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GBS News: Laddering Term Policies | Prudential Founders Plus UL | Best Interest Training for Annuity | and more

Published on April 26, 2021


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Sales Idea: Laddering Term Policies

With Select-a-Term Life Insurance, your clients choose the exact amount and period of coverage they need. Not only can they customize their coverage, it can help them save money on premiums with a technique called "laddering." Laddering means you buy multiple smaller policies that custom your tailor needs rather than one large policy. By laddering your policies, you purchase the right amount of coverage in the most cost-effective way. Click below for more information.


Prudential Founders Plus UL - Price Increase and Changes

Effective Monday, April 19th, Prudential made the following changes to their Founder Plus UL product including a substantial price increase. Since Prudential has sunsetted their GUL product, the Founder’s Plus UL is currently the primary product used for conversions. If you have clients with conversion possibilities, this would be an excellent time to lock in the lower priced product. 

  • Pricing and policy costs will both go up. Premiums will increase 8-10% in most cells. 
  • Guaranteed provisions will stay the same.
  • The fixed interest account rate will increase.
  • Index caps will increase to as high as 7.5-8.0%, which will result in higher illustrated rates.
  • The Goldman Sachs Voyager Index (“GSVOYGR”) will be an additional option on Founders Plus. This is an exclusive option only available from Prudential and offers an uncapped index with innovative indexing methods and exposure to diversified asset classes. Learn more
  • Essential UL is a traditional interest based UL, also available for conversions with a similar pricing structure but with no indexed accounts and will experience the same increases to pricing and premiums.

Now is an excellent time to lock in the low rates for Founders Plus UL for new sales or for conversions. Please click below to view Transition Rules and Guidelines. Contact your brokerage manager for quotes or more information.


Nationwide Products Updated with New 7702 and 7702A Rates

Recent changes to Internal Revenue Code sections 7702 and 7702A have lowered the minimum interest rate assumptions used in calculating premium limits. This is good news as it increases the funding limits for policies to qualify as life insurance and allows for higher premiums relative to the specified amount before becoming a modified endowment contract (MEC). Starting April 12, 2021, the new rates will be applied to new business for the following products:

  • IUL products — Nationwide IUL Accumulator II 2020, Nationwide IUL Protector II 2020, Nationwide Survivorship IUL 2020, Nationwide YourLife IUL Accumulator-New York only, Nationwide YourLife IUL Protector-New York only.
  • VUL products — Nationwide VUL Accumulator, Nationwide VUL Protector.

John Hancock Rewarding Vitality Members for COVID-19 Vaccination

John Hancock announced that life insurance customers participating in the John Hancock Vitality Program will be awarded 400 Vitality Points when they share proof of their COVID-19 vaccination. Vitality combines the financial protection of life insurance with a technology-enabled program that offers education, support, incentives, and rewards designed to help customers live longer, healthier lives. Points are earned for a broad spectrum of everyday activities, including physical activity, eating well and getting good sleep.


New Best Interest Training for Annuity Sales in Arkansas and Rhode Island

The National Association of Insurance Commissioners (NAIC) has approved revisions to its Suitability in Annuity Transactions Model Regulation. The revised regulation requires that all annuity recommendations by producers and insurers meet a “best interest” standard.

The new best interest standard requires insurance agents to exercise a greater degree of care in selecting annuities for their clients, to avoid conflicts of interest, to make certain disclosures to clients, and maintain adequate documentation to show that they have acted in the best interest of the client.

Under the new model regulation training has been expanded to include the new standard of conduct. Producers in Arkansas and Rhode Island are now required to complete a new course as follows:

  • FOR PRODUCERS APPOINTED PRIOR TO APRIL 1, 2021: To continue selling annuities, producers who have completed an annuity training course prior to April 1, 2021, must complete an additional one-time 1 hour course that contains training on the new best interest standard of conduct within 6 months (before October 1, 2021). NOTE: Producers who miss the 6 month window (meaning they complete the training on or after October 1, 2021) must complete a one-time 4 hour course.
  • FOR PRODUCERS APPOINTED ON OR AFTER APRIL 1, 2021: Producers appointed on or after April 1, 2021, must complete a one-time 4 hour course that contains training on the new best interest standard of conduct and any required carrier-specific training before soliciting annuities.



We at GBS Insurance thank you again for your business. For more information or insurance quote requests, please contact your brokerage manager or give us a call at (800) 473-5966

For agent use only - not for use with the general public.

Corporate CA License No. 0D87913


21820 Burbank Blvd., Suite 301

Woodland Hills, CA 91367

Phone: (800) 473-5966

GBS Insurance and Financial Services, Inc. do not provide investment, tax, or legal advice. The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

© 2021 Arthur J. Gallagher & Co. 




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