7702 – Product changes and transition rules

7702 changes Background 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 The change affects the life insurance industry by replacing the statutory interest rate assumptions (from 1984) from a previously hard-coded 4% rate to a floating rate. These changes will impact the limits associated with definitions of life insurance in the Guideline Premium Test, Cash Value Accumulation Test and
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Categories: Industry News, Life Insurance, and Securian.

Securian: maximize your client’s LTC benefit pool

Pro tip: maximize your client’s LTC benefit pool When you’re trying to find the best LTC product for a client, there’s often a temptation to do an apples-to-apples comparison between different carriers. But when you design a SecureCare Universal Life policy to match a competitor’s, you may miss out on the sweet spots. SecureCare tends to offer clients the most value when it uses an even-year benefit duration – and our 6-year benefit duration does the best from there. Just to give you an idea, here’s a hypothetical example for a 62 y/o male (NT, single) showing a $100K single-pay
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Categories: Industry News, Life Insurance, and Securian.

Simplified Issue Life: Weekly Time Service Update

From the Desk of Marty Johnson Mutual of Omaha would like to thank you for your business! We are very appreciative of the amount of business we have received, and continue to receive, due to your commitment and partnership. Due to the unprecedented volume of new business, our Simplified Issue Life Underwriting team is experiencing delays in time service. However, we remain committed to providing you the quality service you have come to expect. To accommodate this, we are increasing our staff and working overtime on nights and weekends to ensure your business is handled properly, and as quickly as
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Categories: Industry News, Life Insurance, and Mutual of Omaha (& Affiliates).

IUL Cost Comparison Flyer: New Carriers Added

Our IUL Cost Comparison Flyer has been updated with additional carriers! Why is the information on this flyer so important? When it comes to indexed universal life (IUL) products, it can seem like all products use the same general design which makes it tempting to choose a product based on which illustrates best. However, when you look closer at each product illustration, you’ll start to notice some important differences you and your clients should be aware of. These differences are in the product’s charge structure and in the value-added features the products come with. In our newly updated Cost Comparison
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Categories: Industry News, Life Insurance, and Mutual of Omaha (& Affiliates).

AM Best upgrades GWIC’s rating to A (Excellent)

AM Best upgrades GWIC’s rating to A (Excellent) AM Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) of American Enterprise Group’s six insurance company subsidiaries. These subsidiaries operate under the brands of American Republic®, Medico®, and Great Western Insurance Company (GWIC®). With the upgrade, the outlook of these Credit Ratings has been revised to stable from positive. As an independent, non-government company, AM Best does not recommend products or services but does provide independent opinions of a company’s overall financial strength. For the latest ratings, access www.ambest.com. Read press release     #goldencareagent #gwic #greatwestern
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Categories: Great Western, Industry News, and Life Insurance.

Ease Your Client’s Worries with Living Promise

Living Promise Whole Life Insurance is designed to help provide affordable protection that pays benefits directly to the person you choose to take care of your outstanding medical bills, unexpected expenses or debt that you may leave behind. Leaving you with nothing to worry about when you’re gone. Product Features Competitive premiums Simplified underwriting — no medical exam, coverage is based on answers to a few simple health questions Two coverage choices: Level Benefit Plan Policy issue ages: 45 – 85 Benefit amounts: $2,000 – $40,000 (in WA, $5,000 – $40,000) Accelerated Death Benefit for Terminal Illness or Nursing Home
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Categories: Industry News, Life Insurance, and Mutual of Omaha (& Affiliates).

United of Omaha Children’s Whole Life Reprice

Effective April 1, 2021, we will be implementing rate adjustments to Children’s Whole Life. While we will be making small rate increases, Children’s Whole Life will remain an affordable and competitive express policy that allows clients to lock in low premiums and future insurability throughout the lifetime of their child or grandchild. Transition Rules The new Children’s Whole Life pricing will go into effect April 1, 2021 in all states. Applications signed prior to April 1, 2021 will receive the old pricing, regardless of the policy effective date. Applications signed on or after April 1, 2021 will receive the new
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Categories: Industry News, Life Insurance, and Mutual of Omaha (& Affiliates).

Simplified Issue Life: Weekly Time Service Update

From the Desk of Marty Johnson First, and foremost, Mutual of Omaha would like to thank you for your business. We are very appreciative of the amount of business we have received, and continue to receive, due to your commitment and partnership. Due to unprecedented volumes of new business, our Simplified Issue Life Underwriting team is experiencing delays in time service. However, we remain committed to providing you the quality service you have come to expect. To accommodate this, we are increasing our staff and working overtime on nights and weekends to ensure your business is handled properly, and as
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Categories: Industry News, Life Insurance, and Mutual of Omaha (& Affiliates).

Attention Agents Selling Heritage Plan Whole Life

Heritage Whole Life Update Social Security Drafting Information When selecting Social Security Drafting for GTL’s new Heritage Plan Whole Life Product, if approval date is after the selected draft option, please select an effective date for the policy to be the 1st of the following month in order to have the draft occur on the next expected Social Security payment date. Example 1 The client wants a July 1st effective date and a 2nd Wednesday drafting is requested. ► The first policy draft will occur on Wednesday, July 10th. Example 2 If the policy is effective July 15th and a
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Categories: Guarantee Trust Life, Industry News, and Life Insurance.