AG49 A - WHAT THE HECK IS THAT?

AG 49 (A)

Most agents have never heard of AG49… and very few actually understand why it exists.

Here’s the simple version.

Years ago, IUL illustrations started getting a little… aggressive.

Carriers were showing high illustrated rates and strong income streams based on assumptions that looked great on paper, but weren’t always realistic long term. eeeemmm Transamerica?

Especially when it came to policy loans and “arbitrage” strategies.

That’s where AG49 comes in.

AG49 (and the updated AG49-A) was created to put guardrails around how IULs are illustrated… not how they actually perform, just how they are shown.

Think of it like this:

It doesn’t change the engine of the car… it just regulates how fast the speedometer is allowed to read.

Here’s what it mainly does:

• It limits how high carriers can illustrate credited rates • It reduces how much “loan arbitrage” you can show (borrow at 5%, earn 7% type of stories)

• It makes different IUL products easier to compare apples-to-apples

The biggest impact you’ll feel as an agent:

Illustrations today are more conservative than they used to be. That’s not a bad thing.

In fact, it protects you.

Because it’s much easier to show a client something reasonable and have the policy outperform…

Than to show something aggressive and spend years explaining why it didn’t.

Bottom line:

AG49 wasn’t created to hurt IUL sales.

It was created to clean them up.

And if you understand that… you’ll position yourself as an advisor, not just someone running illustrations.