Canadian Report on the Lapse and Mortality Experience of Post-Level Premium Period Term Plans


RGA: Steve Schumacher, Travis Agne, Richard Xu, Jake Davis


The Canadian Institute of Actuaries (CIA) and the Society of Actuaries (SOA) engaged RGA Reinsurance Company (RGA) to undertake a research project on Canadian level premium term life insurance products with a particular focus on the magnitude and impact of the “shock lapse” at the end of the level premium period. This project is similar to the SOA-sponsored research completed by RGA for U.S. term plans in 2010 and updated September 2013 and May 2014. (Note that Figure 45 and Table 33 were updated in January 2021; the remainder of the report was unchanged.) We have also provided a spreadsheet showing a sample of how the predictive model is applied.


Canadian Report on the Lapse and Mortality Experience of Post-Level Premium Period Term Plans




Predictive Model Sample


The authors would again like to extend our thanks to all the participating companies for making this project a success. Without your support, such research projects would not be possible. Your contributions have led to a new industry benchmark of experience results for term shock lapse rates and mortality rates beyond the level premium period.

We would like to thank the CIA and SOA, along with their staff as well as the following members of the Project Oversight Group (POG) for their guidance and support on this research project. Their comments, feedback, and direction have greatly improved the value of this project.

Project Oversight Group

Vera Ljucovic [Chair]
Maude Bergeron
Marie-Josée Blanchet
Donna Mann-Campbell
Nicolas Genois
Isabelle Lachance
John Pfeffer
Louis-Philippe Pouliot
Graham Sutton


Shlomit Jacobson
Mervyn Kopinsky
Cynthia MacDonald
Erika Schulty

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