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ProdMod: Symetra’s MultiLife Business Program Now Approved for Sale in CA

FROM SYMETRA…

Great news for our California partners! As of January 27th, Symetra’s MultiLife Business Program is approved for sale in California.

The MultiLife Business Program provides streamlined life insurance protection to multiple eligible key employees through a guaranteed-issue underwriting process designed specifically for them.

Click to view the MultiLife Business Program guide

Underwriting Guidelines
  • Our MultiLife Business Program provides coverage for eligible employees on a guaranteed issue (GI) underwriting basis. With this underwriting edge, you and your business clients can offer a competitive life insurance solution to their key employees without the need for medical evidence or traditional underwriting reviews.
  • Maximum coverage amounts are determined by a formula that includes: group size, Salary multiple defined by Symetra, & current total salary. 
  • MultiLife Business Program does not guarantee employee eligibility and that a policy will be issued. MultiLife group cases are processed on an individual employee basis.
  • Full underwriting is available for employees and groups that do not qualify for our program. If fully underwritten individual cases are approved and issued, they can be included in the group’s billing plan. 
 
Find out more about these changes from Symetra…

AIN Events: Digging Into LGA’s “Horizon 2.0”

Martin and Jeff conducted a “deep dive” into LGA’s Horizon platform back in September 2022 in the inaugural session of the Digital Process Visualization (DPV) Series. In the handful of months that have passed since that discussion, the team at LGA has launched a stream of enhancements designed to improve the platform and address many of the issues you and your colleagues across the Membership surfaced on the heels of that session. Examples of these enhancements include:

  • The ability to apply for multiple policies with a single application
  • An easier method for reopening policies that were previously closed
  • Assignment of a dedicated Underwriter to each case
  • Multiple enhancements designed to give you a more clear picture of what is happening with a case in real time

Given the number of enhancements and their cumulative impact, Martin and Jeff have been back in the lab, internalizing thee enhancements and updating the DPV for LGA’s Horizon platform.

What else did they find? Join us on February 9th @ 11 Pacific to find out!

Click here to register for this broadcast!

ProdMod

ProdMod: Symetra Announces New Rates for its Term Life Insurance

FROM SYMETRA…
 
A new year brings new rates for Symetra’s Term Life Insurance! Symetra Term now ranks in the top tier for policies with face amounts of $3 million and above in non-nicotine rate classes. Our new rates have been made available for sale since Jan. 27, 2023.

Important Dates & Transition Rules
  • Jan. 27, 2023: Quotes for our repriced term product were made available on Winflex and Symetra Life Illustrator.
  • Feb. 10, 2023: Applications must be signed and dated on or before this date to receive the current term rates. We must receive these applications signed and in good order no later than Feb. 17, 2023. Applications signed and dated Feb. 11, 2023, and after will receive the new rates.
  • March 31, 2023: All cases must be issued/paid to receive current term rates. All cases that have not been issued/paid will receive the new term rates.
 
Find out more about these changes from Symetra…

Case Success: How to Offset an Elevated NT Pro BNP

An elevated NT Pro BNP discovered as part of the paramed exam can often lead to a case failing to move forward. In this case, the AIN Underwriting Team was able to turn the case into a win by improving offers from multiple carriers from Table 4 to Standard, resulting in over $1.4MM placed target premium. Read on for the details!
 

AT A GLANCE

  • Underwriting: How to offset an elevated NT Pro BNP
  • Carrier: 8 AIN Carriers
  • Face Amount: Total Line of $52MM of New Coverage
  • Target Premium: $1,456,058

 

SITUATION

  • A 64-year-old ultra-high-net worth male was seeking new insurance totaling $52MM from a number of carriers.
  • The completed insurance labs showed a NT Pro BNP of 445.
  • Given the client’s age & gender, the NT Pro BNP called for a Table 4 rate, which was the initial offer from virtually every carrier involved in the case.

SOLUTION

  • Will Walker, Director of Member Underwriting Services, AIN
  • NT Pro BNP “offset” with normal stress echo
  • Effective partnership with multiple AIN Carriers

RESULTS

  • Upon receiving rated offers from multiple carriers, the AIN Member Firm contacted Will Walker, who explained what the NT Pro BNP value represents and how to offset the lab findings.
  • Fortunately, one month prior to the insurance exam, the client completed an executive physical that included a normal stress echo, which can offset the unfavorable result from the insurance exam. 
  • Upon receiving the stress echo, the AIN Member Firm and Will Walker contacted each carrier, asking them to reconsider their initial offer based on the new, favorable evidence.
  • Multiple carriers were able to improve their offer to Standard Non-smoker based on the normal stress echo test within 30 days of the NT Pro BNP findings.
  • With all offers moved to Standard Non-smoker, over $1.4MM of target premium was placed across 8 AIN Carriers.

NicheAlert: The Seasoned Life Insurance Challenge

As clients age, they can find themselves in an enviable position: Their insurance assets have done what they were designed to do: Provide protection for their loved ones. In the process, they often amass significant policy cash value. As the client’s needs change, however, this insurance asset may not be flexible enough to meet their current needs. In most cases, client’s needs evolve from simple income replacement to a more diverse set of objectives as shown in Figure 1, below.

Seasoned LI Challenge Figure 1

The Challenge

On the surface it seems rather simple: Reposition the cash value from the current insurance into new solutions that more closely match the client’s updated planning objectives. The reality is that there is no singular product that can accomplish all these objectives, and “splitting” the cash among multiple solutions typically involves a full surrender of the existing policy, triggering what can often be a rather sizable taxable event.

The Solution

Fortunately, there are a handful of insurance companies that offer “all seasons” product portfolios and the ability to “split” incoming 1035 exchanges upon receipt. This ability allows them to allocate funds to three separate solutions that can effectively transform the client’s insurance assets into a portfolio that matches their current needs far better than a single policy solution. In this instance, a 57-year-old male with a $1.5MM policy with $352,176 of surrender value was repositioned as shown in Figure 2, below.

Seasoned LI Challenge Figure 2

The total death benefit coverage inclusive of both the Protection IUL and Asset-Based LTC policy should the client not need care during their lifetime is $627,402 with no additional premium outlay. If the client needs care and exhausts the LTC benefits, “total coverage” including income is $1,429,632.

* Income begins at age 66, $10,741/yr guaranteed for 30 years

Reach out to the AIN Member Services team at andrew@advantageinsurance.com for additional details.

AIN Events: Unpacking the Impact of AG49B

In what seems like a perfect real life example of the movie Groundhog Day, our industry is preparing for yet another update to the regulations governing how Indexed Universal Life policies are illustrated. While most are likely up to speed with what this will mean for us at a high level, many have not yet studied the nuances that will allow us to answer the questions we will undoubtedly see from advisors, like:

  • What impact will this have on the IUL products I typically sell?
  • What will updated maximum illustrated rates look like?
  • Will the impact differ much from carrier to carrier?
  • Are there any changes coming to the products themselves, or is this simply about the illustration?
  • What about retroactivity? Will this new update be applied to in force policies and their ledgers?
  • Will this spur another round of significant change to IUL products as carriers seek to optimize illustrative performance under the new regulation?

Join Jeff Reed as he chats with Ben Roth, National Sales Vice President at Securian Financial and Andrew Demarco, Head of Life Solutions at Transamerica about all of this and more.

Click here to register today!

Case Success: Prudential Wins Case with Positive CDT Marker

We know that it’s common to receive a decline with a positive CDT marker, but the team at Prudential had everything in place to make move this case into the win column. After running into roadblocks at other carriers, the Member was able to move this case to completion extremely quickly. Read on for the details! 
 

AT A GLANCE

Underwriting: Positive CDT Marker (Alcohol) can Still be Insurable
Carrier: Prudential
Product: PruLife Essential UL
Target: $64,000 

SITUATION

  • A 40-year-old male was seeking a a $5,000,000 GUL
  • The client was originally declined by another carrier due to elevated liver functions with a positive Carbohydrate-Deficient Transferrin (CDT) on insurance labs.

SOLUTION

  • Pat Garaghty, Underwriting Officer, Prudential Financial
  • Gerri Bishop, Director of Member Underwriting Services, AIN

RESULTS

  • Upon receiving a decline, the AIN Member Firm reached out to the AIN Underwriting Team with the exam, lab results and medical records. 
  • Upon reviewing the records, Gerri Bishop contacted Pat Garaghty to explain the case. Pat was able to consider the risk, even with the positive CDT on the labs, at Table 3 based on the following:
    • All liver functions were normal or less than 2x above normal
    • Normal Mean Corpuscular Volume in the records
    • Normal HDL levels
    • Clean Motor Vehicle Report
    • No Alcohol criticisms in the records
    • The positive CDT could be explained by holiday events that took place right before the exam
  • A formal application was taken, resulting in $64,000 of placed target premium.

ProdMod: Principal Introduces New 10 & 20-Year Guaranteed Issue Term Product

FROM PRINCIPAL…

We’re excited to announce the Principal 10-year and 20-year Guaranteed Issue Term (GI Term II) product effective Jan. 16, 2023. GI Term II is a new, standalone product designed to meet a variety of business needs. When using life insurance as part of a key employee benefit, participants can appreciate being insured without worrying about medical exams and health questions.

Product Highlights

  • Face increase flexibility. Salary Increase Rider or contractually through a job level change
  • Two risk classes. Standard and Preferred
  • Convertibility. Flexibility to convert to permanent, cash value product later
  • Fund multi-life business cases. Use with groups of 10 or more to fund business solutions such as key person, business succession, and key employee benefit plans.

Transition Rules

For purposes of these guidelines, current Term product in effect prior to this new product is referred to as “GI Term 2020” and the new product is referred to as “GI Term II 2023”

  • January 16, 2023
    • New GI Term II 2023 is available to quote and sell.
    • We’ll accept applications for original product through February 16, 2023.
    • GI Term applications in underwriting will be issued the product applied for unless GI Term II 2023 is requested. Note the request on a cover letter/transmittal. A new application isn’t required.
  • February 17, 2023
    • All applications received in the home office on or after this date will be issued as the GI Term II 2023 product.

Policies within the examination period: Cash on Delivery (COD), Offer, or Shortage If GI Term II 2023 is desired,

  • If the policy was delivered via eDelivery, the Field Office Contact (FOC) will reject the policy with 2020 GI Term product and indicate in the “Rejection Comments” box that “GI Term II 2023” is desired. The policy will then be reissued and delivered via eDelivery.
  • If the physical policy was mailed from Principal, please contact the Case Coordinator on the policy.

Backdating is allowed to save age. Normal backdating rules apply.

Approved in all states except CA, FL, NY, ND, SC, and SD.

NicheAlert: A “Balanced” Approach to Accumulation IUL Case Design

The conventional approach to designing accumulation-focused Indexed UL strategies involves minimizing the death benefit. Often, this is combined with using the maximum AG49 compliant illustrated rate to squeeze every dollar of projected income out of the product.

While that can produce a compelling illustration, it may not be the most effective approach in the real world. That thought process is often the reason for things like stress testing or reducing the illustrative rate, even if it results in a reduced illustrative income. The truth is there is another, perhaps more meaningful alternative design that can deliver more consumer value from virtually any Indexed UL product.

This more balanced approach to case design can deliver:

  • An increased initial face amount, meaning more coverage for the client’s loved ones
  • A corresponding increase in the lifetime maximum available under any Accelerated Benefit Riders
  • Additional funding capacity that allows the client to increase their contributions to the “Tax-free Bucket” in their retirement plan should their investable cash flow increase

All without asking the client for another dollar of premium. Check out the results below:

Bal Solve Figure

 

What’s the Bottom Line?

An additional $248,387 in coverage, an increase of over 61% versus a traditional design. The product includes a Chronic Illness ABR that is now based on a 61% larger face amount, putting more cash at the client’s fingertips when they need it most:

  • Traditional Design: $304,941 Maximum Lifetime Benefit
  • Balanced Approach: $553,328 Maximum Lifetime Benefit, an 81% increase

How does this Impact Illustrated Income?

Over $14,000 in additional funding capacity per year. Remember, all the testing that limits how much premium you can contribute “rolls” forward. By the 10th policy year there is a whopping $140,000 of additional funding capacity.

What’s in it for the Advisor?

As the face amount increases, so does the Target Premium. Using this consumer value packed approach increases Target Premium by 61%!

What Products Work with this Approach?

This strategy likely works with the majority of accumulation focused IUL and VUL products. Case design will be a manual process. Increasing the face amount from a maximum accumulation solve by 50% might be a good starting point.

Reach out to the AIN Member Services team at andrew@advantageinsurance.com for additional details.

ProdMod: Corebridge Increases Cap & Max Illustrated Rates on Multiple IUL Products

FROM COREBRIDGE…

As of January 21, 2023, we have increased our cap and max illustrated rates across all our new business Index Universal Life products. Winflex has been updated to provide illustrations that reflect these rate changes.

New Business Highlights
  • S&P 500 cap rates for Max Accumulator+ III and Value+ Protector III will increase by 1.00%
    • Max Accumulator+ III & Value+ Protector III cap rates are now even stronger at 11.50% and 10%, respectively
  • Max Illustrated Rate (MIR) will also improve:
    • 6.93% for Max Accumulator+ III
    • 6.24% for Value+ Protector III
  • Despite market volatility, participation rates will remain unchanged
Inforce Product Highlights
  • A mix of rate increases & decreases across inforce products
 
These changes will improve our competitiveness in the market and enhance illustrated performance.
 

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