At ITM TwentyFirst, it is our goal to keep our clients informed of industry wide news that may affect how life insurance assets are managed.
This week we became aware of cost of insurance (COI) rate increases for blocks of policies for Minnesota Life Insurance Company. The increases will affect all policies that have the word “adjustable” in the product name including Variable Adjustable Life policies, with the % of increases specific to each insured.
Per Minnesota Life, “After evaluating our block of insurance products, we are adjusting the cost of insurance rates. These changes will more appropriately reflect our expectation of future risks to the overall insurance pool. The changes are in accordance with the legal revisions attached to your policy and will be effective on May 1, 2020.”
For policies impacted, the carrier has stated the COI increase will take place on the next anniversary following the 5/1/2020 effective date. Updated illustrations can be requested immediately and will reflect the COI increase.