Tuesday, December 3, 2024

Assumption Life offers a new Registered Investment Account

Assumption Life, based in Moncton, has introduced its new product to the market Registered Investment Account (RIA) this week, enabling non-registered securities insurance advisors to provide their clients with a lower-cost investment alternative compared to a typical segregated fund.

Assumption Life’s product guide calls RIAs a “unique concept” in the insurance industry (only a few insurers offer RIAs). The client’s deposits are held in the insurer’s general funds and the client receives returns from the selected reference fund or funds less the associated management fee.

The product, available for registered accounts (including RRSPs and TFSAs), is designed for insurance-licensed advisors who are not registered in securities but want to offer their clients a better management fee, said Pierre Martin, chief marketing officer at Assumption Life. (Assuming Life does not offer mutual funds.)

For example, for the front-loaded Series E, commissions range from 0% to 3% and trailers range from 0.4% (for fixed income funds) to 0.8% (for regular funds), according to the product guide. For no-load Series D, the commission is 2% (plus excess), and trailers vary depending on the type of fund and years of investment. (Series D also has commission refund.)

Customer deposits up to $100,000 are protected, and the death benefit and maturity guarantees are each 75% of net deposits, the guide says. (The maturity of the contract is 105 years.)

Investors can choose from 24 funds, including target-date funds and closed-end portfolio solutions.

Assumption Life RIA was established in partnership with Moncton-based Louisbourg Investments, a subsidiary of Assumption Life.

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