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New Life Policy Fits Consumer Loans Like Spandex: Life Moves

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What You Need to Know

  • The Covr LoanMatch program is an example of Aflac venture capital at work.
  • Lincoln Financial's announcement shows that (some) product guarantees are still out there.
  • Sammons’ life companies are appealing to index design connoisseurs.

Covr Financial Technologies is working with a life insurer and a reinsurer to sell decreasing benefit term life policies that provide just enough coverage to fit consumers’ loans.

The Hartford, Connecticut-based company, together with Americo Financial Life and Annuity Insurance Company and Scor S.E., is bringing the LoanMatch Protector life insurance policy to market.

Americo and other life insurers have been selling decreasing term life insurance for borrowers for years. Covr, Americo and Scor say the new product is different, because of the way the decrease in the benefit amount fits with a borrower’s loan amortization schedule.

Americo is based in Kansas City, Missouri, and its life unit has its official state of domicile in Texas. Scor is a Paris-based reinsurer.

Covr develops systems and programs that help financial organizations sell life insurance, health insurance, disability insurance and related products and services. Covr’s list of backers includes Allianz Life Ventures and Aflac Ventures.

Covr plans to market the new product through banks, credit unions, direct lenders and other types of lenders. Covr has relationships with about 25,000 financial professionals and 10 million customers at about 30 financial institutions.

The typical application process takes less than 15 minutes, and applicants can get up to $1 million in coverage, without a medical exam, about 88% of the time, according to Covr.

A New Lincoln Financial Group Product

In other life insurance moves news, Lincoln Financial Group, Radnor, Pennsylvania, has introduced the Lincoln VULOne and Lincoln Survivorship VULOne variable universal life (VUL) insurance products.

The new Lincoln VULOne products come with a choice of two guaranteed minimum death benefit options. One of the death benefit options will provide 100% of the initial guaranteed minimum death benefit as long as the insured lives.

The other, cheaper option provides 100% of the original guaranteed death benefit up to age 90, but only 50% of the original guaranteed death benefit if the insured dies at age 90 or later.Purchasers can also buy a bonus rider that can increase a policy’s cash value, and they can add a long-term care benefits rider. The variable investment option menu offers a choice of 75 different options.

Lincoln is writing the policies through The Lincoln National Life Insurance Company, which has its official state of domicile in Indiana.

Stafford Thompson Jr., senior vice president of life product management at Lincoln, said in the  launch announcement that the company designed the policies for use in relatively complicated retirement planning, estate planning, college planning and business planning arrangements.

“Lincoln is bringing greater optionality and flexibility to clients, so they can design the policy that works best for them,” Thompson said.

Sammons Financial Group Companies Offer Fidelity Yield Index

Midland National Life Insurance Company and North American Company for Life and Health Insurance, two subsidiaries of Sammons Financial Group, West Des Moines, Iowa, are offering the Fidelity Investments Fidelity Multifactor Yield Index 5% ER index.

The index designers worked to hold the overall volatility of the index to 5%. They started by creating an index with an asset allocation formula based on six factors: the size of a company that has issued stock; the company’s financial health; the company’s dividend yield; how expensive the company’s stock is when compared with other companies’ stock; the company’s price momentum; and the company’s stock price volatility.

The index program also tries to buffer account value against the effects of changes in interest rates, by moving cash between 10-year Treasuries and cash.

Midland National and North American are already using the index with non-variable indexed annuities, and they plan to build the index into index menus for indexed universal life insurance.

Waffle Labs Chooses Haven Life Insurance Agency

Waffle Labs Inc., New York, has picked Haven Life Insurance Agency LLC, New York, to be its term life insurance supplier.

Haven Life is an insurance agency owned by Massachusetts Mutual Life Insurance Company. The Haven Simple coverage involved in the relationship will be written by MassMutual’s C.M. Life subsidiary.

Waffle plans to offer consumers the ability to buy a package of insurance products through a mobile app.

Curtis Ray’s New Company

Curtis Ray, the author of The Science of Compound Interest, a book about how the use of compound interest can help people achieve financial freedom, has started a company, MPI Unlimited, to will help clients use permanent life insurance to prepare for retirement. The company is based in Gilbert, Arizona.

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