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HOW CAN EXCELERATOR DEPOSIT OPTION BENEFIT YOUR CLIENTS?

EXCELERATOR DEPOSIT OPTION on Equimax® participating whole life policies with a G3 tax status1

FOR ADVISOR USE ONLY1Life insurance policies issued under the new rules effective January 1, 2017 will have a G3 tax status. See the Equimax Admin guide for details. 2Limits will apply. 3Dividends are not guaranteed. They are subject to change, and will vary based on the actual investment returns in the participating account as well as mortality, expenses, lapse, claims experience, taxes and other experience of the participating block of policies. ® denotes trademarks of The Equitable Life Insurance Company of Canada. This information does not constitute legal, tax, investment, or other professional advice.

Availability

Paid-up additions or enhanced protection dividend options

• EDO is available for Equimax® plans for all ages and for both Life Pay and 20 Pay premium options. • Adding EDO within the first policy year does not increase the medical requirements.• EDO may not be available if a substandard rating applies.

Maximize

tax-advantaged

growth

EDO payments buy paid-up additional insurance (PUAs) to maximize growth

• PUAs add to the non-guaranteed cash value of the policy. • Both the Equimax basic permanent insurance coverage and the PUAs are eligible to earn dividends3

each year, which further accelerates the growth within the policy. • With the paid-up additions dividend option, PUAs will immediately increase the death benefit.

Maximum EDO

payment

Maximum limit on EDO payment maintains policy’s tax-exempt status

• The Equitable Sales Illustrations® system will calculate the maximum EDO payment allowed. • The maximum limit is calculated at policy issue based on the life insured’s sex, risk class, issue age,

amount of coverage, plan type, premium option and the then current dividend scale. • Changes to the dividend scale and Income Tax Act exempt regulations, as well as changes clients may

request to their policy, will affect the maximum EDO payment limit.• Equitable Life® will not accept an EDO payment that will cause the policy to lose its tax-exempt status.

Flexibility

Start making EDO payments

• PUAs add to the non-guaranteed cash value of the policy. • Even if your clients didn’t start making EDO payments at issue, they have the flexibility to start within the first

12 months without providing additional evidence of insurability.

Stop and restart EDO payments

• Your clients can stop making EDO payments at any time. • If they resume payments within 24 months, additional evidence of insurability is not required. • Missed or skipped payments cannot be carried forward.

Increase EDO payments

• If your clients pays less than the maximum EDO payment in any policy year, they can increase the payment up to the maximum permitted for the policy, subject to administrative rules, tax-exempt status, applicable tax legislation and underwriting approval.

• If they increase their payment within 12 months of issue of the Equimax policy, no additional evidence of insurability is required.

• Equitable Life will not accept an increase in the EDO payment that will cause the policy to lose its tax-exempt status.

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Excelerator deposit option (EDO) allows clients to make extra payments2 above the required guaranteed premium to help grow the long-term cash values in their Equimax Estate Builder® or Equimax Wealth Accumulator® plan.

For more information, refer to the Excelerator deposit option Q&A available on the Equimax page on EquiNet®.