Section 7702 changes and updated caps and rates for Symetra IUL

Important life product updates

·         Section 7702 changes: Illustration system update

·         New index cap, participation and max illustrated rates for Symetra Accumulator and Protector IUL

February 11, 2021

Section 7702: Illustration system update

As you are aware, on December 21, 2020, Congress passed the Consolidated Appropriations Act of 2021, which included several updates to IRC Section 7702 that were effective January 1, 2021. These changes impact the interest rates used for the Definition of Life Insurance (DOLI) testing and Modified Endowment Contract (MEC) testing.

In order to be in compliance with these changes, we will be updating our illustration system effective February 17, 2021. Any policies issued after this date will include the new calculations. We will be reaching out directly to those firms with pending business as well as the ones that have placed business with us since January 1, 2021, to share with you our communication plans for affected producers and clients.

New index cap, participation and max illustrated rates for Symetra Accumulator and Protector IUL

Due to the continued low interest rate environment, we will be making changes to our Symetra Accumulator and Protector IUL products. These changes will be effective April 14, 2021, and will affect all in-force policies and new business, including new premium, transfers (including DCA) and reallocations of matured segments.