Protective Life’s recently announced Advantage Choice UL price change is yet to be approved in California. Normally, this would simply result in an extended product transition. In this case, however, the 12/31/18 deadline is a hard stop, leaving Protective with a near certain “gap” in product availability until CA approves the new version. Read on for the details!
Protective Life’s NLG product, Advantage Choice UL is in the midst of a price change that is effective 1/1/19. A component of this change is based on actuarial testing results that make the 12/31/18 deadline for the current pricing a “hard deadline” in all states. In most states, this is not an issue, as the new version is approved and available for sale.
The California DOI, however, has not approved the new product.
This is important for an obvious reason: With the 2018 version no longer available for sale and the 2019 version yet to be approved, California customers will not have a traditional NLG product available from Protective Life until the California DOI approves the new version. While the hope at Protective was for this approval to already be in place prior to the 12/31/18 deadline, the timeline for this approval is unknown.
Bottom Line: Any California Advantage Choice UL applications MUST be received in the Protective Life home office by COB on 12/31/2018. No exceptions will be granted.
Of course, Protective has an extremely strong alternative that has been capturing the majority of their permanent sales of late: The Indexed Choice UL. The hope and expectation at Protective is that this product can provide an acceptable alternative for California clients until the DOI approval is received.
For more background on this change please see the initial announcement from Protective Life.