Securian Delinks Cap Rates on New and In-Force Indexed Universal Life Policies
October 3, 2023 by Cyril Tuohy
Indexed universal life sales have been a consistent bright spot for the industry with second quarter sales increasing 5.9% from a year ago to $726.2 million, according to Wink’s Sales & Market Report. Top sellers in the second quarter were National Life Group, Transamerica and Pacific Life, Wink reported.
Carrier Protections
“Good luck suing for this,” said Sheryl Moore, CEO of Wink, publisher of the report. “This is a non-guaranteed element of life insurance products, the carrier has a right to change it.”
“I don’t think you’ll see lawsuits around this,” Moore added in an email. “I’ve never seen a comparable suit on universal life, which tells me that it probably won’t happen with indexed universal life either.”
Plenty of insurers do not pay the same rate on their in-force business as they do on their new business, she added.
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