New SVEA Enhancements Now Available in Even More States!
Effective November 6, 2024, our Surrender Value Enhancement Agreement (SVEA) enhancements are now available in Florida, Dist. Of Columbia, Delaware, North Dakota, South Dakota and South Carolina. 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:
- 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 are not yet available in Oregon, Nevada, New York and California 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 November 6, 2024: will be issued using the old SVEA guidelines and rules.
- Applications received on or after November 6, 2024: will be issued using the new SVEA guidelines outlined above.