Universal Life

Architect Funding

Original line of business: Aetna

Updated on: Dec 12, 2018

Universal Life 

Product administration guide: N/A

Sample contract: N/A

Dividend options: N/A

Bonus: Yes 

Dividend options



An interest bonus is an increase in the interest rate appplied to an account value.  The account value of the money market account and the guaranteed interest account will be credited the following interest bonus if the conditions below are met

  • 0.25% years 6-10
  • 0.45% years 11-15
  • 0.65% years 16-20
  • 0.85%* years 21+ 


The interest bonus will be applied to the net premiums, for the duration of the term chosen if:

1:  The interest bonus applies

2:  The fund value less any outstanding policy loan balance, at the time of crediting the interest is at least equal to the lower of:

    a)  one half of the sum of the total annual minimum premiums at that time, and

    b)  the accumulation of the prior 5 years total annual minimum premiums

No interest  bonus is payable if these conditions are not met

*This bonus will be reduced by 0.15% for each 0.5% that the credited rate on the net premiums or rollovers is less than 6.0%. The credited rate will be rounded down to the next 0.5% for such determination. (Ex:  The client's policy is at its 24th anniversary. The  minimum guaranteed interest rate for a 5yr GIC is 4%.  However, they should get a .85% bonus after 20 years.  However, because the rate is below 6% there is an adjustment done.  The adjustment is equal to .15% for every .5% below 6%.  The difference between 6% and 4% is 2% which is equal to 4 X .5%.  Therefore the adjustment is equal to 4 X .15% = .6%  The client was supposed to get 4.85% however they will only get 4.85% - .6% = 4.25% due to the adjustment)

*In addition to this bonus, there will be an extra unconditional bonus of 12% of total interest earned on investments in the Money Market and Guaranteed Interest Accounts in the prior 5 years starting at duration 15 and paid every 5 years, grading down from duration 25 by 1% every 5 years, over the life of the policy

Premium paying period

Age 95 

Policy fees


Deposit load

Varies by province

Non forfeiture option: Yes

Loans: Yes

Withdrawals: Yes

Non-forfeiture option

120 days grace 


Minimum loan is $500. Maximum is 90% of policy cash value. Proceeds will be reduced by the amount of the loan balance 


Permitted if cash value is more than $1000. Minimum withdrawal is $500.00 and the remaining balance must not be less than $500.00. If death benefit is anything other than Sum Insured plus Fund Value, the insurance will be reduced by the amount of the withdrawal. Subject to tax

Cash value


Reduced paid up


Premium offset/holiday: Yes

Premium offset/holiday

Payments can stop of there is enough value in the policy to cover the costs

Death benefit

  • Level sum insured: The benefit paid at death is equal to the face amount or fund value if greater
  • Level sum insured plus 100% of fund value option:  If there is one life insured, the death benefit is equal to the face amount plus the fund value.  If there is more than one insured, the fund value is paid on death of the last insured
  • Maximum fund: The death benefit is calculated as the initial specified face amount plus a percentage of the fund value, where the percentage varies by issue age and policy year.  The total death benefit will never be less than the fund value

Reinstatement period

2 years


No, this is a permanent product