Tuesday Tips – July 28th, 2015
Actuarial Guideline 49
If you sell indexed universal life insurance you’ve probably heard some rumblings about this. Effective September 1, 2015 there will be new guidelines in regard to illustrated rates on indexed universal life insurance quotes. This will affect all carriers, the good news is that this should have no impact on our advisors as we always run these illustrations at less than historical rates. We will be putting out a more detailed report on this in the near future once we have new rates from all of the carriers.
Athene Contracting Change
In an effort to consolidate their product offerings Athene is cancelling it’s Athene DE product line and also terminating all agent contracts. Moving forward all products will be offered through the Athene IA line. This takes affect August 7 if you have questions or would like additional information just let us know.
As summer begins to wind down and the new school year rapidly approaches it can be a good time to discuss college planning for children. The cost of college is increasing exponentially and having funds set aside for a child puts them in a position to have more options in selecting a school. Contact us today about our college savings program that includes marketing collateral, sales presentations, and prospecting materials.
The Future Of Income Riders
In 2016 insurance carriers will be using new mortality tables for pricing out GMWB riders. Longer life expectancies mean longer payout periods, which means rates and payout factors will most likely remain flat or decrease next year. Now is a good time to start revisiting the accumulation story with FIA’s and the power of annual reset.
F&G Retirement Pro
F&G has introduced a competitive ne FIA designed for income. The product has a 12 year surrender period and offers a 7% bonus in most states. The unique twist with this product is that it doesn’t have a set rollup rate instead interest credits based off the returns of the index are applied to the income account value. With annual point to point caps as high as 13% and monthly point to point caps of 4.5% the product has the potential to generate a significant amount of income. Call today for details and state availability.