This article is an extension of Important deadlines for new business and current tax rules, published October 6, 2016, and includes additional information.
The new tax rules governing life insurance takes effect on January 1, 2017. As a result, some of the opportunities that exist today for universal life insurance plans will only be available for policies issued by December 31, 2016.
The industry has been working with the Canadian Life and Health Insurance Association (CLHIA) and governing bodies, advocating for transition rules. Recent changes to the transition rules now allow for clients to receive 2016 tax treatment for policies with temporary insurance agreements into the early part of 2017.
Below are key dates to help you manage your universal life insurance new business with ivari.
We will launch our new enhanced prosperity Universal Life product under current tax rules (G2)
This is the deadline to submit any current prosperity applications to be issued under the current 2016 tax rules (G2).
This is the final date that our current prosperity Universal Life product will be available for sale.
We strongly recommend that any new business and/or policy changes requiring underwriting on the current prosperity product be submitted well before the December 5, 2016 date to ivari’s Head Office.
If we receive an application and illustration (LifeView 10.4 WFG) for the current prosperity after this date, we will set up the application as a new prosperity Universal Life. A new illustration under the new prosperity universal life product will be required upon delivery.
Deadline for receiving app at ivari’s Head Office: December 5th 2016 5:00 p.m. EST
Deadline for receiving AppVantage app at ivari’s Head Office: December 5th 2016 11:59 p.m. EST
This is the deadline for new prosperity Universal Life applications with valid TIA to be considered for G2 tax treatment into 2017 (March, 31 2017).
We will re-launch prosperity Universal Life under new tax rules (G3).
You can help us get your clients' policies issued faster by ensuring that all applications are submitted with the following requirements:
All limitations and conditions as stated on the application must be followed.
We will keep you updated on important dates related to the upcoming tax changes and the launch of our new prosperity universal life product in future issues of ivari info and in the 2017 tax changes section of ivari.ca.
You can also reach us at WFG ROCKS at 1-866-934-ROCK (7625) between the hours of 8:00 a.m. and 7:00 p.m. EST. Monday to Friday.