
Cove Insight: Industrial Alliance Insurance Announces 2025 EquiBuild Fund Guaranteed Interest Rate (for Legacy and Equibuild Policies)
For Industrial Alliance (IA) EquiBuild and Legacy policies the EquiBuild Fund declared rate for 2025 has increased to 6.0%, up from 5.5% in 2024. Consequently, the rate used to calculate the annual bonus for in-force EquiBuild and Legacy policies will be 6.0% and the rate credited to the EquiBuild account will be 4.5% (the Fund’s declared rate less a management fee of 1.5%).
The increased rate is the result of iA’s solid and diversified investment strategy, the smoothing formula and the current favorable economic climate. See Fund Facts Sheet.
The smoothing formula is based on IA’s long-term return expectations related to the new asset allocation, while continuing to amortize major fluctuations in the fund’s actual returns, whether positive or negative in comparison to the credited returns. The main objective remains to provide a stable, low volatility declared rate from year to year.
The declared EquiBuild fund rate is set in December of each year and is guaranteed for the following calendar year.
How does the EquiBuild Fund increase EquiBuild policy cash values?
All EquiBuild and Legacy policyholders benefit from the returns of the EquiBuild Fund through the Equibuild Bonus. Clients can also invest policy cash value in the EquiBuild Account, for which the EquiBuild Fund is the underlying fund.
Each year, your policy will receive a bonus equal to the EquiBuild Fund declared rate less the threshold rate as set in your policy contract. The bonus is calculated yearly and equals the bonus percentage multiplied by the average guaranteed cash surrender value for the prior year.
Cash value invested in the EquiBuild Account, will earn interest at the new crediting rate of 6.0% starting on January 1, 2025. The interest is compounded daily and credited to the EquiBuild Account on each Monthly Anniversary.
Industrial Alliance Equibuild Fund
The objectives of the fund are to optimize the asset allocation to earn long-term returns superior to those on guaranteed investment accounts while maintaining an appropriate risk level that will provide long-term returns stability.
The Equibuild Fund is invested primarily in high-quality fixed-income securities, equities, and infrastructure, as well as iA Financial Group real estate securities.

If you have questions, thoughts, or want to talk more about this topic with one of our advisors, you can book a meeting with us.