Additionally, effective November 1, 2022, the interest rate on the Premium Deposit Agreement in the Premium Deposit Account will change from 2.00% to 2.50%. This applies to new premium deposits paid into an existing Premium Deposit Agreement and new Premium Deposit Agreements established at policy issue.
Which Products will Receive Increased Cap & Par Rates?
- Builder Plus IUL 3, Builder Plus 2, Builder Plus
- Rapid Builder 4, Rapid Builder 3, Rapid Builder 2
- Builder 8, Builder 7
Effective for index periods that start on/after November 1, 2022.
PDA Transition Details
- Policies that are issued with a Premium Deposit Agreement on October 31, 2022 or prior that are not placed inforce by October 31, 2022, will need to be reissued to reflect the new interest rate. This reissue of a full policy (either paper or eDelivery, will match how it was issued originally) will take place the week of October 31, 2022.
- New Business and/or Policy Change will notify you if you have a case that needs to be reissued.
- Applications that are still pending or not yet issued will automatically get the new rate as long as they are issued on or after November 1, 2022.
- Between October 20, 2022 and October 31, 2022, New Business and Policy Change will ensure all cases with a Premium Deposit Agreement are only issued per instruction from the agent, otherwise they will be held up from issue until November 1, 2022 so the new interest rate will be received.
Find out more about these changes from North American…
- Formal Announcement from North American
- Cap & Par Rate Percentage Increases
- Increased PDA Rate Transition Details