Product Changes

New York MoneyGuard Product Suspension

Last day to submit applications is March 25, 2022

Due to the existing regulatory environment in New York, Lincoln Life & Annuity Company of New York (Lincoln) is unable to maintain a modern portfolio of MoneyGuard® hybrid life insurance products in the state and will be suspending new MoneyGuard® sales in New York until further notice. These changes do not impact existing policyholders.

The following product currently sold in New York will be suspended after March 25, 2022:
▪ Lincoln MoneyGuard® II NY

Submission and placement deadline
▪ All New York applications for the product listed above must be received in-good-order at Lincoln by March 25, 2022, and
▪ All pipeline cases for the New York product listed above must be placed inforce, or 1035 exchange initiated by June 30, 2022
▪ Any case not placed inforce or 1035 exchange initiated by June 30, 2022 will be cancelled

As a reminder, New York Solicitation and Situs guidelines must continue to be followed. For any New York resident (Proposed Insured or Owner) applying for life insurance coverage outside of New York no part of the sale can take place in the state of New York. All sales activities including solicitation, paperwork signing, and policy delivery must be conducted in the state of situs, and all paperwork and forms must align to the state of situs. Additionally, the New York resident (Proposed Insured or Owner) must sign the Out of State Verification Form. An article with important New York Situs reminders is also available as a reference.

At this time, there is no date set for the future availability or reintroduction of MoneyGuard® products in New York. Any updates will be communicated through the Lincoln Life Leader. Please contact your Lincoln representative with any questions.

JH Policy Crediting Rates and Indexed Parameter Changes

Effective March 1, 2022, the following adjustments will take place on new and inforce business:

UL Crediting Rates will increase on Protection UL and Protection SUL by 30 bps.
Indexed UL caps will decrease for certain Accumulation IUL, Protection IUL, Protection SIUL, Accumulation VUL and Accumulation SVUL accounts while participation rates will remain unchanged.
Fixed Account rates will decrease for certain indexed UL and vaiable UL products by 10 bps.

Full details HERE.

7702 Changes Effective November 1st for SecureCare UL

Effective November 1, 2021, the guaranteed interest rate on new SecureCare Universal Life (SecureCare UL) applications will be updated to comply with the Consolidated Appropriations Act of 2021, which lowers the interest rate assumptions used in Section 7702 of the Internal Revenue Code.

More information available HERE.

New MYGA from North American to Launch October 26, 2021

Effective Oct. 26, North American is launching NAC Guarantee Plus^SM, a multi-year guarantee annuity (MYGA), which will replace North American Guarantee Choice^SM multi-year guarantee annuity.

With the launch of NAC Guarantee Plus, we’re hoping to provide greater flexibility for consumers. Here are a few details highlighting the enhancements….

Guarantee periods: 3-, 5-, and 7-year available. (10-year option not available.)¹
Re-entry option: Renewal options available for your clients when the guarantee period is up, including the option to re-enter a 3-, 5-, or 7-year guarantee period. (See brochure for full details.)
Penalty-free withdrawals:² Equal to the interest earned in the previous contract year.

Get training now

Visit RegEd to take the required NAC Guarantee Plus product training

(Code 21SFGNAC_02)

Get NAC Guarantee Plus materials now

Brochure (most states)
Brochure (CA, FL, DE)
Disclosure (most states)
Disclosure (CA, FL, DE)
Disclosure (ID, also required)
Quick reference guide

New business guidelines

The new MYGA applies to applications signed on or after Oct. 26, or submitted through e-App on or after Oct. 26.

NAC Guarantee Plus replaces North American Guarantee Choice

To receive the current North American Guarantee Choice product, applications must be signed before Oct. 26, or submitted through e-App before 11:59 p.m. Central Time Oct. 25.

1. For California, Florida and Delaware, NAC Guarantee Plus 7 is not available. A surrender during the surrender charge period could result in a loss of premium. Surrender charges and market value adjustment may reset with renewal. Surrender charge structures and guarantee periods may vary by state.
2. Withdrawals taken prior to age 59 1/2 may be subject to IRS penalties.

IMPORTANT: Omaha LTC New Business Rate Refresh and Benefit Changes for NJ, DC and HI

From Mutual of Omaha:

“As a leading long-term care insurance carrier, Mutual of Omaha has a responsibility to our policyholders and distribution partners to ensure our pricing strategy and product offerings are in line with industry trends, internal claims data and the economic environment.

Last year, Mutual of Omaha began implementing new rates and benefit option changes to the MutualCare® Solutions Portfolio in approved states. Effective August 1, 2021, we will be implementing these changes in three additional states.

Impacted States

District of Columbia, Hawaii and New Jersey

Rate Adjustments

Premium adjustments may vary by age, sex and benefit selection. You may view the new rates by referring to the quoting software beginning August 1, 2021.

Cash Benefit Changes

MutualCare® Custom: 25% of home health care benefit up to initial maximum of $2,000 per month
MutualCare® Secure: 25% of home health care benefit up to initial maximum of $2,000 per month

Partner Premium Allowance Changes

Both Issued: 15%
One Issued: 5%

Transition rules and more information can be found HERE.

Important: Ohio National Announces Strategic Transaction with Constellation

From Barbara Turner, President and Chief Executive Officer, “Today marks a very important day in our 111-year history.

Over the years, we have taken deliberate steps to position our business for growth, including providing value to our policyholders, supporting you and your independence to build your business your way, offering quality products and services to meet your clients’ needs, and strengthening our balance sheet and risk profile. More recently, together we have faced some difficult moments including prolonged and historic low interest rates, market volatility, regulatory changes, and of course, a global pandemic.

Through it all, and with your help, we have strengthened the Company and solidified our market position. Our work together has laid the groundwork for this announcement today…”

Please read the rest of the announcement HERE.

Press release can be found HERE.

Additional information regarding policyholder notification to follow.

John Hancock: Changes to Product Offerings in New York

From John Hancock:

“As you know, we’ve long maintained separate products and processes for the New York market where we operate as the John Hancock Life Insurance Company of New York and serve approximately 180,000 customers. This approach generally serves all stakeholders well, but the separate products and processes create a level of complexity and inefficiency. After a thorough review of our new business activities, we’ve made the difficult choice to reduce our product portfolio in New York and will no longer offer the following products for sale:

• Accumulation VUL
• Survivorship VUL
• Protection UL
• Protection Survivorship UL
• Protection Indexed UL
• Protection Survivorship Indexed UL

The last day to submit a case for one of the above products in New York is April 15, 2021 and policies must be issued no later than June 15, 2021. We will continue to offer our Accumulation IUL, Protection Term and Vitality Term products for sale in New York.”

Please contact our office with any questions.