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How the SECURE Act impacts
The policy changes and new requirements within the SECURE Act are wide-ranging, are still being reviewed, and may also be subject to interpretation by the IRS or other government authorities as they are fully implemented. The changes impact inherited and stretch IRAs; the chart below helps clarify the changes as it relates to our products.
|This Week at Atlantic Coast Life Insurance Company:|
· Top 5 Reasons Why Agents Love the E-App (and Why You Will Too)!
· IRA Annuity Procedure Changes due to the SECURE act
· Guaranteed Minimum Interest Rate for 2020
· Issue Dates for Fixed Index Annuities
· Income Navigator Annuity Webinar
· Home Service Update
· Medicare Supplement Rate Adjustments
· Compliance Corner: Forms Ordering Limits
Top 5 Reasons Why Agents Love the E-App (and Why You Will Too)!
Atlantic Coast Life Insurance Company’s Electronic Application “E-App” is easy to use and is simplifying the application submission process for many agents.
E-App Usage has more than DOUBLED in the last 9 months!
Here are just a few reasons why agents, like you, are loving our E-App!
- The policy no. is assigned immediately to the application and can be viewed on the Agent Portal
- The E-App reduces the initial processing time by up to 4 business days
- The E-App expedites transfer paperwork for annuities
- Point of sale underwriting providing an underwriting status within 2 minutes from the time an application is submitted (for Life products).
- Avoid delays in commission due to missing requirements
To access the E-App, sign into the Agent Portal and click on Electronic Application.
Important E-App Update: The Medicare Beneficiary Identifier (MBI) is now required on all Medicare Supplement applications. We can no longer accept the Health Insurance Card Number. If the applicant doesn’t have their MBI number yet (because they are applying during Open Enrollment), there is a checkbox under the MBI field on the E-App that, if checked, will allow the MBI to be left blank.
IRA Annuity Procedure Changes due to the SECURE Act
On December 19, 2019, the SECURE Act was passed through the Senate with several significant provisions, including the below:
- The SECURE Act increased the age at which IRA funds are required to be distributed, from 70 ½ to 72. For anyone who is turning 70 ½ in 2020 or later, the required beginning date for IRA Required Minimum Distributions (RMD) will now be April 1stof the year following the year the IRA holder reaches age 72.
- There is no longer a maximum age limit for contributions to a Traditional IRA. Traditional IRA holders may contribute to their Traditional IRA, no matter their age, as long as they had taxable compensation during the tax year (as defined by the IRS).
This new legislation impacts the following IRA Annuity procedures at Atlantic Coast Life Insurance Company:
- Non-Spouse Beneficiaries of an IRA holder, who passes away on or after January 1, 2020, will only be able to open an annuity that has a surrender charge period that is less than 10 years. Atlantic Coast Life Insurance Company will no longer allow a 10-year surrender charge period annuity to be opened as an inherited IRA for a non-spouse beneficiary.
- Spouse Beneficiaries will be able to continue the IRA annuity in their own name or open a new annuity. There will be no restrictions to the type of annuity or the surrender charge schedule for a spouse beneficiary who either assumes the funds as their own or opens an inherited IRA.
- If the IRA holder passed away before January 1, 2020, Atlantic Coast Life Insurance Company will still allow an IRA to IRA transfer for any inherited IRA already established.
Now that you’ve discussed how a Medicare Supplement or Medicare Advantage plan can help meet your clients’ healthcare needs, your clients may have other needs to address, such as having a way to pay for expenses if they were to become chronically ill.
Fortunately, Gerber Life is here to help with Gerber Life DuetTM — a combined whole life insurance policy with chronic care protection.
Designed to help meet the added costs incurred by people living longer and needing some type of skilled care, Gerber Life Duet provides two types of protection that work in harmony:
• Death benefit protection with face amounts ranging from $100,000 to $1,000,0001
• Coverage for chronic care expenses with benefit payments ranging from $90,000 to $300,0002
Your Medicare Supplement/Advantage clients3 are an appropriate audience to consider for a Gerber Life Duet policy:4
• They may be at an age where they are concerned about paying for expenses if they were to become chronically ill
• They might not be able to afford a long-term care policy
• They may have had recent experience with a family member’s chronic condition
With costs for skilled care continuing to rise, Gerber Life Duet can provide affordable coverage that would help protect your clients if a chronic illness were to occur.5 Plus, it can give your clients the ability to ease financial burdens on their loved ones.
Remember, healthcare is just one important component of your clients’ financial picture. Having life insurance protection and coverage for chronic care expenses can be even more important and impactful. Don’t miss out on this important cross-selling opportunity. Consider a Gerber Life Duet policy for your Medicare Supplement and Medicare Advantage clients today.3
To learn more about Gerber Life Duet, contact your General Agent. You can also visit Gerber Life’s Agent Portal to view the Gerber Life Duet consumer and agent marketing materials.
Single-pay underwriting program Extended through June 2020!
New Trial Application Requirements
Effective January 16, 2020
Our Pacific Life Broad Market team is thankful for the PL Promise business you entrust with us. As we look to
help you grow your business in 2020, we want to focus on those cases that will have the greatest impact for
both of our organizations.
With that in mind, as of January 16,2020, we will resume accepting trial application requests for PL Promise
Term1 and PL Promise GUL.2 All trial applications received on or after that date will include new requirements
(listed below). In addition to these requirements, we are also requesting that you submit a Trial Cover Sheet link
with your trial application.
Trial Application Requirements:
• Age 18-80
• Anticipated annual premium $3,000 or higher
• Completed Trial Cover Sheet with Trial Application
Contact our office for more details!
New & Improved:
- Shortened Phone Interview now 5 minutes faster!
- Three products – Level Preferred, Level Standard (NEW) , and Modified
- Rate Reduction – Level Preferred, male non-tobacco, ages 65-70 & Level Preferred, female non-tobacco, ages 65 – 70
- Initial draft up to 45 days for the initial premium (within 45 days of the Apptical PHI)
- Can draft on 2nd, 3rd or 4th Wednesday of the month to coincide with the Social Security deposit dates
Contact us to learn more!
Reminder: Complete New York