Based upon distributor feedback and in order to improve our competitive position, our death-benefit-focused Index Universal Life (IUL) insurance product Value+ Protector, is now available with significant updates.
In addition to aligning to the 2017 CSO, we have made the following enhancements:
- Extended Death Benefit Guarantee
- Increased Target Premiums
- Higher Cap and Max Illustrated Rates
- Improved Competitiveness
- Expanded Cash Value Potential
- NEW Global Index Interest Crediting Option
- NEW Dollar Cost Averaging (DCA) Rider
Also, as a part of these product optimizations, we have discontinued the Lifestyle Income Solution rider (LIS) for Value+ Protector.
Note that we’ll continue offering numerous valuable living benefit features, including our Chronic Illness rider: Accelerated Access Solution, among others.
Remember, Value+ Protector offers flexible affordable permanent coverage, and is a perfect bridge to IUL for GUL clients ― thanks to benefits like:
- Tax-deferred growth
- Client-controlled premiums and allocations
- Strong guarantees
- Low-cost competitive pricing
It combines valuable guarantees, PLUS cash accumulation and access to cash – all for a lower cost than GUL!
Product Update Details
1. Extended Death Benefit Guarantee: Extended level-pay guarantee durations from age 85 to age 90 for issue ages 50+, with a slight decrease in ages 45 and under
2. Increased Target Premiums: Increased target premiums for PPNT/PNT classes by generally 5-10% for ages 50-65,
with minor reductions for other ages/classes
3. Higher Cap and Max Illustrated Rates:
|Cap Rate||Illustrated Rate||AVE*||Total Illustrated Rate|
|S&P 500 Cap Index||100%||9.5%
(↑ from 9%)
(↑ from 5.6%)
(↑ from 6.35%)
|S&P 500 Participation Index||55%||5.85%
(↑ from 5.6%)
(↑ from 6.35%)
|ML Strategic Balanced Index®||90%
(↓ from 100%)
(↑ from 6.09%)
(↑ from 6.89%)
|PIMCO Global Optima Index®||65%||6.22%||0.80%||7.02%|
|Fixed Interest Account||3.25%||0.75%||4%|
4. Improved Competitiveness: Shifted target market to ages 40-75, non-tobacco classes
5. Expanded Cash Value Potential: Increase cash value by 10-20% in key areas for ages 50-70, plus more cash value increases for ages 45 and under: 20-30%
6. New Global Index Interest Crediting Option: Additional volatility control index, the PIMCO Global Optima Index®, offers growth potential and global market exposure
7. New Dollar Cost Averaging Rider (DCAR) : Potentially smooths out the impacts of market fluctuations by transferring premium from the dollar cost averaging account to the chosen index interest account options over a number of months
- Any apps received December 17, 2018 and after, will automatically receive new Value+ Protector rates and features unless the old product is specifically requested.
- After February 1, 2019 the old rates and features will no longer be available.
- Reissue requests to new plan will not be honored.
- 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.
AG Quick Ticket
- Effective December 17, 2018, the new Value+ Protector rates will be available.
- Any ticket in draft on February 1, 2019 will receive an error and must be restarted.