Effective January 22, 2018, the accelerated death benefit riders have been revised or replaced as detailed below. These changes affect the availability of the riders for both new issues and inforce policies. A new Chronic Condition Benefit Rider is now available for new issues of Value Assured and Universal Life policies.
Cashback Life:
- The Living Benefits Rider, R229, and corresponding disclosure form M710, are discontinued. Exception: During the year 2018, this rider (where available) may be added to an inforce policy with an issue date prior to 01/22/2018.
- A new Living Benefits Rider, ICC17R240/R240, is available only at issue for policies with an issue date of 01/22/2018 and after. Exception: During the year 2018, this rider may be added to an inforce policy with an issue date between 01/01/2017 and 01/21/2018.
- Use disclosure form ICC17M723/M723 for the new Living Benefits Rider.
Gift of Life:
- The Living Benefits Rider, R227, and corresponding disclosure form M710, are discontinued. Exception: During the year 2018, this rider (where available) may be added to an inforce policy with an issue date prior to 01/22/2018.
- A new Living Benefits Rider, ICC17R242/R242, is available only at issue for policies with an issue date of 01/22/2018 and after. Exception: During the year 2018, this rider may be added to an inforce policy with an issue date between 01/01/2017 and 01/21/2018.
- Use disclosure form ICC17M723/M723 for the new Living Benefits Rider.
Value Assured:
- The Living Benefits Rider, R227, and corresponding disclosure form, M710, are discontinued. Exception: During the year 2018, this rider (where available) may be added to an inforce policy with an issue date prior to 01/22/2018.
- A new Chronic Condition Benefit Rider, ICC17R244/R244, is available only at issue for policies with an issue date of 01/22/2018 and after. Exception: During the year 2018, this rider may be added to an inforce policy with an issue date between 01/01/2017 and 01/21/2018.
- A new Terminal Illness Rider, ICC17R241/R241, is available only at issue for policies with an issue date of 01/22/2018 and after. Exception: During the year 2018, this rider may be added to an inforce policy with an issue date between 01/01/2017 and 01/21/2018.
- Use disclosure form ICC17M723/M723 for both the Chronic Condition Benefit and Terminal Illness riders.
- If a policy is issued with the Chronic Condition Benefit Rider, the Terminal Illness Rider must also be issued.
Universal Life (SuperNOVA, Life Protector, FlexWealth Advantage, EquiFlex IUL, Compass Elite IUL):
- The Terminal Illness Rider, R160, and corresponding disclosure M305, are discontinued. Exception: During the year 2018, this rider (where available) may be added to an inforce policy with an issue date prior to 01/22/2018.
- The Living Benefits Rider, R181, and corresponding disclosures M417 or M710, are discontinued. Exception: During the year 2018, this rider (where available) may be added to an inforce policy with an issue date prior to 01/22/2018.
- A new Chronic Condition Benefit Rider, ICC17R245/R245, is available at issue or with a $25,000 increase for policies with an issue date of 01/22/2018 and after. Exception: During the year 2018, this rider may be added to an inforce policy with an issue date between 01/01/2017 and 01/21/2018
- A new Terminal Illness Rider, ICC17R243/R243, is available at issue or with a $25,000 increase for policies with an issue date of 01/22/2018 and after. Exception: During the year 2018, this rider may be added to an inforce policy with an issue date between 01/01/2017 and 01/21/2018.
- Use disclosure form ICC17M723/M723 for both the Chronic Condition Benefit and Terminal Illness riders.
- If a policy is issued with the Chronic Condition Benefit Rider, the Terminal Illness Rider must also be issued.
- The Enhanced Living Benefits Rider, R204/R224, is no longer available to be added to an inforce policy with an issue date prior to 01/22/2018. Exception: During the year 2018, the ELB (where available) may be added to an inforce policy with a $25,000 increase.
Term:
- The TIR for Term rider, R195, is no longer available to be added to an inforce policy with an issue date prior to 01/22/2018. Exception: During the year 2018, the TIR for Term (where available) may be added to an inforce policy with an issue date prior to 01/22/2018.
Important Notes:
- The availability of the discontinued riders during the transition period is still subject to state approvals.
- These changes do not apply to accelerated death benefit riders on the variable universal life plans.
- The new riders are not yet approved in California.
Please contact us if you have any questions on the riders or how they were implemented on the illustration system.
Thank you,
IIllustration Development Team
1-800-572-2467 x8162
illustrationhelp@kclife.com