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Columbus Life – DOL Rule Update

The Department of Labor Fiduciary Rule Recent Business Decisions and Other DevelopmentsSince our last update, leaders from Columbus Life and the Western & Southern Financial Group have been actively reviewing the Department of Labor’s Fiduciary Rule. A significant number of resources have been and will continue to be focused on our collective response so that you-our valued producers-can continue to thrive in this new environment. With that in mind, below you’ll find an update on the key decisions we have reached, the issues we continue to work on, and what you can expect from us moving forward. We Continue to Prepare for April 10 While some companies have announced changes, others are still evaluating the Rule’s impact on their business. However, most of the industry is moving forward with planning and preparation, even with the results from our recent presidential election. Uncertainty remains regarding the impact-if any-that the new president’s administration will have on the Rule. Given the current circumstances, we believe the only responsible course of action at this time is to continue preparing for the April 10 deadline, while closely monitoring developments for future changes. Current Business Practices Will Change The Rule expands the definition of a “fiduciary” to include anyone who provides retirement investment advice-especially when it comes to products that have an investment component. Products with an investment component include fixed, variable and indexed annuities, and whole and universal life insurance. In other words, if you recommend and sell products like those mentioned above-either in a qualified account or funded with distributions from a qualified account-you will be considered a fiduciary under the Rule. Qualified accounts include 401(k)s, 403(b)s, IRAs and similar accounts. If you are a fiduciary, you cannot receive compensation that varies based on your recommendation, such as a commission, unless you meet the requirements of an exemption. Two exemptions are available for insurance and annuity products: * Prohibited Transaction Exemption (PTE) 84-24 for life insurance and fixed annuities. * Best Interest Contract Exemption (BICE) for variable and fixed indexed annuities. Under both exemptions, you must follow an Impartial Conduct/Best Interest Standard, and you must follow specific procedures and provide disclosures to your clients. We are actively working on the appropriate forms and processes for you to accurately submit your business to us after the April 10 deadline. Pending Decisions and Work in Progress There are some important issues that we have not yet resolved, but that we will continue to research and make decisions about over the next few months. Product Changes: Fixed indexed annuities will be considerably impacted by the Rule, and many producers and firms are faced with the decision to either apply to be or align with an eligible financial institution to keep offering these valuable products in the qualified space. We are evaluating our options to continue offering a fixed indexed annuity with the same benefits we do today, and will share information with you as a decision is made. Compensation:The Rule requires “reasonable” fees and compensation, but a specified range was not defined by the DOL. We believe the level of “reasonable compensation” will be determined by the overall marketplace, and are now working on a practical, yet competitive structure that ensures our producers will be rewarded for their business. Incentives and Benefits: We will continue offering world-class conferences and sales awards to reward you and your colleagues for your relationship with Columbus Life. Conference qualifications are now being finalized that will both meet the Rule’s requirements and provide attractive qualification opportunities for as many of our producers as possible. We will announce these qualifications by year-end. This update marks the start of our regular updates to you about the DOL Fiduciary Rule. Ultimately, we want to make sure you’re well-informed about how the Rule will affect you, how to do business with your clients, and how to continue doing business with us. Over the next few months, we’ll share even more decisions with you, along with new resources and tools to help you comply with the Rule, and even find new business opportunities. We value your trust in us, and thank you for your business both now and in the future.
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Americo – Important Notices

eApplication Signature Reminder  
As a reminder, if you are using our eApplication and select ‘tablet signing’, the signor (proposed insured, owner, or payor) must sign the application directly using the tablet. Full signatures are required, initials are not sufficient. If you are using ‘remote signing’, the person signing the application must be the person receiving the email. As with the traditional paper process, you cannot sign for the client under any circumstance. Important Illinois Replacement Notice In order to avoid a re-write of the application, make sure replacement forms are handled with the application. All replacement forms MUST be executed at the time of the application and must be submitted with the application. The State of Illinois does not accept replacement documents that have been handled later than the application, or submitted to the carrier later than the application.
Long Term Care and Disability Insurance

5 Things You May Not Have Known About Long…

Presented by Michelle Daharsh November is Long Term Care Awareness month, so ask yourself, “what do you know about long term care insurance?” Unfortunately, some of our clients and prospects hold certain misconceptions or may even have an unfavorable opinion of long term care insurance, largely stemming from issues related to its early days of limited benefits or the seemingly endless round of rate increases. There isn’t much we can do about the economy that seems to drive the rate increases, but we can discuss the myriad of options that focus on flexible long term care solutions. A long term care plan built the right way just might slow the risk of future rate increases. Let’s take a look at what is available in long term care insurance today. 1. The client decides where care is received. One of the most common myths is that long term care insurance only provides nursing home care, (that is so 1980) and nothing is further from the truth. Coverage today provides home care for those who prefer to remain in their home and have care brought to them. Other options of care can be adult day care centers, assisted living facilities and hospice centers. 2. Benefits can be flexible. In addition to options for where care is received, most long term care insurance policies offer greater flexibility in the types of services available, such as home modifications like installing grab bars or a wheelchair ramp to help you stay at home longer and safer. Meal preparation, errand services, and respite care are all now common benefits found in today’s products. 3. It supports family caregivers. Long term care insurance recognizes the important role family caregivers play in long term care. The vast majority of care being provided today is done by family members. Benefit options make it easier for families to care for their loved ones right in their own home. Most policies provide caregiver training for family members, which helps ensure care recipients are getting the best care possible. 4. It offers Shared Coverage for couples. Many long term care insurance policies offer an optional benefit rider commonly known as “shared care,” which allows couples to share their coverage and maximize their benefits while keeping the cost of coverage lower. This provides couples with peace of mind knowing that their coverage will be there if care is needed for longer than expected, and it is not a benefit that is lost if one of the insureds passes away. Remaining benefits are transferred to the surviving spouse or partner. 5. It’s not “just for older people.” While it’s a critical part of retirement planning and important protection for later years, the younger the clients are when they apply for long term care insurance, the better. Age and health are two of the most important factors when applying for coverage, so applying at a younger age will help make it more affordable, and likely more insurable from a health perspective. With November being Long Term Care Awareness Month, I encourage you to learn more about long term care insurance and why it’s a critical piece of retirement planning for your client. Your clients just might be glad you did.
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Savings Bank – Financial Strength Ratings

SBLI’s A.M. Best Financial Strength Rating: A (Excellent)

A.M. Best recently issued a press release in relation to our Financial Strength Rating. It reflects an adjustment from A+ (Superior) with a negative outlook to A (Excellent) with a stable outlook.  While we at SBLI are disappointed with the downgrade, we were not surprised.  The tight margins associated with a commodity product like term life make it challenging to sustain competitive statutory earnings and capital growth, especially in the prolonged low interest rate environment. The ‘A’ rating is A.M. Best’s 2nd highest Financial Strength category.  SBLI’s S&P rating remains at ‘A-’ (Strong). In addition, SBLI, as a regulated entity is required to set aside capital to offset future liabilities, and we currently maintain capital well in excess of those minimum levels required by regulators.  Therefore, as indicated by the A.M. Best rating of A (Excellent) with a stable outlook, we feel confident about the current capital level and future growth opportunities of the company.