based on a chosen budget

You’ll also learn how to plan for future withdrawals.

Enjoy the video!

For new applications

No forms required! Since the client has already provided the evidence of insurability, just upload a new illustration in the Pending Business tool. The policy will be produced with a notice of modification to be signed by the policyowner.

For eligible in-force policies

• In-force participating life insurance policies with an issue date in the last 6 months
• In-force participating life insurance policies with an anniversary date in the last 6 months
• Change from term life insurance policies (or exercise of a guaranteed insurability benefit) to participating policies following the exercise of a right or privilege¹

You can add ADO to sales made in the last 6 months without needing to wait for the next policy anniversary. ADO will be added on the issue date and deposits will be made on the current date, which will allow the insured person to purchase paid-up additions at their current age.

For policies that have been in force for more than 6 months, you can add ADO on the previous anniversary date if it occurred within the last 6 months, meaning on or after September 23, 2024.

This offer is valid until July 1, 2025. After that, you’ll need to wait until the next anniversary date to add ADO.

¹ ADO is not available if an extra premium or exclusion applies to the term policy.
² Please consider the evidence of insurability submitted with the original policy if the participating whole life insurance policy originated when a right, privilege or guarantee was exercised.
³ If the term policy originated when an exchange option was exercised, refer to the Evidence of insurability received 5 or more years ago section.
⁴ The application will be updated on March 23 to reflect the new ADO. No applications can be submitted before March 23, 2025.

 

It is recommended depositing the permitted annual amount the first year ADO is added. If not, permitted annual deposits will be reduced for subsequent years.

Send us the required form with an illustration

• If the policy issue date is on or after September 23, 2024, use your illustration tool
• If the policy issue date is before September 23, 2024, write to Expertise_Portefeuille_Backbook@dsf.ca for an illustration

Join us for an ADO launch webinar to learn more about all the features and benefits. We’ll provide concrete examples to help you enhance your ADO service offer.

Sign up now!

These webinars will be recorded and available for playback.

Earn 1 continuing education (CE) credit

This training is pending approval from several organizations. Once you’ve received the credit, you’ll receive an email and will be able to download your certificate.