American General Cuts Term Rates!

American General Cuts Term Rates!

As you may have heard, American General Life Companies will be having a premium reduction to AG Select -A-Term effective this Monday (January 14th).  The intel below should have all the information you need – from key selling points, to sweet spots to the transition rules.

These changes apply to the nationwide product offered by American General Life Insurance Company (AGL) and the product offered in New York by The United States Life Insurance Company in the City of New York (USL).

*New rates will not be available for quoting until January 14, 2013

KEY SELLING POINTS

  • Improved rates
  • Ultimate flexibility, 17 available durations
  • Revised compensation structure that is favorable to BGAs
  • Industry-leading technology that streamlines and speeds the process
  • Improved Term conversion product (AG Extend IULSM)
  • Death Benefit can be paid as an income stream (Select Income Rider)

SWEET SPOTS

  • Extremely competitive Male, nontobacco classes, face amount of $500K or more in 20, 25, and 30 year terms
  • Females relatively comparable to today’s rates; competitive but not as strong as males
  • 10 and 15 year term periods – effectively no change

UNDERWRITING CHANGES (effective February 4, 2013)

  • Minor adjustments to the following areas: Blood Pressure, Foreign Nationals Residing Abroad, Bankruptcy, and Lab Scoring.

STATE APPROVALS

  • As of today, the new rates for AG Select-a-Term are approved in all states except: CT. 
  • The new rates will take effect in all other states on January 14, 2013.  If CT approval is received prior to launch, the new rates will also take effect in CT on January 14.

 TRANSITION RULES

  • Revised AG Select-a-Term product will be available for sale starting January 14, 2013.
  • Applications received before January 14, 2013 will automatically receive the old product rates and old BGA and producer compensation.
  • Applications received on or after January 14, 2013 will automatically receive the new product rates and new BGA and producer compensation, if the new product is approved by the state.
  • If CT approval is received on or after January 14, implementation of the new rates will include a minimum transition period of 30 days.
  • Reissue requests to the new product will not be honored.

About IMS Associates

IMS Associates Financial & Insurance Services has been providing innovative solutions to the Life Brokerage community since 1986. Headquartered in Orange County, CA and licensed in all 50 states, we are a one-stop Brokerage General Agency (BGA) & Independent Marketing Organization (IMO) assisting you with all of your Life Insurance, Annuity, Long-Term Care, and Life Settlement needs.