Cenco Insurance Marketing Corporation
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Cenco eNews
January 12, 2021
Could Term And NLG Rates Increase And Could More GUL/NLG Products Sunset?

We all watched as several insurers raised their NLG/GUL premiums earlier in 2020 and then while AG49-A leveled the illustration field, it made many life products less robust for the consumer.

Now with insurer's product spreads reducing and COVID-19, life insurers are forced to review both mortality and spread calculations.

Could this mean that:
  • Guaranteed life insurance premiums will increase, or certain guaranteed premium products disappear?
  • Term premiums might increase or long term period durations may be phased out?

While some of this has been discussed amongst life insurers and there is not industry wide evidence yet:

  • One formerly competitive NLG insurer discontinued their NLG/GUL product sales as of January 1.
  • Another major insurer has suggested their field force refrain from writing new life business.
  • A major insurer is rumored to be not accepting business from new agents.
  • Others have been observed implementing stricter underwriting standards.
  • A big nationally known major insurer just removed their 30 year term from the market.
  • That same insurer increased their premiums from 8% to 12% on GUL.
  • In past months other insurers have either removed GUL/NLG products or increased premiums.
  • Industry articles have referenced insurers having higher death claims from some term policies.

What is even worse, as we have seen some of these changes can come with little or no advance notice to agents. What should agents do?

While we cannot predict whether interest rates will change soon or the COVID-19 vaccine will curtail mortality risks, in any case this would be the time to tell your pending or undecided clients to take action and either lock in new permanent coverage or if term is best for budget reasons, obtain term from an insurer with quality permanent products to convert to, NOW!

For help go to Cenco's Website for term or GUL quotes or call us at 916/920-5251 or 800/452-3626,

Protective Has Lowered Their Prices On Classic Choice Term Again!
They are more competitive than ever, with prices that put Protective in the Top Three 95% of the time in monthly pay scenarios and 92% of the time in annual pay scenarios. They have extended their maturity age to 95 and increased maximum issue ages in their 10- to 30- term periods. Protective is committed to keeping Classic Choice term as one of the most competitive products in the market! Read more...

Coming in January 2021!
Watch for some special eNews editions featuring business development tools to save you time and make you more money, including:

  • New web tools that will speed up every aspect of your practice and make it much easier to quote, underwrite, write and place business on one comprehensive and exclusive Cenco agent-only website.
  • Valuable incentives for using some of the comprehensive website tools.
  • Virtual sales tools to help you stay ahead in the virtual sales world.

And don't forget to check out our End of Year Video! Stay safe and healthy in 2021!

Contact the CENCO TEAM:
Erik Sjolie, Cathy Martin and Brianna Solano

Cenco Insurance Marketing Corporation
1501 El Camino Ave, Suite 1
Sacramento, CA 95815

Phone: (916) 920-5251
Fax: (916) 920 8734


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