AG49-A Revisions Have No Impact on Ameritas IUL Illustrations

Since 2015, Actuarial Guideline 49 has tried to provide a uniform method for calculating maximum illustrated IUL rates. We’re now experiencing another round of updates, referred to as AG49-A. A little history can help explain the Ameritas position on the regulation.

AG49 was designed to standardize illustrations and policy loan rates across the life insurance industry. However, new indexed universal life product features were released which complicated the problem. AG49-A, which came out in 2020, tried to address some of the concerns raised by state insurance regulators. Now, AG49-A revisions are trying to further limit the maximum illustrated rate for non-benchmark index accounts.

AG49-A revisions:

•  Limit indexed illustrated rates to the 145% net investment earned rate on the Benchmark Index Account.
•  State that no index account can illustrate more leverage, via execution of a hedge program, than the benchmark index account.

The AG49-A revisions have no impact on Ameritas IUL illustrations. Ameritas IUL products don’t offer the features that these revisions address.

We encourage you to look at multiple scenarios when talking to your clients about IUL. Illustrations typically project a given average annual rate of return and then predict that you’ll get that same return every year. A policyholder’s actual results can vary widely from what’s shown on the illustration. For example, when you’re comparing illustrations for a client, use 70% of the base illustrated rate and see how each one performs.

Low expenses make all the difference

When you’re running illustrations at a rate lower than the maximum rate, you can not only see how the values hold up, but you also see the impact of total policy charges. In an equal illustrated rate comparison, the illustration that shows higher account values likely has lower total policy costs. You’ll find Ameritas stays competitive using the lower illustrated rates.

Trust Ameritas for the long term

As a mutual-based organization, we serve you and your clients, not stockholders. Our relationship with you and the relationships you have with your clients come first. Every time.

We treat our in-force policyholders just as well as we treat our new policyholders. See for yourself. Run an in-force illustration. Look at our historical cap and par rates. Compare these with other carriers and their in-force block of business. Who do you trust for the long term?

Our policyholders come first

We measure our success by how many people we’ve helped. By how many promises we’ve kept. That’s the true measure of who we are. Our IUL policies have always been designed around low cost and transparency. You can trust Ameritas now, and in the future, to fulfill the needs of your clients.