North American: Changes to Custom Guarantee UL and Protection Builder IUL with PGR
05-22-2020
North American is committed to their policyowners and continues to make decisions for the long-term. With this focus in mind and the continuing low interest rate environment, North American is making rate changes to their Custom Guarantee® UL and Protection Builder IUL with the Premium Guarantee Rider (PGR).
On June 3, 2020, North American will be increasing guarantee premiums for Custom Guarantee UL and Protection Builder IUL. The Custom Guarantee UL and Protection Builder IUL with PGR will reflect higher premiums to guarantee the death benefit. These updates will help better position them to maintain long-term viability and ensure they continue to make decisions for the long-term.
The magnitude of the change will depend on a number of factors including the issue age, underwriting class, face amount, and funding pattern. The required premium to qualify for the Premium Recovery Endorsement (PRE) will also be increasing. Generally, for the common premium scenarios of level-pay and single-pay, the premium to guarantee the death benefit to maturity is increasing 15% to 20%.
Important dates
Paper Applications for Custom Guarantee UL and Protection Builder IUL with PGR
- To receive the current product guarantee premiums, applications must be signed on or before June 2, 2020, and received by June 14, 2020.
- If an application is signed on or before June 2, 2020, and received June 15, 2020 or after, the new rates will apply and a new fully completed application will be required.
- If an application is signed on or after June 3, 2020, the new rates will apply regardless of the date received.
SimpleSubmit® e-app for Custom Guarantee UL and Protection Builder IUL with PGR
- To receive the current product guarantee premiums, e-applications must be signed by all signing parties and must be locked and submitted by June 2, 2020.
- If an e-application is signed on or after June 3, 2020, the new rates will apply regardless of the date received.
Note the strong guarantees provided in these products.
1. Ability to provide lifetime guarantees beyond life expectancy.
2. Protection Builder provides 2.5% on the minimum account value.
3. Custom Guarantee UL provides the guaranteed exchange provision.*
4. North American offers a Premium Recovery endorsement on both the Protection Builder IUL and the Custom Guarantee UL.
They also offer critical, chronic, and terminal (CCT) living benefits for eligible clients.