Throughout the remainder of 2019, United of Omaha will be modifying the products in our life insurance portfolio as we implement the 2017 Commissioners Standard Ordinary (CSO) Tables.
The first phase of product changes will be implemented on August 1, 2019:
- Income Advantage IUL will be updated with the new tables. Impacts of these modifications include:
- There will be slight increases and decreases in our premiums, required minimum face amounts and disbursement amounts. Disbursement amounts will be consistently within 2% in either direction from our current disbursements, with very minor changes in our competitive positioning.
- Generally, our charges have decreased slightly, which means our commitment to providing your clients with a low-cost IUL will remain the same.
- Target premiums for Death Benefit Option 1 policies will increase to match the target premiums for Death Benefit Option 2 policies.
- AccumUL Plus, our fixed universal life insurance product, will be discontinued.
- AccumUL Answers will remain in the portfolio and will be modified with the new tables.
- Target premiums will remain the same; however, the policy costs have decreased, which means the target premiums will generally carry for a longer period of time than they did previously.
- The Companion Life Insurance Company version of the AccumUL Answers product will also be modified with the new CSO tables. This product will be available in New York for term conversions only.
- AccumUL Answers will be introduced in California
We anticipate the second phase of product changes will be implemented in October 2019. These changes include CSO table updates for our Guaranteed Universal Life (GUL) and Guaranteed Universal Life Express (GULE) products. In addition, the Disability Continuation of Planned Premium and Accelerated Benefit Riders will be introduced on GUL in California at the same time.
Life Protection Advantage IUL was initially designed using the 2017 CSO tables; therefore, we will not be making any additional changes to the Life Protection Advantage IUL product in 2019.
Income Advantage IUL and AccumUL Answers
The new Income Advantage IUL and AccumUL Answers pricing will go into effect August 1, 2019 in all states.
- To get the old pricing, applications must have a signed date prior to August 1, 2019 and the application must be received in the home office by August 16, 2019. Applications received after August 16 will receive the new pricing regardless of app signed date. All policies that use the old pricing must be placed and paid no later than December 31, 2019.
- Applications with a signed date of August 1, 2019 and later will get the new pricing. If the broker/agent wishes to have the new pricing on a pending in-house application that was signed prior to August 1, 2019, they will need to contact Underwriting.
AccumUL Plus will be discontinued effective August 1, 2019 in all states.
- AccumUL Plus applications must have a signed date prior to August 1, 2019 and must be received in the home office by August 16, 2019. All AccumUL Plus policies must be placed and paid no later than December 31, 2019.
- For any AccumUL Plus applications signed August 1, 2019 or later, or any AccumUL Plus applications received after August 16, 2019 (regardless of app signed date), Underwriting will contact the broker/agent to determine if they wish to proceed using a different product.