As of January 1, 2021, the New EquiBuild Fund declared rate will be 5.00%.
Consequently, the rate credited to the EquiBuild Account will be 3.50% (the Fund’s declared rate less a management fee of 1.50%), and the EquiBuild Bonus rate will be 1.50% (the Fund’s declared rate less the threshold of 3.50%).
The EquiBuild Fund 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 2021 to include the returns for the EquiBuild Fund as of December 31, 2020, and the Fund’s then current asset mix.
Default rate displayed in the Interface Suite
With the illustration software update available on December 11, 2020, the new EquiBuild Fund rate of 5.00%, applicable on January 1, 2021, will be displayed by default when creating a new illustration in the Interface Suite, reflecting the illustrated EquiBuild Account and EquiBuild Bonus rates of 3.50% and 1.50% respectively.
EquiBuild in a nutshell
EquiBuild is a permanent insurance solution that provides an increasing cash surrender values and death benefit over the long term. Illustrated valuations, such as EquiBuild Account values, Paid-Up Additions 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.
