Minnesota Life Changes to Life Insurance Product Portfolio

On June 14th, Minnesota Life re-priced their Death Benefit Guarantee Rider. The change in premiums affects the Eclipse Protector IUL, the Eclipse Survivor Pro IUL, and the Legacy Protector SUL while the rider was completely pulled from the non guarantee focused products Eclipse IUL and the Accumulator IUL. For the most part, premiums have increased for No Lapse Guarantee solves because of this change, but the change in premium is not very drastic. Below is a brief summary of the effects:

For the Eclipse Protector IUL, premiums increased anywhere from 0%-5% on average. This product previously fell in the second half of the market, and these changes did not alter that position.

The Legacy Protector premiums increased about 6% on average. The Legacy Protector was most competitive for ten pay lifetime guarantees. In these scenarios, it regularly fell in the top quartile with several premiums being the cheapest in the market. This increase cost the product a bit of competitive positioning, but it is still pretty strong for ten pay lifetime guarantees.

The Eclipse Survivor Pro IUL saw the smallest changes from the re-price. On average, premiums increased by about 1%. This had a pretty minor effect on the products place in the market. It still is strongest for ten pay lifetime guarantees and mediocre elsewhere. Its IUL chassis also allows for decent cash buildup.

Overall the changes were pretty mild and the company positioning in the NLG market is only mildly affected. Other changes in this release included removal of 5X Target Premium Limitation for 1035 Proceeds ONLY on the Eclipse Survivor Pro IUL and the Eclipse Protector IUL, and the max issue age reduced from 90 to 85 on the Legacy Protector SUL, Eclipse Protector IUL, and the Eclipse Survivor Pro.

Eclipse Protector IUL ,

Legacy Protector ,

Eclipse Survivor Pro IUL ,

All rates were posted to the website on or before Wednesday, June 25th, 2014.