Special Announcement: Introducing a New, Proprietary IUL Product from Zurich and AIN

WEALTH BUILDER IUL WITH THE US EQUITY TRIPLE INDEX FROM ZURICH

The new Wealth Builder IUL, including the proprietary US Equity Triple Index crediting strategy, is now available, exclusively to AIN Members!

The effectiveness of a strategy that includes three diverse indices and a look-back crediting strategy that automatically allocates to the best performing index is clear: More predictable, consistent returns for policy owners. Couple that with a product chassis with a reasonable cost structure and you have a recipe for a product with a compelling value proposition. Here’s the story from Zurich:

In an accumulation IUL, diversification can help optimize performance. Zurich’s US Equity Triple Index Account provides diversification with the added benefit of overweighting.

US Equity Triple Index Interest Account

  • S&P 500® Composite Stock Index: 500 largest U.S. publicly traded companies
  • NASDAQ-100 INDEX®: 100 largest most actively traded U.S. non-financial companies listedon Nasdaq stock exchange
  • Russell 2000 Stock Index®: 2,000 small cap companies

How does it work?

Each policy year, we’ll calculate the growth of each of the three indices. The top performer gets 70% of the weighting, the second best gets 30%, and the worst gets 0%. Then we apply the growth cap and the guaranteed bonus to interest credited in the prior year.

What are the benefits of diversification and overweighting?

We know optimizing performance means choosing the best index. Historically, there hasn’t been one clear and consistent winner. With overweighting, no matter who comes in first, the best performer gets most of the crediting.


MARKETING MATERIALS, ILLUSTRATIONS AND FORMS

Given the propriety nature of this product, access to marketing materials, illustrations and forms are all a bit different.

Marketing Materials

Marketing materials are housed on AIN Essentials The currently available materials are:

Make sure to check out the Zurich Wealth Builder IUL page on AIN Essentials as more content from Zurich is made available.

Illustrations

Illustrations for the Wealth Builder IUL with the US Equity Triple Index are available exclusively through WinFlex Web. To activate the Zurich product for a new case, please complete the following steps:

  1. Start a new illustration in WinFlex Web
  2. BEFORE entering any client data, navigate to the Agent Info tab
  3. Enter the Home Office Password – USEquity
  4. Hit “Calculate” and let the illustration run
  5. Once the initial illustration is complete, navigate to the Interest Rate tab. Verify that the US Equity Triple Index now displays as an option in the Allocation section
  6. Proceed with the illustration as you normally would

Still not sure how to proceed? Head over to AIN Essentials for additional guidance!

Forms

Forms are available via AIN Essentials! Simply follow this link to access a unique iPipeline forms instance that has everything you need to apply for the Wealth Builder IUL.


Find out more about the Wealth Builder IUL with the US Equity Triple Index from Zurich…

ProdMod: Securian Releases Section 7702 Implementation Details

FROM SECURIAN FINANCIAL…

With the passage of the Consolidated Appropriations Act of 2021 on December 27, 2020, a change was made to Section 7702 of the Internal Revenue Code. This change outlined several requirements permanent life insurance policies must meet in order to qualify as a life insurance contract for tax purposes.

What you need to know

The 7702 changes apply to new business starting January 1, 2021. Our illustration system will be updated May 3, 2021, to reflect these standards. New 7702 premium limits will apply to applications received after April 30, 2021, on the following products:

  • Eclipse Accumulator Indexed Universal Life (IUL)
  • Eclipse Protector II IUL
  • Eclipse Survivor II IUL
  • Premier Variable Universal Life (VUL)
  • Eclipse NY
  • VUL Defender

Pricing changes

Effective May 1, 2021, pricing changes for the following products will be made in combination with the 7702 updates:

  • Eclipse Accumulator IUL
  • Eclipse Survivor II IUL
  • Premier VUL

Please note (if applicable): Products currently sold but not listed above will be updated to comply with 7702 at a later date. Additional communication and details to follow.

Only policies dated January 1, 2021, and later are eligible for the new 7702 premium limits. Changes to contracts dated January 1-April 30, 2021, may be made beginning in July 2021. More information will follow as that date approaches. Pending policies will have the option to move to the new 7702 premium limits or remain as currently illustrated.

Transition Rules

7702 changes

  • Friday, April 30, 3 p.m., CST — Applications received after this time will be issued with the new 7702 premium limits.
  • Monday, May 3 — Updated illustrations will be available.
  • Friday, July 2, 3 p.m., CST — Pending cases that were received prior to May 1 that are requesting the old 7702 premium limits must be underwritten, approved, paid and delivered (delivery receipt signed) by this date with a signed illustration run no later than July 2.
  • Cases that have not completed the above requirements by this time will be issued under the new 7702 premium limits and will require a new, signed 7702 compliant illustration. This is a regulatory requirement, and NO EXCEPTIONS will be made.

Guaranteed Income Agreement (GIA)

  • This agreement will be discontinued May 1, as it is not available for contracts using the new 7702 premium limits.
  • Friday, October 1, 3 p.m., CST — Deadline to add this agreement to an existing contract sold under the old 7702 premium limits. All requirements must be completed by this date.

Pricing changes

  • Friday, April 30, 3 p.m., CST — Applications received after this time will be issued with the new pricing.
  • Monday, May 3 — Updated illustrations will be available.
  • Friday, July 2, 3 p.m., CST — Pending cases received prior to May 1 that want to receive the old pricing must be underwritten, approved, paid and delivered (delivery receipt signed) by this date with a signed illustration run no later than July 2.
  • Cases that have not completed the above requirements by this time will be issued under the new pricing and will require a new, signed illustration.

Find out more about these changes from Securian Financial…

AdminUpdate: Securian Eases COVID-based Underwriting Restrictions

FROM SECURIAN FINANCIAL…

Changes to COVID-19 participation guidelines

Securian Financial remains focused on delivering high levels of service, helping customers with their insurance needs and maintaining the company’s financial strength. Your support in delivering on this focus has provided valuable insights to best navigate the unpredictable nature of a pandemic while addressing the additional risks it presents.

Since these participation limits were implemented one year ago, our promise has been to actively review these guidelines. Along the way, we have delivered on a request for transparency to enable you to make the best decisions for your clients. While not yet at the final stage in our journey, we are taking another step forward and remain committed to an intentional and disciplined path to easing all restrictions.

We are pleased to announce the following changes to the temporary COVID-19 participation guidelines effective April 1, 2021:

  • Expanding the issuance of single life applicants at the following ages:
    • Insurance ages 61–75, allow table B (150%) or better
    • Insurance ages 51–60, allow table D (200%) or better
  • Expanding the issuance of joint life applicants to allow up to table B (150%) for the better rated insured.

Our Write Fit expansion to $3,000,000 for applicants ages 18-50 will continue.

All other participation guidelines, including money not being accepted with new applications and temporary insurance agreements not being available, continue until June 30, 2021.

Find out more about these changes from Securian Financial…

ProdMod: Sagicor Launches New & Improved Sage IUL

FROM SAGICOR…

Now Available! The New Sage IUL!

What’s new about Sage IUL?

  • Reduced COIs, premium loads and expense charges
  • Improved income distributions
  • Preferred Plus Non-Tobacco and Tobacco underwriting classifications added
  • Credited Interest Rate Bonus (Persistency Bonus) increased to 0.75% (previously 0.5%)
  • Ability to easily run illustrations on WinFlex Web
  • Illustrations updated to reflect updated maximum non-MEC calculations based on new 7702 cash value and guideline premium test provision

All of this in a product that offers living benefits with no additional cost and an underwriting process that can deliver approvals in minutes without an exam or telephone interview!

Transition Rules

  • Applications (eApplication and paper) signed up to and including March 26, 2021, will receive the current version of Sage IUL, which includes an S&P 500 Index Bonus Strategy CAP of 10%.
  • If a paper application is signed, it must be received by Sagicor by 5 p.m., MT on April 1 to receive the current product version; receipt April 2 and later will qualify for the updated product version.
  • Applications (eApplication and paper) signed on March 27 and later will receive the updated version of Sage IUL, but please note the S&P 500 Index Bonus Strategy CAP will be changing to 8%.
  • There are no changes to the Declared Rate Bonus Strategy fixed rate or Global Multi-Index Bonus Strategy PAR in the updated version of Sage IUL, from the current version

Find out more about these changes from Sagicor…

ProdMod: North American Adjusts Minimum Face Amounts on UL & IUL Products

FROM NORTH AMERICAN…

New Minimum Face Amount Requirements

As we continue to navigate the current economic environment with a long-term focus in mind, we remain committed to making decisions that will benefit our producers and policyholders for years to come. As a result of our continued analysis, we will be adjusting our minimum face amount requirements on universal life (UL) and indexed universal life (IUL) insurance products with applications signed April 24, 2021 or after. The minimum face amounts will change as follows:

New Minimum Face Amount Requirements:

  • Custom Guarantee® UL 9
    • Ages 60-70: changing from $25,000 to $50,000
    • Ages 71-85: changing from $25,000 to $100,000
  • Protection Builder IUL®
    • Ages 60-70: changing from $25,000 to $50,000
    • Ages 71-85: changing from $25,000 to $100,000
  • Builder Plus IUL® 2
    • Ages 71-75: changing from $50,000 to $100,000
  • Smart Builder IUL
    • No changes

Find out more about these changes from North American…

ProdMod: Prudential Announces IUL Cap Rate and Spread Changes

FROM PRUDENTIAL…

April 2021 Index Account Updates

At Prudential, we are committed to maintaining financial discipline and continue to review impacts to the index accounts, and the upside they can offer. There will be changes to some of the capped, uncapped, and multiplier indexed accounts. The changes for impacted index accounts will be effective for index segments starting April 15, 2021.

A letter will be sent to policy owners when there are changes to index accounts, informing them of the new cap or spread and that the future segments will be impacted. The letter also indicates that these changes may result in different values than were shown in their most recent illustration and how they can request a current illustration.

Please see the formal announcement from Prudential for new caps and spreads.

Find out more about these changes from Prudential…

ProdMod: Price Change coming to Lincoln’s TermAccel and LifeElements Products

FROM LINCOLN FINANCIAL…

Pricing Update: Lincoln TermAccel® Level Term

Effective March 15, 2021, Lincoln is announcing pricing updates to Lincoln TermAccel® Level Term (2019) which will improve competitive positioning in key cells. Lincoln TermAccel® life insurance offers an entirely electronic, streamlined interview process with fully automated underwriting and no APS requirement.

Pricing Updates

  • The majority of core cells, for all term durations, ages 30 – 60 and face amounts of $500K – $1M, will rank in the top 3 compared to key competitors
  • Preferred Plus class will remain ranked mainly in the top 4 – 7 compared to key competitors
  • Premium updates will be a mix of both decreases and increases

Transition Guidelines

For states that are approved at rollout, there is a 30-day transition period which begins on begins on March 15, 2021 and ends on April 14, 2021. During the transition period:

  • New applications received and applications currently in underwriting will automatically receive the lowest rates available.
  • For policies already issued Lincoln will accept a written request to change to the Lincoln TermAccel® (2019) – 03/15/21 rates.
  • For policies already placed Lincoln will not allow rewrites to the Lincoln TermAccel® (2019) –03/15/21 rates.
  • For states approved after rollout the above will automatically apply based on the availability date. Lincoln TermAccel® (2019) is not available in New York.

Pricing Update: Lincoln LifeElements® Level Term

Effective March 15, 2021, Lincoln is announcing pricing updates to Lincoln LifeElements® Level Term (2019) which will improve competitive positioning in key cells. Lincoln LifeElements® Level Term life insurance offers both a traditional paper application process and a streamlined Tele-App process for electronic and paper ticket submissions.

Pricing Updates

  • The majority of the following core cells, all term durations, will rank in the top 4 compared to key competitors:
  • Face amounts $1M and above premiums will be:
    • Top 3 for nearly all ages 41 and above
    • Top 4 for nearly all ages 30 – 40
    • Face amounts of $500k – $999k, premiums will be top 3 for most ages 55 and above
  • Premium updates will be a mix of both decreases and increases

Transition Guidelines

For states that are approved at rollout, there is a 30-day transition period which begins on begins on March 15, 2021 and ends on April 14, 2021. During the transition period:

  • New applications received and applications currently in underwriting will automatically receive the lowest rates available.
  • For policies already issued Lincoln will accept a written request to change to the Lincoln LifeElements® (2019) – 03/15/21 rates.
  • For policies already placed Lincoln will not allow rewrites to the Lincoln LifeElements® (2019) –03/15/21 rates.
  • For states approved after rollout the above will automatically apply based on the availability date.

Find out more about these changes from Lincoln Financial…

AdminUpdate: Symetra Term Now Available for High Net Worth Foreign National Sales

FROM SYMETRA…

Symetra Term is now available for high-net-worth foreign nationals

In addition to our fixed permanent life insurance, we’re pleased to announce that Symetra Term Life Insurance will be available with our high-net-worth foreign national (HNWFN) market program, effective March 1, 2021.

If you’re currently working with or have referrals for HNWFN clients, when the time is right, our market expertise and product solutions can help navigate the generational wealth transfer process with a program and guidelines designed specifically for them.

Check out Symetra’s HNWFN-dedicated site for more information and our latest sales tools.

Find out more about these changes from Symetra…

AdminUpdate: Principal Discontinues Table Shave Program Effective April 1st

FROM PRINCIPAL…

ASAP to be Discontinued

We regularly review our underwriting offerings to determine their relevance in the market, as well as their financial impact to the company and long-term sustainability. Following a thorough evaluation, we’ve decided to discontinue ASAP, effective April 1, 2021. To be eligible for ASAP consideration, formal applications (both new business and adjustment) must be dated prior to April 1, 2021 and received in our home office by April 15, 2021.

We believe this change reflects the ongoing evolution of medical underwriting and that we remain well positioned to provide competitive and consistent underwriting offers. Our client-focused approach, and recent enhancements to Principal Accelerated Underwriting through increased use of digital health data and digital application capabilities, offer shorter underwriting times and improved experiences for you and your clients.

As always, it’s our privilege to have the opportunity to work with you we look forward to serving you and your clients in 2021 and beyond.

Find out more about these changes from Principal…

ProdMod: Nationwide Releases Section 7702 Implementation Strategy

FROM NATIONWIDE…

Nationwide® products updated with the new 7702 and 7702A rates

At the end of 2020, Congress approved the Consolidated Appropriations Act of 2021 which lowered the minimum interest rate assumptions used in calculating premium limits under the Internal Revenue Code sections 7702 and 7702A. This change increases the funding limits for policies to qualify as life insurance and allows for higher premiums relative to the specified amount before becoming a modified endowment contract (MEC). Starting April 12, 2021, the new 7702 and 7702A rates will be applied to new business for the following Nationwide products:

Indexed Universal Life

  • Nationwide IUL Accumulator II 2020
  • Nationwide IUL Protector II 2020
  • Nationwide Survivorship IUL 2020
  • Nationwide YourLife IUL Accumulator (New York only)
  • Nationwide YourLife IUL Protector (New York only)

Variable Universal Life

  • Nationwide VUL Accumulator
  • Nationwide VUL Protector

Linked-benefit Universal Life

  • Nationwide YourLife CareMatters (New York and California only)
  • Nationwide CareMatters II

Only policies dated January 1, 2021 and after are eligible for the new 7702 and 7702A rates. Where applicable, policies can be backdated to save age, but not prior to January 1, 2021 and receive the updated rates.

Applying 7702 and 7702A rates to in-force policies

The next phase of our 7702 and 7702A work is focused on in-force policies eligible for the new rates.

Nationwide IUL and VUL: For IUL and VUL policies dated January 1, 2021 to April 11, 2021, we will begin applying the new 7702 and 7702A rates retroactively to increase the life insurance qualification funding limit and MEC limit. When we apply the new 7702 rates, we will not change a policy’s premium, coverage amount or target premium unless a policy change is requested. The reduced CVAT minimum required death benefit factors will result in lower death benefits for policies in corridor. This may reduce the dollar amount of cost of insurance charges, because the net amount at risk is reduced. We will be in touch with the details on how we will communicate the changes to policyholders and their producers and how we will handle change requests.

Policies from some older products with an effective date of January 1, 2021 or later are also eligible for the 7702 rates. In the coming months, we will evaluate these older products, apply the new rates, and notify you of how we will communicate the changes.

Nationwide CareMatters: For YourLife CareMatters and CareMatters II policies issued from January 1 to April 12, 2021, we will retroactively apply the new 7702A rates and premium testing limits (which determine MEC status). The CVAT minimum required death benefit factors for in force YourLife CareMatters and CareMatters II will not be changed to preserve the illustrated death benefit. As a result, the dollar amount of cost of insurance charges will also not change for in force policies. We will be in touch with the details on how we will communicate the changes to policyholders and their producers

Illustration systems to be updated April 9, 2021

On April 9, 2021, our illustration systems will be updated with the new 7702 and 7702A interest rates, the new premium required for the Nationwide Rewards Program, and the new MEC limits.