COVID-19 Product & Underwriting Updates
Since the onset of the COVID-19 pandemic, insurance companies have announced an unprecedented number changes to their products and underwriting. These changes have altered the life insurance landscape like never before. Some of these changes have actually been beneficial – like increased death benefit amounts for Accelerated Underwriting or the introduction of new APS retrival options – while other changes have not been so favorable. As an example, many companies are now restricting their maximum issue ages, regardless of product.
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- Max Issue Age of 69 – AIG, Global Atlantic, Mutual of Omaha
- Max Issue Age of 70 – Pacific Life (term), Securian
- Max Issue Age of 75 – Pacific Life (ul), Transamerica
- Max Issue Age of 79 – Cincinnati Life, Lincoln National, New York Life, North American, Protective Life, Prudential, Symetra
- Max Issue Age of 80 – Equitable, Principal
With the support of LIBRA Insurance Partners, the Brokers Network has consolidated many of the announced changes. Do not hesitate to contact us if you need additional clarification.
For additional support, review our recommendations for writing life insurance from a social distance.
New York Reg 187 Effective February 1, 2020
The New York State Department of Financial Services Regulation 187 requires producers and insurers to implement a process that ensures they are acting in the consumer’s best interest when recommending life insurance policies issued in New York. This regulation goes into effect on February 1, 2020, and includes many new guidelines and training requirements. If you write life insurance in New York, you must complete all required training prior to soliciting and submitting any new business on or after February 1, 2020. We encourage you to complete your training as soon as possible to avoid any unnecessary delays in the processing of your life insurance applications. | FAQ | Training
2017 CSO and PBR Product Changes
As of January 1, 2020, all life insurance plans available for sale must be priced based on the 2017 Commissioners’ Standard Ordinary mortality table (2017 CSO) and be subject to Principle Based Reserving (PBR). Because of these requirements, insurance companies will be revising their most popular plans and retiring the balance. Any pending application for a plan that has not been revised to meet the new standards or is being retired must be placed inforce prior to January 1, 2020. There will be no exceptions. The Brokers Network will keep you updated on announced company guidelines and your affected pending life insurance business. | current guidelines
November is Long-Term Care Insurance Awareness Month
Did you know that 55% say most people need long-term care insurance (LTCi), yet only 15% own it? This is according to the 2019 Insurance Barometer Study by Life Happens and LIMRA. That stat underscores how important it is to get the word out to your clients and prospects about the value of having LTCi in place before it is needed. But as we know, your clients who need it are not all alike, so the way that you communicate with them should be as distinct as they are. To help you do that, Life Happens has expanded its suite of LTCI resources that you can begin using now, for November’s Long-Term Care Insurance Awareness Month and beyond. | more
Brighthouse Product Closures
In evaluating their current situation, Brighthouse Financial has decided to close Premier Accumulator Universal Life and Guaranteed Level Term to new sales effective September 27, 2019. This change has no bearing on term conversions as the Conversion Whole Life plan will continue to be available. While we are disappointed by this announcement, we look forward to what Brighthouse will be bringing to the marketplace in 2020.
September is Life Insurance Awareness Month
To make sure Americans are reminded of the need to include life insurance in their financial plans, the nonprofit organization Life Happens coordinates Life Insurance Awareness Month. Each September Life Happens is joined in this educational initiative by more than 100 of the nation’s leading insurance companies and industry groups. Throughout September, The Brokers Network will be highlighting various life insurance products and the benefits they offer your clients.
Cancer Guardian Client Engagement Change
Effective with life insurance approvals on or after June 1st, your eligible clients will no longer be automatically opted-in to the complimentary one-year Cancer Guardian benefit. Going forward, your clients will not be contact by Wamberg Genomic Advisors regarding Cancer Guardian. Instead, they will be required to sign up on the Cancer Guardian website at your prompting. To activate their complimentary Cancer Guardian participation, your clients will need to go to https://life.cancerguardian.com and click on ENROLL NOW in the upper right hand corner of the page. Be sure they select Agency Code 003 and enter your name as their agent on the enrollment page to confirm their eligibility. With this new format, you, as their insurance advisor, will be the only information source regarding their eligibility and the program’s benefits. | more
John Hancock Protection IUL Offers Powerful Living Benefits
John Hancock has been a leader with their Long-Term Care rider while also rewarding customers for healthy choices with the Vitality program. And now, their Critical Illness Benefit rider is raising the bar for comprehensive coverage. The new rider pays a lump-sum income tax-free benefit that is separate from – and in addition to – the death benefit. Protecting your clients during their working years and in retirement has never been more important, so John Hancock has made it easy and affordable to do both. | more
Mutual’s IUL Illustration Rates Increase Slightly
Effective February 1, 2019, the maximum illustration rates on Mutual of Omaha’s Income Advantage IUL and Life Protection Advantage IUL increased slightly. While the increases are slight, this is good news considering that most companies are going in the opposite direction with lower index caps, participation rates and illustration rates. | more
Lincoln VUL Underwriting Upgrade
Lincoln National is now offering an enhanced underwriting program to strengthen the competitive value of their industry leading suite of Variable Universal Life (VUL) products. For VUL cases fully underwritten at standard or better and placed by December 31, 2018, Lincoln is offering a one-class underwriting upgrade. This upgrade program is available for issue ages 20-80 on all Lincoln single life and survivorship VUL plans excluding the AssetEdge Exec VUL and policies issued in New York. | more