Tuesday Tips – November 8th, 2016
North American Suitability Form
North American has updated their suitability form and has added 2 questions. The new forms must be used for all business submitted November 23, 2016 and after.
Legacy Marketing Group
LMG has announced effective November 8 the Liberty Optimizer fee as well as death benefit fee will be applied at the end of the year instead of the beginning. In addition to this they have increased rates on the fixed interest accounts of several products.
Insure The Uninsurable
Many individuals know they need life insurance but don’t act on it until they have a change of health. Unfortunately, for some of those people they end up being uninsurable and their only option is guaranteed issue coverage which can be very expensive. One of the insurance carriers offers a workaround for this on one of their products. They will allow for a parent and child to be on a survivorship universal life plan. So for example lets say you have a 60 year old uninsurable child and an insurable 85 year old parent. More than likely the parent is going to predecease the 60 year old which means the death benefit will pay out at the death of the child. This strategy also solves another problem with guaranteed issue plans, typically you can only get small face amounts of coverage. Utilizing this strategy the client can get a fully underwritten plan so they can actually get the amount of coverage they need. Call today for additional details.
Judge Rejects NAFA Lawsuit
On Friday the federal judge overseeing the NAFA lawsuit rejected it. The judge cited several reasons including the open comment period seeking input from the industry in regard to FIA’s and IRA transactions.
Nationwide No-Lapse Guarantee SUL II
Nationwide offers an incredibly competitive SUL for wealth transfer. The product writes ages 35-85 and in addition to competitive pricing the product also offers a true LTC rider which can be split between the insureds. The product also allows for multiple death benefit payment options. Call today for additional details.