IUL/VUL replacement activity

[Allen Trent]

with expansion of of 7702 Premium room for UL based products, anyone seeing activity of replacing existing contracts with new versions?

Face amount could be 50-100% lower on some of the accumulation focused cases to fit same annual premiums, driving down the internal COI costs.

Obviously need to consider the impact of the 1st 10 years or so of policy fees/load fees.

Had a relative tell me their VUL agent had approached her to rewrite her contract because of new enhancements the government put in place this year (7702). not sure if the agent is proposing VUL or IUL, assuming VUL

 

[ATM]

with expansion of of 7702 Premium room for UL based products, anyone seeing activity of replacing existing contracts with new versions?

Face amount could be 50-100% lower on some of the accumulation focused cases to fit same annual premiums, driving down the internal COI costs.

Obviously need to consider the impact of the 1st 10 years or so of policy fees/load fees.

Had a relative tell me their VUL agent had approached her to rewrite her contract because of new enhancements the government put in place this year (7702). not sure if the agent is proposing VUL or IUL, assuming VUL

You should assume not VUL, because i would doubt that the agents Broker Dealer would approve a VUL to VUL transfer with all new surrender charges and probably new loads.

They typically would not need to approve IUL because they are not forced to supervise or compliance approve those sales - yet.

Like everything else it depends on facts and circumstances. I have seen a few replacements for this reason, but usually from more recent policies being exchanged and with the same carrier that waives surrender on internal exchanges.