Upcoming Life Rate and Product Changes Effective January 1, 2020

Effective January 1, 2020, we will be:

  • Increasing the cap on our 100% Participation Rate Strategy for Life Protection Advantage IUL
  • Decreasing our crediting rate on AccumUL Answers
  • Repricing our AccumUL Answers product

Life Protection Advantage IUL Cap Increase:
The cap for the 100% Participation Strategy on Life Protection Advantage IUL will increase from 9% to 10%. This rate change 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 January 10, 2020. With the sweep feature, all money received in the home office after December 10, 2019 will receive the higher cap rate for the coming segment year.

This change will also impact the maximum illustrated rate within the WinFlex illustration software. The maximum illustrated rate for the Life Protection Advantage IUL 100% Participation Rate Strategy will be 6.13% and the maximum illustrated rate for the Uncapped Strategy will be 5.76%. Your illustration software will automatically update with the new max illustrated rates on January 1st.

New Life Protection Advantage IUL Rates   (changes in bold)

Strategy Cap Rate Participation Rate Max Illustrated Rate
100% Participation 10.00% 100% 6.13%
High Participation Rate 7.00% 140% 4.72%
Uncapped N/A 50% 5.76%
 

AccumUL Answers Crediting Rate Decrease:
The AccumUL Answers crediting rate will decrease from 3.75% to 3.50%. This rate change will apply to newly issued policies, as well as to any new premiums received on in force AccumUL Answers policies. Your WinFlex illustration software will automatically update to reflect the new crediting rate on January 1st.
 
AccumUL Answers Reprice:
The AccumUL Answers current monthly charge per $1,000 of Specified Amount will be increasing for policy years 11 and beyond. This reprice will only apply to newly issued policies. There will be no changes to the minimum premiums or target premiums as a result of this reprice.

How will this impact AccumUL Answers’ illustrated values?
Your Winflex illustration software will automatically update to reflect this reprice on January 1st.

  • If you are illustrating at a specified or at the target premium, you should expect a slight decrease in the illustrated accumulation values after year 10.
  • If you are solving for a premium to carry a policy to a specified duration, you should expect a slight increase in the premiums that are calculated by the illustration software.

Transition Rules

  • To get the current pricing, applications must have a signed date prior to January 1, 2020 and must be received in the home office by January 15, 2020.
  • Applications signed January 1, 2020 or later, or any applications received after January 16, 2020 (regardless of app signed date) will receive the new pricing.

If you have any questions regarding the upcoming changes, please contact your Life Sales Director or Account Executive.
 

Upcoming Life Rate and Product Changes Effective January 1, 2020
 

#goldencareagent
#mutualofomaha