On Monday, July 3rd, American General replaced Platinum Choice VUL with its next iteration, the Platinum Choice VUL 2. In a seemingly targeted move, the Platinum Choice VUL 2 improves pricing for most endowment scenarios in the 50-70-year-old range, which is where it finds most of its competitiveness.
Platinum Choice VUL performed well in two categories: full-pay premiums and limited-pay premiums for ages 45 and under. With the update, Platinum Choice VUL 2 basically holds its competitive presence between the ages of 50-70, significantly improving premiums and seeing competitive first quartile play, especially at an 8% rate. Additionally, primary guarantees were strong for its competitive ages, averaging to around age 77. Both premiums and primary guarantees are significantly worse outside the age-specific sweet spot.
Income solves were hard hit, resulting in positioning that stands towards the back of the pack for both 6% and 8% illustrated rates. While a few scenarios at older ages retain some slight competitive positioning, overall, the income play has become much less ideal with this updated version.
Platinum Choice VUL 2 offers a dial able no-lapse guarantee option, but the cost to fund the NLG to life is fairly steep, landing competitive positioning at the furthest end amongst its peers.
Targets tended towards the middle or back of the pack across the board.
Rates were uploaded to the LifeTrends website on Wednesday, July 5th, 2017.