NU Online News Service, May 7, 11:43 a.m. – First Penn-Pacific Life Insurance Company, Schaumburg, Ill., says it has trimmed its GTO guaranteed level premium term life rates, producing “substantial improvements” in non-tobacco rates for GTO 30 and in standard non-tobacco rates for GTO 15 through 30.
The GTO series guarantees level rates for a selected period of 10, 15, 20, 25 or 30 years. When the selected period ends, the rates then increase annually to age 95.
In other changes, First Penn-Pacific says it has reduced the policy fee by $10 for face amounts of $500,000 and higher. The fee for all rate bands is now $50. The company has also created three GTO rate bands, starting at $100,000, $250,000, and $1 million, respectively.
Since last fall, applications for coverage, particularly for GTO policies, have continued to increase, notes Christopher Nickele, a First Penn-Pacific actuary.
First Penn is a unit of Lincoln National Corp., Fort Wayne, Ind.