Advisors Blog

Download this Week's Edition of the Lincoln Leader:

Product Updates

• Lincoln VUL Dollar Cost Averaging Fixed Account Enhanced Interest Rate Program – Extended 
• Lincoln VULONE (2021) & Lincoln SVULONE (2021) Annual & Quarterly Statements Redesign

Process Updates

• Coming Soon: Underwriting and New Business Team Phone Number Changes
• Notice for Allocation Forms Submitted on iPipeline for VULONE and SVULONE Products (reprint)
• Pending Website Delegate User Update (reprint)
• eReply Portal Q&A (reprint) 
• Lincoln Policies and Procedures (reprint

AG49 Revisions: Another Shift Toward More Conservative Indexed Universal Life (IUL) Illustrations

The recently approved AG49 revisions will effectively put an end to using bonuses and multipliers that add additional accumulation value to an illustration (aside from the annual projected index credit).

Important Changes to COVID Guidelines

Mutual of Omaha has announced the following changes to COVID guidelines for Fully Underwritten Life, effective June 1, 2023:

Acceptance Guidelines Based on Insured's Issue Age

• Now accepting applications on clients through age 79 without table rating restrictions.
• Now able to consider clients age 80-85 for Standard risk class ONLY.

Clients with Positive COVID Test

A Statement of Good Health continues to be required if:

• The client had a positive COVID diagnosis within the past 3 months.
• The client was hospitalized with a positive COVID diagnosis within in the last 6 months.

Additional COVID-Related Underwriting Updates

• Now allow any applicable temporary flat extra.

Nationwide CareMatters^® II Price Improvements Effective June 12, 2023

Beginning June 12, 2023, Nationwide is implementing a price improvement across all scenarios for the current CareMatters II product. There will be a price decrease for all scenarios, which varies by the characteristics of the case.

In addition, to make CareMatters II more accessible to more clients, Nationwide is lowering the current minimum LTC benefit from $2,500 a month to $1,500 a month. WI, SD, and VT require higher minimums.

Nationwide CareMatters Together℠ Launching June 12, 2023

On June 12, 2023, Nationwide® is introducing Nationwide CareMatters Together℠, their new linked-benefit solution offering long-term care coverage to couples or two individuals with an insurable interest in each other.

Designed for couples ages 30 to 70, Nationwide CareMatters Together offers policy owners the flexibility to use their pool of LTC benefits entirely by one person or shared between the two insureds in any combination.

CareMatters Together offers a shared pool of benefit dollars with multiple guarantees: level premium, cash indemnity LTC benefit, second-to-die death benefit and a full waiver of premium when LTC benefits are being paid.

As with all CareMatters products, the LTC benefit is cash indemnity; that is, Nationwide pays the full monthly LTC benefit and places no restrictions on how the benefits are used. This helps clients pay for their long-term care the way they want it.   

Nationwide YourLife CareMatters^® (NY) – Rate class update

Effective June 12, 2023, all CareMatters applicants in New York will receive Preferred rate classes. From that date the Single rate classes will no longer be offered. Preferred rate classes are equal to the Couple rates, and all applicants will be eligible for these rates, regardless of marital, civil union, or domestic partnership status. Policies issued on or after June 12, 2023, will receive Preferred rate classes.

The only available classes will be:

• Preferred Nontobacco
• Preferred Tobacco

You will continue to see the Couple rate classes referenced on the Life Pending Tracker, but customer facing communications will display as Preferred.

Custom Universal Life Guarantee (CULG) Reprice: AD118 Custom Universal Life Guarantee

New York Life announced several updates to their AD118 Custom Universal Life Guarantee (CULG) product, including:

• Reduced premiums at their best risk classes (Select Preferred and Preferred)
• Lower premiums for face amounts of $1M+
• Allowing face amounts up to the retention limit
• Increased illustration flexibility

These changes will launch with part 1 applications dated June 5, 2023, and subsequent in all jurisdictions.

What’s changing

The current economic environment, coupled with lower levels of uncertainty around COVID-19, presents an opportunity to make price improvements to CULG. The changes will result in a more compelling value proposition to our clients.

Reduced Premiums at Top Risk Classes and for Face Amounts of $1M+

Premium reductions average 8-12% for face amounts below $1M and 9-15% for face amounts $1M or above.

Retention, Auto-Bind, and Jumbo Limits Updates - COVID19 Modifications

Premium Deposit Account (PDA) – The Premium Deposit Account rate will remain at 5% for June. PDA is used to fund a Custom Whole Life, Secure Wealth Plus, VUL Accumulator II, or Market Wealth Plus policy in a lump sum without creating a modified endowment contract. The PDA rate interest is applied to premiums to reduce the client’s out-of-pocket costs.

Variable Loan Interest Rate on Whole Life products – Remaining at 5% at least through September. The applicable August Moody’s rate will determine if interest rates are changed for October-December.

PDA rates vary over time, and interest earned on the PDA is taxable. Guarantees are based on the claims-paying ability of the issuer. 

Annuity Awareness Month is Here: Educational guide on fixed index annuities designed for accumulation potential

June is Annuity Awareness Month, and it’s a great time to share the recently refreshed Balanced Accumulation brochure with your clients. It shows the part FIAs can play in an overall portfolio, providing balance with the potential for growth. 

Save Age Rule Change for California Asset-Care

To align their save age rules for California with Asset Care products in other states, effective immediately, OneAmerica requires the application must be received within 60 days of the client's birthday. This has increased from the prior 30-day standard and now relates to the timing of application receipt versus the timing of policy funding.

Best Interest and Suitability Training Requirements: West Virginia and Wyoming

West Virginia and Wyoming have updated the requirements around best interest and suitability in annuity transactions. New training courses will be required to be able to submit applications for any annuity products, including Asset Care annuity funding whole life. The changes for West Virginia will go into effect Jun 8, 2023. The changes for Wyoming will go into effect July 5, 2023.

Producers selling any annuity products, including Asset Care Annuity Funding Whole Life in Wyoming, must take these new training courses to sell these products.

This course can be taken through your Annuity and Best Interest Annuity Training Program. Existing producers have until January 5, 2024 to update their training, and new producers must take the new Best Interest Annuity Suitability four-hour training before solicitation of applications. The new Best Interest Consumer Suitability Due Diligence Questionnaire I-22733(BI) and the Producer Compensation Disclosure for Annuities form (I-34191) will be available in eApp soon. The original suitability questionnaire will be accepted until the new one is available. 

Best Interest and Suitability Training Requirements: Illinois and Tennessee

The effective date in Illinois has been updated to August 1, 2023 and Tennessee will go into effect January 1, 2024. Producers selling any annuity products, including Asset Care Annuity Funding Whole Life in Illinois and Tennessee must take these training courses to sell these products.

This course can be taken through your Annuity and Best Interest Annuity Training Program. Existing producers have until February 1, 2024, in Illinois and July 1, 2024, in Tennessee to update their training, and new producers must take the new Best Interest Annuity Suitability four-hour training before solicitation of applications.

Transition from Customized FlexUL2^SM to Customized FlexUL3^SM - July 12, 2023

After a review of the universal life insurance product line, Security Mutual Life has made the decision to stop accepting applications, including new business and term conversions, for the Customized FlexUL2^SM as of June 2, 2023.

A new product, Customized FlexUL3^SM, will be introduced for new universal life insurance sales as of July 12, 2023. Such product will employ a maximum initial specified amount of $250,000 per policy.

These changes do not affect in-force universal life insurance policies. The Customized FlexUL2^SM Unisex and the Survivorship UL3 products remain unchanged.