In March 2024, we improved the flexibility of the ADO in our iA PAR participating life insurance product. Here are some important clarifications that will allow you and your clients to take full advantage of this solution!
New detailed ADO guide
To help you better understand how the ADO works when a new policy is issued, depending on the face-amount and the payment option, we have prepared a detailed guide.
Your clients can now pay the maximum annual ADO contribution specified in their insurance application at any time. This means they are no longer required to secure a maximum ADO amount in the first year of the policy.
This additional flexibility will enable clients to accelerate the growth of their life insurance and total surrender value by optimizing the management of their liquidity.
Clients with insurance coverage exceeding $2M
Your clients now have two years to lock- in their maximum ADO amount. The amount must always be included in the insurance application, and the highest total annual amount of ADO contributions paid in the first or second policy year, regardless of how the premiums are paid, will be locked in. Clients will then be able to stop and resume their contributions at any time1.
Examples are available for more details, as well as the new detailed guide.
And don’t forget…
Any lump sum contribution to the ADO made during the last two months preceding the contract anniversary will apply to the calculation of the following year's dividends.
1 It’s important to note that for policies issued up to March 6, 2024, some clients paid a monthly premium to secure the full annual ADO amount. For policies issued after March 6, 2024, only the total annual contribution actually paid will be secured.
