Additional deposit option
The additional deposit option allows you to make deposits in addition to the guaranteed premium payments, to benefit from potentially greater growth in the policy’s cash surrender value and the death benefit paid to the beneficiary of your choice.
The deposits are voluntary. They allow you to purchase paid-up additions on top of the paid-up additions purchased with dividends. This option therefore lets you tailor coverage to your personal or business needs while benefiting from the advantages of participating life insurance.
The additional deposit option could provide the following benefits:
- Access short-term liquidity to finance special plans.17
- Use the dividends and accumulated cash surrender values to reduce the premium payment period.
- Enhance your retirement income.17
- Increase your estate value.
Flexibility of deposits
Desjardins Insurance’s additional deposit option offers great flexibility and allows you to make deposits according to your needs.
- The sum of the deposits made during the first policy year determines the permitted annual deposit for subsequent years.
- After the first year, you can reduce, stop or restart deposits at your convenience without having to provide evidence of insurability.
- Each deposit made must meet the minimum amounts set by Desjardins Insurance.
A policy year is any one-year period that follows the option’s start date.
Deposit frequency and duration
You can make regular deposits, one-time deposits or a combination of both, until age 100.
- One-time deposits: One or more deposits made during the same policy year. A one-time deposit is not part of a series of deposits and can be made at any time.
- Regular deposits: Deposits made at regular intervals, either monthly or annually at the same frequency as the basic policy’s guaranteed premium payments.
You'll lose the right to make deposits if:
- You change your policy’s dividend option to cash payment, annual premium reduction or dividends on deposit.
- You make a policy change to reduced paid-up insurance.
17 There may be tax consequences