Please read this important announcement from John Hancock regarding interest crediting rate changes effective March 1, 2021.
Click HERE for new guidelines from AIG. Among other things, all cases with ratable build will be postponed starting December 14th.
We welcomed Actuarial Guideline 49 (AG49) and uniformity for indexed universal life (IUL) illustration practices. Now with enhancements to this guideline, AG 49-A once again levels the playing field – so IUL products with multipliers, cap buy-ups and other enhancements cannot illustrate significantly better than traditional IUL products.
To learn how Securian Financial’s IUL products are positioned for success, view our AG 49-A FAQ and additional resources at securian.com/AG49. Please also keep in mind the important dates listed below as you place IUL cases over the next two months.
Important 2020 dates
- Friday, November 20, 2020 — Illustrations based on the old AG49 guidelines will no longer be available after this date.
- Saturday, November 21, 2020 (noon, CST) — Updated, AG 49-A compliant illustrations available.
- Friday, December 11, 2020 (3 p.m., CST) — to place a case under the old AG49 guidelines, cases need to be UNDERWRITTEN, APPROVED, PAID and DELIVERED (delivery receipt signed) with a signed illustration run no later than November 20.
Cases that have not completed the above requirements by this time will require a new, signed AG 49-A compliant illustration.
- This is a regulatory requirement and NO EXCEPTIONS will be made.
- Nevada and Oregon only. AG 49-A compliant illustrations are pending state approval. Cases for these states need to be paid and delivered by 3 p.m., Friday, December 11, 2020, with a signed illustration run no later than November 20. Otherwise, products in those states will be unable to be issued until the updated illustrations are approved. Approval timing could vary by product.
Note: There may be situations in which you receive an illustration upon policy delivery containing old AG 49 guidelines. If this occurs, you will be asked to supply a new, signed AG 49-A compliant illustration. For more information and updates on this regulation and how it impacts your business with Securian Financial, visit securian.com/AG49.
What’s Changed: New rates include a mix of increases and decreases, with a focus on earning the top competitive position in the Preferred and Standard Non-tobacco classes and improving competitive position in the Preferred Plus class. Rate changes were primarily focused on the 10 to 30-year level term periods with no change to 35 and 40-year options.
More information available HERE.
Given the industry’s historically low interest rate environment, Lincoln is making prudent and responsible pricing adjustments.
Effective June 15, 2020, Lincoln Financial will implement pricing increases to all products in the Lincoln MoneyGuard solutions suite. Adjustments on flex-pay designs will see a pricing increase of approximately 15%. Single-pay designs will see a pricing increase of approximately 20%.
Additionally, Return of Premium (ROP) on Lincoln MoneyGuard® II in California is being updated to bring consistency across the MoneyGuard product suite. The Basic ROP option will be 70%. The Vested ROP option will begin at 70% and grade up to 100% over six years.
It is important to note that no changes will be made to the contract language, forms, compensation or benefits provided.
For applications to qualify for the current pricing, a projection of values and the completed application Part 1 must be signed, dates and received in good order by Lincoln’s home office by Friday, June 26, 2020.
All pending business must be issued, or 1035 exchanges initiated (where applicable), on or before August 28, 2020.
Additional information is available HERE.
Effective April 27, 2020, PruLife Universal Protector will be repriced in response to the current interest rate environment. The new rates will result in an average increase of 8% to 12% in all states (except New York) depending on age, underwriting class, and premium funding patterns. However, Prudential remains committed to the GUL marketplace and we strive to provide the best value possible for our customers.
In New York, the average increase in premium is approximately 20%, which is due to the interest rate environment and reserve requirements specific to New York. Several competitors also charge higher premiums in New York or have restricted products available for sale. Please note the new pricing release in New York is pending state approval.
HERE is an excellent sales idea from Prudential, emanating from the SECURE Act.
As a leader in the market, Lincoln has a long-standing commitment of helping protect client wealth from the risk of long-term care expenses, while improving the overall financial professional and client experiences. To offer you greater control of your Lincoln MoneyGuard Solutions experience — while continuing to reduce overall turnaround times — the Lincoln MoneyGuard® III application Part I will be accessible on the iPipeline iGO® platform or through your Lincoln producer website. This process will provide an added convenience and enable a more streamlined, customized experience.
More information on the process available HERE.
Effective January 13, 2020, the Lincoln Life & Annuity Company of New York is pleased to announce the newest linked-benefit product in the Lincoln MoneyGuard® Solutions suite, Lincoln MoneyGuard® II NY. Lincoln MoneyGuard® II NY is a single or flexible premium, universal life insurance product that provides a death benefit and long-term care (LTC) coverage through policy riders.
Below are just SOME of the highlights of the new product:
• 0-day deductible for ALL services (previously 90 day facility wait)
• Couples Discount added to LTC Extension of Benefits Rider (not available on previous version)
• Eliminated tobacco classes—tobacco users now get the same non-tobacco rates
• No age restriction on single-premium business (previously restricted to age 69)
• Return of Premium added for flex-pay cases (previously on single pay only)
• Pay to 65 option added in addition to 1-10 year designs
• More competitive plan designs for clients under 50
• Benefits now available internationally
• Enhanced Submission Process to align with MG offerings in other states
Additional information can be found HERE.
If you do business in NY, I wanted to be sure you saw this important announcement regarding product training from Protective Life.