Changes to cancellation values for some in-force Clarica and SunSpectrum CII policies

We’re adjusting cancellation values on some in-force Clarica and SunSpectrum permanent critical illness insurance policies.

The cancellation value is the amount of money we will return to the Client if they cancel their policy. The cancellation value is not guaranteed and it can go up or down, depending on:

• how long the policy has been in-force, and 
• our experience with critical illness incidence rates, mortality rates, expenses and interest rates.

The cancellation value adjustments will take effect on the following policies’ 2027 anniversary, starting on January 1, 2027:

• Clarica Permanent CII, series 2001 and 2003 (sold from March 26, 2001 - July 2, 2004)
• SunSpectrum Permanent CII, series 2004 (sold from July 2, 2004 - September 17, 2012)

Note: Cancellation value adjustments will be made on affected policies throughout 2027 as affected policies reach their policy anniversary.

What’s changing and why

While most policies will experience a cancellation value decrease, about 39% of policies will have no change or an increase. This change is the result of our regular review of in-force adjustable insurance products. We’re adjusting cancellation values now primarily because of our updated outlook on mortality and expenses. We’ve had a lower number of critical illness insurance claims than we expected, especially at older issue ages.

Support for impacted policies

We’ll be sending letters directly to all Clients to notify them of the change starting mid-November. Clients with no change will still receive a letter to remind them of their cancellation value and that it can be adjusted in the future. Clients will see their updated cancellation value on their 2027 policyholder statement.

Advisors with impacted Clients will receive their Client listings through Activity Centre starting October 27.

Call-to-action:

• Take this opportunity to talk to Clients about this change to help assess their needs.

Resources

• For more details visit the In-force CII Cancellation Value Adjustment page

Contact us:

• For questions: Contact the Customer Care Centre at 1-800-800-4786
• For policy specific questions: Please contact us through Request Centre - Critical Illness Insurance Inquiry.