Protective Updates Multiple Products For Section 7702
From Protective Life:
We’re dedicated to simplifying everything, building trust and providing quality service to you and your clients. Part of that dedication is ensuring you are informed and remain compliant with the regulatory updates within our industry.
Like many carriers, we will be updating our product portfolio in 2021 for the 7702 and 7702A (Tax Law) changes that were included in the Consolidated Appropriations Act, 2021 (CAA 2021). As one of our valuable partners, you are receiving this information now to help you plan for a smooth transition for you and your clients.
Portfolio Changes:
We will be introducing a variety of changes, driven by the 7702/7702A changes on September 8, 2021. This primarily impacts cash value accumulation test (CVAT) death benefit factors, guideline premiums and Modified Endowment Contract (MEC) (7 Pay) premiums.
Advantage Choice Changes and Transition Rules
Effective September 8, 2021, Protective Advantage Choice UL will be repriced with a slight price increase.
Clients will receive current (prior to September 8, 2021) product versions, if they:
Submit a signed application and illustrations if necessary
Ensure the policy has an effective date of September 7, 2021 or earlier.
Any policy issued with an Effective Date of September 8 or later will receive the new product version.
Strategic Objectives II VUL Changes and Transition Rules
Effective September 8, 2021, the Defined Objectives program for Protective Strategic Objectives II VUL will no longer be available for new policies. Any current customers utilizing the Defined Objectives program will be supported going forward.
Clients will receive current (prior to September 8, 2021) product versions, if they:
Submit a signed application (includes completing the TeleLife® interview or signing a paper application) and illustration, if necessary.
Ensure the policy has an effective date of September 7, 2021, or earlier.
Any policy issued with an Effective Date of September 8 or later will receive the new product version.