7 Facts About the New Variable Product Summary Prospectus Regs
March 18, 2020 by Allison Bell
The U.S. Securities and Exchange Commission has just given the retirement income planning community a gift that, in easier times, would have led to much drinking of champagne: the final regulations for a new summary prospectus for variable life insurance contracts and variable annuity contracts.
The new summary prospectuses are supposed to look like mutual fund summary prospectuses.
Life insurers, and advisors who help clients buy variable products, have been hoping for years that access to a consumer-friendly explanatory document could increase consumers’ understanding of variable products; increase advisors’ own understanding of the products; and, possibly, increase sales, simply by making the product disclosures look less terrifying.
- A copy of the final regulation, and links to copies of the associated forms, are available here.
- An article about comments on the summary prospectus project is available here.
- A news article about the release of the final regulations is available here.