North American

Important Upcoming Changes for October 8, 2016

News Image 09-09-2016

Cap & Participation Rates for Indexed Universal Life Policies

There will be changes to the Cap and Participation Rates as well as Maximum Illustrated Rates for Currently Marketed Products: Builder IUL® 7, Rapid Builder IUL® 3, Guarantee Builder IUL® 3, Survivorship GIUL and Non-Marketed Products: Builder IUL®1-6, Rapid Builder IUL® 1-2, and Guarantee Builder IUL® 1-2.

Interest Crediting Rate Changes

North American is reducing fixed interest rates on their inforce block of business as well as on new sales.

Changes to Custom Guarantee UL and guarantee Builder IUL

The Custom Guarantee UL and Guarantee Builder IUL products will reflect higher premiums to guarantee the death benefit to maturity. The magnitude of the change will depend on a number of factors including the issue age, underwriting class, face amount, and funding pattern.

Important Dates to Remember:

  • September 27, 2016:
    • An updated version of the NACIS illustration software will be available for download. This version will contain the new cap, par and interest rates as well as both versions of the Custom Guarantee UL and Guarantee Builder IUL.
  • October 7, 2016:
    • The money must be received and applied to the policy by this date in order to receive the higher cap or par rate.
    • Applications signed on or before this date AND received by the North American Administrative Office on or before October 21, 2016 will receive the current Custom Guarantee UL and Guarantee Builder IUL rates.
  • October 8, 2016:
    • The changes outlined in bulletins NAB-497, NAB-498 and NAB-499 will be effective.
    • All policies listed in bulletin NAB-498 with a policy date October 8, 2016 will be credited with the new fixed interest rates.
  • October 11, 2016:
    • Software will be updated to remove the old guarantee rates for Custom Guarantee UL and Guarantee Builder IUL.
  • October 21, 2016:
    • Applications signed on or before October 7, need to be received by the North American Administrative Office on or before this date to receive the current Custom Guarantee UL or Guarantee Builder IUL product.

AgentSuite

Contact

BUA Sales
Phone: 800-792-6795