After a careful review and analysis of Value Whole Life, the decision has been made to discontinue the product at the end of the year. Given the current low interest rate environment, we would be required to make meaningful changes to the current pricing which would materially impact the product positioning within the whole life product suite.
AD117 Value Whole Life will continue to be available for sale in all jurisdictions through the end of the year. All applications must be submitted with an Application Part I date of December 31, 2020 or earlier. Value Whole Life applications with a Part I date of January 1, 2021 or later will not be accepted. Value Whole Life will no longer be available in eLife after December 31, 2020.
Our decision to discontinue this product will not impact inforce Value Whole Life business. These inforce policyowners will continue to have the features and policy provisions outlined in their contract available to them.
EXTENDED Through Year End: 2020 Enhanced Term Conversion Credits on Attained Age Term Conversions to Whole Life Products
At this time the Double Conversion Credit Campaign is being extended through year end (December 31, 2020). In light of the current environment, we will continue to evaluate this campaign and the benefits it provides to our clients and agents. Any potential changes to the final date of this campaign will be communicated with as much notice as possible.
This campaign offers double (2x) the contractual conversion credits for eligible AD116 and AD118 Term base policies and riders when converting to Whole Life (WL), Custom Whole Life (CWL), Value Whole Life (Value WL), or Custom Survivorship Whole Life (CSWL) in all jurisdictions excluding New York and North Dakota.
For more details and complete list of rules, please see the Network News from January.
Double Credits Eligibility
Term clients in all jurisdictions except New York and North Dakota who are currently eligible for conversion credits on the products listed below will receive double (2x) their conversion credit if the conversion application for WL, CWL, Value WL or CSWL. Eligible products include:
- YCT: AD116 and AD118 base & rider
- LCT 10‐20: AD116 and AD118 base
- LCT 5: AD116 and AD118 rider
Single Conversion Credits
Conversions to other products (the Universal Life and Variable Universal Life Product series) will continue to receive single credits. Double credits will not apply.
Single contractual conversion credits will be offered to clients who are eligible for conversion credits in New York and North Dakota.
Premium Deposit Account (PDA) ‐ Lifetime coverage with One‐time payment
Let us show you how a Premium Deposit Account can help put a lifetime of coverage in place with a one‐time lump sum that will earn a competitive interest rate.
The Premium Deposit Account (PDA) gives clients the opportunity to make a single deposit to pre‐pay up to fourteen annual premium payments for any newly issued Custom Whole Life policy without creating a Modified Endowment Contract (MEC). The money in the Account earns a competitive interest rate that’s locked‐in at the start of the agreement period. Each year, the policy’s annual premium is paid from the Account using the deposit and interest earned.
Effective October 1, 2020, the crediting rate for the Premium Deposit Account (PDA) is 2.25%. Rates are subject to change.