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 ivari Universal with bonus and no bonus products under current tax rules (G2).
This is the deadline to submit any WealthADVANTAGE and EstateADVANTAGE applications to be issued under the current 2016 tax rules (G2).
This is the final date that our current universal life products, WealthADVANTAGE, EstateADVANTAGE with accumulation bonus and EstateADVANTAGE low fees, will be available for sale.
If we receive an application and illustration (LifeView 11.3) for WealthADVANTAGE or EstateADVANTAGE plans after this date, a new illustration under our new product ivari Universal will be required to settle the policy (LifeView 12.0). An ivari case coordinator will contact advisors/distributors to request this new illustration.
Deadline for receiving app at ivari’s Head Office: December 5th 2016 5:00 p.m. EST
Deadline for receiving InsureApp app at ivari’s Head Office: December 5th 2016 11:59 p.m. EST
This is the deadline for ivari Universal applications with TIA to be considered for G2 tax treatment into 2017 (March, 31 2017).
We will re-launch ivari Universal 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.