Dividend scale competitive landscape

Participating whole life

Key Facts About Dividends

  • Dividends are not guaranteed, but will never be negative; they only provide upside potential… over and above the policy’s guaranteed values

  • Dividends throughout the life of a policy are not pre-determined, even though we do an illustration that goes out into the future. Dividends are based on actual experience within the par account and they will change throughout the life of the policy.

  • Once a dividend is credited to the policy it is vested and only future dividends are affected by a dividend scale change.

  • Once credited to the policy they are vested

Dividends: Main Factors

. Investment performance

. Mortality

. Expenses

. Lapse

. Other factors:-

-Taxes, policy loans
- Other experience of the participating block of policie

Dividend scale interest rate

  • Smoothed rate of return of the participating account used to calculate the interest component of the dividend.

  • It is then compared to the interest rate assumed in the pricing to calculate the interest component of the dividend.

  • That interest component is combined with other factors such as mortality, expenses, lapses, policy loans.

  • And then allocated to individual policies based on product, age at issue, sex, smoker status and how long the policy has been in force.

Dividend scale interest rate

YEAR Equitable Life Canada Life Sun Life Great West Life London Life Foresters Desjardins
2012 6.8% 6.96% 7.15% 6.5% 6.4% 7.0% N/A
2013 6.8% 6.5% 7.15% 6.0% 5.9% 7.2% N/A
2014 6.8% 6.5% 6.75% 6.0% 5.9% 7.2% N/A
2015 6.8% 6.5% 6.75% 6.15% 5.9% 6.8% N/A
2016 6.5% 6.0% 6.75% 5.9% 5.3% 6.2% N/A
2017 6.5% 5.5% 6.25% 5.6% 5.0% N/A 5.5%

20–Year Dividend Scale Interest Rate Comparison

DURATION Equitable Life of Canada Canada Life Sun Life
1 year(2017) 6.50% 5.50% 6.25%
1 year(2017) 6.50% 5.50% 6.25%
5 years(2013-2017) 6.68% 6.20% 6.73%
10 years(2008-17) 6.97% 6.81% 7.24%
20 years(1998-17) 7.73% 7.58% 7.78%

Average Yield On Participating Account

DURATION Equitable Life of Canada Canada Life Sun Life Empire Life
1 year(2016) 7.2% 5.7% N/A 6.5%
2 years(2015-16) 5.6% 4.2% N/A 5.9%
3 years(2014-16) 6.5% 5.2% N/A 6.2%
4 years(2013-16) 7.0% 5.6% N/A 6.5%
5 years(2012-16) 7.1% 5.6% N/A 6.2%


  • This presentation is intended for information purposes only and is provided with the understanding that it does not render investment, legal, accounting, tax or other professional advice.

  • We have made every effort to ensure the accuracy of this presentation, however accuracy is not guaranteed. If the information presented here differs from that contained in any policy contract, the policy contract prevails in all cases.

  • If this presentation contains competitive information, we've made every effort to ensure its accuracy as of the date of the original oral presentation. We cannot, however, guarantee the accuracy and, if you have any questions regarding this information, you should contact the competitor directly.

  • Dividends are not guaranteed. They are subject to change and will vary based on the actual investment returns in the Participating Account as well as mortality, expense, lapse, claims experience, taxes and other experience of the participating block of policies. Decreases in the dividend scale do not affect the guaranteed premium, guaranteed cash values, or guaranteed death benefit amount.