New Universal Life Guidelines Phase 2

In August 2015, the NAIC approved New Illustration Actuary Certifications under The Application of the Life Illustrations Model Regulation to Policies with Index-Based Interest (AG49). Because of the implementation of AG49, FGL was required to make changes to how our FIUL products are illustrated. On September 1, 2015, we implemented Phase 1 of the required changes by updating the maximum illustrated rates. Phase 2 of AG49 will be effective March 1, 2016.

How Variable Policy Loans are Illustrated - When illustrating variable loans, the rate credited to the loan amount cannot be more than 1% higher than the charged loan rate. The adjustment to the illustrated crediting rate only impacts the amount being illustrated as variable loans
Illustration Software Additional Disclosure – Illustrations are required to include certain disclosure language. Also included is a “Historical Performance Summary” which charts a 10 and 20 year
history of the applicable indices and index options. To see an example of this page of the illustration, please click here
Phase 2 changes will be implemented in Fidelity & Guaranty Life’s illustration software on February 27, 2016

No change to how any strategy could perform or the gain potential for consumers. AG49 guidelines dictate how much of the performance can be illustrated
No change to our maximum guaranteed variable loan rates or our actual loan crediting rate*
No change in illustrated crediting rate when variable loans are not illustrated
No change to our highly competitive cap rates*
No change to our consumer-minded pricing
No change in flexibility for the client
No change in living benefits

You may download updated software on February 27, 2016
We will only accept illustrations run on the current version of the software before February 27, 2016 if the illustration was signed prior to March 1, 2016 with no changes after underwriting
If changes are required after March 1, 2016 and a new illustration is needed, the updated version of the software should be used

*Rate changes could occur with regular monthly rate setting updates, but not as a result of AG49.

"FGL" when used herein refers to Fidelity & Guaranty Life, the marketing name for Fidelity & Guaranty Life Insurance Company issuing insurance in the United States outside of New York. Products issued by Fidelity & Guaranty Life Insurance Company, Des Moines, IA.