“More realistic” guidelines for the illustrations insurers, agents and brokers can use in marketing indexed universal life insurance (IUL) products go into effect September 1st, 2015.
Existing regulations allow companies to determine the maximum illustrated rate of return for IUL products, which in some cases have been as high as 10 percent. The new guideline, known as Actuarial Guideline (AG) 49, will be implemented in two phases with the first going into effect on September 1 and will result in what are being called more reasonable illustrated rates.
To help you prepare, ISN has put together some resources for your review. At the first link below you’ll find a consolidated listing of the major insurance carriers’ individual announcements, including their new maximum illustrated rates. At the second link you’ll find an informational article at Insurance News Net on the new IUL guidelines.
Let me know if you have any questions! Thanks!