American General Product Overview: Secure Survivor GUL II

Overview:

  • Prior to the release, Secure Survivor GUL held a very strong competitive position in the market for short and full-pay solves, with the strongest positioning focused on limited guarantee solves.
  • With this release, rates for full-pay solves increased and decreased minimally; greater increases (@ roughly 10%) were seen for short-pay solves.
  • Now, Secure Survivor GUL II is less competitive, but still holds top quartile position for short and full-pay solves under age 75, all non-tobacco risk class combinations (excluding UNI/STD). The strongest positioning can be seen at limited guarantees.
  • Premium limitations were removed with this release; however, pricing for single-pays is very expensive. Positioning ranks in the last quartile and is roughly 30% to 40% more expensive than the best priced product available.
  • Targets remained the same and are relatively competitive for Best Tobacco and Uninsurable/Standard risk class combinations.
  • Secure Survivor GUL II is one of the few no-lapse guarantee product that offers a guaranteed endowment. Cash value doesn’t amount to much in the early years; most of the accumulation occurs after A100.

Other Noteworthy Items:

  • There is a No-cost Enhanced Surrender Value Rider (which they call their return of premium feature) that provides a one-time option during the 60 days following the end of the policy year 15 to surrender the policy and receive back a maximum of all premiums paid. This is similar to the option on Transamerica’s TransAce Survivor.
  • Secure Survivor GUL II has a 24 month rolling target and a Four Year Term Rider (at an additional cost).

The attached standard analysis includes all of the products we benchmark (14/15 products considered):

  1. Old Ranking for $1,000,000 DB, NLG Lifetime (single, full and short-pay scenarios)
  2. New Ranking for $1,000,000 DB, NLG Lifetime (single, full and short-pay scenarios)
  3. Ranking Changes for $1,000,000 DB, NLG Lifetime (single, full and short-pay scenarios)
  4. Percent Premium is above the best rate for $1,000,000 DB, NLG Lifetime (single, full and short-pay scenarios)
  5. Old Ranking for $1,000,000 DB, NLG A100 (single, full and short-pay scenarios)
  6. New Ranking for $1,000,000 DB, NLG A100 (single, full and short-pay scenarios)
  7. Ranking Changes for $1,000,000 DB, NLG A100 (single, full and short-pay scenarios)
  8. Percent Premium is above the best rate for $1,000,000 DB, NLG A100 (single, full and short-pay scenarios)
  9. New Target Premium Ranking for $1,000,000 DB, NLG A100 (single, full and short-pay scenarios)
  1. New vs Old Percentage Premium is Higher or Lower for $1,000,000 DB, NLG Lifetime (single, full and short-pay scenarios)
  2. New vs Old Percentage Premium is Higher or Lower for $1,000,000 DB, NLG A100 (single, full and short-pay scenarios)
  3. New vs Old Percentage Target Premium is Higher or Lower for $1,000,000 DB, NLG A100 (single, full and short-pay scenarios)