November 10, 2021
IUL Rate Change Effective November 15th
Please review this summary of changes.
The volatile economic climate continues to present challenges for life insurers. As a result of this climate, National Life Group will lower indexed universal life cap and participation rates for our S&P500 strategies, effective November 15, 2021. The participation rate for our Credit Suisse strategy will not change. Our maximum illustrated rate across our currently sold IUL portfolio will be lowered from 5.73% to 5.47%.
While the low interest rate environment has impacted all insurers, we remain committed to offering the most competitive rates possible while managing our business in a responsible and sustainable way. If conditions change favorably, we will increase rates.
Summary of the changes
For currently sold non-NY products: LSW & NL FlexLife, LSW & NL PeakLife, LSW & NL SurvivorLife
- Credit Suisse, no participation rate change. Maximum illustrated rate will be 5.47%.
- Cap Focus S&P 500 strategy, cap rate will decrease from 9.00% to 8.50%. Maximum illustrated rate will be 5.47%.
- Par Focus S&P 500 strategy, cap rate will decrease from 7.00% to 6.50%, no participation rate change. Maximum illustrated rate will be 4.47%.
- Non-zero floor S&P 500 strategy, cap rate will decrease from 7.00% to 6.75%. Maximum illustrated rate will be 4.78%.
- Indexed Loan Account (for Participation Variable Loans), cap rate will decrease from 9.00% to 8.50%. Maximum illustrated rate will be 5.47%.
- Basic, Fixed, SAR, Standard Loan collateral account credited rates lowered from 3.00% to 2.50%
- For LSW & NL PeakLife, the Basic, Fixed, SAR, Standard Loan collateral account credited rates will remain at 3.00%.
There are no changes for NY products.
Changes are similar for prior generations of IULs. See the linked rate sheet below.
Transition
Rate changes will be effective in the illustrations systems on November 15. All funds received on or after November 15 will receive the new rates. This means all funds received between November 15 and December 15, which will be swept on December 15, will receive the new rates.
For those inforce products with monthly sweep dates on the 21st, all funds received on or after November 22 will receive the new rates. This means all funds received between November 21 and December 21, which will be swept on December 21, will receive the new rates.
