- Similar to the single-life version, SVULOne 2013 has a clearly defined objective to compete in the second-to-die no-lapse guarantee market, specifically with single and short-pay premiums. Guaranteed death benefit protection is available through their Optimal No-Lapse Enhancement (ONE) Rider. The death benefit guarantee is dial-able.
- LifeTrends compared SVULOne 2013 against products available within the SUL No-Lapse marketplace. For lifetime guarantees, SVULOne 2013 has a very strong competitive positioning when looking at single-pays and often times ranks 1st. It is fairly competitive in ten-pay scenarios, where the premiums rank in the top quartile (with the exception of STD/STD and Best Tobacco/Best Tobacco risk class combinations). Risk class combinations that include one uninsurable & one non-tobacco are also very competitive and rank top quartile in many cells, which include some particularly sweet spots where premiums are 10+% less than the best priced second-to-die no-lapse guarantee product available in the marketplace. When looking at limited guarantees, single-pays still make a very strong showing, while short-pays become less competitive.
- Lincoln Financial still offers a second-to-die no-lapse guarantee product, LifeGuarantee SUL 2013. For single and short-pay scenarios, SVULOne 2013 is the best priced product and produces premiums up to 64% lower than the LifeGuarantee SUL 2013. In full pay scenarios, SVULOne 2013 premiums are about 14% higher than LifeGuarantee SUL 2013 premiums on average.
- With this revision, it is clear that the SVULOne was revised to fill the same niche that the VULOne occupies in the single life market. In the single life market, the VULOne is very competitive in single pay scenarios, but falls to the back of the pack in full pay and ten pay scenarios. The SVULOne mirrors this competitive positioning for single-pays and full-pays, but is more competitive in ten-pay scenarios, especially for the Uninsurable class. Since the SVULOne 2013 is a variable life product competing in the SNLG market, it builds cash very well and has very competitive targets. Most scenarios rank at the top for cash value in year 20, and the targets rank in the top quartile in almost every scenario.
- Other comments: there are no funding restrictions when utilizing the Optimal No-Lapse Enhancement (ONE) Rider; there is a new Estate Protection Rider that provides an additional term insurance benefit during the first four years of the policy (available at an additional cost); this product only offers two non-tobacco risk classes, Preferred and Standard; it also offers a 24 month rolling target.
The attached standard analysis includes all of the products we benchmark (15/14 products considered):
- Premium Ranking for $1,000,000 Death Benefit Lifetime
- Percent Premium is Above Best Rate for $1,000,000 Lifetime
- Percent Premium is Below Next Best Rate (when ranked #1) for $1,000,000 Lifetime
- Premium Ranking for $1,000,000 Death Benefit A100
- Percent Premium is Above Best Rate for $1,000,000 A100
- Percent Premium is Below Next Best Rate (when ranked #1) for $1,000,000 A100
- Percentage Premium is Higher or Lower for $1,000,000 Lifetime
- Percentage Premium is Higher or Lower for $1,000,000 A100
- Percentage Target is Higher or Lower for $1,000,000 – Lifetime
For now, SVULOne has been added to the website under Survivorship Universal Life, SNLG Lifetime and SNLG A100. We are currently evaluating the best way to incorporate VUL NLG and SVUL NLG competitive products into our benchmarks. Reminder: competitive hybrid IUL products are also included in our UL-NLG and UL-SNLG benchmarks.