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GBS News: PruFast Track | PL Promise Term | Symetra SwiftTerm | LTC in WA | and more

Published on July 16, 2021

 

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Online Apps REQUIRED for Most Prudential Cases Under $3 Million

To get more clients on their way to a faster, more convenient buying experience, beginning July 19, 2021, all PruFast Track eligible business MUST be submitted via Prudential Xpress QuickForm worksheet or Drop Ticket.

Eligibility Criteria:

  • Age: 18 to 60
  • Face Amounts: $100,000 to $3,000,000
  • Quoted Underwriting Category: Smoker or better
  • Products: Most of Prudential’s term and permanent products (excludes PruTerm One and Survivorship products)
  • U.S. Residents

Please click below for more information.

 

Lincoln Suspending Life Products in State of New York after 8/13/21

Recently, as part of a review of its electronic signature processes, Lincoln Life & Annuity Company of New York (Lincoln) became aware that the application currently used for its life insurance products sold in New York, does not comply with New York’s requirements for use with electronic processes and platforms. Therefore the following actions will be taking place until a new, electronic-compliant application and process can be implemented:

The following life insurance products currently sold in New York will be suspended after August 13, 2021:

  • Lincoln LifeElements® Level Term (2019) - 07/15/19
  • Lincoln WealthAdvantage® Indexed UL
  • Lincoln WealthPreserve® IUL (2017) - 02/12/18

Submission and placement deadline:

  • All New York applications for the life insurance products listed above must be received in-good-order at Lincoln by August 13, 2021, and
  • All pipeline cases for the New York products listed above must be placed inforce, or 1035 exchange initiated by October 29, 2021
  • Any case not placed inforce or 1035 exchange initiated by October 29, 2021 will be cancelled

All electronic process solutions for products sold in New York, including Lincoln MoneyGuard® and life insurance policy conversions, will be suspended after August 13, 2021, including:

  • eApp
  • eNIGO
  • ePolicy Delivery (through DocuSign or DocFast)
  • No electronic or digital signatures will be accepted Note: The following products remain available for sale with paper processes only:
  • Lincoln MoneyGuard® II NY
  • For use with Group or Term Conversions only: Lincoln ConversionSM UL, Lincoln LifeElements One-year Term, Lincoln LifeElements 10-year Term
 

New PL Promise Term Pricing

Pacific Life recently repriced PL Promise Term life insurance rates to be more competitive. With Pacific Life, you can offer your clients competitive pricing plus value-added features to help you build a sustainable term business:

  • Up to $2 Million Accelerated and Fluidless Underwriting
  • Time-Saving eCapabilities
  • Strong Brand Power
  • Competitive Conversion Product
  • Flexible Policy Riders
 

Symetra SwiftTerm Now Available

Effective June 25, 2021 Symetra launched their SwiftTerm product —affordable term life insurance that’s fast, easy, and online. Designed for individuals with coverage up to $2Million, clients can choose from terms of 10, 15, 20 and 30 years and get coverage in as little as 25 minutes.

Highlights include:

  • A fast, hassle-free online application process: Clients can complete the online application anytime from anywhere, and if they qualify, they can have approval in as little as 25 minutes.
  • Affordable and predictable pricing: Premiums are guaranteed to never increase during their coverage term, clients will always know what their cost will be.
  • Flexibility: Your clients have the freedom to choose their payment frequency, the ability to lower their coverage amount and the option to convert to a permanent policy if their needs change.
  • Transparency: There are no hidden policy fees or surprises, and we communicate with you and your clients throughout the process.
 

John Hancock LTC Rider Changes in State of Washington

John Hancock is implementing the following changes:

Increased minimum face amount: Effective immediately, the minimum face amount for all John Hancock applications that include the LTC rider in Washington will increase to $250,000. Any Washington state application with an LTC rider and a face amount below $250,000 will no longer be accepted. When the LTC rider is not included on a policy, the minimum face amount will remain at $50,000 across their single-life, permanent products.

Illustration updates: Also effective immediately, the LTC rider will not be available on JH-Illustrator at any face amount in Washington until July 19, 2021. At that time JH-Illustrator will be updated so that the rider is available for face amounts of $250,000 or more.

Please note these changes only apply in Washington state with the LTC rider. There are no changes to minimum face amount requirements in other states.

 

NGL New Washington State Premium Minimum

Due to the recent Washington Cares Fund, National Guardian Life Insurance Company (NGL) is experiencing a very high volume of low premium LTCi new business applications from Washington, many of which are less than one-third NGL’s average LTCi premium per policy.

NGL is instituting a new premium minimum in Washington state only:

  • Effective Wednesday, July 7, 2021, all WA applications must have a minimum annual premium of $2,000.
  • The other previously announced benefit minimums will no longer in be effect and will be replaced by the $2,000 annual premium minimum.
  • Please note, the minimum annual premium for a joint application is only $2,000 total, not $2,000 per applicant.
 

Important Alert for Your Business-Owner Clients - Ignoring Required Business Tax Forms

Are your business clients failing to comply with the required tax filing forms for business-owned policies? This presents an opportunity to touch base with business owners to review coverage and compliance!

Many business owners and tax preparers may not be familiar with IRS Form 8925 which is required for businesses owning life insurance on the lives of any employees. This includes key-person coverage, business-owned buy-out or redemption plans-- any life policies owned by the business. Failure to comply with this rule could be costly.

Click here to view Form 8925. Contact your clients for a review/update of the life policies they own. In today’s rapidly changing market there are certainly many product changes and upgrades for them to consider.

 

New Carrier Coming Soon!

Full electronic end-to-end term coverage from an innovative new carrier.

  • No paramed or fluids ever!
  • No paper application ever!
  • No interview!
  • Instant approval in most cases - in as little 10 minutes.
  • Up to $1,500,000 in coverage depending on age.

A new carrier program leveraging the latest online technology, instant approvals and instant coverage, will be rolled out in the next few weeks. Stay tuned!

 

THANK YOU

 

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 License No. 0D87913

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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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