In November, MassMutual will launch new versions of UL Guard and Survivorship UL Guard in all states. These flexible-premium universal life (UL) products provide the protection of permanent life insurance and maybe an important part of your clients’ estate and legacy planning.
UL Guard and SUL Guard will be updated with these key changes:
- Premiums will increase for most cells as a result of interest rate decreases since the products were last repriced in November 2019:
- On average, premiums are increasing by 10% for both full-pay and single-pay scenarios.
- The premium changes will vary by age and face amount, ranging from a few decreases to some increases of significantly more than 10%.
Increases will generally be larger for younger insureds.
Chronic Illness Rider
A Chronic Illness Rider will be automatically included with UL Guard for qualifying insureds age 65 and under:
- Is the same rider being introduced with the new Apex VUL product.
- Will enable policy owners to accelerate a portion of their death benefit in the event of a chronic illness.
- Does not have an additional premium. The benefit amount will be discounted at the time of acceleration.
- Is not long-term care insurance (LTCi), so state LTCi licensing and training are not required.
- Will be available for fully underwritten new issues only (not available via term conversion or guaranteed insurability rider).
- Will not be available in New York and is not yet approved in California.
More details will be available when producer-use materials become available Oct. 23.
Key dates and transition rules
Here are key dates in the rollout of the new UL Guard and SUL Guard:
- Oct. 23: Producer-use marketing and training materials available.
- Nov. 2: Illustrations and client-use marketing materials available.
- Nov. 20: Last day to submit applications for the current UL Guard and SUL Guard.
- Nov. 21: First day to submit applications for the new UL Guard and SUL Guard.
Transition Rules: New UL Guard & New SUL Guard (November 2020)
- Illustrations for the new products will become available on November 2, 2020.
- Applications for the current/old products must be submitted by 8 P.M. eastern time. In addition, applications that are locked and out for signature in EZ-App must be signed and completed by 8 P.M. eastern time on November 20, 2020, in order to get the current/old product.
- The first day to submit applications for the new products is November 21, 2020.
- Applications for the current/old products received by the November 20th deadline must be issued and reported by March 31, 2021. The reporting deadline is not applicable to 1035 exchange cases.
- Normal backdating rules to “save age” apply.
- NY Reg. 60 Cases: For these cases, applicable Reg. 60 forms must also be submitted on or before November 20th in order to be issued with the current/old product. If these forms are not received by November 20, 2020, or if the file is closed for any reason, a new signed Part 1 and a new ADE will be required and the new product will be issued.
- Trust Applications: If an application is submitted by November 20th deadline, but the trust is established after the deadline, a new signed Part 1 is required and the policy will be issued with the current/old product under the original policy number as long as the case has not been closed out. If the policy has been closed out, a new signed Part 1 and a new ADE will be required and the new product will be issued.
Plan Changes for Policies Pending Issue
- Plan change requests to switch to any of the new products will not be allowed. A new signed Part 1 and a new ADE will be required.
Issued Policies that are NOT REPORTED
- 90-day reissue requests to switch to any of the new products will not be allowed. A new signed Part 1 and a new ADE will be required.
Issued Policies that are REPORTED
- 90-day reissue requests to switch to any of the new products will not be allowed. A new signed Part 1 and a new ADE will be required, and normal replacement rules will apply when the original policy has passed the Free Look provision period.