AdminUpdate: Securian Launches Online Part 2 for eApp Process

FROM SECURIAN FINANCIAL…

eApp upgrade going live October 30

In case you missed it, Securian Financial will be upgrading our life insurance eApp at the end of the month to offer client collaboration. Starting on October 30, 2021, eApp will have the option for clients to complete parts of the eApp, including their underwriting questionnaire (part 2), allowing them to answer medical questions without having to go through a tele-interview.

Additional Details

  • The Client Collaboration is only available on full eApplications. Keep in mind these instances where a phone interview will still be required:
  • SecureCare Cases
  • Applications taken in New York or for New York products
  • Drop Ticket
  • If the proposed insured and owner are different

Find out more about these changes from Securian Financial…

ProdMod: Securian Announces 7702 Transition for SecureCare

FROM SECURIAN FINANCIAL…

Effective November 1, 2021, the guaranteed interest rate on new SecureCare Universal Life (SecureCare UL) applications will be updated to comply with the Consolidated Appropriations Act of 2021, which lowers the interest rate assumptions used in Section 7702 of the Internal Revenue Code.

How will these changes impact SecureCare UL benefits?

  • Long-term care (LTC) benefits: The new guaranteed interest rate will have no impact on the LTC benefit pool. Regardless of whether an applicant receives the old or new guaranteed interest rate, the amount of LTC coverage they receive will be the same.
  • Death benefit: The change to the guaranteed interest rate reduces the minimum required death benefit factors used in the Cash Value Accumulation Test (CVAT). While some plan designs are not affected by these changes, this can result in lower death benefit amounts for some SecureCare UL policies in the corridor:
    • Generally, single-pay policies impacted by the 7702 changes will see a death benefit reduction immediately, while impacted multi-pay policies will see a reduction towards the end of the premium payment schedule.
    • If a policy’s death benefit amount is impacted by the 7702 changes, the difference between the old guaranteed interest rate’s death benefit and new guaranteed interest rate’s death benefit diminishes over time until they eventually match up.
  • Cash surrender value: Some policies may see a slight increase in the cash surrender value. However, some plan designs are not affected by the changes.

Transition Rules

  • Friday, October 29, 2021 – Applications must be signed, in good order and received by Securian Financial before end of business on October 29, 2021 to be eligible for the old guaranteed interest rate. Applications received after October 29, 2021 will receive the new guaranteed interest rate
  • Monday, November 1, 2021 – The new guaranteed interest rate will be available in the illustration software.
  • Friday, December 31, 2021 – Policy issuance and funding deadline to receive the old guaranteed interest rate
    • Applications received no later than October 29, 2021 must be approved, issued and paid before January 1, 2022 per The Consolidated Appropriations Act. If the policy is not approved, issued and paid by December 31, 2021, the policy will be reissued with the new guaranteed interest rate. This is a regulatory requirement, and NO EXCEPTIONS will be made.
    • Applications received after October 29, 2021 will receive the new guaranteed interest rate even if they are approved and paid by December 31, 2021. No exceptions will be made.

Find out more about these changes from Securian Financial…

AdminUpdate: Securian Suspends Premium Finance Business for Balance of 2021

FROM SECURIAN FINANCIAL…

New Premium Finance Cases on Hold until 2022

Securian Financial has reached premium finance capacity limits for 2021. Effective immediately, we will not accept new premium finance cases for placement consideration in 2021.

Please note the following:

  • Proposed Insureds already reviewed and allowed to proceed to underwriting bu the Premium Financing Committee may still submit formal applications for placement consideration the year,
  • Proposed insureds with a Premium Financing Pre-Application Request submitted prior to or in conjunction with the submission o the application, but not yet reviewed but egg Premium Financing Committee, will be evaluated on a case-by-case basis for placement consideration this year. Please engage your Securian Financial Sales Team on these cases to facilitate proper consideration for placement this year.

We appreciate your business and know we remain committed to the Premium Financing market. New premium financing case will again be considered for placement starting in January 2022.

Find out more about these changes from Securian Financial…

Formal Announcement from Securian Financial

Securian Launches Unique “Web Companion” for IUL Illustrations

FROM SECURIAN…

Engage your clients through an online experience

What if every illustration included a web-based client presentation? At Securian Financial, we are doing just that on all Eclipse Accumulator Indexed Universal Life (IUL) illustrations. This unique, customized website pulls up all the tools you need with the click of a button (or scan of your phone) and paves the way to making doing business easy.

Plus, your clients can access the webpage to learn more about the product and general life insurance information, and find out about Securian Financial and how to apply.

Take a tour by checking out our sample website. Or create an illustration and scan the QR code or click the link on the cover page.

Find out more about these changes from Securian…

ProdMod: Securian Suspends SecureCare Sales in Washington State

FROM SECURIAN…

In response to new long-term care legislation in the state of Washington, effective August 6, 2021, we are suspending sales of our SecureCare Universal Life (UL) product to residents of Washington state.

Here’s what you need to know:

  • Applications received by end of business day August 6, 2021, will be processed as normal.
  • All currently pending SecureCare applications will be processed as normal.
  • Any new applications received from residents of the state of Washington after August 6, 2021, will not be accepted. No exceptions will be made.

We anticipate resuming sales of SecureCare to residents of Washington state in November 2021.

Find out more about these changes from Securian…

AdminUpdate: Securian Announces Additional Easing of COVID Guidelines

FROM SECURIAN…

Changes to COVID-19 participation guidelines

Securian Financial remains focused on delivering high levels of service, helping customers with their insurance needs, and maintaining the company’s financial strength. Your support in delivering on this focus has provided valuable insights to best navigate the unpredictable nature of a pandemic while addressing the additional risks it presents.

Since these participation limits were implemented, our promise has been to actively review these guidelines. Along the way, we have delivered on a request for transparency to enable you to make the best decisions for your customers. While not yet at the final stage in our journey, we are taking another significant step forward and remain committed to an intentional and disciplined path to easing all limitations.

We are pleased to announce the following changes to the temporary COVID-19 participation guidelines effective July 1, 2021:

  • Removing rate class restrictions for applicants up to age 60
  • Allowing up to table D for applicants age 61 – 70
  • Expanding maximum issue age to 80 for standard or better risks
  • Returning SecureCare Universal Life mortality to table D
  • Write Fit1 expansion to $3,000,000 for applicants age 18 – 50 will be permanent.
All other participation guidelines, including money not being accepted with new applications and temporary insurance agreements not being available, continue until September 30, 2021.
Find out more about these changes from Securian…

ProdMod: Securian Announces Changes to In Force IUL and VUL Policies

FROM SECURIAN FINANCIAL…

Interest-related policy changes coming in August

The ongoing low interest rate environment makes it necessary to effect changes that will impact inforce Indexed Universal Life (IUL) and Variable Universal Life (VUL) policyholders. Effective August 1, 2021, the following changes will be made:

  • Index Credit Bonus – Indexed UL policies issued in 2019 and prior: These policies have an index credit bonus in policy years 11+ that is reduced by 10% from current levels. The applicable products are: Eclipse IUL, Eclipse Protector IUL, Eclipse Survivor IUL, Eclipse Survivor Pro IUL, Omega Builder IUL & Orion IUL.
  • Income Protection Agreement (IPA) and Income Protection Flex Agreement (IPA Flex): The interest rate associated with these agreements is being modified from a single rate for all installment periods to a rate that varies based upon the duration of installment period chosen by the policyholder. The applicable interest rate in all instances will be less than the current interest rate associated with these agreements. Please note that we will be sending communication to policyholders who have IPA or IPA Flex with their policy. These letters will be mailed starting later this month and continue over the balance of the quarter.

Our inforce illustration system will be updated when these changes take effect on August 1. The Inforce Case Design Team will respond to illustration requests received in advance of August 1; however, turnaround times may be extended.

Find out more about these changes from Securian Financial…

ProdMod: Securian Releases Section 7702 Implementation Details

FROM SECURIAN FINANCIAL…

With the passage of the Consolidated Appropriations Act of 2021 on December 27, 2020, a change was made to Section 7702 of the Internal Revenue Code. This change outlined several requirements permanent life insurance policies must meet in order to qualify as a life insurance contract for tax purposes.

What you need to know

The 7702 changes apply to new business starting January 1, 2021. Our illustration system will be updated May 3, 2021, to reflect these standards. New 7702 premium limits will apply to applications received after April 30, 2021, on the following products:

  • Eclipse Accumulator Indexed Universal Life (IUL)
  • Eclipse Protector II IUL
  • Eclipse Survivor II IUL
  • Premier Variable Universal Life (VUL)
  • Eclipse NY
  • VUL Defender

Pricing changes

Effective May 1, 2021, pricing changes for the following products will be made in combination with the 7702 updates:

  • Eclipse Accumulator IUL
  • Eclipse Survivor II IUL
  • Premier VUL

Please note (if applicable): Products currently sold but not listed above will be updated to comply with 7702 at a later date. Additional communication and details to follow.

Only policies dated January 1, 2021, and later are eligible for the new 7702 premium limits. Changes to contracts dated January 1-April 30, 2021, may be made beginning in July 2021. More information will follow as that date approaches. Pending policies will have the option to move to the new 7702 premium limits or remain as currently illustrated.

Transition Rules

7702 changes

  • Friday, April 30, 3 p.m., CST — Applications received after this time will be issued with the new 7702 premium limits.
  • Monday, May 3 — Updated illustrations will be available.
  • Friday, July 2, 3 p.m., CST — Pending cases that were received prior to May 1 that are requesting the old 7702 premium limits must be underwritten, approved, paid and delivered (delivery receipt signed) by this date with a signed illustration run no later than July 2.
  • Cases that have not completed the above requirements by this time will be issued under the new 7702 premium limits and will require a new, signed 7702 compliant illustration. This is a regulatory requirement, and NO EXCEPTIONS will be made.

Guaranteed Income Agreement (GIA)

  • This agreement will be discontinued May 1, as it is not available for contracts using the new 7702 premium limits.
  • Friday, October 1, 3 p.m., CST — Deadline to add this agreement to an existing contract sold under the old 7702 premium limits. All requirements must be completed by this date.

Pricing changes

  • Friday, April 30, 3 p.m., CST — Applications received after this time will be issued with the new pricing.
  • Monday, May 3 — Updated illustrations will be available.
  • Friday, July 2, 3 p.m., CST — Pending cases received prior to May 1 that want to receive the old pricing must be underwritten, approved, paid and delivered (delivery receipt signed) by this date with a signed illustration run no later than July 2.
  • Cases that have not completed the above requirements by this time will be issued under the new pricing and will require a new, signed illustration.

Find out more about these changes from Securian Financial…

AdminUpdate: Securian Eases COVID-based Underwriting Restrictions

FROM SECURIAN FINANCIAL…

Changes to COVID-19 participation guidelines

Securian Financial remains focused on delivering high levels of service, helping customers with their insurance needs and maintaining the company’s financial strength. Your support in delivering on this focus has provided valuable insights to best navigate the unpredictable nature of a pandemic while addressing the additional risks it presents.

Since these participation limits were implemented one year ago, our promise has been to actively review these guidelines. Along the way, we have delivered on a request for transparency to enable you to make the best decisions for your clients. While not yet at the final stage in our journey, we are taking another step forward and remain committed to an intentional and disciplined path to easing all restrictions.

We are pleased to announce the following changes to the temporary COVID-19 participation guidelines effective April 1, 2021:

  • Expanding the issuance of single life applicants at the following ages:
    • Insurance ages 61–75, allow table B (150%) or better
    • Insurance ages 51–60, allow table D (200%) or better
  • Expanding the issuance of joint life applicants to allow up to table B (150%) for the better rated insured.

Our Write Fit expansion to $3,000,000 for applicants ages 18-50 will continue.

All other participation guidelines, including money not being accepted with new applications and temporary insurance agreements not being available, continue until June 30, 2021.

Find out more about these changes from Securian Financial…

ProdMod: Securian Financial Announces IUL Cap Reduction

FROM SECURIAN FINANCIAL…

Due to the continuing economic impact of the COVID-19 pandemic, it is necessary to reduce cap rates and participation rates on some of the accounts within our Indexed Universal Life product portfolio.

  • These changes will take effect for all premium received and new indexed segments created after Friday, January 15, 2021.
  • All premium received on or before January 15 for approved and existing policies will have current rates applied. Illustrations will be updated January 15, 2021.
PLEASE SEE THE FORMAL ANNOUNCEMENT FROM SECURIAN FINANCIAL FOR THE NEW CAPS AND OTHER RATES

Find out more about these changes from Securian Financial…