As of January 1, 2024, the EquiBuild Fund Declared Rate will be 5.5%.
| Equibuild Fund Declared Rate | |
| 2023 | 2024 |
| 5.1% | 5.5% |
Consequently, the rate used to calculate the annual bonus for in-force EquiBuild and Legacy policies will be 5.5% and the rate credited to the EquiBuild account will be 4% (the Fund's declared rate less a management fee of 1.5%).
The increased rate is the result of our solid and diversified investment strategy, the smoothing formula1 and the recent increase in long-term interest rates. For more information, see the Fund document.
Legacy illustrations - default rate displayed in EVO
Following the update of the illustration software, taking place on November 24th, the new EquiBuild Fund rate of 5.5% (applicable on 1 January 2024) will be displayed by default when a new Legacy illustration is created in EVO. Note that EquiBuild is no longer available for sale since May 5th 2023.
About Legacy
With a minimum face amount of $1 million, Legacy specialized life insurance is designed to help your wealthy and business owner clients build and protect their estate. It offers guaranteed permanent coverage with strong early cash values, premium payment flexibility and an annual bonus that can be used to purchase additional paid-up insurance to increase the death benefit and cash value. Find out more
1The smoothing formula is based on long-term return estimates, while spreading out major fluctuations, both positive and negative, in the Fund's actual returns against the credited returns in order to foster a stable rate with low volatility from one year to the next.
