Advisors Blog

Identifying Policy Review Triggers

Of the many financial instruments which comprise a client’s portfolio, life insurance policies tend to be the least monitored.

Performing periodic life insurance reviews is a sound practice, ensuring that their clients’ life insurance portfolios continue to meet their evolving needs, while keeping pace with ever-changing market conditions. Policy Reviews analyze changes in insurance carrier ratings, structure, portfolio management and overall policy performance. 

Building an impactful policy review process can be overwhelming to many advisors --- there are many triggers which elite advisors look for when identifying cases to review. 

House Bill Would Allow 401(k) Withdrawals to Pay LTC Premiums

Legislation has been introduced in the House of Representatives to allow tax- and penalty-free withdrawals to pay for long-term care insurance.

Rep. Ann Wagner (R-MO), the Vice Ranking Republican on the House Financial Services Committee, introduced the Long-Term Care Affordability Act (H.R. 7107) on March 16. The bill would allow individuals to withdraw funds from their 401(k), 403(b), 457(b) and IRA accounts to pay for long-term care insurance without being subject to the 10% early withdrawal penalty. 

The legislation would also allow up to $2,500 in withdrawals annually per individual to be excluded from income tax, provided the amount is used to pay for qualified LTC insurance for the individual, their spouse or a dependent.

Stress Testing

Universal Life - No Lapse Guarantee -Missed Premium

Female, Age 55, Preferred Risk Class, $1,000,000 Death Benefit.

Large Capacity Case Underwriting

The life insurance industry has experienced rapid underwriting changes over the past several years. Carriers are committed to developing alternative underwriting tools designed to deliver policies quicker and easier to a demanding consumer. Electronic applications and Accelerated Underwriting programs are now the required paths for many applicants. 

While this new environment has helped increase sales, there continues to be a need to service the “older, richer, sicker" clients. These cases involve older ages, larger face amounts, and the need for underwriting expertise to successfully navigate the underwriting process. 

As we slowly transition back to “normal” underwriting, I am pleased to note that reinsurance capacity has started to loosen up for applicants under the age of 70 who are relatively healthy. This is good news for the large case market.

How Annuities Can Help Retirees Protect Against Inflation

Many are worried that continued government spending and budget deficits are creating a stronger inflationary environment for the coming years. For retirees who are living on their savings, that’s a significant concern because higher inflation increases the risk that retirement costs will outpace the growth of their assets. Retirees need a way to manage inflation risk to maintain their standard-of-living in the face of rising prices.

While it is possible to build in cost-of-living adjustments to annuity payments, or to invest for growth in deferred annuities, annuities cannot generally be expected to provide a growth in protected lifetime payments that will keep pace with higher-than-expected price increases. However, since a retirement income plan combines different tools which can be useful for managing different risks, annuities can serve as a financial foundation by providing protected lifetime income — allowing the balance of a client’s overall portfolio to be invested in other assets that offer greater long-term growth potential to help protect against inflation.

The third party information included in this analysis have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by Premier Brokerage Services, A Gallagher Company. Although we may promote and/or recommend the services offered by these companies, financial professionals are ultimately responsible for the use of any materials or services and agree to comply with the compliance requirements of their broker/dealer and registered investment advisor, if applicable, and the insurance carriers they represent.

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.

Agile Underwriting+ Opt-Out Available for IUL Cases in iGO Full eApp

The option to opt-out of AIG's exam-free program Agile Underwriting+ is now available for IUL cases submitted via iGO full eApp. This option may be useful for clients who will likely require exams and labs.

Updates to the Term Insurance Portfolio

Equitable is making the following changes to their Term Series 160. Effective May 2, 2022, the following changes will apply to Level Term 10, 15, 20 and ART:

The minimum face amount will be raised to $1,000,000 except for applications signed in New York or Puerto Rico. The conversion period will be shortened in all jurisdictions as outlined below:

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.

Protection VUL 21 Reprice - May 9, 2022

John Hancock's Protection VUL just got even stronger, with 10-pays and level-pays more competitive than ever.

See how it compares:

Male 55, Preferred, $500,000 death benefit, guaranteed through age 100, 6% gross ROR

Product Update: Protection Survivorship Universal Life Effective May 16, 2022

Show your survivorship clients how our newly repriced Protection Survivorship UL continues to stand out against competitors — making it a clear choice for customers seeking:

• Industry-leading pricing, especially for short- and single-pay scenarios
• Strong no-lapse guarantees with attractive cash value potential, particularly compared to guaranteed SUL products
• New! Added flexibility with our Preliminary Funding Account, which allows a single, upfront payment without causing the policy to become a modified endowment contract (MEC)

Product Update: Protection SIUL Effective May 16, 2022

For couples seeking the protection and growth potential of an indexed universal life (IUL) insurance policy, John Hancock’s repriced Protection Survivorship IUL continues to lead in customer value with:

• Some of the most competitive single– and short-pay premiums on the market
• New! Access to Barclays Global MA indexed accounts for improved policy performance
• New! Added flexibility with our Preliminary Funding Account, which allows a single, upfront payment without causing the policy to become a modified endowment contract (MEC)

OPTerm Reprice Effective May 6, 2022 

More reductions across all classes mean more #1 pricing than any other carrier.

Changes to level period premier rates include a mix of increases and decreases, across level term periods (10, 15, 20, 25, 30, 35 and 40 years). Both annual and monthly rates are highly competitive. 

Level up your advisors’ business processes with a new preference for offer delay 

LGA is excited to announce a new preference setting available in Partner Dashboard on May 18th. Within partner preferences, you can elect to delay the offer notification sent to clients (when a case is declined) for up to 10 days.

Give your advisors the added benefit of providing alternative insurance solutions for their clients and the opportunity to level up their business processes.

What you need to know

• The system automatically defaults to a 5-day delay until the setting is changed.
• Agencies can select this option for their advisors in partner preferences.
• Clients still receive notification automatically when a case is approved.

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.

MoneyGuard Fixed Advantage Product Release - Effective May 16, 2022 

Effective May 16, 2022, Lincoln MoneyGuard Fixed Advantage will replace Lincoln MoneyGuard III in approved states. With the launch of MoneyGuard Fixed Advantage, Lincoln Financial is also introducing the new Benefit Transfer Rider (BTR) that is automatically included with all MoneyGuard Fixed Advantage policies, at no additional cost. This innovative rider provides the opportunity to enhance an existing policy’s long-term care and death benefits through the utilization of death claim proceeds from a separate policy at a rate that will always be greater than the amount being transferred.

Benefit Transfer Rider Qualifications:

The BTR provides beneficiaries the choice of additional flexibility with the option to use some ($25,000 minimum) or all of their death benefit proceeds to enhance benefits on their existing MoneyGuard policy with no additional underwriting requirements. Qualifications are:

• Insured and beneficiary are MoneyGuard policyholders.
• The Benefit Transfer Rider is on both policies.
• The beneficiary is the insured on their policy.

For applications to qualify for the current MoneyGuard III (2021) – 01/10/22, a projection of values and the completed Part 1 must be signed, dated, and received in-good-order by Lincoln’s home office by Friday, June 17, 2022.

Coming Soon - Lincoln WealthPreserve 2 Survivorship IUL 2022 - May 16, 2022 

Effective May 16, 2022, subject to state availability, Lincoln is pleased to introduce Lincoln WealthPreserve^® 2 Survivorship IUL (2022) to their life insurance portfolio.

Lincoln WealthPreserve^® 2 Survivorship IUL (2022) offers long-term protection, built-in guarantees, and lifelong flexibility. Built for couples who want solid, cost-effective protection for two lives under one policy.

Product Highlights

Guaranteed Financial Protection:

• Extended guaranteed death benefit protection for up to younger insureds age 95 for issue ages 55+ or younger insureds age 90 for issue ages 50 and below.
• A simple approach to death benefit guarantee catch-up premiums means your clients can pay the intended premium at any time and keep their death benefit guarantee intact.
• Access to cash value through loans, with guaranteed interest loan charge rates for the duration of the policy.

Optional Benefit for Protection:

New! Introducing the Supplemental Increase Rider: Helps protect against cost-of-living increases by automatically growing the policy’s coverage amount by 3% of the initial specified amount each year, beginning in the second policy year.

• Unless terminated earlier, the rider is in effect to age 80 of the younger insured or until the maximum benefit amount is reached. The maximum benefit from this rider may not exceed two times the initial specified amount or $50 million.
• There is no specified charge for this rider, however the cost of insurance charges will reflect the higher coverage amount.
• Only available with Level Death Benefit Option (DBO1), not allowed with Extended No-Lapse Minimum Premium Rider.

Pricing Update: Lincoln TermAccel^® Level Term (2019) – 05/16/22  

Effective May 16, 2022, Lincoln is announcing pricing updates to Lincoln TermAccel^®Level Term (2019) which will improve competitive positioning in key cells. Lincoln TermAccel^® life insurance offers an entirely electronic, streamlined interview process with fully automated underwriting and no APS requirement.

Pricing Updates

Goals of the reprice include being a “top 3 carrier” in the following non-tobacco, core cells for all term periods:

• Face amounts of $500k and above, nearly all annual premiums are currently in the top 3.
• Premium updates include mostly decreases with a few premium increases.

Transition Guidelines

For states that are approved at roll out, there is a 30-day transition period which begins on May 16, 2022 and ends on June 15, 2022.

Pricing Update: Lincoln LifeElements^® Level Term (2019) – 05/16/22   

May 16, 2022, Lincoln is announcing pricing updates to Lincoln LifeElements^® Level Term (2019) which will improve competitive positioning in key cells. Lincoln LifeElements^® Level Term life insurance offers both a traditional paper application process and a streamlined Tele-App process for electronic and paper ticket submissions.

Pricing Updates

Goals of the reprice include being a “top 3 carrier” in the following non-tobacco, core cells for all term periods:

• Face amounts of $1M+, annual premiums are currently in the top 3 for nearly all ages
• Face amounts of $500k - $999k, annual premiums are currently top 3 for almost all ages 55+
• Premium updates include mostly decreases with a few premium increases

Transition Guidelines

For states that are approved at rollout, there is a 30-day transition period which begins on May 16, 2022 and ends on June 15, 2022.

Discontinuation of New Sales of Lincoln LifeGuarantee UL (2019) and Lincoln LifeGuarantee SUL (2019) - Effective June 10, 2022 

After careful consideration, Lincoln has made the decision to discontinue new sales of Lincoln LifeGuarantee UL (2019) and Lincoln LifeGuarantee SUL (2019) (Survivorship UL), which accounted for just 1% of all Lincoln Life sales in 2021. These changes are effective in all states, June 10, 2022. The changes do not impact inforce policyholders.

All applications for the products listed above must be received in-good-order at Lincoln by June 10, 2022.

Disability Insurance Awareness Month (DIAM) Tool Kit

Far too many Americans have an enormous gap between their need for disability income (DI) insurance and the actual coverage they have.

May is Disability Insurance Awareness Month (DIAM). It is the perfect time to speak with clients about protecting a portion of their income in the event of a disability.

To help you have the DI conversation, MassMutual has developed these client approved materials for you to use during DIAM and beyond.

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. 

New Business Rates - May 15, 2022

Effective May 15, 2022, OneAmerica has made the following new business rate changes.

Note: All products may not be available in all states or may vary by state. 

Announces Premium Decrease For Asset Care Portfolio Effective May 26, 2022

OneAmerica is announcing a price decrease on our Asset Care product portfolio nationwide, effective May 26, 2022.

OneAmerica® was one of the first companies to increase prices on our asset-based LTC product back in 2019. While not popular, that decision made our product more resilient and created a solid future to serve our customers.

Because of this approach, this product has remained a strong option in the asset-based long term care market and we are now one of the first companies to be able to offer a decrease in our pricing structure on our Asset Care® offering nationwide.

PL Promise Term Repriced Again to Be Even More Competitive

Effective May 16, 2022, Pacific Life Insurance Company is repricing rates for PL Promise Term level premium life insurance—a product specifically designed to serve the death benefit protection needs of the broad market consumer (household incomes of $50K to $250K).  

Rates have been updated to be more competitive with a focus on all ages and preferred no-nicotine risk classes (Preferred Best, Preferred, Select). 

A 60-day transition period is provided.

View full bulletin for pricing sweet spots and other details.

New Principal GI Term Enrollment Enhancements

The employee application process has been digitally enabled for faster and easier completion. When it’s time to enroll employees, they simply review a pre-completed application and eSign it. After policies have been issued, they’re eDelivered to the appropriate parties. This streamlined process will help:

• Reduce enrollment time
• Make it easier for employees to complete the application, resulting in more “in good order” applications
• Get policies inforce quicker 

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.

Underwriting Restrictions Related to the COVID-19 Pandemic Liberalized 

As a result of the improving COVID-19 situation, as of Monday, May 2, 2022, many of Prudential’s underwriting restrictions related to the pandemic have been liberalized.

New Improved Large Premium Illustration Capabilities Coming Soon

Beginning May 16, 2022, you will no longer need to contact Prudential home office for a large case illustration. PruLife Illustrator and Winflex web will be updated to allow all users to run large premium illustrations. A splash page reminder will be added to the illustration, noting that home office review and approval will be required before submitting business for premiums over the current limit.

Please refer to the below list of products and state-specific premium limits.

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.

Premium Deposit Account Rate Change Effective May 1, 2022

Effective May 1, 2022, Securian has increased its Premium Deposit Account (PDA) interest rates by .25%. New rates will be reflected on the financial professional site and in the illustration system on May 1, 2022.

Symetra’s “Term to Perm” and “Perm to Perm” Underwriting Programs

With Symetra’s External Term Conversion and Permanent Exchange Underwriting programs, clients can convert their external term policy or exchange their external permanent policy for a permanent Symetra life insurance policy.

Review Symetra's External Term Conversion Program (PDF) and Permanent Exchange Underwriting Program (PDF) flyers for more details.