What are Dividend Scale Interest Rates (DSIRs)?

As a participating whole life insurance policyholder, you have the opportunity to earn dividends every year. The premiums you pay for your policy are pooled with all of the other insurance policies sold and in force at Serenia Life Financial.

The dividend scale interest rate, which is based on investment return experience, is only one factor in determining the allocation of dividends to policyholders of our whole life products. Other experience factors include: mortality, expenses (including taxes), and lapses. As a participating whole life policyholder, you share in the experience of all of these factors with Serenia Life Financial. And while all of these are important, investment returns typically have the most impact on the dividend scale due to the long-term nature of this life insurance product.

How are DSIRs determined?

The dividend scale interest rate may use a smoothing technique over time, which may assist in reducing the impacts of volatility within various asset classes in the participating account in the future. It is important to remember that with the use of smoothing techniques, dividend scale interest rates rarely reach the market highs or the market lows, and tend to lag outside indicators. This means that when interest rates are generally decreasing, the dividend scale interest rate will likely decrease at a slower pace. Conversely, when general interest rates begin increasing following a prolonged period of decreasing rates, the dividend scale interest rate may continue to decrease for a short while before it follows the upward trend.

How often are Serenia Life’s DSIR updated?

Each year Serenia Life Financial determines the dividend scale interest rate which is applicable from January 1st of that year to December 31st of that year.

Serenia Life Historical DSIR Rates Since 2017

YearDividend Scale Interest Rate
With the enhancements Serenia Life Financial made to its investment philosophy and interest-rate crediting basis in 2017, dividend scale interest rates prior to that date are not comparable to the ones being used today. That is why the figures are only shown for 2017 onward.