Due to changes in market conditions, the life insurance industry has experienced a number of cap and participation rate reductions in recent months. While these changes have become common, it is important to note that not all carriers handle them the same. In some cases, carriers maintain caps for both new business and in-force, but in others, a carrier may lower caps on existing policies in order to keep higher caps on new policies to attract sales.
Why should existing clients have less opportunity than a new policy sold today?
While Securian is not immune to the pressure of these changes, they believe in building strong relationships and strive to treat all policyholders the same. That means they don't support higher caps at the expense of existing policyholders. For example, an Eclipse Indexed Life client will have the same cap, or accumulation opportunity, if they have been with Securian for 10 years or ten days.
- All money applied on or before April 20th will receive the old cap rates. Money applied after April 20th will receive the new cap rates.
- Illustrations will reflect the new cap rates beginning March 31st.