Reminder: Interest-Related Policy Changes Effective 08/01/21

The ongoing low interest rate environment makes it necessary to effect changes that will impact inforce Indexed Universal Life (IUL) and Variable Universal Life (VUL) policyholders. Effective August 1, 2021, the following changes will be made:

• Index Credit Bonus – Indexed UL policies issued in 2019 and prior
  These policies have an index credit bonus in policy years 11+ that is reduced by 10% from current levels. For example, contracts with an index credit bonus of 1% will now have an index credit bonus of 0.9%.
• Income Protection Agreement (IPA) and Income Protection Flex Agreement (IPA Flex)
  The interest rate associated with these agreements is being modified from a single rate for all installment periods to a rate that varies based upon the duration of installment period chosen by the policyholder. The applicable interest rate in all instances will be less than the current interest rate associated with these agreements. Please note that we will be sending communication to policyholders who have IPA or IPA Flex with their policy. Letters were sent in late April to policyholders in states that had a 90 day notification requirement. The remainder of the letters will be mailed throughout the month of June.

Our inforce illustration system will be updated when these changes take effect on August 1. The Inforce Case Design Team will respond to illustration requests received in advance of August 1; however, will be unable to reflect the bonus changes until mid-July.