Protective Indexed Choice UL Maximum Illustrated Rate Increase and Loan Charge Rate Updates

News Image 03-16-2017

Effective March 16, 2017, the maximum illustrated indexed rate for Protective Indexed Choice UL will increase from 5.79% to 5.81%. This will only impact the illustrated indexed rate on new policies, and no the actual indexed credited rates which are based upon the performance of the S&P 500.

The maximum illustrated indexed rate for this product will be updated each year based on the formula and look-back period described in Actuarial Guideline 49 (AG49), a requirement mandated by the National Association of Insurance Commissioners (NAIC) to standardize how indexed universal life insurance policies are illustrated across the industry.

AG49 also mandates that for illustrations which include loans, the illustrated rate credited to the loan balance may not exceed the illustrated loan charge by more than 100 basis points. For Protective Indexed Choice UL Illustrations under non-guaranteed assumptions, Protective will now charge 4.81% on policy loans and credit up to the new maximum illustrated rate of 5.81%. The change in the policy loan charge rate will take effect on the next policy anniversary after March 16, 2017.

Please contact your Internal Wholesaler for additional details.


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BUA Internal Wholesaler
Phone: 800-792-6795