In this issue:

• Illustration | Plan a dividend option change
• Prestige contracts | New criteria for leather document holders
• Claimant’s Statement – Death Form Update
• COVID-19: We’re still committed to helping you and your clients

ILLUSTRATION | PLAN A DIVIDEND OPTION CHANGE

As of now, when you offer participating whole life insurance coverage, you'll be able to illustrate a dividend option change. After 10 years, it will be possible to switch from paid-up additions to cash payment.

You'll be able to make the change based on the age of the person to be insured or after specific time period (minimum 10 years). For joint coverage, only the Year option is available.

Note
If you choose this option, you won't be able to offer the premium offset.

Keep in mind that dividends aren't guaranteed. They vary, among other things, on investment return, mortality rates, taxes and fees. However, once paid out, dividends are vested to the policyowner and can't be clawed back by the insurer.

Important!
Dividends paid in the form of paid-up additions aren't taxable, but could be taxable when paid by cheque to the policyowner if the amount of the dividend exceeds the adjusted cost base (ACB) of the policy.

Some situations where this change could be beneficial

• The person to be insured is a child and the policyowner wants to use future dividends to cover part of the cost of their education.
• The person to be insured has a medium- or long-term project that will require cash.
• The policyowner is a flourishing business that could reinvest the credited dividends to ensure its growth.

For more information on participating whole life insurance, refer to the Advisor Guide or visit our dedicated section on Webi.

To change the dividend option

If your client wants to change their dividend option, when the time comes have them complete section B of the Request for Change Without Evidence – 09219E form.

For an in-force policy

To illustrate a dividend option change on in-force policy, submit a request.

PRESTIGE CONTRACTS | NEW CRITERIA FOR LEATHER DOCUMENT HOLDERS

Right now, all Prestige contracts are sent in a leather document holder.

With sustainable development and industry best practices in mind, we've decided to stop using leather document holders for Prestige contracts with an annual premium under $25,000.

The change won't have any impact on how we manage these Prestige contracts. Clients can expect to receive the same priority service—their contracts will just be sent in a different type of document holder.

CLAIMANT’S STATEMENT – DEATH FORM UPDATE

The Claimant’s Statement – Death form has been updated.

The following updates have been made:

• Box “Occupation (Nature of business, if an entity) - Please specify” added under Other Information in section B – Information about the claimant
• Section “Claimant - Identity Verification (non‑registered contracts only)” added
• Text added to section C – Settlement Option: “If payments continue in a non-registered contract, please provide a Declaration of Tax Residence for Individuals RC518”

Please use this new version of the Claimant’s Statement – Death – 19159E form now available on Webi.

As an increasing number of people are being affected by the pandemic, Desjardins is prioritizing the health and financial well-being of everyone.

Remember, all the information related to COVID-19 is gathered in a dedicated section on Webi.