Canada Life, the only peer product with a 5% guarantee to Empire Life's, has just decreased their GMWB product guarantee by approximately 1% (exact changes will be available soon), from 5% to 4%. We were at a meeting today and happened across an Empire Life representative...when we asked what Empire Life's reaction to Canada Life lowering its investment guarantee the following was the response: "Empire Life has stated, publicly, that we are uncomfortable being the only company in the Canadian market place with an investment guarantee that is significantly different than our product peer group".
This response was not surprising to us at Performins. In our opinion, Empire Life will follow Canada Life and reduce their GMWB investment guarantee. The larger question, as it pertains to you, is when. Canada Life gave us 5 business days notice...We don’t know when, but it is safe to assume it will be soon.
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