North American Introduces Protection Builder IUL 2

Written By Jon Gold

From North American:

North American is pleased to announce Protection Builder IUL 2, the highly competitive, next generation of our indexed universal life (IUL) insurance product designed to combine a guaranteed death benefit with cash value growth potential.  Protection Builder IUL 2 can help meet several financial goals for your client including: legacy building, estate planning, or emergency funding.  

Protection Builder IUL 2 highlights:

  • Lifetime guaranteed death benefit protection up to age 120 with the Premium Guaranteed Rider (PGR), available at issue only

  • If the PGR is not elected, the no-lapse guarantee (NLG) can be used to guarantee the death benefit during the specified NLG period

  • Improved competitiveness for guaranteed pricing and non-guaranteed performance with a 1030% decrease in guaranteed premiums for most cell combinations of age, death benefit, rate class

  • Improved cap, participation, and spread rates

  • Flexibility to choose desired death benefit guarantee duration

  • Premium Recovery Endorsement (PRE)1 feature for potential return of premium in select years, available only with the PGR

    • Please note: While the PRE is an inherent benefit, the PRE endorsement will enter grace and terminate on the first anniversary for any policy with a PGR where the PRE premium requirements haven’t been met.

  • Protected Death Benefit (PDB) feature may allow for distributions without losing all death benefit guarantees 

Product changes:

  • Altered charge structures, including reducing the current asset-based charge to 0%, for improved competitiveness

  • Interest Bonus on Fixed Account Value and Index Account is removed (except for the bonus on the Fidelity Multifactor Yield IndexSM 5% ER Annual Point-to-Point Index Selection)

  • Index selections not available: EURO STOXX® PtP, NASDAQ® PtP, Multi-index

  • Rider Changes: Refer to the riders field bulletin 

Product availability:

Note: This new product will be an alternate option for clients looking for a guaranteed death benefit life insurance product. Custom Guarantee Universal Life (CGUL) will be discontinued in all states as of February 22, 2025.

  • New Protection Builder IUL 2

    • Starting January 25, 2025, Protection Builder IUL 2 will be available to quote and apply for on web illustrations (North American’s web-based illustration software), and on SimpleSubmit® (our electronic application platform).

    • New Business and Policy Change will be able to generate polices for the Protection Builder IUL 2 as of January 27, 2025.

    • eDelivery is available

    • Protection Builder IUL 2 is available in all U.S. licensed states, except Oregon. The current version of the product can continue to be sold in Oregon.  

  • California specific

    • WriteAway, our accelerating underwriting program, is available for Protection Builder IUL 2 in CA, but the process will vary, as it does for our other IUL’s and re-priced Term. Instead of the client completing an Online Part 2 electronically, the Part 2 medical questions will be built into the e-app process and will be required to be completed to submit the e-app.

    • All riders are being updated to the new version with the Strategic Protector IUL 2, but they are not yet available in CA. Note: PGR and PRE are available in CA.

    • Based on eligibility requirements, prior versions of the Accelerated Death Benefit Endorsement (ADBE) benefits will be used with Protection Builder IUL 2.

  • Protection Builder IUL  (prior version discontinuance)

    • This prior version of Protection Builder IUL will remain available in Oregon.

    • For all states and territories where the new Protection Builder IUL 2 is being implemented:

      • The last day to sign and lock an e-app for the Protection Builder IUL is February 21, 2025.

      • All applications for Protection Builder IUL must be dated February 21, 2025, or prior, and received in New Business/Policy Change by February 28, 2025.  

  • Current pending business Existing applications that are currently being processed in New Business or Policy Change, but have not yet been placed inforce, can be changed to Protection Builder IUL 2. When changing an existing case to Protection Builder IUL 2, note the following guidelines. (Note the third and fourth bullet points for unique date guidelines in California, Florida, and South Carolina.)

    • If the application is dated December 23, 2024, or after, the change can be made with the existing application and the product will be amended on delivery. The new versions of the IUL Supplement to Application (ICC22SA101NAC or state variation), the new version of the IUL Disclosure form (L-3190C or state variation) and an updated illustration will be required.

    • If the application is dated December 22, 2024, or prior, a new fully completed application, the new IUL Supplement to Application (ICC22SA101NAC or state specific variation), the new version of the IUL Disclosure form (L-3190C or state variation) and an updated illustration will be required.

    • For California, the application must be dated January 3, 2025, or after, to change the product without a new application.

    • For Florida and South Carolina, the application must be dated December 5, 2024, or after, to change the product without a new application.

    • You can request a product change at any time; however, the system will not be updated to reflect the product change until after the case has been approved, and if there is a 1035 exchange involved, until after all 1035 funds have been received.

    • If the product change accompanies an increase in the face amount, (this would be common if you are solving for the face amount and switch from the old version to the new), that will require Underwriting review and could result in additional requirements.

    • Due to the expected high volume of requests to change existing business to the new product, you may experience a longer than normal turnaround time for the product change to be fully processed. 

  • Exchanges Inforce policies outside of the free look period cannot be reissued to receive Protection Builder IUL 2 without full exchange paperwork. If a case is in the free look period, it can be changed to the new Protection Builder IUL 2 per the guidelines listed under ‘Current pending business’ section.

  • Policy dating guidelines (note unique guidelines for California, Florida, and South Carolina)

    • All Protection Builder IUL 2 policies must have an anniversary date of December 23, 2024, or later.

    • For California: All Protection Builder IUL 2 policies must have an anniversary date of January 3, 2025, or later.

    • For Florida and South Carolina:  All Protection Builder IUL 2 policies must have an anniversary date of December 5, 2024, or later.

Jon Gold
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