Banner Life Re-Prices GULs

Banner Life Re-Prices GULs

Banner previously announced an increase in premiums for Life Choice UL and Life Step UL effective January 1, 2013 due to AG38. Banner’s Transition Rules Are As Follows (There will be NO exceptions):

A new version of Actuarial Guideline 38 will increase reserve requirements for Banner Life’s guaranteed premium universal life policies, Life Choice UL and Life Step UL, on January 1, 2013.

Accordingly, prices will rise. To give you as much flexibility as we can:

  • All policies issued by 12.31.2012 will be issued under the old, lower rates. Our usual process dates policies 21 days in advance. We will shorten this in December so that no policy carries a date past 12.31.2012.
  • Applications received by 12.31.2012 but approved in 2013 will result in a choice for the applicant:
    • Accept the higher 2013 rates with a current date.
    • Accept an offer to backdate the policy to 2012 using old, lower rates, but with a requirement to pay back (planned, illustrated) premiums on delivery. This option will also require a disclosure to be signed.
  • Applications received in 2013 will result in policies issued under the new, higher rates, even if backdated to save age to 2012.

All of the usual limits on backdating time frames will apply. In most cases that means six months.

As a top Banner Brokerage General Agency (BGA) we are here to help you navigate these change.