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Universal Life Policyholders Get A Price Break

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Guardian Life Insurance Company of America says it is reducing the cost of insurance rates on its existing and new universal life insurance policies.

The reduction applies to ULtraLife Current Assumption Universal Life, according to Guardian Life, New York.

“The COI rates reductions could be as much as 20%, but on average will be 10%,” says Michael Ferik, senior vice president-individual life.

The exact reduction will vary by age, sex and underwriting class of the insured, he says.

Guardian is making the reduction “because we’ve had good experience in underwriting and mortality,” Ferik says. The mutual company is now passing along the benefits of that improvement to UL policyholders by way of the premium reductions, he says.

For whole life policyholders, the improvements will be reflected in the dividends paid to policyholders, he says.

The base ULtraLife UL policy is now priced more competitively for pay-to-endow scenarios, Ferik says. Also, he says, customers will see “either improved cash value buildup or lower premium required for the cash value.”

UltraLife UL is being sold with a guaranteed interest crediting rate of 3.5%.