New SVEA Enhancements Now Available
Effective today, September 9, 2024, our Surrender Value Enhancement Agreement (SVEA) is undergoing some exciting changes. SVEA is designed for your clients with business and estate planning needs by providing a return of premium (ROP) benefit upon surrender during a specified period of time. SVEA requires use of the Early Values Agreement (EVA). These changes are for new business only.
Here’s what you can expect:
Extended ROP protection
- SVEA’s 100 percent ROP period is extended from three years to five years. Two more years of crediting means more opportunities for the accumulation value to exceed the cumulative premiums paid.
- A new SVEA grading period provides two additional years of partial ROP protection following the initial five-year 100 percent ROP period. In years six and seven, a partial ROP will apply if the accumulation value is less than the cumulative premiums paid. This may result in a higher cash surrender value.
Stronger policy performance in the early years of the policy
- The premium charge for premiums paid in the first year is being spread over a five-year period to immediately provide stronger policy performance.
Impacted products:
- Eclipse Accumulator Indexed Universal Life (IUL)
- Eclipse Survivor II IUL
Transition Rules
- The changes outlined above will not be available in Oregon, Nevada, California, Florida, South Carolina, Delaware, District of Columbia (DC), North Dakota, and South Dakota due to pending state and advertising approvals. The old SVEA will continue to be available in these states until approval is received.
- Applications received before September 9, 2024: will be issued using the old SVEA guidelines and rules.
- Applications received on or after September 9, 2024: will be issued using the new SVEA guidelines outlined above.