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Discontinuation of American National Term Rider on Signature Whole Life
As of 5/1/2023, American National will no longer accept applications for the American National Term Rider on Signature Whole Life policies.
American National will continue to process all applications with the Term Rider received prior to 5/1/2023 and will continue to offer the highest level of customer service to all existing policyholders and agents.
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Coming Soon! IUL Product Changes for Revised AG 49-A Rules
Corebridge will make the following changes to its IUL products:
- This update only impacts illustrations, not how the life insurance product operates or performs.
- Illustrated performance of Volatility Control Index (VCI) accounts will be reduced to similar levels as current S&P 500 index accounts.
- Caps and participation rates are not changing
- There are some interest rate changes in the in-force products to reflect the current market environment.
- NEW! Max Accumulator+ III will now be available in California.
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Lincoln WealthAccumulate® IUL (2020) – 04/17/23
Lincoln has made an update to the Lincoln WealthAccumulate® 2 IUL (2020) life insurance product effective April 17, 2023. At launch, this product will comply with the updated illustration requirements for AG49-A (Effective May 1, 2023).
Pricing Updates
- Reduced premium loads above threshold to match premium loads below threshold, improving competitiveness on single and short pay designs (current charge only)
- Indexed Account Updates
- Increased S&P 500® Traditional Account cap from 9.50% to 10.00%
- Decreased S&P 500® Traditional Account floor from 0.25% to 0.00%
- Participating loans are replaced with two new Indexed Loan Accounts linked to the S&P 500 Index** (excluding dividends) or the Fidelity AIM Dividend Index# If selected the amount of any loan will be transferred from the Indexed Account(s) and/or Fixed Account and earn interest based on the performance of the Indexed Loan Account to which it is allocated. The loan will be charged a guaranteed rate of 5.0%.
Transition Guidelines
There is a transition period which begins on April 17, 2023 and ends on April 30, 2023. Applications received on or after May 1, 2023, will receive the new Lincoln WealthAccumulate® 2 IUL (2020) – 04/17/23 product.
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Lower Minimum Face Amounts Coming for MassMutual Whole Life 10-Pay and Whole Life 12-Pay in May 2023
MassMutual is lowering the minimum face amount for Whole Life 10-Pay and 12-Pay products to $25,000. This change will give financial professionals and clients more flexibility in their planning and also aligns with product minimums in the rest of our whole life product portfolio. Please note, this change excludes the High Early Cash Value (HECV) product which remains at $100,000.
A new face amount band will become available for face amounts between $25,000 and $99,999. Premiums and dividends for policies in this band will vary from higher bands.
The new minimum face amount will be available for policies with and without the LTCAccess Rider (LTCR), although for policies with LTCR, the minimum face amount will be $97,000 (like other non-HECV products). There are no changes for face amounts above the new low band.
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Sunsetting Tax Provisions: The Tax Cuts and Jobs Act of 2017 (TCJA)
As planned today, the Tax Cuts and Jobs Act of 2017 (TCJA) will “sunset” in 2026, changing the tax environment significantly: The top marginal income tax rate reverts to 39.6% and the estate and gift tax exemption amount reverts to $5 million, indexed for inflation. This could happen sooner than 2026, should legislation be passed.
There’s still time to reap the benefits of the TCJA.
- Deadline to take advantage of certain tax opportunities is 12/31/25.
- Review valuable estate planning opportunities that will sunset in a few short years.
- See how the income tax rates will increase.
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Improved Pricing and New Features on Founders Plus IUL and Essential UL - Effective 04/24/23
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Founders Plus Indexed UL
Founders Plus Indexed UL First, Founders Plus has a new, clearer name: PruLife® Founders Plus Indexed UL. Founders Plus offers upside potential with downside protection through indexed or fixed account crediting, meaningful guarantees, and living benefit options.
Pricing will be improved with a new and generally lower charge structure, especially in shorter pay scenarios, making 1035 exchanges and mirrored loans more attractive. For example, for $1M of death benefit the average decrease is roughly:
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Founders Plus will be compliant with the anticipated revision of AG-49 A illustrated rates starting 05/01/23 and will use the S&P 500 Index Account as the default option instead of the Goldman Sachs Voyager Index. Please reference the AG-49 A FAQ for more details.
Essential UL
Essential UL, our simplest version of permanent life insurance, provides cost-effective death benefit protection, conservative cash value accumulation potential, meaningful guarantees, and options for living benefits.
Pricing on EUL will be improved with a new and generally lower charge structure, especially in shorter pay scenarios, making asset repositioning and 1035 exchanges more affordable. For example, for $1M of death benefit the average decrease is roughly:
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And in New York, you can now sell a non-permanent version of BenefitAccess Rider on Essential UL.
Essential UL is our first product in New York to feature the non-permanency version of BAR, which allows clients to file a chronic illness claim even if they are expected to recover. As we enhance our portfolio, we will look to include this version of BAR on other products in NY.
IMPORTANT DATES (subject to state approval):
- April 24, 2023 (Ready to Sell Date): New Rates for the repriced product are in effect. All applications signed and dated1 on or after April 24, 2023, will receive New Rates.
- April 28, 2023 (Home Office Receipt Date): Last day that an application can be received in the Home Office with Old Rates.
- June 16, 2023 (Placement Date): Last day that a pending case can be placed with old rates. All delivery requirements must be received in good order by end of business day (4 PM EST).
- June 16, 2023 (1035 Exchange Date): Cases involving 1035 exchange must be initiated/started by June 16, 2023, to retain old rates. If the 1035 initiation/start deadline is met, the policy will not be subject to an additional placement deadline.
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Milestone MYGA Rates Up to 5.20%*
This is great news for clients who want guaranteed growth and principal protection. Consider a MYGA laddering strategy, featuring a series of staggered MYGA guarantees for 3 to 7 contract years to help your clients increase their retirement savings.
Milestone MYGA offers these great advantages:
- 10% penalty-free withdrawals beginning contract year two
- Issue availability through age 90
- Full account value payable at death
- eApplication and paper application options
- eDelivery available with eApplications
*The 5.2% rate is based on a $100,000+ premium level and a 5 to 7 contract year term.
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Introducing New Versions of Symetra IUL Effective April 28, 2023
Effective April 28, 2023, Symetra is introducing new index caps, participation rates and bonuses on Symetra’s indexed universal life insurance products — Accumulator Ascent and Protector IUL.
They're keeping all the valuable features and benefits of their IUL products, including:
- Strong cash value accumulation potential.
- Cost-effective, flexible policy designs.
- A variety of index strategies.
- A compelling selection of included and optional riders.
With these new enhancements, Accumulator Ascent IUL distributions will increase and Protector IUL premiums will go even lower.
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We at GBS Insurance thank you again for your business.
For more information or insurance quote requests, please contact your brokerage manager.
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GBS Insurance and Financial Services, Inc, CA License #0D87913
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21820 Burbank Blvd., Suite 301
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For agent use only - not for use with the general public.
GBS Insurance and Financial Services, Inc. does not provide investment, tax, or legal advice. The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.
These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
© 2023 Arthur J. Gallagher & Co.
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