Introduction + Dividend Scale Update
What This Covers
This session opens with an overview of key updates relevant to Infinite Banking Concept clients. It introduces the agenda, discusses recent dividend scale changes at Equitable Life, and sets the stage for further presentations, including insights from Tim Yurich and Nelson Nash clips.
Why Clients Use It
Understand changes in policy performance due to dividend scale interest rates.
Learn how to interpret policy loan interest rates and their impact.
Get historical context for better decision-making around whole life policies.
Key Insights by Timestamp
(00:00–01:38) – Session Kickoff & Agenda Overview
Welcome to new and returning clients.
Today’s topics: Equitable’s new dividend scale, policy loan rates, video from Tim Yurich, Nelson Nash clips, and family banking principles.
(01:39–02:56) – Upcoming Content Preview
Roman will present on Assurance.
Tim Yurich’s segment covers deep historical experience with IBC.
Clients will reflect on Nelson’s videos.
Final section will discuss family banking fundamentals.
(02:56–04:15) – Dividend Scale Changes Announced
Effective July 1, 2023 to June 30, 2024.
Dividend scale interest rate drops from 6.5% to 6.25%.
Policy loan interest rate increases from 6.2% to 6.5%.
Presenter sees this as a positive shift, supporting the life company’s profitability.
(04:53–06:16) – Positive Impact of Rate Hikes on Dividends
Rising interest rates support stronger dividends.
Clients are co-owners of the mutual company, better profitability benefits them too.
First time in decades that dividend scales are going up.
(06:16–09:03) – Understanding Dividend Trends (Document 1038)
Resource: “Understanding Participating Whole Life Insurance” (available on Equitable’s site).
Page 10 shows a 30-year history: Dividend rate was 10.7% in 1993 and dropped steadily with GIC rates.
Effective July 1, 2023, it rises to 6.25%.
Illustrations always show conservative estimates (usually dividend scale -1% or -2%).
(09:03–10:37) – Big Picture Perspective on Dividends
Dividends are not guaranteed but add value.
The real goal: cash value equaling death benefit by age 100.
We’re now entering a rare era, dividend scales trending upward, and that could enhance long-term policy performance.
(10:38) – Next Segment: Roman on Assurance.ca
Roman takes over to present on recent updates regarding Assurance.