Product Changes

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.

Actuarial Guideline 49-A (AG 49-A) Updates from Securian

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.

Visit AG49 website

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.

Mutual of Omaha – Phase 2 LTC New Business Rate Refresh and Benefit Changes

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.

Lincoln MoneyGuard Pricing Update

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.

PruLife® UL Protector Is Being Repriced

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.

MORE DETAILS HERE.

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