AdminUpdate: Zurich’s New eApp Streamlines the Application Process

FROM ZURICH…

Today, for all states except New York, we are pleased to announce the launch of our e-application platform, designed to provide an innovative broker and client experience. This platform, powered by Porch Software, allows a broker to engage with a client online to seamlessly complete and electronically sign the application.

Platform Capabilities

  • Available for all Life Products
  • Accommodates Trust & Entity Owned Policies
  • Can handle cases with Multiple Owners
  • Replacements and 1035 Exchanges are no problem
  • All Supplemental Forms are included

For a broker to begin an e-application, they must be registered on life.zurichna.com. Once a broker is logged into life.zurichna.com, he or she will click Menu –> New Business/UW –> e-Application to get started.

Ready to roll Zurich’s eApp out to your advisors? Contact Andrew Clapp on the AIN Member Services Team to get started!

Andrew Clapp
Head of Wholesaling
andrew@advantageinsurance.com
714.782.0730

Find out more about these changes from Zurich…

ProdMod: New, Lower MoneyGuard Pricing Now Available

FROM LINCOLN FINANCIAL…

Effective Jan. 10, 2022, Lincoln Financial will be implementing pricing decreases to Lincoln MoneyGuard® III and LincolnMoneyGuard® II, which will improve competitive positioning while continuing to align the MoneyGuard solutions suite. There will be no pricing increases as a result of this update.

Pricing Improvements and Product Updates

  • Lincoln MoneyGuard III Pricing Improvements
    • 6-year LTC benefit duration with 3% inflation option design will see the following improvements:
      • Issue ages 55-65 will see a pricing decrease ranging from 9% to 17%.
      • Issue ages 45-54 will see a pricing decrease ranging from 4% to 16%.
    • 4-year LTC benefit duration with 3% inflation option design and 5-year LTC benefit duration with 3% inflation option design will see the following improvements:
      • All issue ages will see a pricing decrease ranging from 0% to 9%.
  • Lincoln MoneyGuard III Product Updates
    • Maximum flex pay period is now 10 years for all issue ages.
    • Elimination of the 7-year LTC duration with no Inflation design.
  • Lincoln MoneyGuard II Pricing Improvements
    • 6-year LTC benefit duration with 3% inflation option design will see a pricing decrease averaging 6%.
      • Pricing decrease will vary by issue age, gender and underwriting class ranging from 4% to 9%.
  • Lincoln MoneyGuard II Product Updates
    • Elimination of the 7-year LTC duration with no Inflation design.

Transition Guidelines

Pending firm approval, applications for Lincoln MoneyGuard® III (2021) – 01/10/22 and Lincoln MoneyGuard® II (2020) – 01/10/22 will be accepted beginning on Jan. 10, 2022.

  • For applications to qualify for the current MoneyGuard® III (2021) – 07/12/21 or MoneyGuard® II (2020) – 07/12/21 pricing, a projection of values and the completed Part 1 must be signed, dated, and received in-good-order by Lincoln’s home office by Friday, Feb. 11, 2022.
  • For pending or issued business on or after Jan. 10, 2022, Lincoln will accept requests with a revised projection of values to change to Lincoln MoneyGuard® III (2021) – 01/10/22 or Lincoln MoneyGuard® II (2020) – 01/10/22.
  • For placed business, normal internal replacement guidelines apply. Rewrites will not be accepted.

Find out more about these changes from Lincoln Financial…

ProdMod: Repriced IUL Flex from Principal Now Available!

FROM PRINCIPAL…

Principal Indexed Universal Life Flex IISM (IUL Flex II) has been repriced to meet Internal Revenue Code (IRC) Sec. 7702 guidelines and is available now in approved states. It offers cost-effective coverage and efficient cash value growth that can make it ideal for your business owner clients to fund key person protection, exit strategies, personal family protection, and more.

Enjoy the benefits of IUL Flex II

  • A simple, transparent design with no rate bonus or index multipliers
  • An optional Extended No-Lapse Guarantee Rider1 that offers greater than life expectancy guarantees for ages 50+
  • Early access to the death benefit for a chronic illness that’s available via an accelerated benefit rider—automatically added to qualifying policies at no additional cost

Additional Product Updates

As of Jan. 5, 2022, Principal Universal Life Provider EdgeSM is available for sale in the state of California. On Jan. 15, 2022, Principal Indexed Universal Life Flex II will be available for sale in the state of South Dakota.

Find out more about these changes from Principal…

ProdMod: Lincoln Releases New, Lower LifeElements and TermAccel Rates

FROM LINCOLN FINANCIAL…

Pricing Update: Lincoln LifeElements® Level Term & Lincoln TermAccel® Level Term

Effective Jan. 10, 2022, Lincoln is announcing pricing updates to Lincoln LifeElements® Level Term (2019) and Lincoln TermAccel®Level Term (2019) which will improve competitive positioning in key cells.

LifeElements

Pricing Updates

Goals of the reprice include being a “top 3 carrier” in the following non-tobacco, core cells for all term periods:

  • Face amounts of $1M+, currently top 3 for nearly all ages. A large majority of cells ages 40 and above are ranked #1
  • For face amounts of $500k – $999k, currently top 3 for almost all ages 55+
  • Premium updates include decreases only

Transition Guidelines

  • For states that are approved at rollout, there is a 30-day transition period which begins on Jan. 10, 2022 and ends on Feb. 9, 2022. 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) – 01/10/22 rates.
  • For policies already placed Lincoln will not allow rewrites to the Lincoln LifeElements® (2019) – 01/10/22 rates.
  • For states approved after rollout the above will automatically apply based on the availability date. Lincoln LifeElements® (2019) is not available in New York.

TermAccel

Pricing Updates

Goals of the reprice include being a “top 3 carrier” in the following non-tobacco, core cells for all term periods:

  • For face amounts of $500k and above, nearly all premiums are currently in the top 3, with a majority ranked #1
  • Premium updates include decreases only

Transition Guidelines

For states that are approved at rollout, there is a 30-day transition period which begins on Jan. 10, 2022 and ends on Feb. 9, 2022. 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) – 01/10/22 rates.
  • For policies already placed Lincoln will not allow rewrites to the Lincoln TermAccel® (2019) –01/10/22 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.

Click here to view Lincoln’s term state availability grid.

Find out more about these changes from Lincoln Financial…

ProdMod: Now Available – John Hancock’s New Protection SUL

FROM JOHN HANCOCK…

The best that life has to offer for two

Repriced to start the new year, Protection SUL continues to be an industry leader in providing affordable survivorship UL coverage. What’s more, that competitive pricing includes strong guarantees and John Hancock Vitality PLUS — adding up to standout value for your clients.

Our newly repriced Protection SUL offers:

  • Industry-leading premiums for level-pay, short-pay and single-pay scenarios
  • Strong no lapse guarantees with attractive cash value potential — especially compared to guaranteed SUL products
  • Significant savings and rewards for healthy living through Vitality PLUS
  • Enhanced target premiums, offering an additional 30% target on single-pay and other early funding scenarios

Transition Rules

  • Protection SUL ’19 Reprice is available for sale as of January 1, 2022.
  • Prior versions sunset in 2021, eliminating any additional transition period

Find out more about these changes from John Hancock…

ProdMod: Delayed! Cap Change Coming to Nationwide IUL Products

FROM NATIONWIDE…

Nationwide cap rate decrease delayed 2 months for new business: New effective date: March 15, 2022

Thank you for all the life applications you have submitted over the past few months. We appreciate your partnership and patience as we continue to process your clients’ applications.

Recently we announced a decrease to our IUL and VUL cap rates to take effect on January 15, 2022. To allow more time for pending policies to be put in force and receive the higher caps for their initial index segment(s) – the new cap rate changes will be delayed until March 15, 2022 for new business.

Please keep in mind

  • Two more sweep dates at higher rates. This extension provides the opportunity to receive the current higher cap rate for up to 2 sweep dates (January 15, 2022 and February 15, 2022). Any segments created on or after March 15, 2022, will receive the lower cap rates.
  • All illustrations run at the new, lower rates. No exceptions. The new cap and maximum illustrative rates are in the life illustration software and will not revert to the old rates for this 2-month delay. As a result, no illustrations can be run at the former (higher) cap and maximum illustrative rates – with no exceptions.
  • Older illustrations must match the offer. Illustrations ran prior to the rate update will be accepted as long as they match the offer.
  • Old and new cap rates. A listing of all cap rate changes is available in our illustration system or by following this link.

Important dates

  • February 15, 2022: Segments created on this date will be the last segments to receive the old cap rates.
  • March 15, 2022: Segments created on this date or later will receive the new cap rates.

The original January 15, 2022 effective date for the cap rate decreases will apply to the Nationwide YourLife® products that are no longer sold.

ProdMod: Principal Launches Updated VUL Income IV

FROM PRINCIPAL…

VUL Income IV offers clients protection with greater growth potential

This product has been repriced and meets current Internal Revenue Code 7702 guidelines. It has improved long-term accumulated value growth potential over the prior version. And it has features that provide flexibility and value for business solutions, including optional high early cash surrender values, early access to death benefit proceeds for chronic illness needs, and Change of Insured and Salary Increase riders. Some common sales opportunities include the following:

  • Helping business owners retain and retire key employees with solutions such as Bonus and SERP plans
  • Providing supplemental retirement income for the owner

Transition Rules

  • December 14, 2021: Last day applications can be received in our home office to receive original rates.\
  • December 15, 2021: New rates are available to illustrate I all approved states
  • Cases Pending on December 15, 2021:
    • All applications receive prior to December 15, 2021 will be issued with original rates, you may request new rates for these cases.
    • A new application is not required to receive new rates.
    • Policy backdating is permitted. The earliest policy date available is December 15, 2021

Find out more about these changes from Principal…

ProdMod: Principal Introduces the New SUL Provider

FROM PRINCIPAL…

SUL Provider offers affordable protection for two

With competitive premiums for coverage to age 121 on a current assumption basis and an optional no-lapse guarantee to age 100 of the younger insured, SUL Provider can be ideal for use in legacy and estate planning and business owner buy-sell situations. Plus, it has other features that make it an attractive option for insuring two individuals, including:

  • One insured can be an uninsurable risk—so even those with less-than-ideal health can get coverage.
  • It provides early access to death benefit values for the surviving insured to meet chronic or terminal illness needs.
  • It’s available as a conversion product for two Principal® Term policies (insureds of the term policies must match insureds of the survivorship policy).

Find out more about these changes from Principal…

AdminUpdate: Nationwide New Business Service Update

FROM NATIONWIDE…

Thank you for your continued patience as we continue to process the enormous influx of life applications due to the WA Cares Fund. We are making progress and will continue to do all we can to process Washington state applications as quickly as possible. This has included increasing personnel and working overtime. Below is an update; we’ve included some things you can do to help us move your applications along faster.

Applications received prior to our application deadline

We continue to work on processing applications received prior to our earlier deadlines (July 30, 2021, for applications not electronically submitted and Aug. 10, 2021, for digital applications). We are aiming to have these applications complete by Jan. 31, 2022. However, we cannot guarantee issue dates at this time.

As we stated in prior updates, Nationwide will issue these policies with an effective date of Oct. 28, 2021, while the proceeds will be applied on the issue date (or the date received if proceeds are received after the issue date).

  • NOTE: Nationwide cannot provide guidance as to whether policies with an effective date prior to Nov. 1, 2021, but not issued prior to Nov. 1, 2021, will satisfy the requirements of the WA Cares Fund. Please consult your tax professional.
  • Additional premium may be required.

Some applications have outstanding requirements. Please continue to monitor your applications for any outstanding requirements and submit them as soon as possible on the Life Pending Tracker.

For applications received after Nationwide’s cut off dates

Priority is being given to applications received prior to our deadlines (July 30, 2021, for applications not submitted electronically and Aug. 10, 2021 for digital applications). We continue to evaluate the situation, and we’ll begin work on this block of late applications as soon as we are able. However, we cannot provide any date guidance at this time.

Find out more about these changes from Nationwide…

ProdMod: Critical Update on Permanent Product Availability at Principal

FROM PRINCIPAL…

Update regarding IRC Sec. 7702 and nonforfeiture product changes

Previously, we communicated a change to Internal Revenue Code (IRC) Section 7702 that impacts all life insurance policies issued January 1, 2021 and later.

For consistency with the IRC Section 7702 updates, the maximum interest rate applicable under the Standard Nonforfeiture Law was adjusted, with changes required no later than Jan. 1, 2022. Any impacted product policy form must be filed and approved in each state. In those states where our nonforfeiture filing isn’t approved as of Dec. 31, 2021, the applicable product won’t be available for sale after that date and until the compliant version is approved.

As of Dec. 15, 2021, applicable products and states that haven’t been approved include:

  • Not Approved in California:
    • Principal Universal Life Provider Edge II
    • Principal Universal Life Flex III
    • Principal Indexed Universal Life Accumulation II
    • Principal Variable Universal Life Income IV
    • Principal Executive Variable Universal Life III
  • No States Approved:
    • Principal Indexed Universal Life Flex II

We’ll accept applications for the affected products for these states received in the Home Office by Dec. 31, 2021. Applications pending as of Dec. 31 will be issued as the applied for product, and the policy date must be no later than Dec. 28, 2021. We’ll communicate as approved versions of these products are available.