New offering from iA Financial Group offers annual dividends with allocations to institutional-quality alternative assets
As the world continues to suffer from the financial and public health impacts of the novel coronavirus, several priorities have become top-of-mind for many Canadians. Aside from the obvious desire for liquidity, there’s an increased focus on portfolio risk mitigation, as well as protection in case of death or disability.
Addressing such concerns, iA Financial Group has launched iA PAR, its all-new participating life insurance product that can address a range of retirement-planning and estate-planning needs.
“We have always strived to offer solutions that meet the evolving needs of our clients,” said Renée Laflamme, executive vice-president, Individual Insurance, Savings and Retirement at iA Financial Group. “That's why we are proud to now offer our new participating life insurance product and allow them to benefit from its advantages.”
With liquidity from annual dividends, clients may use iA PAR to increase their retirement income or establish a solid foundation for their children’s or grandchildren’s future. Aside from that, they stand to benefit from tax-advantaged diversification to alternative assets.
“One key aspect and differentiator of our long-term asset allocation is the 55% target allocation to alternatives investments,” said Thomas Drolet, portfolio manager, iA Investment Management.
According to Drolet, iA PAR’s investment portfolio includes alternative assets such as direct real estate holdings, private equity, private debt, commercial and multi-residential mortgages, and infrastructure. Aside from being more suited to institutional investors reach because of the large capital deployment required, he said such assets are underpinned by privately structured transactions that offer higher potential returns.
Premium and dividend flexibility
Basic coverage for the iA PAR offering includes 10-year or 20-year payment terms, as well as an option for premiums to be payable up to age 100. With respect to their dividend payments, clients can choose to make a paid-up addition to grow the policy’s death benefit and cash surrender value, use the dividend to offset the cost of their annual premiums, put the money in a deposit account with iA Financial Group, or simply receive it as a cash payment.
The policy also comes with a disability guarantee, under which policyholders may receive a lump-sum payment on a portion of the cash value as a disability benefit. And following the broad trend of simplified-issue life insurance, iA PAR is sold through iA Financial Group’s EVO platform.
“EVO provides a fully digital experience for the client with respect to the application process,” explained Louis-Charles Leclerc, senior director, Insurance Products, iA Financial Group. “It’s an automated underwriting decision tool that can make a decision at the point of sale. And with its use of predictive analysis, the requirement for applicants to provide bodily fluids is reduced as much as possible.”
iA PAR is among a line-up of products for which iA Financial Group offers instant acceptance at the point of sale for up to a million dollars. The company is also offering clients who purchase iA PAR on or before October 21 a +0.25% rate increase on the current dividend scale for the life of their contract.
