NU Online News Service, Dec. 13, 2004, 9:31 a.m. EST

A Newport Beach, Calif., life insurer is updating its menu of universal life and no-lapse guarantee products.[@@]

Pacific Life Insurance Company has introduced 2 UL policies and updated the terms of the Flexible Duration No Lapse Guarantee Rider.

The new UL policies are the Versa-Flex V, 2004, flexible-premium UL policy and the Pacific Estate Preserver II last survivor UL policy.

Both UL policies offer flexible premiums, no maturity date, a 3% guaranteed minimum interest rate, and a reduction in current cost of insurance charges when the total death benefit reaches $1 million.

The policies also offer a choice of 3 death benefit options.

The Flexible Duration No Lapse Guarantee Rider guarantees that UL death benefit coverage “will continue for the duration the policyowner chooses as long as the No Lapse Guarantee Value (less any policy debt) is greater than 0,” Pacific Life says of the rider.

Policyholders can use the rider to decide just what periods of time they want to pay to guarantee, Pacific Life says.

One change in the rider means that Pacific Life will deduct rider costs from a policy’s accumulated value each month rather than by reducing the policy’s credited interest rate. This change gives Versa-Flex V, 2004, and Pacific Estate Preserver II policyholders the ability to drop the rider, Pacific Life says.

Pacific Life also offers an advance billing notice feature, to help trust administrators or others who need more than 21 days of advance notice about upcoming bills, and an administration accommodation feature that will let policyholders pay premiums up to 30 days late without affecting the status of no-lapse guarantees.