ProdMod: Nationwide announces pricing changes to their No-Lapse Guarantee UL II

FROM NATIONWIDE…

Nationwide has Extended the Funding Deadline for Pending NLG Cases on Prior/Old Pricing

  • Funding Deadline
    • Old: Friday, August 27, 2021
    • New: Sunday, October 31, 2021
  • Applications signed by June 13, 2021 and received by June 25, 2021 must be in force and funded, or in the case of 1035 exchanges requested, by October 31, 2021.

Full Message and Transition Details

Nationwide is committed to carefully managing our life product portfolio to remain the strong, stable carrier you can rely on. To keep this commitment – and in response to the extremely low interest rate environment and unprecedented volatility in the markets – we are repricing two of our No-Lapse Guarantee UL (NLG-UL) products and one version of the ENLG Rider. The reprice takes effect June 13, 2021 and applies to all new business for the following:

  • Nationwide No-Lapse Guarantee UL II
  • Nationwide No-Lapse Guarantee UL II (New York)
  • The Age 120 version of the ENLG Rider on Nationwide IUL Protector II 2020 – The Age 90 version of the ENLG Rider on this product will not be affected by this reprice.
Important dates
  • Application Signed Date Sunday, June 13, 2021
    • “In Good Order” applications must be signed by June 13, 2021 to receive the pre-June 14, 2021 (old) pricing. Applications signed after this date will receive the new pricing. A Policy Date of June 13, 2021 or prior will be applied to the policy once issued if the additional criteria below are met. These same rules apply to pending cases as well.
  • Application Received Date Friday, June 25, 2021
    • Applications signed by June 13, 2021 must be received at Nationwide no later than June 25, 2021 to receive the old pricing.
  • Funding Deadline
    • Old: Friday, August 27, 2021
    • New: Sunday, October 31, 2021
    • Applications signed by June 13, 2021 and received by June 25, 2021 must be in force and funded, or in the case of 1035 exchanges requested, by October 31, 2021.

ProdMod: Symetra announces updates to their COLI

FROM SYMETRA…

Symetra has stopped new sales of corporate owned life insurance (COLI) policies effective August 24, 2021. This is part of an ongoing strategic shift in our overall product portfolio. Existing COLI policies remain in-force, and there are no plans to make any changes to these policies at this time. Symetra will continue to serve these policyholders as before, and no action is necessary by the policyholder or you.

Symetra continues to offer a portfolio of life insurance and other financial products while serving a wide range of individual customers, groups and distribution partners. We value these relationships and remain committed to the individual life insurance business.

Find out more about these changes from Symetra…

ProdMod: OneAmerica Announces Changes to their Asset Care Portfolio

FROM ONEAMERICA…

We’ll be making two key changes to our Asset Care portfolio, effective Sept. 25, 2021, that will affect the single premium life products only. These actions are precipitated solely by the prolonged low interest rate environment, which has the largest impact on our single premium products. These changes will not affect any recurring or Continuation of Benefits (COB) premiums.

WHAT’S CHANGING

  • Adjusting the pricing of Care Solutions single premium whole life products; this change will apply to Asset Care Single Premium and Asset-Care I (California)
  • Reducing the annuity income rider bonus on our Annuity Funded Whole Life (AFWL) product from 20% to 10%
WHAT’S NOT CHANGING
  • Asset Care Recurring Premium
  •  Continuation of Benefits (COB)
  • Asset-Care III (CA)
  •  Asset-Care IV (CA)

7702 Updates for Asset Care and Asset-Care in California

Concurrently, we will implement changes required by the recent updates to 7702 federal tax code. The regulatory changes require a reduction in our non-forfeiture interest rate (cash value interest rate). These updates will also be effective Sept. 25, 2021, with the impacts as follows:

  • Asset Care (non-California): Changes have resulted in a slight increase to policy cash values with no impact to face amounts and long-term care benefit values.
  • Asset-Care in California: There will be a slight increase to cash values and little to no impact to the policy face amount and long-term care benefit values.

What you need to know: Transition rules

Sept. 24, 2021 will be the last day to submit Asset Care and Asset-Care I applications with the current single premium rates and the 20% AFWL bonus.

Despite these changes to a portion of our portfolio, we remain steadfast in our commitment to offering long-term care protection to your clients, with features such as optional lifetime benefits, joint benefits under a single policy, a variety of funding options and our personalized Care Benefit Concierge service to support clients and their families when a claim need arises.

AdminUpdate: Principal Shortens FA NIGO Resolution Window to 45 days

FROM PRINCIPAL…

Effective September 1, the normal 90-day resolution window for fixed deferred, indexed, and income annuity contracts that are not in good order (NIGO) will be shortened to 45 days. If issues with paperwork or missing information aren’t resolved within 45 days, the application will be canceled. This change does not impact variable annuities.

Once the paperwork is in good order, we’ll request transfer funds from the current carrier (if applicable). Transfers will still follow our standard timing of 90 days once the paperwork is in good order.

We’ll work diligently with you to quickly resolve any items that are not in good order within the 45-day window and to obtain funds from ceding carriers.

As a reminder, new applications for these products must be signed by September 30 and received in the Principal home office by October 15. These changes don’t apply to variable annuity applications.

Servicing existing fixed annuities

We recently announced our exit from retail fixed annuities and the evaluation of possible transactions for our in-force block. These types of transactions take time, and it’s too early to say what the administrative and servicing provisions will be as the result of any transaction. It’s possible that we could retain the customer service responsibility long-term. Until a decision has been made, there will be no changes to the administration of in-force fixed annuity business. You and your clients will continue to receive the same high level of service you’ve come to expect from Principal.

Find out more about these changes from Principal…

AdminUpdate: OneAmerica Removes COI Requirement for Most Cases

FROM ONEAMERICA…

Effective immediately, we will no longer require a Certificate of Insurability (COI) to be completed at policy delivery if premium is submitted with the application and the policy is issued standard or better. As long as the premium is submitted with the application, doesn’t have a substandard rating, and bound via a temporary insurance agreement (such as in Cash with App cases), no COI will be required.

Additionally, we will no longer require a COI to be completed prior to initiating a request of funds or 1035 exchange. This requirement is currently still populating in our application system but will be removed shortly. In the interim, our New Business team or your case manager will waive the requirement at app entry.

As always, a COI may still be requested at the discretion of our underwriters and will continue to be included in the policy delivery packet to be completed when premium is collected upon policy delivery.

Find out more about these changes from OneAmerica…

Lincoln Announces Limited Time Underwriting Program on VULOne Suite

FROM LINCOLN FINANCIAL…

Lincoln is committed to finding new ways to help our partners grow their business and reach new customers and we’re pleased to announce, effective immediately, Lincoln is offering an enhanced underwriting program to provide even more value with our suite of Lincoln VULOne product solutions.

Lincoln VULOne and SVULOne cases received at Lincoln October 1, 2021, and subject to full underwriting, will receive a one-class underwriting upgrade. Any case placed inforce prior to May 20, 2021 is not eligible.

  • Case submission guidelines & eligibility
    • New submissions must be received at Lincoln, in-good-order, by October 1, 2021
    • All cases eligible for the one-class underwriting upgrade must be placed inforce, or 1035 exchange initiated, by December 31, 2021
    • LincXpress ticket, eApp and traditional application submissions are eligible
    • Cases in a pending status as of May 20, 2021 are eligible
    • 1035 exchanges in process as of May 20, 2021 are eligible
  • Issue age/face amounts
    • Issue ages 20-80
    • All specified amounts
    • Subject to age/risk class guidelines based on product applied for
    • Both lives are eligible on SVULOne cases
    • Per current guidelines, backdating from age 81 to age 80 will not be permitted to qualify
  • Underwriting qualifications
    • Fully underwritten cases are eligible, subject to current underwriting guidelines
    • Substandard rated cases are eligible, subject to current underwriting guidelines
    • LincXpress lab-free cases are eligible
    • Underwritten internal exchanges are eligible
  • Exclusions: Not eligible for the enhanced underwriting program
    • Policies placed inforce prior to May 20, 2021
    • New submissions received at Lincoln after October 1, 2021
    • Cases assessed at standard through the Table Reduction Program (TRP)
    • The one-class underwriting upgrade cannot be used to be eligible for TRP consideration
    • Cases currently postponed under the COVID-19 temporary underwriting guidelines
    • Term Riders
    • Term Conversions

Find out more about these changes from Lincoln Financial…

Formal Announcement from Lincoln Financial

ProdMod: Lincoln Releases MoneyGuard Submission Deadline for WA

FROM LINCOLN FINANCIAL…

Lincoln’s Underwriting & New Business department is committed to helping your clients secure long-term care coverage in anticipation of the upcoming Washington state legislation guidelines regarding the Long-Term Services and Supports Trust Program.

Our focus is to ensure the maximum amount of your Lincoln MoneyGuard® cases in Washington are placed before the state’s deadline of November 1, 2021. We encourage you to submit any Washington cases as soon as possible. While we cannot guarantee placement by this date, the following guidelines and key dates should be followed to help you place inforce your case(s) before November 1.

Lincoln MoneyGuard application submission guidelines

  • Submit all applications by September 3, 2021 to increase the likelihood of placement before November 1. Utilizing Lincoln’s digital solutions, including eApp and ePolicy Delivery, will help to ensure cases are submitted in-good-order and delivered promptly after policy issue. Policies received after September 3 will be accepted and processed in the order in which they are received.
  • For your 1035 exchange cases, be mindful that the completion of the 1035 exchange is subject to losing carrier turn-around times, and funds must be received at Lincoln before policy placement.
Lincoln MoneyGuard placement guidelines
  • To help ensure policy placement before November 1, 2021, all placement-restrictive requirements, including all premium(s), must be received at Lincoln in-good-order by October 25, 2021.
  • Your dedicated MoneyGuard Underwriting & New Business team will be working to place your Washington cases inforce through end-of-day October 29, 2021. For cases in which any final requirements are received after October 25, processing will be handled on a firstin basis and are not guaranteed for placement by October 29.
Washington State Deadline
  • The state of Washington allows residents to apply for an exemption from the payroll tax for coverage placed in effect prior to November 1, 2021. Any business that is not placed inforce by October 29 will continue to be processed by Lincoln, however it will not qualify for exemption from the payroll tax assessment.

Find out more about these changes from Lincoln Financial…

ProdMod: OneAmerica Suspends All LTC sales in WA. 

FROM ONEAMERICA…

We have continued monitoring the risk environment created by the WA Cares Fund, and it is necessary to temporarily suspend sales of ALL OneAmerica® company products that meet the definition of long-term care in Washington state effective Aug. 14, 2021. In addition to Asset Care, communicated earlier this week, this suspension now includes Annuity Care, Annuity Care II, and Indexed Annuity Care.

New Business Submission Rules

  • Beginning Aug. 14, 2021, all asset-based LTC applications in Washington will no longer be accepted.
  • All eApp or paper applications must be received in the Home Office by close of business, 9:00 p.m. local time, Friday, Aug. 13, 2021.

Please note: Increased business volumes have delayed processing times on all WA cases. We cannot guarantee the current business in-house will be issued prior to the 11/1/2021 deadline for exemption from the WA Cares Fund.

To reiterate, OneAmerica is fully committed to the long-term care marketplace. We will communicate a future date for asset-based long-term care sales to resume in Washington to benefit our mutual clients.

Find out more about these changes from OneAmerica…

ProdMod: Transamerica suspends sales of LTC Riders on FFIUL polices in WA

FROM TRANSAMERICA…

After August 16, 2021, Transamerica will not accept applications for Financial Foundation Index Universal Life (FFIUL) policies that include a Long Term Care (LTC) rider in the state of Washington. No exceptions will be made. For any business submitted after August 16th, we will do our best to communicate with you the options available to your client.

Transition Rules

  • This does not impact existing business, including future reinstatements
  • In order to process, we must receive both paper and iGo applications for FFIUL with LTC rider policies “in good order” before midnight CT, on August 16th
  • Any application already received before the deadline and in process will continue through underwriting and new business review
  • Some administrative systems may take longer to update with this information. Your patience is appreciated.

Find out more about these changes from Transamerica…

  • Formal Announcement from Transamerica

ProdMod: Lincoln Financial Launches Updated Term Prices

FROM LINCOLN FINANCIAL…

Effective August 16, 2021, Lincoln is announcing pricing updates to Lincoln TermAccel®Level Term (2019) and Lincoln LifeElements® Level Term (2019) which will improve competitive positioning in key cells.

Pricing Update: Lincoln TermAccel® Level Term (2019) – 08/16/21

Pricing Updates

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

  • Face amounts of $500K – $1M, premiums are in the top 3 for most ages 40 – 60
  • Face amounts of $1M, premiums are ranked #1 for a large majority of ages 45 – 60
  • Pricing updates include decreases only

Transition Guidelines

For states that are approved at rollout, there is a 30-day transition period which begins on August 16, 2021 and ends on September 15, 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) – 08/16/21 rates.
  • For policies already placed Lincoln will not allow rewrites to the Lincoln TermAccel® (2019) – 08/16/21 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.

Marketing Materials

All impacted materials have been updated and made available on the Lincoln ProducerWebsites

Pricing Update: Lincoln LifeElements® Level Term (2019) – 08/16/21

Pricing Updates

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

  • Face amounts of $500K – $999K, premiums are in the top 3 for almost all ages 55 and above
  • Face amounts of $1M and above:
    • Ages 30 and above, premiums are in the top 3 for most cells
    • Ages 45 and above, premiums are ranked #1 for a large majority of cells
  • Pricing updates include decreases only

Transition Guidelines

For states that are approved at rollout, there is a 30-day transition period which begins on August 16, 2021 and ends on September 15, 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) –  08/16/21 rates.
  • For policies already placed Lincoln will not allow rewrites to the Lincoln LifeElements® (2019) – 08/16/21 rates.
  • For states approved after rollout the above will automatically apply based on the availability date.

Marketing Materials

All impacted materials have been updated and made available on the Lincoln ProducerWebsites.

Find out more about these changes from Lincoln Financial…