As the pioneer of variable life, we believe life insurance doesn’t have to be complicated, restrictive or get in your way. That’s why we’re excited to announce two updated VUL products available for sale.
Introducing protection-focused VUL Legacy, Series 160 and accumulation-focused VUL Optimizer, Series 160. Equipped with many of the great features belonging to their predecessor products, the new
VUL Legacy and VUL Optimizer add new features, including a strengthened and streamlined portfolio line-up, reduction in the net expenses of the investment options and the Market Stabilizer Option and
more. These products are 2017 CSO compliant.
The new VUL Legacy will replace lncentiveLife Legacy Ill for protection and the new VUL Optimizer will replace lncentiveLife Optimizer Ill for accumulation in addition to protection. Now offering more of what your clients want:
Product Highlights
- More clarity – Strengthened and streamlined portfolio lineup, so the selection is simpler, no matter your clients’ investment style, risk tolerance, retirement horizon or financial goals.
- Updated illustrations with a new look to make them clearer and easier to understand.
- More efficiency – Reduced net investment expense for all portfolios, including the Market Stabilizer Option®, which provides protection from market downturns with growth opportunities.
- More competitive premiums for illustrating single-pay and short-pay VUL Legacy scenarios.
- Reduced Mortality and Expense charge on VUL Legacy.
- More flexibility – Excellent options for more protection, including our Long-Term Care Services Rider, which is now available with the CVPlus Rider on VUL Optimizer.
- Improved Market Stabilizer Option, including a reduced charge.
Key Features
- New Portfolio Line-up: Wide selection of 70 variable investment options, including 8 index options, 7 asset allocation options from conservative to aggressive, and more than 50 additional equity and fixed income options offering access to some of the best money managers in the world.
- Reduced Net Expenses on Investment Options: A contractually guaranteed Investment Expense Reduction (IER) policy level feature will apply to all investment funds. The minimum guaranteed annualized reduction is 0.15%, resulting in lower net expenses on all investment fund portfolios.
- Market Stabilizer Option® Variable Index Segment Account Charge Reduced: The current Variable Index Segment Account Charge has been reduced from 0.65% to 0.40% annually and the minimum guaranteed Growth Cap Rate is 6% in all years.
- Sales Illustrations: A new look and feel comes to the VUL Legacy and VUL Optimizer illustrations.
VUL Legacy. Series 160 only:
- Reduced Mortality & Expense Risk Charge: The mortality & expense risk charge is 0.50% annually in years 1-15, 0% thereafter on a current basis. On a guaranteed basis, the charge is 0.85% annually in all years.
VUL Optimizer, Series 160 only:
- Cash Value Plus Rider: The Cash Value Plus Rider is available on VUL Optimizer and can be offered concurrently with the Long-Term Care Services Rider.
- Customer Loyalty Credit: Simpler and easier to understand.
- Automatic Reminder Letter for Death Benefit Option B to A Changes
State Availability
Effective July 15, 2019, VUL Legacy, Series 160 will be available for sale in all jurisdictions except NY and PR, and VUL Optimizer, Series 160 will be available for sale in all jurisdictions except CA, NY and
PR. Approvals in the remaining jurisdictions are pending. The state availability charts, which will be updated as approvals are received, will be made available in the Products section of axa.com.
Transition Rules
- Applications can be submitted beginning Monday, July 15, 2019.
- VUL Legacy, Series 160 and VUL Optimizer, Series 160 will replace IL Legacy Ill and IL Optimizer 111, respectively, in our life insurance product portfolio in all approved jurisdictions.
- IL Legacy Ill and IL Optimizer Ill will remain available until October 4, 2019. This means that both VUL Legacy, Series 160 and IL Legacy Ill and both VUL Optimizer, Series 160 and IL Optimizer Ill will be available from July 15, 2019, through October 4, 2019. Signed applications for IL Legacy Ill or IL Optimizer Ill received after October 4, 2019, will be processed as the new 2017 CSO compliant VUL Legacy or VUL Optimizer, respectively, provided all the necessary requirements are received.
- Prospective owners of applications for IL Legacy Ill or IL Optimizer Ill currently pending underwriting approval may elect to switch to a VUL Legacy or VUL Optimizer policy (Legacy to Legacy, Optimizer to Optimizer). This transition period provides prospective owners with the opportunity to get the enhanced features of the new product with no change in timing or amount of coverage in force. Please seek clarification from your Case Manager and/or Life Product Management on the eligibility and process for specific cases to manage the transition and any additional requirements. It is advisable to review illustrations for both the 2001 CSO and the 2017 CSO products, on both a current and a guaranteed basis, before making any such decision.
- If the prospective owner elects to do this, the request to exchange must be received by August 12, 2019, and AXA Equitable/MLOA will require the following:
- A completed Section B Product Information Questionnaire for the applicable product, either VUL Legacy or VUL Optimizer;
- An illustration for the new product, either VUL Legacy or VUL Optimizer, that conforms with the amended application;
- Receipt of the applicable product prospectus for VUL Legacy or VUL Optimizer must be acknowledged on the Section B;
- If payment was submitted with the IL Legacy Ill or IL Optimizer Ill application, then a Notification of Non-Acceptance of Policy (NTO) form will also be required;
- An amendment to the original application for IL Legacy Ill or IL Optimizer Ill will be sent out once all other requirements are received and the new policy is in print. Note that for the original applications that were submitted with payment, this will be a critical amendment.
- Once issued, the new policy will have a new policy number and will have a register date based on standard new business dating rules.
Sunsetting of IL Legacy Ill and IL Optimizer Ill
In order to comply with the NAIC-mandated switch from the 2001 CSO Tables to the 2017 CSO Tables, applications for 2001 CSO products must be submitted, underwritten, issued, and paid for sufficiently prior to December 27, 2019. IL Legacy Ill and IL Optimizer Ill are both 2001 CSO products. Although applications for IL Legacy Ill and IL Optimizer Ill will be accepted through October 4, 2019, it is recommended that applications for these products be submitted in good order as early as possible, to allow the maximum amount of time for all subsequent requirements to be completed so that these policies can be issued and paid for before the NAIC’s deadline. And as a general guideline, for a 2001 CSO policy to be issued and paid for on time, underwriting requirements for that application should be received at AXA Life Operations by December 2, 2019 to be able to meet the December 13, 2019 underwriting approval checkpoint.