Mass Mutual Announces Lower Minimum Face Amounts on Whole Life 10 & 12-Pay
MassMutual recently announced that it will be lowering the minimum face amount for Whole Life 10-Pay & 12-Pay products to $25,000. Note that illustrations will reflect this change beginning May 1st, & May 20th will be the first day to submit applications through iGO & for policies to be issued. Read on for the details!
FROM MASSMUTUAL...
We are pleased to announce that MassMutual is lowering the minimum face amount for Whole Life 10-Pay and 12-Pay products to $25,000. This change will give financial professionals and clients more flexibility in their planning and also aligns with product minimums in the rest of our whole life product portfolio. Please note, this change excludes the High Early Cash Value (HECV) product which remains at $100,000.
A new face amount band will become available for face amounts between $25,000 and $99,999. Premiums and dividends for policies in this band will vary from higher bands.
The new minimum face amount will be available for policies with and without the LTCAccess Rider (LTCR), although for policies with LTCR, the minimum face amount will be $97,000 (like other non-HECV products). There are no changes for face amounts above the new low band.
A sales concept that will benefit from this change is The Gift of a Lifetime. Most people want to help their children achieve their dreams and realize their financial goals. Financial Professionals can help their clients give their children and grandchildren a head start toward those goals by providing fundamental guarantees offered with MassMutual whole life insurance. Click to view our Whole Life YouTube video.
Risk Classes
For face amounts of $25,000-$49,999, only Non-Tobacco and Tobacco risk classes will be available.
For face amounts of $50,000-$99,999, all risk classes will be available.
Key Dates
May 1: Illustrations will be available in WinFlex Web.
May 20: First day to submit applications through iGO and for policies to be issued.
Transition Rules
Policies not yet issued when the change becomes effective will be allowed to reduce the face amount to as low as $25,000.
Policies eligible for 90-day reissue at the time the change becomes effective will be allowed to request reissue to reduce the face amount to as low as $25,000.
Whole Life 10-Pay and 12-Pay policies issued before May 20 will continue to have a minimum face amount of $100,000 for future face amount decreases unless they are reissued on or after May 20 with a face amount below the current minimum of $100,000.