Life insurance company product development teams have seemed a little quiet so far this month.
They may still be digesting the effects of low interest rates, new U.S. and non-U.S. accounting rules, and the fine print in the new Tax Cuts and Jobs Act.
But New York Life Insurance Company, Lincoln Financial Group and AXA Equitable have all come out with major new products and product features this month.
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Here’s a look at what those companies have put on the shelves.
New York Life
New York Life has introduced the Value Whole Life policy.
The policyholder-owned mutual insurer says it held down premiums for the policy by lowering the cash value growth potential.
Policyholders do get guaranteed cash value, and eligibility to receive dividends.
Alex Cook a senior vice president at New York Life, said in a statement about the product that New York Life believes the product could be especially appealing to people in their 50s and 60s who wanted to leave a death benefit, but who may also need to come up with cash to make mortgage payments or pay for their children’s education.
In a form filed with District of Columbia insurance regulators in November, the company said the current issue age for an applicant can range from 0 to 90.
All of the whole life policies cover the insureds up to age 121. Value whole extends the premiums to age 121. For the traditional whole life policies, the policy owner pays premiums to 100.
The minimum death benefit amounts available range from $10,000 to $100,000, depending on the age of the insured and the insured’s underwriting class.
The usual maximum death benefit is $40 million for insureds age 0 to 60; $30 million for insureds ages 61 to 65; $20 million for insureds ages 66 to 75; $10 million for insureds ages 76 to 85; and $7.5 million for insureds ages 86 and older. New York Life may be able to offer higher maximum amounts in some cases, if it can find reinsurance to help cover the amount over its own risk retention limit.
The list of riders available with the policy includes an accelerated death benefit for chronic care rider.
CORRECTION: An earlier version of this article described the Value Whole Life policy payment period incorrectly.