Advisors Blog

Protective Indexed Choice UL Rate Changes - Effective January 1, 2018

Published on September 28, 2017


Below is the full text of the recent Protective memo. For a pdf version of this memo, click here


With the continued low interest rate environment and increased cost of index options, it has become necessary to reduce the index cap rate, maximum illustrated rate and fixed account rate on Protective Indexed Choice UL. While these rate changes will be effective on and after January 1, 2018, we chose to implement these changes in advance on our illustration system to maintain transparency with you so we can continue to deliver on our promises - together. 

The length of time that occurs from when a policy is quoted to once it's submitted can take months. With our mission of doing the right thing at the core of everything we do, we wanted to provide clients with the assurance that they'll get the value they expect out of a Protective Indexed Choice UL policy. No surprises, no disappointments. 

The rate changes will be released in our ELI illustration system October 2, 2017 and are effective January 2, 2018:

  • Maximum illustrated rate will change from 5.81% to 5.57%
  • Index cap rate will change from 9.50% to 9.00%
    • The new cap rate will go into effect on 1/15/2018 as indexed segments are created on the 15th of each month. 
    • For existing indexed segments that began in 2017, this new cap rate will go into effect once the segment has its annual reset (after its 12-month term). 
  • Fixed account rate will change from 3.75% to 3.50%
    • For in-force policies within their first year, the rate change will take effect on their anniversary date following 1/1/2018.
    • For in-force policies out of their first year, the rate change will take effect on the monthly anniversary following 1/1/2018.




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