On Tuesday, August 5 th, Pacific Life re-priced their No Lapse Guarantee Rider for the Pacific Prime UL-NLG and the Versa Flex NLG. Pacific Life stated that the changes should result in a 2-3% increase to premium on average, but will lower premium for females and standard risk classes. The changes are more positive than negative, but both products remain uncompetitive.
Previously, both the Prime UL-NLG and the Versa Flex NLG were very uncompetitive in the NLG market. The premiums for both products ranked at or near the bottom quartile across the board. With the pricing change, premiums improved for most females and most Standard and Best Tobacco risk class males. When premium improved, they fell by about 8% on average. On the other hand, premiums increased by about 4% on average for older females and Preferred Best and Preferred males. The changes in pricing didn’t have much of an impact on either product’s competitive positioning; both products remain toward the back of the pack in almost all scenarios.
Both products have very good cash values in year 20 that fall in the top quartile across the board.
The Versa Flex NLG, given the blending option selected for our benchmarks, has very good targets for full-pays for females and younger age males. The targets are not very competitive for ten-pays. Pacific Prime UL-NLG, as expected, has pretty mediocre targets across the board.
Rates were posted to the LifeTrends website on Friday, August 8 th.