Universal Life

Architect Summit II

Original line of business: Maritime Life

Updated on: Dec 20, 2018

Product snapshot

Universal Life with various cost of insurance, death benefit and investment options

Basic product information

Product administration guide: N/A

Sample contract: N/A

Dividend options: N/A

Bonus:  Yes

Product administration guide

N/A 

Dividend options

N/A

Bonus

An Investment Bonus is credited on the 5th policy anniversary and every policy anniversary thereafter.  The investment bonus credited to each investment account is a percentage of the net account value, where the percentage is calculated as below

    Funding Ratio*        DIA or Index-Linded Accounts        Fixed Interest Accounts

            0-0.99                                   0.50%                                            0.25%

             1-1.99                                    0.75%                                            0.50%

            2-2.99                                    1.00%                                            0.75%

            3-3.99                                    1.25%                                            1.00%

               4+                                        1.50%                                            1.25%

* The funding ratio is equal to the net fund value divided by the Architect bonus benchmark.  For example, if the net fund value is $5,000 and the Architect bonus benchmark is $2,000, the funding ratio is 2.5.  The investment bonus credited to each daily interest and index-linked account would be 1.00% of the net account value, and the credit to each fixed interest account would be 0.75%

The original Architect bonus benchmark is shown in the schedule.  It only changes:

(1) if you purhcase additional Architect insurance, in which case it increases to reflect the new coverage

(2) when a YRT cost switch is processed or the smoker status is changed from juvenile to smoker, to reflect the change in cost of insurance, or     

(3) after the sum insured is paid as a result of the death of an insured, to reflect the termination of the associated benefit(s) 

Premium paying period

Age 100

Policy fees

$10.00/month

Deposit load

Varies by province

Values, loans & withdrawals

Non forfeiture option: Yes

Loans: Yes

Withdrawals: Yes

Non-forfeiture option

120 days grace

Loans

Permitted. Minimum loan is $500, while the minimum remaining cash value must be $500.  Maximum loan is 50% of the account value in indexed linked accounts and 90% of the account value in DIA or FIAs less a proportionate surrender charge. Proceeds will be reduced by the amount of the loan balance

Withdrawals

Permitted. Minimum withdrawal is $500. If death benefit is anything other than "Coverage Plus" or "Minimized Coverage Plus", the death benefit will be reduced by the amount of the withdrawal. Subject to tax

Cash value

Yes

Reduced paid up

N/A

Riders & benefits

Premium offset/holiday: Yes

Premium offset/holiday

Payments can stop if there is enough value in the policy to cover the costs. Not guaranteed

Death benefit 

  • Level sum insured: The benefit paid at death is equal to the face amount less any outstanding loan or negative fund value. Not available on multilife
  • Coverage plus: The death benefit is equal to the face amount plus the fund value less any outstanding loan. On a multilife plan, the fund can be paid on each death or last death
  • Minimum sum insured plus fund value (minimized coverage plus). If the client elects to minimize, the sum insured is automatically adjusted to the minimum to maintain the tax exempt status (after year 5)
  • Return of premium with interest (0% to 8%): The benefit paid is the face amount plus the sum of all premiums paid (less withdrawals) + interest. Attained age YRT rates will apply to the additional insurance coverage
  • Indexed coverage: The death benefit is equal to the face amount plus the amount of the indexed coverage less any outstanding loan and/or negative fund value.  Attained age YRT rates will apply to the additional insurance coverage
  • Sum insured + adjusted cost basis (ACB). The benefit is equal to the sum insured plus the ACB.  Attained age YRT rates will apply to the additional insurance coverage

 

Reinstatement period

2 years

Convertible

No, this is a permanent product