May 1 illustration guideline changes: What you need to know

The changes required to illustrations under the National Association of Insurance Commissioners (NAIC) Revisions to Actuarial Guideline 49.A, commonly referred to as AG49.B, will go into effect for policies sold on or after May 1, 2023.

No impact on real-life returns

While illustrated rates are impacted, AG49.B does not change the actual performance of any strategy or the potential growth consumers may be credited.

More specifically, the guideline changes do NOT affect:

• Actual underlying index performance
• Caps
• Spreads
• Participation rates

The guideline simply addresses how the projected performance is presented in an illustration.

Key dates

April 26: Illustration software updated to follow May 1 illustration guidelines, including defaulting to May 1 illustrated rates.

May 1: All applications with a received date of May 1 or later will be issued with an illustration following May 1 guidelines.

Transition information

For applications expected to be received by F&G on May 1 or after:

• F&G strongly recommends that you run the case design with May 1 illustrated rates now
• Any cases received on May 1 or after will be issued with an illustration showing May 1 illustrated rates
• You may reduce the likelihood of your clients having questions at delivery by running with the May 1 rates now so it matches the illustrated rates on the policy issue illustration

F&G products remain competitive

At F&G, we have always approached product design from a total consumer value perspective — not simply an illustration viewpoint. 

Throughout the various revisions to AG49, our product designs have remained consistent. Our portfolio will continue to offer security, upside potential, and a consumer-driven experience, including:

• Competitive S&P 500^® cap rates with stable renewal history
• Strong-performing alternative indexes for diversification
• Innovative, Exam-Free¹ underwriting
• A full suite of accelerated death benefit rider options or "Living Benefits"

For any product and case design inquiries, please contact Life.Sales@fglife.com.

For financial professional use only. Not for use with the general public.

¹Policy approval is determined by a review of medical and personal history on the application and may be subject to additional underwriting requirements at the discretion of F&G.  Review Fidelity & Guaranty Life Insurance Company Underwriting Guidelines for additional details.

"F&G" is the marketing name for Fidelity & Guaranty Life Insurance Company issuing insurance in the United States outside of New York. Life insurance and annuities issued by Fidelity & Guaranty Life Insurance Company, Des Moines, IA.

The "S&P 500 Index" is a product of S&P Dow Jones Indices LLC, a division of S&P Global, or its affiliates (“SPDJI”) and has been licensed for use by Fidelity & Guaranty Life Insurance Company.  Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC, a division of S&P Global (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); These trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Fidelity & Guaranty Life Insurance Company. These Life Insurance products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Index.

                                                                                                                                                         23-0343