Industrial Alliances Life & Serenity 65 – An All-In-One “Boomer” Care Plan

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You may have heard the news recently that Canadians over 65 have overtaken Canadians under 14 for the first time in history. This is the demographic time bomb that everyone calls the Boomer Generation. Seniors are now the biggest consumer class in Canada, and insurance is no different.

Industrial Alliances Life & Serenity 65 is an interesting plan that offers a little more than just a seniors-friendly face on the box. It proposes to offer life insurance protection, limited critical illness protection, and an annuity on top of it.  And as you can see, these three features together make Life & Serenity 65 a rather unique product that Canadian seniors should be aware of.

Life & Serenity 65 at a Glance

At its core, Industrial Alliances Life & Serenity 65 is what is called a drawdown whole life insurance plan.

You select a coverage amount, which remains in force for life, and the other benefits that are payable are paid out of your coverage amount.  Regardless of how much you take out of the coverage pool, however, you are always entitled to 25% of your coverage minimum as a death benefit.

So how does the benefit structure work? Under this plan, you’re entitled to:

  • Full life insurance coverage, in force for life, with fixed premiums;
  • A guaranteed minimum of 25% of your coverage is always in force, even if you deplete the coverage by the Serenity benefit;
  • A 1% monthly benefit paid to you, for maximum 100 months, if diagnosed with Alzheimer’s, Parkinson’s, Paralysis, or loss of independent existence. This takes effect after age 65.
  • If you apply between ages 15 to 20, non-smokers get 40% increased face amounts at no additional cost.

Who Is This Plan Best For?

The drawdown aspect of the coverage allows it to serve double-duty at single-cost, which is particularly inviting to prospective seniors. It also stands to reason that we typically need less coverage as we age, usually to allocate an amount of final expenses.

Few whole life plans allow for declining coverage, which makes it advantageous to buy four times what your final expenses would require and use the monthly benefit as an added security. In many cases, a full drawdown of the benefits would entitle you to more coverage than you initially paid for.

The main consideration, and Life & Serenity 65’s main drawback, is that the benefits of a whole life plan rapidly dwindle as you age, particularly if you’re buying a large amount of coverage. While the plan is nominally available from ages 15 to 60, anyone over 50 will find the cost of a traditional whole life plan at high amounts to be untenable to their budgets.

Is Life & Serenity 65 Worth It?

By offering coverage for common senior health risks, a monthly benefit can go a long way in providing alternate living arrangements should you fall ill. The ability to draw from a coverage pool rather than layering two independent plans on top of one another lets Life & Serenity 65 remain relatively affordable.

However, like any whole life insurance plan, it also requires planning early. For a plan that offers benefits for age-related illness, it’s difficult for many prospective insured to justify a health cost that they won’t realistically see for years.

But if high coverage now, low coverage later and illness protection are a priority for you, then Industrial Alliance has serviced a worthy plan that uses an innovative strategy to keep costs low and expectations high. For many boomers and post-boomers looking at reduced budgets: it could be worth your while.

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