ProdMod: Transamerica Launches Updated Financial Foundation IUL

FROM TRANSAMERICA…

FFIUL Just Keeps Getting Better

Effective December 4, 2021, Transamerica Financial Foundation IUL® (FFIUL) may be an even more attractive option for your agents and their clients. From lower charges and fees to expanded coverage, FFIUL features several exciting enhancements we think you and your agents are going to love:

  • Reduced Per Unit Charges (PUC) – New lower PUC in all cells for bands 2, 3, and 4 mean many new policies with a face amount of $100,000 and above are now even more competitively priced.
  • 30% Lower Minimum No-Lapse Premiums – Requires less premium to guarantee the policy stays in force if your client’s financial circumstances change.
  • Higher Funding Limits – Transamerica’s illustration and administrative systems have been updated to reflect new regulatory interest rates under the 7702 & 7702A guidelines.
  • Expanded LTC Coverage:
    • LTC International Coverage Benefit – FFIUL policyholders in the U.S. with the LTC Rider, who incur qualified LTC expenses at an international long term care facility outside the U.S., District of Columbia, and Canada, can now file an LTC claim.
    • LTC Informal Care – The Long Term Care Rider now allows clients to pay family members, friends, or even neighbors for providing care as outlined in the plan of care.

Transition Rules

  • All applications submitted on or after December 4, 2021, will reflect new repricing and new plan codes.
  • In-flight applications (submitted prior to December 4, 2021)
    • Cases issued on or after December 4, 2021, will get the new plan codes, repricing, and illustration.
    • Cases issued or printed prior to December 4, 2021, will have old rates and plan codes.

Find out more about these changes from Transamerica…

ProdMod: North American Introduces Smart Builder IUL 2

FROM NORTH AMERICAN…

North American is pleased to announce a new Indexed Universal Life (IUL) insurance product available November 22, 2021. Smart Builder 2 is designed for death benefit protection and the potential for strong early cash surrender values through a 0% premium load and optional Waiver of Surrender Charge (WOSC) Option Rider.

Smart Builder 2 highlights:

  • Death benefit protection
  • Includes new 7702 and 7702A calculations for Guideline Premium Test, Cash Value Accumulation Test, and what qualifies as a Modified Endowment Contract
  • 0% premium load
  • 0% surrender charge when the WOSC Option Rider is selected*
  • Surrender charge period is 10 years
  • Strong early cash value performance
  • Accelerated death benefit endorsement for critical, chronic, and terminal illness1
  • Variable interest rate policy loans allowed in policy year one2
  • 10% of the surrender value is available for a penalty free withdrawal beginning in policy year two

Transition Rules

Electronic Applications

  • As of December 15, 2021, the previous version of Smart Builder will no longer be available in SimpleSubmit®.
  • Electronic applications for the previous version of Smart Builder must be signed by all parties and submitted by December 14, 2021.

Paper Applications

  • To receive the previous version of Smart Builder, the application must clearly indicate that product, be signed by December 14, 2021, AND received by December 27, 2021.
  • Paper applications signed November 22, 2021, and after that do not specify which series is wanted, will automatically receive Smart Builder 2.
  • All applications received December 28, 2021, and after will automatically receive Smart Builder 2, regardless of what is requested on the application.

Current pending business

  • Existing applications that are currently being processed in New Business or Policy Change but have not yet been placed inforce can be changed to Smart Builder 2.
  • To change an existing case to Smart Builder 2, a new fully completed application that is dated November 22, 2021, or later, will be required.

Find out more about these changes from North American…

ProdMod: Symetra Launches New Accumulation VUL Product

FROM SYMETRA…

Our new variable universal life (VUL) product continues our tradition of simplicity, transparency and cost efficiency.

Accumulator VUL is a straightforward, client-friendly VUL offering death benefit protection and the potential to help build wealth for future goals.

Features and riders include:

  • Subaccounts are managed by professional money managers, each with a focus on specific investment objectives or that track and attempt to replicate the performance of specific market indexes.
  • Optional Waiver of Monthly Deductions Rider can help clients if they are totally disabled and unable to work.
  • Embedded Overloan Lapse Protection Rider and No-Lapse Guarantee feature for advanced planning situations.
  • Embedded Accelerated Death Benefit for Chronic Illness and Terminal Illness Riders and an optional Accelerated Death Benefit for Chronic Illness Plus Rider.
  • Optional Charitable Giving Benefit Rider provides an additional benefit to the qualified charity of your client’s choice.
  • Optional Surrender Value Enhancement and Supplemental Protection Riders, which can add design flexibility in complex cases.

Find out more about these changes from Symetra…

ProdMod: Prudential Announces Retirement of Term Elite

FROM PRUDENTIAL…

Term Elite Is Retiring Effective November 22, 2021

In order to focus on the strength of our core term solutions, the Term Elite product will be discontinued as of November 22, 2021. Please note important dates to consider in relation to the retirement of Term Elite:

  • Monday, November 22, 2021
    • Retirement Date
    • Last day application can be signed and accepted
  • Sunday, November 28, 2021
    • Retirement Grace Period End Date
    • Date when paper app can be received in the Home Office (app must be signed by retirement date)
  • Friday, January 21, 2022
    • Placement End Date Policy placed

Find out more about these changes from Prudential…

ProdMod: Lincoln Announces Term Reprice in Key Cells

FROM LINCOLN FINANCIAL…

Effective Nov. 15, 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.

TermAccel Details

Lincoln TermAccel® life insurance offers an entirely electronic, streamlined interview process with fully automated underwriting and no APS requirement. 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, ages 40 – 60, nearly all premiums are in the top 3
  • At $500k and above, all ages, nearly all premiums are in the top 5
  • For face amounts of $1M, a large majority of cells ages 45 – 60 are 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 Nov. 15, 2021 and ends on Dec. 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) – 11/15/21 rates.
  • For policies already placed Lincoln will not allow rewrites to the Lincoln TermAccel® (2019) –11/15/21 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.

LifeElements Details

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. 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 most ages 30+
  • A large majority of cells ages 45 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 Nov. 15, 2021 and ends on Dec. 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) – 11/15/21 rates.
  • For policies already placed Lincoln will not allow rewrites to the Lincoln LifeElements® (2019) –11/15/21 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.

Find out more about these changes from Lincoln Financial…

ProdMod: Sagicor’s Milestone MYGA 6 Now Available in More States

FROM SAGICOR…

Milestone MYGA 6 available in DC, DE, FL, ND, and SD starting November 13th

This is great news for clients who want to lock in a 6-year guaranteed rate of interest — with no exposure to market risk. Milestone MYGA offers clients a choice of competitive interest crediting for 3, 4, 5, 6 and 7 years, plus:

  • 10% penalty-free withdrawals beginning contract-year two
  • Issue availability to age 90
  • Full account value payable at death

Find out more about these changes from Sagicor…

ProdMod: Principal Announces Term Price Decrease

FROM PRINCIPAL…

Term Insurance: A simple option to help meet a range of protection needs

Now, new premium rates make coverage even more attractive. Effective, Nov. 1, 2021, new rates are available for Principal® 10-, 15-, 20-, and 30-Year Term.

Key things to know about the reprice

  • Level term rates are lower at many ages and risk classes. (Principal® GI Term and Principal® One-Year Term rates are unchanged.)
  • New rates are approved in all states and available to quote now.

Transition Guidelines

  • November 1, 2021
    • New Term 11/21 rates are available to sell and quote
    • We’ll except applications for original rates until December 1, 2021
    • Term applications in underwriting will be issued at rates applied for unless 11/21 rates are requested.
  • December 2, 2021
    • All applications received in the home office on or after this date will be issued with 11/21 rates

Find out more about these changes from Principal…

ProdMod: North American Announces Sunset of Classic Term

FROM NORTH AMERICAN…

Effective November 20, 2021, Classic Term will be removed from North American’s product portfolio. Although this product will no longer be available, we encourage you to review North American’s ADDvantage® Term to meet your client’s term life insurance needs.

Important Dates: Electronic Applications (Classic Term submission is only available via e-app)

As of November 20, 2021, Classic Term will no longer be available in SimpleSubmit® e-app or Web-Based Illustrations. Electronic applications for the Classic Term must be locked, submitted, and signed by all parties by November 19, 2021.

If an e-app for Classic Term is signed and/or received November 20, 2021, or after, it will not be coded. The MGA will be notified of the details of the application so the MGA can contact the writing agent to determine if their client is interested in applying for a different product.

Find out more about these changes from North American…

ProdMod: Understanding the Impact of the 7702 Transition on New York Life Whole Life Products

FROM NEW YORK LIFE…

We are excited to announce the introduction of New York Life’s AD121 Whole Life product suite. The new product suite will be available in all jurisdictions with an application Part I date of November 6, 2021 or later. AD121 Whole Life, Custom Whole Life, Custom Survivorship Whole Life, and Option to Purchase Paid-Up Additions Rider have been re-priced to reflect the current interest rate environment and to be compliant with updates made to Internal Revenue Code Section 7702 and nonforfeiture law. AD121 products are available to be Illustrated in NYLIS.

Overview of Product Changes

Whereas our current AD117 & AD119 Whole Life products in market use a 4% guaranteed cash value interest rate, AD121 Whole Life (WL), Custom Whole Life (CWL), Custom Survivorship Whole Life (CSWL), and the Option to Purchase Paid Up Additions (OPP) rider were re-priced using a 3% rate ensuring its continued compliance beyond 2021. As a result of this re-price, the following changes can be expected with AD121 products:

  • Modest premium increases at most issue ages on AD121 WL with more material premium increases across AD121 CWL and CSWL.
  • Increased early duration guaranteed cash values across AD121 products. Long-term, non-guaranteed cash value performance varies by product. Further details are outlined in each product section below.
  • Higher Modified Endowment Contract (MEC) limits allowing increased optionality and flexibility with case designs.
  • Variable Loan Interest Rate (VLIR) will have a minimum rate of 4.0% on AD121 products compared to 5.0% on in-market versions of the products.
  • OPP expense charge is lowered to 5% (currently 12%) for all Standard or better risk classes.

These are just a few of the highlights! For a more thorough summary of the impact of the transition to new 7702 interest rates, including expected performance changes, please see the formal announcement from New York Life.

Find out more about these changes from New York Life…

ProdMod: John Hancock Announces Protection SUL Reprice

FROM JOHN HANCOCK…

John Hancock offers several survivorship life insurance products and — as a pioneer and leader in this market — we remain committed to ensuring our customers have a variety of survivorship solutions to help meet their protection and estate-planning needs. To that end, we are making some changes to our Protection SUL offering:

  • In early 2022 (pending state approvals), we will be introducing a repriced Protection SUL product (PSUL’19R).
  • Protection SUL ’19 will no longer be available for sale effective January 1, 2022. As a result, all Protection SUL ‘19 policies must be issued and in force by December 31, 2021. Therefore, please note that we must receive any Protection SUL ’19 submissions by the dates noted below to ensure the policy can be placed in force (with initial premium paid) by December 31, 2021.

Important Deadlines

  • December 10, 2021: Submission of all outstanding underwriting and administrative requirements on your pending cases to Life New Business.
  • December 21, 2021: All checks to put policies in force received in Life New Business.

Find out more about these changes from John Hancock…