Effective May 30, 2020, premiums on Secure Lifetime GUL 3 (issued by AGL and USL) will see an increase as the result of recent declines in interest rates and increased market volatility. At AGL and USL, we are
committed to providing competitive, attractive guaranteed life insurance products to your clients.
Rate Changes
Guaranteed premium to increase on average 15% varying by age and payment duration.
Differentiating Features
- Guaranteed Return of Premium: Built-in, no cost option to receive 50% end of year 20 or 100% end of year 25
- Partial withdrawal capability feature
- Optional Accelerated Access Solution for chronic illness coverage up to $3 million of client’s base policy
- Optional Lifestyle Income Solution that provides a guaranteed income by accelerating the death benefit
Transition Rules
Paper Applications
- New GUL rates are effective May 30, 2020.
- Applications received on or after May 30, 2020, will receive the new rates.
- Starting 4:00 PM CDT on May 29, 2020, only the new rates will be available in WinFlex.
- To receive the old rates, applications must be received on or before May 29, 2020.
- Reissue requests will not be honored.
AG Quick Ticket
- New GUL rates are effective May 30, 2020.
- Applications submitted via Quick Ticket by May 29, 2020, will receive the old rates if AIG receives the application in good order by June 15, 2020.
- Applications submitted via Quick Ticket by May 29, 2020, will receive the new rates if AIG receives the application in good order after June 15, 2020.
- Applications submitted to AIG via Quick Ticket on or after May 30, 2020, will automatically receive the new rates.
- Reissue Requests will not be honored.
For all cases including those that may be paused or postponed as part of our temporary COVID-19 underwriting guidelines announced in April, in order to retain the old product and rates, all requirements must be received by the dates noted and the policy must be placed in force no later than October 31, 2020. Otherwise the policy will move to the new rates. Additional rules below:
- May 29: Last date to drop a ticket or submit paper application for old product.
- May 30: New tickets dropped or paper applications received as of this date will receive new product.
- June 15: Last date for AIG to receive an application (in good order) for the old product from a ticket dropped on or before May 29.
- October 1: Last date to write out for 1035 exchange funds.
- October 31: Last date AIG will place in force an old Secure Lifetime GUL 3 and Platinum Choice VUL 2.
- October 31: Last date for funding for 1035 exchanges to be received from the transferring carrier for the old product rates.
Alternatively for 1035 exchanges: The insured may pay the minimum initial out-of-pocket premium by October 31 to continue toward issuance of a policy with the older product rates. If this option is taken, any funds subsequently received from the transferring carrier after October 31 will be applied to the policy as a lump-sum payment at the time of receipt. Funds received from the transferring carrier in this scenario will not be applied as initial premium.
Regardless of the date when the temporary COVID-19 underwriting guidelines are lifted, the old product rates will no longer be available to be placed in force beyond October 31, 2020. Thank you for your business and for your continued patience with these guidelines.