Canadians will soon be able to wear fitness-tracking devices as a way of qualifying for lower life insurance premiums under a program being launched by Toronto-based Manulife Financial Corp.

Manulife announced on Tuesday that it’s bringing to Canada a life insurance program that rewards policyholders for healthy living. The program, entitled Vitality, is being launched under a partnership with Chicago-based wellness program provider Vitality Group Inc., which had teamed up with Manulife’s U.S. subsidiary, Boston-based John Hancock Life Insurance Co., to launch a similar program in the U.S. market in April 2015.

“We think this does transform the traditional life insurance space,” says Paul Lorentz, executive vice president and general manager, individual wealth management and insurance. “We’re trying to engage with our customers to incent them to live a happier, healthier lifestyle and then reward them for doing that.”

Clients who sign up for the program will complete an online health assessment and set personalized health goals. Manulife will provide policyholders with a fitness-tracking device as a way of measuring their progress toward those goals, according to Lorentz. The specific type of device that will be used under the program is still being determined, he says.

Policyholders will then begin earning “Vitality Points” for doing physical activity, as tracked by the wearable technology, as well as for other health-related activities such as getting an annual health screening or a flu shot.

“There are other ways to gain points outside of the wearable technology, so it’s not a requirement that [policyholders] need to wear it,” Lorentz says. “It’s just one component that helps them towards their ultimate goal.”

The more clients demonstrate that they’re living a healthier lifestyle, the more points they earn, which can translate into savings on insurance premiums.

Clients who sign up for the program will receive an initial discount on their life insurance premiums compared with clients who have a regular policy. Those who reach or exceed their health goals under the program will be able to maintain that discount on premiums, or potentially qualify for a greater discount over time. Those who fail to reach their goals, however, could see their discount disappear over time.

“We start them off with an incentive and a discount,” Lorentz says, “and then set the goals accordingly.”

Policyholders can also qualify for rewards and discounts from various retailers through the points they earn under the Vitality program.

Manulife is still working through many details of the program with the Vitality Group, and expects to make the program available later this year, Lorentz said. He expects that the company will offer the Vitality program on term life insurance policies initially, and then expand it to permanent policies over time.