Cost of Insurance to increase for universal life and variable universal life policies

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Cost of Insurance Increase Announced by Another Major Carrier

 WRITTEN BY CAMERON JACOX 08.29.16 

Lincoln Financial Group announced that Lincoln Life & Annuity Company of New York, acting as administrative agent and reinsurer, will be raising the COI rates on a specific block of universal life and variable universal life policies 

It appears the exact dates of the increases are policy specific.  In sample letters to policy owners, Lincoln notes that “the expected cost of providing insurance coverage has risen, due to a variety of factors including lower investment income and higher expenses.”

Like with other carriers who have raised rates, it is important for you to provide your policy owners with suggested options, including; continuing to pay current premium, increasing the amount of premium paid in order to keep the policy in-force, lowering the death benefit amount, or surrendering the policy.

There appear to be 18 product series affected with issue dates from 1983 to 2000, with many policies issued in the 1990’s. Lincoln has yet to announce the exact percentage increase, explaining the “amount of the COI rate increases depends upon the product.” 

With low interest rates and COI increases, we may be in for more of the same over the next few years.

https://inforcepro.com/blog/lincoln-raises?

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September 23, 2016 · Jennifer · No Comments
Tags: , ,  · Posted in: COI for UL & VUL, UNIVERSAL, VARIABLE, EQUITY INDEXED

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