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GBS News: Weekly Product and Underwriting Updates - Week of May 2, 2022

Published on May 05, 2022

 

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Income for Life Rider Updated to be More Competitive Effective April 30, 2022

Effective April 30, rates in WinFlex for the Income for Life Rider on QoL Max Accumulator+ II IUL policies will be updated to improve annuity factors and adjust the one-time activation charge for select ages. As a result, the guaranteed income from the rider will increase by an average 15% for issue age 35-55 if the rider is activated before age 80.

 

Protection VUL Now Has a Lower Threshold (1.5X the Basic Target) to Qualify for a 15% Enhanced Target Premium

When the client pays a higher premium upfront, rather than the NLG premium, it can help improve their policy’s performance and lower their overall costs — while also improving the target premium.

 

Lincoln OptiBlend® interest accounts offer diversification

Explore how a Lincoln OptiBlend® fixed indexed annuity can help your clients with their accumulation and asset allocation objectives. Lincoln OptiBlend® annuities offer a 1-Year Fixed Account and several indexed accounts. The benchmark indexes for the indexed accounts reflect different asset classes and management strategies.

 

Inforce Long-Term Care Insurance Rate Adjustments Effective July 1, 2022

Mutual of Omaha will be implementing the following inforce rate adjustments effective July 1, 2022:

 

Nationwide is resuming life insurance sales in WA state effective May 2, 2022

Beginning on May 2, 2022, Nationwide will be accepting applications for all life insurance products available for sale in the state of Washington. This includes Nationwide CareMatters®, which has been available since Feb 4, 2022.

Please note that backdating is not available for applications received after May 2, 2022.

 

Protective Classic Choice Term Reprice - Effective 5/2/22

Repricing of Protective 'Classic Choice Term 5/22

  • Only Level Term Rates are changing with small decreases.
  • Post-level rates are unchanged.
  • Smoker rates are unchanged.
  • NY rates are unchanged.

Business Transition Rules:

  • For paper business, applications must be signed and received on or before May 16, 2022.
  • For ticket business and direct writer; applications must be signed and received on or before May 30, 2022.
  • Any application in Underwriting on May 2, 2022 may choose the version of the product (old or new) but will retain the rates they are initially quoted unless otherwise requested up until the case has been approved.
  • NY does not have a rate change, however the plan codes are changing so they will follow the above rules.
 

Informal Process Update

In order to continue to provide strong service on large/higher premium informal cases as well as your formal applications, effective April 25, Prudential is updating its informal submission guidelines as follows:

  • Minimum face amount of $1M on permanent products
  • Minimum face amount of $4M on term products

This change in this process will allow Prudential to focus more resources on your larger/higher premium cases and formal applications. Less detailed questions can still be directed to Quick Quote mailboxes or by utilizing other self-service tools such as XRAE and Rx for Success, which can be found on PruXpress.

 

VUL Product Updates Effective April 29th

 

Fund changes and additions

To further diversify their variable allocation options, Securian is adding three new subaccount choices to Premier Variable Universal Life (PVUL) and Variable Universal Life (VUL) Defender policies along with inforce Accumulator VUL policies. These subaccount options will be available April 29, 2022.

The new funds include:

Rate Changes

Due to ongoing volatility in the capital markets, it has become necessary to reduce cap rates and participation rates on some of the accounts within their Variable Universal Life product portfolio.

These changes take effect for all premium received and new indexed segments created after Friday, April 15, 2022. Illustrations will be updated April 16, 2022.

 

 

UPCOMING WEBINARS

 

Uncover New Opportunities with Mirrored Loans

Do you have clients with large loans on their existing life insurance policies? These policies could be drowning from high interest costs, leaving the client with an unexpected tax problem (and no insurance coverage). For clients with loans in danger of lapse, the mirrored loans strategy could help.

Please join us for an exclusive GBS webinar discussing strategies for rescuing old whole life contracts (and other cash value contracts) that have large outstanding loans.

In this 30 minute webinar we will discuss:

  • Where to find these opportunities.
  • Avoiding costly tax mistakes for your clients.
  • Creative 1035 techniques.
  • How to pay off loan with internal cash values.
  • How to get paid on the ENTIRE Gross 1035, not just the net cash value.
  • How to rescue encumbered policies with high loan-to-cash ratios, even 90%.

Tuesday, May 17, 2022

10:00 am PST / 1:00 pm EST 

 

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

21820 Burbank Blvd., Suite 301

Woodland Hills, CA 91367

Phone: (800) 473-5966

GBS Insurance and Financial Services, Inc. does 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.

© 2022 Arthur J. Gallagher & Co. 

 

MORE ADVISORS BLOG

 

GBS Newsletter - April 2022 Issue

Many clients desire a life insurance policy which includes significant guarantees, however the cost to guarantee their death benefit to age 100 may be prohibitive. Advisors may be able to design a premium funding strategy which will guarantee the death benefit to age 90 (past life expectancy) with the option to extend the death benefit to age 100 at a higher premium if needed. This case study illustrates a scenario that provides permanent protection at the optimal cost.

Read More >>

REGISTER NOW: Uncover New Opportunities with Mirrored Loans

Do you have clients with large loans on their existing life insurance policies? These policies could be drowning from high interest costs, leaving the client with an unexpected tax problem (and no insurance coverage). For clients with loans in danger of lapse, the mirrored loans strategy could help.

Read More >>

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