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Procedures and FAQ

EquiBuild Fund | Declared Rate beginning January 1, 2022

Dec 10, 2021 8:00:00 AM / by iA

As of January 1, 2022, the EquiBuild Fund declared rate will be 4.75%.

Consequently, the credited rate for the EquiBuild Account will be 3.25% (the declared rate less an annual fee of 1.5%), and the EquiBuild Bonus rate will be 1.25% (the declared rate less the threshold of 3.5%).

 

The EquiBuild Fund declared rate is based on returns earned on the Fund’s assets to which the company applies a smoothing formula. This smoothing formula amortizes the major fluctuations in returns (positive and negative) and provides a stable, low-volatility declared rate from year to year.

 

The EquiBuild Fund document will be updated and published in March 2022 to include the returns for the EquiBuild Fund as of December 31, 2021, and the Fund’s then-current asset mix.

 

Default rate displayed in the Interface Suite

With the illustration software update available on December 10, 2021, the new EquiBuild Fund declared rate of 4.75%, applicable on January 1, 2022, will be displayed by default when creating a new illustration in the Interface Suite, reflecting illustrated EquiBuild Account and EquiBuild Bonus rates of 3.25% and 1.25% respectively.

 

EquiBuild in a nutshell

EquiBuild is a permanent insurance solution that provides an increasing cash surrender value and death benefit over the long term. Illustrated values, such as EquiBuild Account values, PUAs purchased by the EquiBuild Bonus, and integrated coverage are impacted by fluctuations in the declared rate we set on each January 1st. To learn more about these and other product features, refer to the Document Centre in the Advisor Centre.

 

Written by iA