The products you want, the flexibility you need
We offer three main participating whole life insurance solutions: 5 Pay PAR, Estate Enhancer, and Accelerated Growth.
Here are their key differences:
Your dividend options
What you can do with your dividends depends on the product you choose and can have a significant impact on your policy’s value and growth. Here are a few options:
- Paid-up additions (PUAs): This allows you to purchase additional paid-up insurance with annual dividends and stimulates the growth of your policy’s value.
- Enhanced Insurance:7 This allows you to purchase an insurance amount with a lower premium due to the higher term insurance that is gradually replaced by permanent insurance.
- Annual premium reduction: This allows you to reduce your annual premium in part or in full through dividends credited each year.
- Cash payment:8 This allows you to receive dividends in cash quickly and easily.
- Dividends on deposit:8 This means dividends will be deposited into a savings account managed by Desjardins Insurance, from which you can make withdrawals as needed.
Your payment options
5 Pay PAR
This is a unique product on the market that allows you to pay your entire insurance premium in just five years. It’s simple and only requires a short-term commitment.
This product is suitable for you if:
- You’re retiring in the near future or you want to pay your premiums as quickly as possible so you don’t have to worry about payments when you retire, while benefiting from long-term value growth.
- You’re a parent or grandparent and you want to pay the entire premium before transferring the policy to your children or grandchildren when they reach adulthood.9 This product can be a great option for increasing RESP10 income and ensuring your grandchildren’s financial future without passing on the burden of paying the premiums.
- You’re a business owner who does not want long-term financial obligations and want to suit your business financial plan.
Estate Enhancer and Accelerated Growth
10 Pay
This policy, payable over a 10-year period, enables you to enjoy more growth in the medium term while paying off premiums quickly. It’s right for you if you’re a parent, grandparent who want to protect your children or grandchildren9, professional or business owner that wants to take advantage of policy growth without the obligation of longer-term payments.
20 Pay
This option allows you to balance value growth with affordable premiums. Premium is payable over 20 years and paid up thereafter. Coverage is guaranteed for life.
Payable to Age 100
Gives you the advantages of participating life insurance while paying affordable premiums. Premiums stop at age 100, but coverage remains in force and dividends continue to be credited each year until the client’s death or the policy is surrendered.
This option is designed to meet estate planning needs. It can be used to pay taxes upon death and protects the death benefit against inflation.
7 Enhanced insurance is the only option available at the time of sale of the 5 Pay PAR product. PUAs, Cash payment and Dividends on deposit options may be available 10 years after the policy is issued, if the exempt test is met.
8 Tax consequences are to be expected
9 The insured child or grand-child or their parent should be designated as the contingent policyowner (not just an heir) to avoid a taxable disposition of the policy upon transfer of ownership on death. There must be only one insured on the policy at the time of transfer of ownership to avoid a tax disposition. Please consult your tax advisor.
10 May trigger to a taxable policy gain