Effective December 14, 2018, we will be adopting the 2017 CSO mortality table rates on Secure Lifetime GUL 3. Pricing will adjust moderately with an average increase/decrease of 1% depending on age, underwriting class and funding patterns. In addition to the new pricing, target premiums are being increased by up to 11%.
More on CSO Tables
Adoption of the 2017 CSO mortality table by all life insurance carriers is required on life policy forms for all new sales starting on or after January 1, 2020. American General Life Insurance Company (AGL) and The United States Life Insurance Company in the City of New York (USL) plan to have all life insurance products transitioned to 2017 CSO well in advance of this date.
Secure Lifetime GUL 3 Differentiated Features
- Innovative Partial Withdrawal Capability –If needs change, policy holders can reduce the death benefit while maintaining the original coverage guarantee period.
- Guaranteed return of premium with two built-in ROP opportunities (via the Enhanced Surrender Value Rider) should your clients’ needs change or they no longer need coverage.
- End of Year 20 = 50% of total premium paid, up to 40% of face amount
- End of Year 25 = 100% of total premium paid, up to 40% of face amount
- Accelerated Access Solution®– Provides chronic illness coverage to your client’s base policy up to $3M. Three benefit payout options available -funds can be used for any purpose. Note: California allows two benefit payout options.
- Lifestyle Income Solution –Guaranteed withdrawal benefits that enable clients to convert the death benefit into a stream of supplemental income that can be used for any purpose. These payments are typically tax-free up to the amount of cumulative policy premiums.
Transition Rules -New rates effective December 14, 2018
Paper applications:
- Secure Lifetime GUL 3 applications received on or after December 17, 2018will receive the new rates unless the old Secure Lifetime GUL 3 product is requested.
- Applications received after February 1, 2019will only receive the new Secure Lifetime GUL 3 rates and the old Secure Lifetime GUL 3 product will no longer be able to be requested.
- Starting 4:00 PM CST December 14, 2018only the new rates for the Secure Lifetime GUL 3 will be available in WinFlex. To receive an illustration for the old Secure Lifetime GUL 3 please contact the Sales Desk.
- New applications submitted to replace existing inforce coverage with the new rates will not be honored within 90 days of the existing coverage going inforce.
- Reissue requests will not be honored.
Pending applications:
- Applications pending can submit a new illustration and get the new rates.
AG Quick Ticket
- Secure Lifetime GUL 3 applications dropped on or after December 17, 2018 will receive the new rates.
- To receive the old rates on Secure Lifetime GUL 3 product, applications must be dropped into AG Quick Ticket by December 16, 2018. AIG must receive completed application with paramed from Quick Ticket by February 1, 2019 to receive the old rates.
- If AIG receives the application and paramed after February 1, 2019 the new rates will automatically apply and a new signed illustration will be required.