Advisors Blog

Important Changes to Pricing and Underwriting

Published on April 21, 2020


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Important Changes To Pricing and Underwriting:

Older Ages Restrictions

Coverage for older-age clients is being restricted by some carriers who temporarily will not be taking applications or issuing policies for clients at certain ages and underwriting classes. Quote engines have not been updated to reflect these new rules, so before taking any applications for clients 65 or above, please check with your brokerage manager.

Enhanced No-Exam Programs

Carriers are making it easier than ever to apply for coverage without face-to-face meetings or paramed exams. They are also enhancing their ability to use other underwriting requirements such as recent patient physical exams or blood work. 

Price Increases

Due to historically low interest rates, many carriers are forced to increase pricing on GUL-type contracts. Please be aware of upcoming deadlines and pricing announcements.


Nationwide Product Changes

Nationwide is repricing their No-Lapse Guarantee (NLG) UL product and adjusting the fixed account rate, maximum face amount and upper age limit on select products:

  • Effective 4/20: Nationwide No-Lapse Guarantee UL II price increase by an average of 5-10%.
  • Effective 4/3: Maximum issue age will be 69 for all versions of Nationwide CareMatters.

Making it Easier to Secure Coverage: Accelerated Underwriting up to $5M

John Hancock is making it easier for you and your clients to secure coverage during these challenging times by:

  • Establishing an alternative to paramed and/or exam when not obtainable.
  • Expanding John Hancock ExpressTrack streamlined underwriting process to include paper applications with no need for a telephone interview.
  • Providing capabilities for electronic health record access when APS is not available.

Temporary Changes to Underwriting Guidelines

These guidelines apply to all applications dated on 3/25 or later. The maximum ratings and age limitations are:

  • Up to Age 59 – Max Table 6
  • Ages 60-80 – Max Table 2
  • Age 80 plus – Postponed
  • Principal is limiting total annual premium to $1 million

New Age Restrictions

Effective 4/15, Protective has implemented temporary changes to their underwriting guidelines. These changes only apply to fully underwritten applications and not simplified issue. The age and rating limitations are:

  • Postponed coverage on individuals who are age 80 and above.
  • Ages 70 – 79: Applicants must qualify for Standard or better and have no significant underlying medical condition.
  • Other restrictions apply to certain ages and sub-standard ratings. See memo below for more information.

Temporary Changes to Underwriting Guidelines

Effective 4/15, Symetra made temporary changes to their underwriting guidelines for certain ages and rate classes.

  • Ages 80 and above: Postpone 45 days
  • Ages 70-79 (all risks over Standard Non-Nicotine): Postpone 45 days
  • Ages 66-69 (all risks over Table 2 Non-Nicotine): Postpone 45 days
  • Ages 60-65 (all risks over Table 4 Non-Nicotine): Postpone 45 days

Important LTC Underwriting Updates

Effective 4/16, Mutual of Omaha has implemented temporary changes.

  • They will not be accepting LTC applications for individuals age 65 and older.
  • All LTC cases not already approved or issued will be postponed and processed as an incomplete application.
  • Will continue to prequalify applicants 64 and younger. The prequalification will be good for 60 days. If the health of the client changes or the prequalification is past 60 days, you will need to prequalify the applicant again.

Important Underwriting Updates

AIG has implemented temporary guidelines on both formal and informal cases until the COVID-19 situation has diminished:

  • Ages 70: All cases will be postponed.
  • Ages 60-69: All rated cases inclusive of all medical flat extras will be postponed.
  • Ages 50-59: All cases assessed greater than Table B inclusive of all medical flat extras will be postponed
  • Ages < 59: All cases assessed greater than Table D and/or all medical flat extras will be postponed.



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.

© 2020 Arthur J. Gallagher & Co. 




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