EOLI Notice & Consent Rules Require Careful Planning to Assure Tax Free Death Benefit

IRC Section 101(j) was enacted as part of the Pension Protection Act of 2006. For Employer-Owned Life Insurance (EOLI) issued after August 17, 2006, the death proceeds of a life insurance policy above the policy cost basis will be income tax free only if certain Notice and Consent requirements are met.   IRS issued IRS […]

Transamerica Introduces New Indexed UL

Transamerica is introducing its TransNavigator Index UL product. The product features domestic (S&P 500) or global index accounts (S&P 500, Hang Seng, EURO STOXX 50). Also, a Long Term Care rider is available. With the release of TransNavigator Index UL, Transamerica is withdrawing the Freedom Index UL II product and the Freedom Global IUL II […]

Prudential Announces UL & Term Repricing

Effective August 11, 2014, Prudential will be re-pricing their UL and Term products.  For UL Protector, single pays will decrease across the board by 10-12% and level pays are decreasing 3% primarily on males ages 50-75; For SUL Protector, single pays will see a 1% price decrease and level pays will see a 1% increase […]

Mutual of Omaha Reduces Term Life Rates

Mutual of Omaha has lowered their term life rates for preferred and standard non-tobacco, especially for face amounts in the $500,000 and $1,000,000 bands. Very competitive rates for Term Life Answers 10, 15, 20, and 30 year products at issue ages 40-65. Extremely competitive rates for Term Life Answers 30 year product; Term conversions are […]

American National Introduces Signature Indexed UL

Effective July 1, 2014, ANICO introduces its Signature Indexed UL product.  The product offers three interest crediting strategies based on the performance of an Index with 100% participation rates: Cap of 14% with 0% floor; Cap of 10% with 1.5% floor; and 7.5% specified rate when Index increases or remains the same.  Also, new partial […]

SBLI Announces New Term Rates

Effective July 1, 2014, SBLI will offer new competitive term rates. The new rates are particularly strong for face amounts of $500,000 and up. The number of premium bands have been increased from three to four: Band 1-$100,000 to $249,999; Band 2-$250,000 to $499,999; Band 3-$500,000 to $999,999; Band 4-$1,000,000 +.

Legal & General Increase Premium on LifeStep UL

Effective July 1. 2014, Legal & General will implement a significant premium increase on their Life Step UL product.  Life Step UL is their UL policy for term conversions.  Premiums for males will increase from about 30% to 50% depending on underwriting class.  Premiums for females will increase just over 20% across all underwriting classes.  […]

ING Removes Premium Restriction

Effective June 5, 2014, ING has removed its premium restriction on its guaranteed Indexed UL product which had limited any annual premium to 5 x the premium target. This lifting of the 5 x restriction will make Section 1035 exchanges and short pay premium scenarios available again.

Genworth's New LTC Product

Effective July 21, 2014, Genworth will be launching its Privileged Choice Flex 3 long term care product. The maximum daily benefit amount changes from $400 to $300; the maximum monthly benefit changes from $12,000 to $9,000; a 2% compound inflation protection option is added; all home care services require an Agency service provider; and refund […]