Important deadlines for new business and current tax rules

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 until December 31, 2016.

Below are two key dates to help you manage your universal life insurance new business with ivari.

November 15, 2016

This is the application deadline for contracts to be issued under the current 2016 tax rules (G2).

While we will do everything we can to issue polices prior to December 31^st, 2016, we cannot guarantee that all applications submitted by November 15^th at ivari’s Head Office, will be issued under the current 2016 tax rules (G2).

How you can help

You can help us get your clients policies issued faster by ensuring that all applications submitted by November 15th comply with the following requirements:

The application is In Good Order
A cheque for the first premium payment is included with the application
You complete any underwriting, issue or delivery requirements that are outstanding

If your application is a multiple life policy or a corporately owned policy we strongly suggest that you submit these applications well before Nov 15^th

Recognizing that delivery requirements may not be in by Dec 31, 2016, we will accept the delivery requirements on policies that have been issued on or before Dec 31, 2016 up to Jan 27, 2017.

December 5, 2016

This is the final date that our current prosperity universal life product will be available for sale.

In November of 2016, we will be launching an upgraded prosperity universal life plan. Stay tuned for more information on this product.

We strongly recommend that any new business and/or policy changes requiring underwriting on these products be submitted well before the December 5, 2016 date to the Head Office of ivari.

If we receive an application and illustration (LifeView 10.4 WFG) for prosperity after this date, a new illustration under the new prosperity life product will be required upon delivery.

A WFGROCKS case coordinator will contact advisors to request this new illustration.

What you need to know

Paper applications

Deadline for receiving app at ivari’s Head Office: December 5^th 2016 5:00 p.m. EST

Electronic application

Deadline for receiving AppVantage app at ivari’s Head Office: December 5^th 2016 11:59 p.m. EST

The insurance application that was submitted and underwriting is still valid.
We will set up the application as the new prosperity universal life policy.

As of December 5^th any Multi-life policy where one life is approved and one life is still pending, we will issue the approved life as a single policy in order to take advantage of the G2 tax legislation.

Keeping you informed

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 contact us.