As I mentioned in previous articles, AG38 and the ongoing low-interest rate environment have forced some carriers out of the No-Lapse Guaranteed (NLG) UL business. Others have repriced theirs and in some instances introduced premium caps. However, a couple of these same carriers have come up with dramatically new product models to try to preserve NLG UL’s strengths but at less risk to the carrier than old models had.
Transamerica’s introduction of “Real Time Pricing” earlier this year was the first example of this thinking outside the box.
Now, Lincoln Financial’s Treasury IUL will be the second. And it bears your attention. They are very excited about it. Let’s just say that, in how it works, Treasury IUL has elements of a dial-a-guarantee NLG UL, an IUL, and, believe it or not, par whole life. Treasury IUL policy credits can be used in several ways that are similar to dividends. There is one big difference, par whole life dividends are calculated in some black box no one outside the company knows. Treasury IUL policy credits are stated in the policy as a function of the Treasury’s yields. A client who tracks those will know exactly what he should get ahead of time.
There is an upcoming webinar scheduled for Friday…call our office if you want the scoop on this new innovative design. This will be something new and different to discuss with your clients.