Protective Indexed Choice UL Loan Interest Rate Reduction and Illustration Updates

News Image 08-26-2016

Protective announces that effective August 29, 2016, the current loan interest rate for Protective Indexed Choice (SM) UL will decrease from 5% to 4.79%. For both new and existing loans, this new rate will go into effect as of the next policy anniversary following the loan interest rate change effective date.

With a maximum illustrated rate of 5.79%, this new loan interest rate of 4.79% means Protective Indexed Choice UL illustrations now produce a maximum policy loan leverage of 1.00%.

Although a life insurance policy is intended to help meet long-term needs, Protective understands your clients may need or want to access their cash value. With Protective Indexed Choice UL, they have access to their policy's cash value any time after the first policy year through withdrawals or loans. Maybe they're planning on tapping into their cash value to help with things like college tuition, home renovations or supplemental retirement income. Or maybe they just need help managing the unexpected costs that life can sometimes bring. Whatever the situation may be, Protective Indexed Choice UL can help.

Keep in mind that loans can impact the policy including the Lapse Protection Endorsement and interest will be charged in arrears for all policy years.

In addition to the loan rate reduction, a few changes will also be made to the product illustration as of August 29. These updates are being made to create a more user-friendly experience and include:

-Revised language in the "Lapse Protection" and "Premium Outlay" sections of the Narrative Summary

-New language titled "Transferring Funds Between Accounts" in the Narrative Summary

-New page sequencing so the Basic Illustration and Tabular Detail now appear nearer to the beginning of the illustration


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