John Hancock Interest Crediting Rate Changes
Please read this important announcement from John Hancock regarding interest crediting rate changes effective March 1, 2021.
Please read this important announcement from John Hancock regarding interest crediting rate changes effective March 1, 2021.
From Securian:
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
Cases that have not completed the above requirements by this time will require a new, signed AG 49-A compliant illustration.
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.
Phase 2 of Mutual of Omaha’s rate refresh will be taking effect on November 1st in 5 states – Kansas, Maryland, Massachusetts, Pennsylvania and Wisconsin.
Please note the following important dates for both paper and eApplications:
• All applications must be signed by October 31st and received at Mutual of Omaha’s Home Office no later than November 13th to receive the old rates and benefits.
• Applications signed November 1st or later will receive the new rates and benefits and will require new applications completed on the new application version
• Older application versions received in Mutual of Omaha’s Home Office after November 13th will be closed and will require new applications completed on the new application version to be processed
• Applications for the new rates will be made available on November 1st on Sales Professional Access (SPA).
• Backdating of applications is not allowed and will not be accepted
There will be no exceptions to the rules as outlined above and in the formal communication.
The original announcement can be found 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.
Transition Period
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.
Please read this announcement about rate and cap changes effective today.
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.
Effective January 1, 2020, Mutual of Omaha will be making a number of product changes, including the discontinuation of their Guaranteed Universal Life (GUL) product. For a complete list of the upcoming changes, please click HERE.
As a reminder, here’s a link to the transition rules for Prudential’s updated term products.
From Transamerica: “Effective Nov. 15, 2019, Trendsetter® Super term life insurance in New York and the Virgin Islands will no longer be available for sale in those markets. We will reenter the term insurance markets in the state of New York when financial and regulatory conditions allow us to do so.”
More HERE.