Accelerated Death Benefit Riders for Variable Universal Life

Effective June 1, 2018, the accelerated death benefit riders for Variable Universal Life have been revised or replaced as detailed below. These changes affect the availability of the riders for both new issues and inforce contracts. A new Chronic Condition Benefit Rider is now available for new issues of Variable Universal Life contracts.

Terminal Illness Rider

• The Terminal Illness Rider, R215, and corresponding disclosure M626, are discontinued. Exception: During the year 2018, this rider (where available) may be added to an inforce contract with an issue date prior to 06/01/2018.
• A new Terminal Illness Rider, ICC18R246/R246, is available at issue or with a $25,000 increase for contracts with an issue date of 06/01/2018 and after.

Chronic Condition Benefit Rider

•  A new Chronic Condition Benefit Rider, ICC18R247/R247, is available at issue or with a $25,000 increase for contracts with an issue date of 06/01/2018 and after.
• If a contract is issued with the Chronic Condition Benefit Rider, the Terminal Illness Rider must also be issued.
• Use disclosure form ICC18M726/M726 for both the Chronic Condition Benefit and revised Terminal Illness riders.

Living Benefits Riders

• 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 contract with an issue date prior to 06/01/2018.

Enhanced Living Benefits Rider

• The Enhanced Living Benefits Rider, R203/R223, is no longer available to be added to an inforce contract with an issue date prior to 06/01/2018. Exception: During the year 2018, this rider (where available) may be added to an inforce contract with a $25,000 increase.

     
Important Notes

• The availability of the discontinued riders during the transition period is still subject to state approvals.
• The new riders are not yet approved in California or Florida.
• California and Florida will continue to issue and illustrate the previous versions of the accelerated death benefit riders.

Please contact us if you have any questions on the riders, how they were implemented on the illustration system, or the transition period.

Have a Great Day,

Illustration Development Team

illustrationhelp@kclife.com

1-800-572-2457 x8162