SBLI Whole Life Product Updates
11-23-2021
Like many carriers, SBLI is updating their product portfolio to comply with the Consolidated Appropriations Act of 2021, which lowers the interest rate assumptions used in Section 7702 of the Internal Revenue Code.
SBLI will be introducing these changes on December 15, 2021 to their Whole Life product portfolio. Below, you will find a summary of the impacted products and the associated changes.
° Flex Whole Life (participating) - available for new business and conversions1
Products | Changes |
Continuous Pay Limited Pay (10, 15, 20-year & to age 65) Single Premium |
Premium rates will increase Guaranteed cash values will increase Guaranteed cash values will be based on an interest rate of 3.75% |
Riders | Changes |
Single-Pay Paid-Up Additions Rider Waiver of Premium Rider |
Premium rates will increase |
° InStep Whole Life (non-participating) – available for conversions only2
Products | Changes |
Continuous Pay Limited Pay (10, 15, 20-year & to age 65) Single Premium |
Premium rates will increase Guaranteed cash values will increase Guaranteed cash values will be based on an interest rate of 3.75% |
° SBLI Conversion UL – other than tax impacts associated with the 7702 changes there are no updates to this product.
ILLUSTRATIONS
- Illustrations for the updated Whole Life products will be introduced on December 15, 2021 and will be available via LPES and Winflex.
- As of December 14, 2021, the old products will no longer be available for illustrations.
TRANSITION RULES
- Any application received at SBLI's home office prior to December 21, 2021 will receive the current product versions if the following requirements are met:
- New Business Submissions and Conversions
- You submit a signed application and illustration (if necessary).
- The application and illustration must have a signed date of December 14, 2021, or earlier.
- The application is approved and placed in-force with premium paid by December 28, 2021.
- Pending New Business
- The pending policy has a received date prior to December 15, 2021 and is issued and paid for by December 28, 2021.
- The pending policy is NOT future dated past December 28, 2021.
- New Business Submissions and Conversions
- Any application received on December 15, 2021 or later will receive the new product version.
- New or conversion applications received on December 15, 2021, or later, will only receive the new product version and rates.
- All pending policies not issued by December 28, 2021, will require a newly signed illustration as the client is no longer eligible for the old product.
- Any application received on December 15, 2021 or later for business in Washington, D.C. will not be processed until SBLI has approval from this state.
Please give BUA a call at 1-800-792-6795 if you have any questions about these changes.