The nature of death benefit products continues to evolve with Principal’s latest release, the Life Provider Edge UL. We all know the premise: Deliver lower premiums than an NLG contract, and pack the product with additional consumer value. Read on to see just how Principal has attacked this latest offering.
Principal Unveils New Current Assumption UL with LE Guarantees: The Life Provider Edge UL
If you take a look at Principal’s product line, they clearly offer an “all seasons” portfolio that is now even stronger with the launch of Life Provider Edge. This new product offers an additional conservative approach to permanent death benefit, with guarantees as long as 35 years with the optional rider, a premium lower than many of the NLG competitors available in the market, and a host of additional benefits including:
- Real cash value
- Avoidance of the premium timing issues that come with many NLG contracts
- An embedded Chronic Illness Rider
- The availability of Accelerated Underwriting for qualifying cases
- The power of Principal’s BOES platform.
The real story, however, may be the continuing definition of a product segment. While products with life expectancy guarantees have been on the market for some time, there are enough now that they truly represent a unique segment. Just like all other product segments, there is a spectrum of products available in this space, each with their own unique set of risks and potential rewards. Product design varies widely, with Indexed Universal Life and the market volatility that it brings, crediting bonuses of various shapes and sizes, and diverse cost structures.
The Life Provider Edge lives at the conservative end of this spectrum, with premium solves that are based on two variables: The efficient underlying cost structure and the current crediting rate. The result is that while premium solves may not be the most competitive on the street, for the conservative client, the simplicity and efficiency of the product may make Life Provider the perfect fit, particularly for the client who is truly risk averse, but sees the value in something beyond a lifetime guarantee.