Deadline looms as ivari updates UL lineup

By Andrew Rickard | October 07 2016 11:30AM

Changes to the exempt test rules that come into effect on January 1st will put an end to some of the advantages currently enjoyed by universal life (UL) insurance. As a result, ivari is taking some of its plans off the shelf as it prepares to launch a new product later this fall.

In a message to advisors, the insurer said that in order to align its existing universal life products with the new 2017 taxation rules, its current prosperity UL will only be available until December 5; an "upgraded" version will be available later this year. As for ivari's WealthAdvantage and EstateAdvantage UL plans, they are being discontinued on December 5, and the company intends to replace them with a new universal life product in the fall. In both cases, the insurer "strongly recommends" that any new business for these products be submitted “well before” the December 5 date.

Time is clearly running out

For advisors who wish to submit new business and or a policy change in order to obtain a contract governed under the current tax rules, time is clearly running out.

"While we cannot guarantee that an application for new business or a policy change requiring underwriting will be issued on or before December 31, 2016, if we receive a new business or policy change application on or before November 15, 2016 we will do our best to approve and issue the application on or before December 31, 2016." reads the message. "Recognizing that delivery requirements may not be in by Dec 31, 2016, we will accept the delivery requirements on policies that have been issued on or before Dec 31, 2016 up to Jan 27, 2017."