IUL Participation Rate and Cap Rate Changes

Effective November 10, 2019, we will be making changes to our participation rates and cap rates on our Income Advantage IUL and Life Protection Advantage IUL products. The slight decreases to the rates come as a result of the current rate environment and the increased market volatility, which causes an increase in options costs.

These rate changes will apply to newly issued policies, as well as to any in force policies with a segment that is created (with new premium dollars) or renews on November 10th. With the sweep feature, all money received in the home office on or before October 10th will receive the current participation rates and caps for the coming segment year. Any money received after October 10th will be swept into the November 10th bucket which will receive the new participation rates and caps.

Summary of the changes:

  • 100% Participation Strategy: 0.50% decrease to the cap rate
  • High Participation Rate Strategy: 0.50% decrease to the cap rate
  • Uncapped Strategy: 5% decrease to the participation rate

These changes will also impact the maximum illustrated rate within the WinFlex illustration software. Your illustration software will automatically update with the new max illustrated rates on November 1st.

New Income Advantage IUL Rates (changes in bold)

Strategy Cap Rate Participation Rate Max Illustrated Rate
100% Participation 11.00% 100% 6.58%
High Participation Rate 8.00% 140% 5.33%
Uncapped N/A 60% 6.58%
 

New Life Protection Advantage IUL Rates (changes in bold)

Strategy Cap Rate Participation Rate Max Illustrated Rate
100% Participation 9.00% 100% 5.64%
High Participation Rate 7.00% 140% 4.72%
Uncapped N/A 50% 5.64%
 

We are strongly committed to ensuring our products have the greatest ability to deliver on the illustration that you present to your clients. These new participation rates and caps remain competitive, and when coupled with our industry-leading low-cost structure, it will help us reach our goal of ensuring our products help your clients achieve their financial goals.

At United of Omaha, we continue to be transparent in our rate setting. All crediting rates, as well as renewal participation rates and cap rates are published monthly on the Indexed UL page on our Sales Professional Access producer website. Here are the most recent versions of our Income Advantage Historical Crediting and Renewal Rate Flyer and Life Protection Advantage Historical Crediting and Renewal Rate Flyer.
 
If you have any questions regarding the upcoming changes, please contact your Life Sales Director or Account Executive
 

IUL Participation Rate and Cap Rate Changes
 

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