The interest crediting rate for Total Living Coverage® (TLC) will decrease 50 bps, from 4.00% to 3.50%, effective March 26, 2012.
If an application is received by us before March 26, 2012, the initial interest crediting rate for any policy that becomes effective will be 4.00%. If an application is received on or after March 26, 2012, the initial crediting rate for any policy that becomes effective will be 3.50%. Crediting rates for in force policies are not affected.
| At 3.50%, TLC beats the competition Female | TLC | Product A |
| Specified Amount | $180,202 | $150,121 |
| LTC Pool | $540,606 | $450,363 |
| LTC Monthly Max | $7,508 | $6,255 |
| Male | ||
| Specified Amount | $169,461 | $132,252 |
| LTC Pool | $508,383 | $396,756 |
| LTC Monthly Max | $7,061 | $5,511 |
Frequently Asked Questions
1. Do I need to update WinFlex? Yes. The WinFlex update will be available on Monday, March 26, 2012.
2. What are the transition rules? All signed long applications received by the home office before Monday, March 26, 2012, will receive the current interest crediting rate of 4.00%. Applications received on or after March 26, 2012, will receive the new interest crediting rate.
3. How does this apply to TLC ExpressAppSM tickets? In order to secure the higher rate and take advantage of the signature-on-delivery process, all required forms with the ticket must be received in the home office, in good order, by March 25, 2012.
4. How does this change impact a policy out for delivery on March 26, 2012, with a Policy Delivery Acknowledgement (PDA)? For any policy issued with a Policy Delivery Acknowledgement (PDA) and out for delivery before March 26, 2012, the policy will have to be delivered and the PDA signed before March 26, 2012 to get the 4.00% interest crediting rate. Otherwise the owner of the policy will have to sign a backdating notice to get the 4.00% rate. If you have any questions about the PDA or backdating notice, please contact New Business at 866.446.9852, option 2, option 2.
5. How does this change impact commissions? The new interest crediting rate has no impact on commissions.
6. What will be the impact of the interest crediting rate change on in force TLC policies? This change has no impact on in force policies.