Industrial Alliance reduces term rates, raises life rates

Blame low interest rates again.

Industrial Alliance will raise premiums for its permanent life insurance products by an average of 8% for all age groups as of March 25, 2013, the insurer said in an announcement circulated today and obtained by Advisor.ca.

Read: How to explain insurance rate increases

The steepest increases are for its Genesis Quick Pay and L-series products, with premiums rising up to 42% for people aged 15-to-40 years. As with all long-term products, the youngest applicants will experience the greatest increases.

In better news, its Term 21 to Term 40 products will see an average 9% decrease in premiums.

Read: The trouble with term insurance

And surrender values for permanent life insurance products have increased.

“No exceptions will be made in applying the new rates, which will take effect for everyone on March 25, 2013,” the announcement says.

For clients who wish to take advantage of current rates, advisors must submit paper forms by March 22, 2013 at 4 pm EST and PST; electronic forms can be submitted until midnight EST and PST on March 24.

Read the full announcement.

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