5 New Life Products for Spring
May 17, 2018 by Allison Bell
U.S. insurers have kept the spotlight on permanent life products in recent announcements of new life policies and features.
Personal finance columnists and advisors with roots in the financial planning community tend to promote the benefits of term life, but some of the most heavily promoted new life products are universal life, indexed universal life or whole life products or features.
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Here’s a look at five of those newly marketed products.
1. Penn Mutual Life Insurance Company
Penn Mutual has introduced the Survivorship Choice Whole Life policy.
Two spouses or partners can use the policy to insure both lives. The policy pays off after the second spouse or partner dies.
The policy can keep the death benefits and cash-value accumulation arrangements in place to age 121.
2. TruStage
TruStage, an insurer affiliated with CUNA Mutual Group, a company formed to serve the members of credit unions, has introduced a simplified-issue whole life products.
The company has designed the product to be sold through online systems, using an automated underwriting process.
The starting issue age is 18.
The maximum coverage amount is $100,000.
3. Midland National Life Insurance Company
Midland National, a unit of Sammons Financial Group Inc., has introduced the XL-CV Max indexed universal life (IUL) product.
The new IUL comes with an Account Interest Multiplier feature. The feature can increase the holder’s interest credit by 10% in policy year six.
The policy also comes with a 1% interest bonus on the index account that starts in policy year 11, Midland National says.
Midland National says the new policy also includes an updated accelerated death benefit endorsement. In the past, a policyholder who used the benefit had to have a permanent illness. A policyholder may now be able to use the benefit with a chronic illness that is not permanent.
The maximum amount for the accelerated death benefit is $2 million.
Midland National will accept either a paper application or an online application. Many applicants can use an accelerated underwriting process and avoid going through a paramedical exam, the company says.
4. Securian Financial Group
Securian has added premium payment options and benefits to its existing SecureCare Universal Life policy.
The original product, which was introduced in 2017, was is a single-premium-only linked-benefit product that could provide long-term care (LTC) benefits.
The new product offers the purchaser a choice between paying a single premium or paying the premiums over the course of five, seven, 10 or 15 years.
The new product continues to provide LTC benefits, and the holder can get cash indemnity-style payments, without submitting receipts, Securian says.
Policyholders can use some of the benefits to pay for care outside of the United States or training for a family caregiver, Securian says.
2. American International Group Inc.
American General Life Insurance Company, an AIG unit, is now offering non-medical underwriting processes for its Max Accumulator+ IUL policy, and updates to its existing non-medical underwriting process for the QoL Max Accumulator+ IUL policy.
The non-medical underwriting process eliminates the need for an in-person paramedical exam for many applicants.
For the basic Max Accumulator+ policy, no-exam underwriting will be available to clients ages 0 to 50, for death benefits of $50,000 to $499,999.90, for most underwriting classes.
The same no-exam access guidelines will apply to clients applying for the QoL Max Accumulator+ policy.
