2015 is proving to be a year of important, innovative product launches, and the Lifetime Foundation is a prime example. Rather than focus exclusively on a commoditized premium, Accordia balanced the need for low premiums, extended duration guarantees and future flexibility, allowing clients to manage their policy as their needs change and evolve. The unique structure of the guarantees point to a handful of very specific sales scenarios as likely “hot spots” for the Lifetime Foundation. Read on to find out more about where this product really hunts.

Introducing the Lifetime Foundation IUL from Accordia

Lifetime Foundation is designed to compete for death benefit sales versus NLG as well as the current crop of current assumption UL and IUL products that offer some form of life expectancy guarantee. The guarantees in the product have two components:

  • Initial Death Benefit Guarantee Period of as many as 30 years, based on issue age of the client
  • Extended Death Benefit Guarantee offers a lifetime guarantee on 50% of the death benefit

The full death benefit remains to maturity based on the presence of cash value in the policy.

Design Considerations

The cost and guarantee structure were designed to improve performance in the following designs:

  • Single Pays
  • Short Pays
  • 1035 Exchanges with ongoing premium
  • Access to “excess” cash value without an impact on death benefit guarantees

Where does it REALLY hunt?

AIN has been running illustrations non-stop since the release of the Lifetime Foundation, and there are some very specific scenarios that offer savings versus the competition, both NLG and LE Guarantee products alike:

  • Single Pays over Age 50: Savings of anywhere from 5% to 70% versus competing carriers
  • 10 Pays over Age 55: Savings of anywhere from 1% to 46%
  • 20 Pays over age 50: Savings of anywhere from 2% to 36%
  • Level Pays:
    • Lower than competitors on a cumulative premium basis in virtually every cell
    • Product includes a Required Annual Premium that may cause premium in first 15 years to be higher than competing products (Approximately 50% of the time)

**Important: The solves used on this product to arrive at these premium are not intuitive.  Reach out to any of the AIN Member Services Team for assistance running this product, and keep your eyes on your in box for a “How to Illustrate Lifetime Foundation” coming next week!

For more on the Lifetime Foundation IUL, please review the following: