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So are you saying that all of your inforce policies have a lower cap rate than what is being marketed to new clients?
- are all your inforce policy with na/midland have the same cap rates or do they have different cap rates depending on the issue date?
- Any carrier you see that is keeping it consistent across the board?
I have a Penn Policy that's 8.50% with a 1% floor ... I see new brochures at 8.25% but the illustration software is showing 9% so not sure which one is current..
Regarding Midland/NA, they have different Cap rates depending on the product line. Midland releases a new IUL product apx every 2-3 years. New product has competitive rates. Old products see drops on renewal once the new product is out.
Also, the ECV product has different caps and renewals vs. the normal builder.
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All carriers have seen drops due to interest rates. Some are more steady than others. Penn, Columbus, AIG, Securian, Allianz all have had fairly strong renewal histories.
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You probably have the "Accumulation Builder Flex IUL", which is Penns old product.
They just released a new product after the 7702 updates. It is called just "Accumulation IUL".
The new Accumulation IUL has a 9% Cap on the 1% floor account. Old product is 8.5% or 8.25% range, its still sold in CA.