Advisors Blog

Increases to the Preliminary Funding Account Interest Rate

John Hancock's interest rate on their Preliminary Funding Account (PFA) is increasing from 3.5% to 4.25%, effective May 1, 2023 — representing a cumulative increase of more than 2.75% over the past year and putting John Hancock in the top tier of PFA crediting rates. What’s more, this new rate is guaranteed for the duration of the PFA, which could stretch as long as 10 years into the future.

How does this help your UL and IUL sales?

• Clients can buy a larger death benefit or build up more cash value potential, because more premium will be paid into the policy.
• PFA can provide a more attractive life insurance-adjacent alternative to CDs, etc. that provide high APYs in this interest rate environment.
• With an insurance-adjacent account, like our PFA, you can be confident that funds will be used to pay for the policy, and the financial plan will be executed as intended

Get Ready For Disability Insurance Awareness Month (DIAM)

Far too many Americans have an enormous gap between their need for disability income (DI) insurance and the actual coverage they have. In the last year, only 35% of consumers who work with a financial professional have had a conversation about Disability Insurance.¹

May is Disability Insurance Awareness Month (DIAM). It is the perfect time to speak with clients about protecting a portion of their income in the event of a disability.

To help you have the DI conversation, MassMutual has developed these client approved materials for you to use during DIAM and beyond. The DIAM toolkit is your one-stop-shop for all things DIAM, including emails, conversation starters, videos, social media posts, and more.

¹ Source: MassMutual proprietary study, Consumer Sentiment, Q4 2022

New Underwriting Updates for Term Life Express and IUL Express

Mutual of Omaha has updated its Underwriting Guidelines and application forms for Term Life Express and IUL Express, effective April 22, 2023.

The following changes will be implemented to help make policies more accessible for your clients:

• They have lowered the age for Diabetes automatic declines. Diabetes will be automatically declined when diagnosed prior to age 45 (except in CA & VI, the age is 50).
• Marijuana is no longer considered an "unlawful drug" for the purposes of the application and underwriting.
• The lookback period for hospitalization due to High Blood Pressure or Mental Health has been reduced from ten years to "in the past 5 years"

Classic Choice Term Reprice, Effective May 1, 2023

Effective May 1, 2023, Protective has lowered their Protective Classic Choice term prices once again.

• Their lower prices puts Protective in the top 3 76% of the time in monthly premium scenarios and 75% of the time in annual premium scenarios. (Please note, iGo defaults to annual premium quotes. Be sure to change to monthly premium quotes to see Classic Choice term's most competitive rates.)
• 35- and 40-year term periods make Protective one of only three carriers in the market to have level term coverage for up to 40 years.
• Protective Velocity, their suite of digital solutions, makes submission to commission even faster and easier.

Transition Rules:

• For paper business: applications must be signed and received on or before May 15, 2023.
• For electronic ticket business and direct writers: applications must be signed and received on or before May 29, 2023.
• Any application in Underwriting on May 1, 2023, may choose the version of the product (old or new) but will retain the rates they are initially quoted unless otherwise requested up until the case has been approved.
• New York does not have a rate change, but the plan codes are changing so they will follow the above rules.

New Funds to Protective Strategic Objectives II VUL, Effective May 1, 2023

Starting May 1, 2023, five new funds will be available with Protective^® Strategic Objectives II VUL to diversify and strengthen clients’ portfolios:

Invesco^® V.I. Defined Outcome Funds

• Give clients the opportunity to provide defined growth potential (with a predetermined cap) and loss protection, thanks to a buffer against losses.
• Give clients the flexibility to respond to changing markets by moving assets across the family of defined outcome funds and diversifying their portfolio to their personal investment risk tolerance.

Putnam VT Sustainable Leaders Fund

• Gives clients a way to align their investment strategies with their personal values, by allowing them to invest in companies that exhibit leadership in financially material sustainability practices.
• These new competitive fund options are just the latest way we’re committed to providing to growth potential and protection when your clients need it most

AG 49-A Frequently Asked Questions

Actuarial Guideline 49-A (AG 49-A) is a regulation that outlines how indexed UL policies should be illustrated. A revised version of this guideline went into effect on May 1, 2023. This update will impact illustrations using the Goldman Sachs Voyager (GSV) Index Account on Founders Plus. Click below to reference the following FAQ for additional information.

Variable Universal Life (VUL) Survivor Now Available, Announced May 1, 2023

Securian Financial’s newest life insurance option, Variable Universal Life (VUL) Survivor, is now available for sale. A second-to-die policy, VUL Survivor is designed to give your clients life insurance coverage that can grow with them and fit their changing needs.

VUL Survivor also provides:

• Cost savings - Maximize premium dollars by purchasing one policy vs. two individual policies.
• No-lapse guarantee - Add a lifetime of guaranteed coverage at an affordable price — no matter policy performance.
• Estate planning solution - Use as part of your client’s estate plan for legacy or tax planning, charitable giving or even special needs.
• Cash value growth potential - Over 70 variable sub-account options, fixed indexed accounts and a guaranteed interest account.
• Competitive max distributions - For supplemental retirement income, estate planning needs or money for an unexpected emergency.

Improved Pricing and Product Improvements for VUL Defender, Effective May 1, 2023

On May 1, 2023, VUL Defender^® will be better than ever with new and improved pricing in many cells, primarily for 10-pay and lifetime pay policies, along with product improvements that can make it an attractive option for clients looking for lifetime guarantees.

Highlights:

• Repriced to be more competitive in short pay and lifetime pay designs.
• New non-tobacco plus (NT+) underwriting class. Standard rates will change slightly as a result of adding this underwriting class. See Transition Rules below related to this change.
• Changes when including No Lapse Guarantee Agreement (NLGA)
• Waiver of the fund allocation restrictions that previously placed limits on the percentage of net premium allocations, transfers and rebalancing that can be allocated to variable sub-accounts.

SecureCare III Repriced in New Jersey

Effective May 8, 2023, rates for SecureCare^™ III, a long-term care (LTC) and non-participating whole life insurance policy, were decreased by 25 percent across all case scenarios in New Jersey.

All pending applications that have an effective date on or after May 8, 2023, will automatically be eligible for and receive the new pricing. This will result in a face amount that is higher than originally illustrated.

SecureCare III’s new rates are now available in all states except AZ, DE, DC, IN, ND, SC and SD.

SecureCare III offers:

• Competitive pricing and robust cash indemnity LTC benefits
• Three return of premium options, including LTC Boost
• Enhanced flexibility to customize the policy for each client's needs