2012 Life Insurance Product Update – Third Quarter

by on Oct 16, 2012

life_insurance_product_update_blog_imageSince the last installment of our quarterly Life Insurance Product Update, three new products have been introduced to the market and an additional two policies were enhanced by the Life Insurance Monitor firms. This includes four universal life insurance products and a benefit rider. Here is a look at the products that have been released or updated over the last quarter:

AXA Equitable – Athena Indexed Universal Life New Edition
The firm recently released a new edition of the pre-existing Athena Indexed Universal Life product. Like the pre-existing product, the updated product will offer a set of “Choice” options with a higher growth cap rate. Additional product enhancements include two-year rolling targets, longer no-lapse guarantee, shorter surrender charge period and a new dollar cost averaging feature.

The Hartford – Frontier 2012 Indexed Universal Life
The pre-existing Frontier Indexed Universal Life Insurance policy has been enhanced and is now called “Frontier 2012 Indexed Universal Life.” The product enhancements include improved policy account and cash surrender values through a deferred premium charge and modified Return of Premium death benefit requirements.

MetLife – MetLife Provider Universal Life
The new MetLife Provider universal life insurance policy was added by the firm to its suite of universal life insurance products. Key features of the new Provider Universal Life product include competitive premiums and built-in death benefit guarantees up to age 95; it allows 1035 exchanges with carry-over loans and a 30-day renewal guarantee grace period.

Lincoln Financial – Lincoln VULONE 2012
Lincoln Financial launched the next generation of the Lincoln VULONE suite of variable life insurance products: the Lincoln VULONE 2012. The new product provides customers with the option of lifetime guaranteed death benefit protection along with market-driven growth potential and a variety of investment options to select from. The policy also comes with built in performance rewards that kick in if the cash value growth of the policy reaches a pre-determined threshold. Additionally, the new policy is the firm’s first product that is available with the new Lincoln LifeEnhance Accelerated Benefits Rider (ABR).

Lincoln Financial – LifeEnhance Accelerated Benefits Rider (ABR)
Available at issue for an additional cost to qualified customers, the new rider provides policyholders with access to tax-advantage funds in the event of an unexpected permanent chronic or terminal illness. In cases of permanent chronic illness, clients can access up to 100 percent of the gross death benefit at the time of claim through payments. For terminal illness, policy holders can access 50 percent of the death benefit up to a maximum of $250,000.

Year-to-Date Summary
In the previous Life Insurance Product update, we noted that the ongoing market volatility was helping fuel the release of permanent life insurance products which offer added protection and accumulation features. This trend has continued into the third quarter of 2012, as every new or enhanced life insurance policy this past quarter was a universal policy. Seven new universal products have been introduced to the market just this year and we expect to see even more released in the fourth quarter.