Wednesday, October 19, 2016

DOL Update


DOL UPDATE: Maintain, Pivot, Capitalize

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As a company that has been dedicated to serving the retirement and life insurance needs of Main Street America for more than 167 years, it's of great concern to us that the DOL Fiduciary rule may put at risk the ability of our customers to obtain the quality financial solutions they need to create a secure retirement.

Since the rule was established in April, we have been busy formulating a strategy that will ensure that National Life and our key business partners can continue to serve the needs of our customers. With this in mind, we would like to provide you with an update on our plan to make sure our clients continue to have access to the solutions they need to achieve peace of mind.


Here's a look at our strategy through the lens of our various client solutions:

Life Insurance

The DOL rule applies to the sale of life insurance in qualified plans and we remain committed to this business. As a whole, we believe the system for delivering life insurance, and the compensation associated with it, has been, and will continue to be, fair and reasonable, and the core elements will remain unchanged.


Mutual Funds

Mutual Funds offer investors one of the most cost effective ways to obtain a professionally managed and diversified portfolio. We believe that commission-based solutions are often the most economical way for middle-income America to obtain financial advice. With that said, Sentinel Investments has, and plans to continue, to offer both commission-based and fee-based share classes.


Variable and Fixed Indexed Annuities

Variable and Fixed Indexed Annuity sales to ERISA plans and IRAs will be considerably impacted by the DOL Fiduciary rule. Most IMO's are now faced with the choice of applying for financial institution status or aligning with a firm that is eligible to be a financial institution under the regulations. We plan to provide a solution no matter what choice is made. Our strategy will take these forms:

National Life will provide a solution whereby we act as the financial institution under the Best Interest Contract Exemption (BICE). We plan to build an open-architecture platform that provides agents with continued flexibility.


After taking a look at our existing product lineup, we've identified the need for a traditional fixed annuity offering (known under the DOL rules as a "Fixed Rate Annuity") with the Guaranteed Lifetime Income Rider (GLIR), which would be made available through traditional IMO channels. Like Life Insurance, Fixed Rate Annuities are treated more favorably under the DOL rule. We believe that a Fixed Rate Annuity with GLIR will help our business partners identify new areas of opportunity and maintain sales momentum. To this end, we will continue to explore and develop new product solutions that make it easy to do business and help you to embrace the new regulations.


A Cause to Serve

With ten thousand people turning 65 every day, the need for retirement income solutions has never been greater. National Life has been dedicated to acting in the best interest of Middle America for more than 167 years and we remain steadfast in our commitment to delivering a broad portfolio of quality financial solutions that meet the needs of our customers. After all, it's our cause, stemming from a deep passion to live our values to do good, be good and make good, every day


For more information, please contact your National Life Group Regional Representative.

One National Life Drive, Montpelier, VT 05604 |








National Life Group® is a trade name of National Life Insurance Company, Montpelier, VT, Life Insurance Company of the Southwest, Addison, TX and their affiliates. Each company of National Life Group is solely responsible for its own financial condition and contractual obligations. Life Insurance Company of the Southwest is not an authorized insurer in New York and does not conduct insurance business in New York.

National Life Insurance Company was founded in 1848. Life Insurance Company of the Southwest was chartered in 1955. Equity Services, Inc., Member FINRA/SIPC, is a Broker/Dealer and Registered Investment Adviser. Sentinel Investments® is the unifying brand name for Sentinel Financial Services Company, Sentinel Asset Management, Inc., and Sentinel Administrative Services, Inc. All companies, unless otherwise noted, are affiliated and are located in Montpelier, VT. Sentinel Funds are distributed by Sentinel Financial Services Company, Member FINRA, One National Life Drive, Montpelier, Vermont 05604. (800) 282-3863. Mutual funds and variable products can be offered solely by representatives registered to offer such products through a broker/dealer by way of prospectus.

For more complete information about the Sentinel Funds, please obtain a prospectus. Please ask your clients to consider a fund's objectives, risks, charges and expenses carefully before investing. Summary and full prospectuses containing this and other information are available from you, the advisor, or Please encourage your clients to read the prospectus carefully before investing.

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National Life Group · 1 National Life Drive · Montpelier, VT 05602 · USA