Prudential | July 2022
Effective July 15, 2022, the spreads on Uncapped Index Accounts will be increased. Click here for more information and the complete list of index account caps and spreads.
Effective July 15, 2022, the spreads on Uncapped Index Accounts will be increased. Click here for more information and the complete list of index account caps and spreads.
Due to ongoing volatility in the capital markets, it has become necessary to reduce cap rates and participation rates on some of the accounts within our Indexed Universal Life (IUL) product portfolio. These changes will take effect for all premium received and new indexed segments created after Friday, July 15, 2022. All premium received on or before July 15 for approved and existing policies will have current rates applied. Illustrations will be updated July 16, 2022. Read More.
In today’s world of increasing complexity, I wanted to share a simple concept I learned early in my life insurance career which helped me immensely. It is a reminder of what we do and why we do it.
Imagine that you had a machine in your garage that printed money and anytime a bill is due, or you needed cash, or had an emergency and needed money, you could walk into your garage, flip a switch, and it would instantly spit out exactly the money you needed. If that machine were to break, you would be inconsolable! The question is: Would you insure that machine? Of course, you would, you would insure it for as much as you could because that machine is priceless.
Is this not the reality for our clients? Every day, they get up and go to work to earn the money they need to live. They are the only machine that provides for their livelihoods. If they are unable to work due to illness, injury, or death, that cash flow dries up. This, as you know, causes immense financial stress and difficulties on top of the grief that they and their loved ones would be feeling.
Think about what happened during the pandemic. Tragically, since March of 2020, over 1 million Americans have died from COVID-19, often leaving their families destitute. If you asked them or their families in 2019 what they expected the next few years to look like, certainly tragedy was not likely part of their 3-year plan.
Life insurance, Income Protection, and Long-Term Care products protect people and guarantee that the finances they and their loved ones rely on will be there when they need it, even when tragedy strikes. That is why what we do is so important. We are helping people plan for the unimaginable.
First American is here to support you. We will help you deliver creative insurance solutions to preserve and protect your clients’ wealth and legacy. Reach out to us and we will find the best solutions for your clients to make sure that the machine continues to supply the cash flow that they need in every situation.
— Peter Kaplan, Vice President
MassMutual repriced its term life insurance to improve our competitive position in key areas while adjusting some products to improve profitability. Now, applications can be submitted for this new rate series. Read More.
Prudential’s premium limits have increased to $5MM for all products EXCEPT SUL Protector in NY where the limit will remain at $2MM. Any premiums over these amounts will be eligible for our Product Profitability review process.
Lincoln’s guidelines for nonmedical conditions that prompt the need for labs/vitals have been updated to offer consideration for more clients. For complete details, please review Lincoln’s Lab-Free Consideration Presubmission Qualification Guidelines.
AZ, CT & IN to transition from SecureCare UL to SecureCare III, effective JUNE 27th.
This leaves DC, DE, ND, and SD as the only states left to transition from SecureCare UL to SecureCare III. These remaining states will transition in the coming months.
Key dates
Transition rules
It wasn’t long ago that buying life insurance was a painfully difficult process. If you were interested in buying a policy, first you had to talk to an agent, then a nurse would come to your house to draw blood. Finally, after filling out sheaves of paperwork, you would get a decision in sixty to ninety days.
Thankfully, those days have passed. But many consumers (and too many insurance advisors) are unaware that a revolution has taken place in the life insurance industry.
AI-powered accelerated underwriting now makes it possible for consumers to apply for and get approval for policies up to $3 million in less than a day. And the entire application process takes ten minutes or less.
The days of selling life insurance across a prolonged period characterized by frustration and delays are over.
And this is great news for insurance advisors. AI-powered accelerated underwriting hastens decision-making without sacrificing the quality of information or information analysis, meaning that you can get your leads approved and converted into paying clients faster.
Many insurance advisors are leaving money on the table because they aren’t talking to their clients about life insurance. Some simply don’t understand accelerated underwriting, others believe that their clients won’t be interested. Either way they are missing an opportunity and underserving their clients.
At FAIU, we understand that accelerated underwriting allows insurance advisors to be the hero to their clients. You aren’t there to scare clients into purchasing a product, you’re there to help them safeguard dreams—like sending a child to college, paying off a house, or ensuring that their family is cared for even if they are no longer around.
In the past, this was a hard sell compared to other forms of insurance. The introduction of artificial intelligence into the funding process has made it that much easier for sales professionals to pair clients with the right life insurance policy, while helping them set up a secure future.
And there’s more of this still to come. Artificial Intelligence is just getting started in the insurance industry, and the changes that are yet to come are sure to make our work even more streamlined, interesting, and relevant. The key takeaway from the rise of accelerated funding is that this technological innovation is changing the manner in which advisors strategize and do business, and the ways in which consumers engage with insurance products.
If you have not yet taken a close look at the merits of accelerated funding, now is the time to do so. It’s going to be good for your clients, and good for your bottom line if you familiarize yourself with the accelerated underwriting that is currently on the market. And we’re going to see more of this technology in the future, not less.
— Ken Shapiro, President
Allianz Life Pro+ Advantage Fixed Index Universal Life Insurance Policy is now available on iPipeline’s iGo. We’re making it easier to do business with us, with quicker submitting and issuing of polices. Start submitting with iGo today!
Client profile:
Male, age 48 looking for $2MM term life was recently diagnosed with type two diabetes and prescribed Farxiga a (very low dosage) with a 7.1 a1C. Secondly, he was also diagnosed with anxiety recently and was prescribed bupropion.
What were the challenges?
The advisor’s primary carrier offered at table 8. FAIU received 6 table 6 offers, 1 table 5 offer, 1 table 4 offer and an attractive two offer.
What was the First American solution?
Both the client and advisor were happy to accept the table B offer.
What was the outcome?
Annual premium (Banner Life) annual premium $6,268 table 2.
Have a similar client? Apply Today!