5 Pay PAR

Participating life insurance is a permanent product that offers the possibility to earn policy dividends inside the contract. The 5 Pay PAR can generate higher policy dividends in the long term.

 
 

5 Pay PAR is the only product of its kind in Canada with guaranteed premiums that is payable in 5 years.

When should you choose 5 Pay PAR?

5 Pay PAR is a unique product that suits:

  • People who will be retiring in the near future or anyone who wants to pay their premiums as quickly as possible, with no worries about paying premiums at retirement, while benefiting from long-term value growth.
  • Parents or grandparents who want to protect the insurability of their children or grandchildren and pay the entire premium before transferring the insurance policy to them when they reach adulthood. This product is an excellent solution for increasing RESP income and may ensure a child or grandchild's financial future, including the potential to fund education, without passing on the burden of premiums.
  • Business owners who do not want to have long-term financial obligations, to suit their business financial plan.

Primary characteristics

  • Enhanced insurance dividend option when the policy is issued
  • Guaranteed premiums payable over 5 years
  • Paid-up complementary coverage in 5 years (except for children's life protection and children's accidental fracture coverages)
  • Guaranteed cash surrender value on the basic insurance - available, but not guaranteed on insurance bought with Paid-up Additions (PUAs)
  • Change in dividend option available after 10 years if the tax-exempt test requirement has been met. Options available: cash payment, dividends on deposit and paid-up additions

Cash surrender values