Upcoming Rate Changes for Life Products

We are announcing upcoming changes to our participation rates, cap rates and fixed account rates on our life products. These rate decreases come as a result of the current rate environment and the increased market volatility, which causes an increase in options costs.

  • Effective April 1, 2020, we will be lowering the fixed crediting rate on Income Advantage IUL, Life Protection Advantage IUL, IUL Express and AccumUL Answers.
  • Effective May 10, 2020, we will be making changes to our participation rates and cap rates on our Income Advantage IUL and Life Protection Advantage IUL products.

Fixed Crediting Rate Changes
Effective April 1, 2020, we will be lowering the fixed crediting rate on Income Advantage IUL, Life Protection Advantage IUL, IUL Express and AccumUL Answers. These rates change will apply to newly issued policies, as well as to any new premiums received on in force policies. Your WinFlex illustration software will automatically update to reflect the new crediting rate on April 1st.

  • Income Advantage IUL will decrease from 3.25% to 3.00%
  • Life Protection Advantage IUL will decrease from 3.00% to 2.75%
  • IUL Express will decrease from 3.00% to 2.75%
  • AccumUL Answers will decrease from 3.50% to 3.25%

IUL Participation Rate and Cap Rate Changes
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 May 10th. With the sweep feature, all money received in the home office on or before April 10th will receive the current participation rates and caps for the coming segment year. Any money received after April 10th will be swept into the May 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 May 1st.

New Income Advantage IUL Rates (changes in bold)

Strategy Cap Rate Participation Rate Max Illustrated Rate
100% Participation 10.50% 100% 6.4%
High Participation Rate 7.50% 140% 5.05%
Uncapped N/A 55% 6.36%
 

New Life Protection Advantage IUL Rates (changes in bold)

Strategy Cap Rate Participation Rate Max Illustrated Rate
100% Participation 9.50% 100% 5.92%
High Participation Rate 6.50% 140% 4.43%
Uncapped N/A 45% 5.23%
 

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.
 

Upcoming Rate Changes for Life Products
 

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