Protective is limiting conversion options and AIG has updated their SUL rate increase terms.
Important End-of-Month Product Updates
Conversion Options Limited
Effective June 30, the conversion options for Protective will be limited. Currently, some existing policies are eligible to convert to Protective's GUL product.
After the deadline, conversions will need to be into the new Protective Legacy UL product, which is potentially more than double the cost. Additionally, policies written in 2008-2009 that previously had convertibility into Protective’s expanded portfolio will be limited to ProClassic Legacy.
If you are considering a conversion, there's still time, but you'll need to act now to avoid higher prices. Any conversions must be signed and received by Protective by June 29.
Effective July 1, Secure Survivor GUL II will be re-priced in all states except New York. Premiums will be increasing from 21 to 26 percent, depending on funding scenario, age, gender, underwriting class and face amount.
Expected increases are: 21% for level pay, 23% for 10-pay and 26% for single pay.
Moving forward, the face amount cap of $5 million will be removed. This rate increase does not affect AIG's individual product, Secure Lifetime GUL 3.
