Advisors Blog

Select-a-Term Upgrades Effective 8/29/22

Effective August 29, 2022, AIG's Select-a-Term will have the following upgrades:

HIGHER COMMISSION - 5% More For You! AIG has increased the street level commission on all 18 durations of Select-a-Term! Commissionable writing agents who submit Select-a-Term applications signed August 29, 2022, or after will receive an additional 5% commission in all states except for New York where commissions will remain the same. To confirm your commission schedule, log into Connext and find your schedule under Contracting & Commission, and Agent Lookup.

BETTER Term Rates - Select-a-Term is getting repriced in all states except New York where rates will remain the same. There are many great adjustments increasing their position in the top 3 across all terms. Over 96% of cells have lower monthly premiums. Be sure to check out the new 10- 15 year rates! See transition rules on page 2.

LOWER Monthly Modal Factor - AIG has also lowered the monthly modal factor which puts Select-a-Term among the top term products in the market today. Current Monthly Modal Factor: 0.0850. New Monthly Modal Factor: 0.0845.

Crediting Rate Increases on Protection UL, Protection SUL and Preliminary Funding Account Effective 9/1/22

Effective September 1, 2022, John Hancock will make the following crediting rate increases:

• Crediting rates will increase by 20 basis points on new and inforce Protection UL and Protection SUL policies.
• For newly established Preliminary Funding Account (PFA), the interest rate will increase 1.50% to 3.50%

LG America Ceasing New Business Sales of Life Step Universal Life (UL) Insurance Effective 10/1/22

Effective October 1, 2022, LG America will no longer be offering the Life Step UL product for new business, but it will remain available solely for term conversion. This will affect both Banner and William Penn business. The decision to close the Life Step UL product has no impact to any of their existing term product offerings.

Applications for the Life Step UL product must be signed and received by September 30, 2022. Any applications received after this date will not be accepted.

Implementing Price Decreases to Lincoln MoneyGuard Fixed Advantage and Lincoln MoneyGuard II Effective 9/12/22

Effective Sept. 12, 2022, Lincoln Financial Group will be implementing pricing decreases to Lincoln MoneyGuard Fixed Advantage and Lincoln MoneyGuard II, which will improve competitive positioning, and provide additional benefit design opportunities. There will be no pricing increases as a result of this update.

After a transition period, currently sold MoneyGuard products will be replaced by the following:

• MoneyGuard Fixed Advantage – 09/12/22 will replace currently sold MoneyGuard Fixed Advantage in all states.
• MoneyGuard II (2020) – 09/12/22 will replace currently sold MoneyGuard II (2020) – 01/10/22 in the state of California.

Pricing Improvements

Lincoln MoneyGuard Fixed Advantage Pricing Improvements

• Pricing improvements range from 0 - 21%, with an average discount of 8%
• Issue Ages 60 and above improved the most:
• Average discount for Issue Ages 60 and above equals 10%
• Average discount for Issue Ages less than 60 equals 3%

Lincoln MoneyGuard Fixed Advantage Product Updates

• The 6-year 5% inflation benefit design option has been added to the product

Lincoln MoneyGuard II Pricing Improvements

• Pricing improvements range from 0-18%, with an average discount of 6%

Lincoln MoneyGuard® II Product Updates

• The 6-year 5% inflation benefit design option has been added to the product 

Enhancements to the indexed account line-ups for Lincoln OptiBlend and Lincoln FlexAdvantage fixed indexed annuities

Lincoln is pleased to announce additional indexed accounts for new Lincoln OptiBlend and Lincoln FlexAdvantage contracts.

Effective with new contracts issued on or after August 22nd, clients will have the opportunity to allocate premium to the new accounts. Click below to view the announcement flier and fact sheet.

NAIC Annuity Transactions Model Reg – Many states now require additional training; other states anticipated to follow

The NAIC has amended the Annuity Transactions Model Regulation to align with the best interest standard of care for annuity sales. As part of this Model Regulation, producers will need to complete additional training. Refer to the Frequently Asked Questions document found by logging in to LINCOLNFINANCIAL.COM > GUIDELINES AND EDUCATION > COMPLIANCE GUIDELINES for more information.

Producer training requirements for states who have adopted the 2020 NAIC Model

• New annuity producers are required to complete a four-credit training course that covers the new requirements.
• Existing producers who have previously completed a four-credit training are required to complete a new one-credit training course (a new four-credit course will also meet the requirement). Completion of this training is required within six months after the effective date of the Model Regulation in each state.
• All producers: Product-specific training will continue to be a requirement for new and existing producers prior to solicitation of an annuity product. Note: Where Lincoln is conducting the suitability review, the ACORD 660 form or “Appendix A”, (“Insurance Agent (Producer) Disclosure For Annuities”) is required with the application in states that have adopted the new NAIC Model Regulation. If this form is missing from applications received after the effective date of that state’s adoption, the business will be deemed not in good order (NIGO).

Current state adoptions

The following states have recently adopted the revised NAIC Suitability in Annuity Transactions Model Regulation. Producers soliciting annuities in these states will need to complete the general annuity and product-specific training by the deadlines shown. State-specific requirements follow: 

MassMutual to Introduce a Fluidless Eligible Underwriting Program

Effective August 25, 2022, MassMutual will introduce a Fluidless Eligible Underwriting Program to allow some applicants to qualify for certain life insurance coverage without a medical exam. This program will be available in all states for all submission types. 

Nationwide Updated Underwriting Programs

Nationwide has three updated underwriting programs to create more opportunities for advisors and clients to do business with Nationwide.

1. Nationwide Term + Perm - Term + Perm program has been expanded up to $5M up to age 50, and term policies issued through an acceleration program can now be included for eligibility. 
2. Nationwide Executive Advantage - A streamlined underwriting program that can now be used for up to a $20M face amount, the Nationwide Executive advantage is a great option for your executive clients.
3. Competitor Match Program - This program has been updated to match up to a face amount of $5M and has added new carriers to the qualifying list.

PL Promise Term Pricing Improvements Effective 8/22/22

Pacific Life recently repriced PL Promise Term life insurance rates to be even lower.

PL Promise Term is Pacific Life’s product specifically designed to serve the death benefit protection needs of the broad market consumer (household incomes of $50K to $250K).

You’re invited: 3 sales ideas in 15 minutes

Please join Principal for a fast-paced sales idea session with the regional directors of business solutions.

Your speakers will cover the following:

• Three benefit restoration ideas—retirement income, disability income, and life insurance
• New Guaranteed Issue Term parameters
• Case studies

September 6, 2022 12:15 p.m. PT / 3:15 p.m. ET