We are pleased to announce that effective February 20, 2017, Protective Indexed ChoiceSM UL will feature a new capability* allowing automatic transfers of a fixed dollar amount from the Fixed Account to the Indexed Account each month. This may be ideal for lump sum premium payments that the policyholder would like to transfer into the Indexed Account over a 12-month period, rather than in a single lump sum. Previously, transferring funds between the two accounts was only allowed once a year.
How it works:
A client will need to determine a fixed dollar amount within a lump sum and a number of months (no more than 12) for the automatic transfers to take place. The default period for the monthly level transfer is 12 months. If assistance is needed, Protective Life can utilize a tool that can help identify the transfer amount. Agents can request a monthly level transfer on behalf of their client by writing it in the Remarks section of the application or by calling the Protective Life home office.
Only one monthly level transfer can be in place at a time and transfers will occur on the 15th of the designated months. If the Fixed Account balance is less than the monthly level transfer amount, then the remaining amount in the Fixed Account will be transferred to the Indexed Account and the monthly level transfer will end.
Requested manual transfers from the Fixed Account to the Indexed Account will not be allowed while a monthly level transfer is active. Please note that the monthly level transfer can be stopped at any time, but Protective Life needs to be notified five (5) business days before the next automatic transfer.
Example of a monthly level transfer with a lump sum of $12,000 for a 12-month period
|Month||Fixed Dollar Amount for Transfer|
|Month 12||< $1,000|
|Policy charges are deducted monthly. Despite starting with a lump sum of $12,000, that full amount will not be transferred to the Indexed Account by the end of the 12-month period.
While the remaining dollar amount in the Fixed Account for month 12 is less than the predetermined fixed dollar amount, it will still be transferred to the Indexed Account.
This example is hypothetical and intended solely to represent how the monthly transfer option would work.
The addition of this capability gives policyholders more opportunities for diversification, allowing up to 12 index segments at any given time. The Indexed Account credits interest to a client’s policy based on positive performance of the S&P 500, giving policyholders a greater opportunity to build cash value. While the Indexed Account can offer clients the upside potential of an equity market, it also protects their account value from downside market risk.
Protective Indexed Choice UL offers a more realistic approach to an indexed universal life solution, built with integrity. Let’s deliver on our promises. Together.