Protective Indexed Choice UL – Cap & Crediting Rate Improvements Effective 03/15/23
For more than 9 years, Protective Indexed Choice UL has been a competitive Protection Focused IUL solution for clients who want a combination of low premiums with the potential for strong cash value accumulation. Our proven track record in mortality experience combined with the increasing interest rate environment allows us to make some key improvements to remain competitive in the IUL market.
- Effective March 15, 2023 Protective’s Indexed Choice UL Cap Rate will increase from 8% to 9%. Index segments starting on or after 3/15/23 will have the new 9% cap.
- In addition to the cap increase, the Maximum Illustrated Rate will increase from 5.21% to 5.77%. Non-guaranteed loan rates will move from 4.71% to 5.27%. A formal bulletin and transition guidelines are forthcoming, but I wanted to make sure you are aware as illustrations will now reflect these updates.
As IUL products have increased in complexity over the years, Indexed Choice UL has remained a simple, straightforward solution that agents can explain, and clients can understand. If you haven’t looked at ICUL in a while, here are a few reasons why you should:
- Competitive premiums for Death Benefit Guarantees up to Age 90
- Strong Cash Value Accumulation in relation to premiums paid
- Simple and Easy to understand Index Account (S&P 500, Annual Point-to-Point, 100% participation)
- 2 year Rolling Target
- Ability to add Chronic Illness Accelerated Death Benefit Protection (ExtendCare Rider)
- Ability to submit application via Drop Ticket Platform
- Accelerated Underwriting Eligible (subject to age/face amount guidelines)