2017 Product Updates
Motorists Life wants to help you have a prosperous 2017. We’re excited to tell you about changes to Your Term and Term Rider, including better, lower rates. We have also made some modifications to dividend and annuity products:
Your Term life insurance
Updates are coming to Motorists Life’s Your Term and Term Rider life insurance products to make them more competitive! Effective Jan. 28, 2017, all underwriting classes have been repriced to better align with industry standards so you can compete for the best business.
Update highlights:
- All classes repriced for better, lower rates
- Standard non-smoker (chew/smokeless tobacco/snuff, cigar and pipe usage allowed) and standard smoker underwriting classes
- All classes will be based off actual age
- Commission first year and on renewal years 2-10
- New $1 million band
A new Your Term brochure and product guides for Your Term, Par Whole Life and Non-Par Whole Life are now available. We’ve also updated our products at-a-glance materials.
Dividend and annuity changes
Despite challenging economic conditions, Motorists Life expects to pay more than $1 million in dividends to eligible life insurance policyholders in 2016. This continues our long history of paying dividends and demonstrates our commitment to providing our agents and policyholders with value today and for the future.
The sustained low interest environment continues to affect the insurance industry’s investment experience and has adversely impacted the dividends for our Par Whole Life policyholders. Our disciplined approach to managing risk and making financial decisions enables us to continue providing these payments to our participating life insurance policyholders.
Effective Jan. 28, 2017:
- The dividend scale for 1994 Par Whole Life policyholders will be reduced by 10 percent from the previous scale.
- The dividend scale for 2008 Par Whole Life policyholders will be reduced to 85 percent from the previous scale. This will only impact policies in the fourth policy year or later. No change in dividend will occur with a policy in its first three years.
- Single Premium Deferred Annuity (SPDA) renewal interest rate will remain 3 percent for the first year crediting rate but will change to 2 percent for the second year crediting rate.
A dividend change will be reflected on the policyholder’s annual statement with the following notation: “There has been a decrease in the scheduled dividend, effective Jan. 28, 2017.”
Please contact Policyholder Services at 888-876-6542 ext. 14103 if you have questions.
Thank you for your continued partnership and we look forward to growing with you in 2017!