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A Hybrid what?!?

A Hybrid Solution 100.

I am going to write this a little backwards here, and actually start with a line from my second last paragraph:

“…Empire Life is actually trying to save its clients money…”

Intrigued? I thought you might be. Read on to learn more.

Empire Life, one of the top 5 life insurance companies in Canada, is the first company to come out with a product that takes into consideration that interest rates will start to increase in the next 3 years. The product that they recently put out is called the Hybrid Solution 100.


Before I really explain what it does, I should tell you that premiums with this product are not locked in like they are for other products. The premiums are therefore variable, and fluctuate based on the interest rates over the past 6 months. You won’t be left in the dark about premium increases and decreases though; you will know up front exactly how the variable premiums will be calculated. Empire Life has also done a fantastic job in developing a chart for this product that helps simplify the product.

So it’s a hybrid, which means it does two things, two quite interesting things.

1. If inflation occurs, and rates go down (which considering our current economy is very unlikely) your premiums will increase by a set percentage.

2. If deflation occurs, and rates go up (which considering our current economy is likely) your premiums will decrease by a set percentage.

No matter what happens, the amount of insurance that you are covered for will not change, and won’t expire until age 100.

Although this may seem confusing because it sounds like a large company in Empire Life is actually trying to save its clients money, Empire Life is looking towards the future and realizing that they can offer this product.

Empire Life is the only insurance company that offers it now, however I expect within the next two years many other companies will be following suit, and putting out variable products.

Interested in more information? Contact me today!

Tyler Brown
Financial Security Advisor
Life Insurance Broker
CP: (519) 212-9859

WP: (519) 648-9580
FX: (519) 489-2740
244 Woolwich St. South, Unit #1 ~ P.O. Box 261 Breslau, ON ~ N0B 1M0



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June 2013
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