Our industry has faced many challenges over the past several years – from persistently low interest rates to changing industry regulations. This environment significantly impacts how we are able to price our life insurance products, especially those with no-lapse guarantees, while still maintaining a profitable business model so that we can be there when customers need us most.
As a result, effective October 1, 2016, we will be making adjustments to our GUL product pricing. At the same time, we will also be enhancing our GRO rider maximum refund cap as a way for you to offer additional value for your clients. The GRO enhancement will also be included on our Income Advantage IUL which was introduced earlier this year.
Pricing Change Information
Effective October 1, we will be adjusting our pricing on GUL and GUL Plus:
- For GUL premiums, you will see increases of 8-10% on average
- For GUL Plus single premiums, you will see increases of approximately 5%
Although premiums are increasing, these products will remain well-positioned in the industry by offering your clients:
- Exceptional value
- A fully guaranteed product solution
- Built-in Accelerated Death Benefit Riders for Terminal and Chronic Illness
- A Guaranteed Refund Option (GRO) Rider that allows our product to offer more flexibility than any other GUL in the marketplace, as shown in our new ‘What If’ illustration report introduced in August
We remain committed to the GUL marketplace and have continued to enhance our products with features that add additional value for your clients, such as our October 1 increase to the GRO Rider maximum refund cap.
GUL and GUL Plus applications signed on or after October 1, 2016:
- Will receive the new pricing
- Will be issued with the enhanced Guaranteed Refund Option rider on qualifying policies
To receive the old pricing, GUL and GUL Plus applications need to be signed prior to October 1, 2016 and must be received in the Home Office no later than October 31, 2016. These policies will be issued with the GRO Rider max benefit of 35% of the specified face amount.
Please contact the Underwriting Department on pending GUL and GUL Plus applications with a signed date prior to October 1, 2016 if the client wants their policy issued with the new GRO Rider (along with the new pricing on GUL and GUL Plus).