Effective March 15, 2019, the maximum illustrated indexed rate for Protective Indexed ChoiceSM UL will increase from 5.60% to 5.63%. This will only impact the illustrated indexed rate on new policies, and not the actual indexed credited rates which are based upon the performance of the S&P 500®.
For Protective Indexed Choice UL illustrations under the non-guaranteed assumptions, the loan charge rate will now be increased from 4.60% to 4.63% on policy loans and credit up to the new maximum rate of 5.63%. This will also take effect on the next policy anniversary after March 15, 2019.
These updates to our Protective Indexed Choice UL are in accordance with Actuarial Guideline 49 (AG 49). The maximum illustrated index rate for this product will be updated each year based on the formula and look-back period described by the Actuarial Guideline 49 (AG49). This is a requirement mandated by the National Association of Insurance Commissioners (NAIC) to standardize how indexed universal life insurance policies are illustrated across the industry.
Over the years Protective has made a conscious effort to keep our caps and crediting rates consistent. Although there are increases to the illustration rate and loan rate, the cap rate will remain at 9% and the fixed account crediting rate will remain 3.50%.
Protective Indexed Choice UL offers a more realistic approach to an indexed universal life solution, built with integrity.
Let’s deliver on our promises. Together.