New York Life Unveils New Pricing, Features on Custom Universal Life Guarantee
Major regulatory change like a new CSO table or reserving rules force an avalanche of product changes at a minimum. The combination of two at the same time means a more rapid pace of change than usual, and the New York Life update to the NLG contract is the next to hit the streets. The good news here is that the product is packed with more client-friendly features than ever.Find out more about these changes from New York Life …
Announcing the New Custom Universal Life Guarantee, now with a Chronic Care Rider and Money Back Option
From New York Life…
We are excited to announce the launch of the new AD 118 Custom Universal Life Guarantee (Custom Guarantee)*, which will be available in approved jurisdictions with an application Part I date of August 25th, 2018 or later. This new product series has multiple enhancements and simplifications, features the addition of the new Chronic Care Rider and Money Back Option Rider.
More on the Chronic Care Rider
The Chronic Care Rider (CCR) is now available with this product. CCR allows the client to accelerate a portion of the base policy face amount to pay for costs associated with a certified chronic illness. To qualify for the benefit, the insured must be unable to perform at least 2 out of 6 Activities of Daily Living (ADLs) or have a severe cognitive impairment for at least 90 days. This rider aligns well with the protection oriented value proposition of Custom Guarantee. A few highlights of CCR are:
The CCR cost of insurance rates are guaranteed to never increase for the life of the contract
Adding CCR to the policy will increase the commission target premium
CCR on Custom Guarantee will function similarly to CCR on the WL product suite, with some exceptions, including:
No 100 month option (1%) will be available for CCR on Custom Guarantee
While on an approved CCR claim, the policy is guaranteed to not lapse
More on the Money Back Option Rider
The new Money Back Option Rider (MBOR) will be automatically included on all eligible policies at no additional cost. The MBO rider gives the policy owner the opportunity to surrender his/her policy in exchange for a portion – or in some cases all – of his/her premiums back during two 60-day windows*.
Window 1 is the 60 days following the end of policy year 20
Window 2 is the 60 days following the end of policy year 25
Policy owners can get up to 50% of their premiums back during Window 1 and up to 100% of their premiums back during Window 2 – subject to 40% Face Amount Cap (i.e. the client can only get a maximum of $40k back on a policy with a face amount of $100k)
Note that while there is no additional cost for this rider, the policy must be funded to last to age 100 or greater to keep the rider active.
Transition Rules
Polices applied for prior to August 25 that wish to receive the re-priced rated will have the following options:
Applications submitted prior to August 25 without cash can choose to pull their application and reapply on August 25 or later. We will require a written request from the client to cancel the prior application with submission of an amended application (Sections A, C and the Coverage Information)
Applications submitted prior to August 25 with cash but no underwriting approval, can transition to “Not Taken” status and reapply after August 25. We will require a written request from the client to cancel the application along with submission of an amended application (Sections A, C and the Coverage Information)
Policies that are issued prior to August 25 and are still in the Free Look period can choose to free look their policy and resubmit after August 25. We will require a written free look request from the client and a new application (in most states the written request needs to be received within 10 days after the policy is delivered and upon such a request, the policy will be void from the start, and a full premium refund will be made)
