Rate changes coming for MassMutual Radius Choice multi-life sales

New process for initiating a group identification number also goes into effect

New MassMutual Radius Choice disability income insurance (DI) policies sold in fully underwritten multi-life situations will use gender-specific premium rates effective Aug. 24; a new set of multi-life discounts will also apply. The changes will be effective in all jurisdictions except California, Connecticut, New York and Puerto Rico; these jurisdictions will move to gender-specific rates upon regulatory approval.

Most carriers already use gender-specific rates in the multi-life markets, which has led to material shifts in MassMutual’s mix of business and created significant pressure on expected profitability. This change is necessary to ensure we maintain a healthy mix of business for the future and remain in a competitive position.

Key points for Brokers

Brokers are able to sell voluntary Radius Choice business; employer endorsed cases will no longer be accepted from brokers.

• There will be no changes to in-force policies as MassMutual’s Radius and Radius Choice contracts are non-cancelable. Coverage additions to these policies will continue to use the premium rate structure (unisex rates) and the discount used at time of issue.
• There will not be any impacts to compensation for brokers. The same compensation structure is in place with new gender distinct rates.

While we understand this will initially be a challenge, we view this as a solid first step to looking at who and how we market DI to the new wave of professionals, including Engineers and Data Scientists, etc. This will take time, but in the long-run MassMutual as a company will be better for it and we have the opportunity to work with our brokers building out new, untapped business.

Updates for active Group Identification Numbers (GINs)

To make this change, all active multi-life employer/student groups will be assigned an updated Group Identification Number (GIN) with a new suffix, and all old ones will be closed. This reassignment will happen automatically with no action required by advisors. After the effective date, there will be an updated process for requesting new GINs; read about it in these guidelines.

Updates for inactive GINs

As these changes go into effect MassMutual is also closing a block of GINs that have been inactive for a number of years.

Transition timeline

Here are important dates to keep in mind during this transition (see the FAQs for detail):

•  Aug. 9:  Last day to submit the previous GIN Form, F6748.  New form will be available Aug. 24.

•  Aug. 24: Gender-specific rates will be live in the illustration system.

•  Oct. 19: Last date to submit signed applications for cases quoted prior to Aug. 24. A copy of the illustration taken prior to Aug. 24 must accompany the application in order for it to be considered.

FURTHER INFO

·   Contact your MassMutual Brokerage director

•  Frequently Asked Questions

•  GIN guidelines

MassMutual

Massachusetts Mutual Life Insurance Company (MassMutual), Springfield, MA 01111-0001, and its affiliated companies

For Brokerage director use only. Not for use with the public.