Protective%%®%% Strategic Objectives II VUL product improvements
April 16, 2024
View fund updates and enhancements for Protective Strategic Objectives II VUL, including a new Buffered Growth & Income model portfolio option, effective May 1, 2024.
Protective Strategic Objectives II VUL has always offered strong protection and accumulation potential – and starting May 1, 2024, we will be making improvements for enhanced growth and protection.
New model portfolio: Buffered Growth & Income
Our newest model portfolio, Buffered Growth & Income, will be available on May 1, 2024 and features a variety of top investment options, including the Invesco® V.I. Defined Outcome Funds. These funds give clients the opportunity to provide defined growth potential (with a predetermined cap) and loss protection, thanks to a buffer against losses.
With target allocation at 85% equity/15% fixed income, Buffered Growth & Income offers a balance of cash value growth potential with the protection that clients have come to expect from Protective.
Changes to existing model portfolios
We will also rebalance our existing model portfolios with several new fund allocations to help preserve each model portfolio's objective and better meet client needs. The changes include:
- Introduction of the American Funds IS® Growth 1 fund into the model portfolios.
- Removal of the Fidelity® VIP Investment Grade Bond Portfolio Initial fund and the Franklin Growth & Income VIP 1 from the model portfolios.
- Rebalancing of the Vanguard VIF Capital Growth Portfolio, Goldman Sachs VIT Core Fixed Income Institutional, PIMCO International Bond (USD-Hdg) Institutional and Lord Abbett Series Bond-Debenture Portfolio funds within the model portfolios.
In our Investment Options Guide, we will also move some investment options into new fund categories to better align with Morningstar category classifications, providing a valuable and trusted reference for more efficient fund selection.
Transition rules for new paper and ticket business:
- Applications signed on or before April 30, 2024 will receive the old version of the model portfolios.
- Applications signed on or after May 1, 2024 will receive the new version of the model portfolios.
- If the new version of the model portfolio is wanted on an application that is signed on or before April 30, 2024, an amendment will be required with an owner signature on delivery.
- For in-force Protective Strategic Objectives II VUL business, existing policyholders can contact Protective Life at any time to change their existing asset allocations to match those of the new model portfolios.
For more information about Protective Strategic Objectives II VUL, or any of our other products, please contact your Protective representative.
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Variable universal life insurance policies issued by Protective Life Insurance Company (PLICO). Securities offered by Investment Distributors, Inc. (IDI), the principal underwriter for registered products issued by PLICO, its affiliate. PLICO is located in Nashville, TN; IDI is located in Birmingham, AL.
Variable universal life insurance involves the risks of investing in stocks, bonds and other securities; market, interest rate and credit risk; and, loss of principal. If the investment performance of underlying investments is poorer than expected (or if sufficient premiums are not paid), the policy may lapse or not accumulate sufficient value to fund the intended application.
Investments in variable universal life insurance policies are subject to fees and charges from both the insurance company and the managers of underlying investments. Loans and withdrawals may negatively impact policy value, investment performance, death benefit, and any Lapse Protection.
Variable universal life insurance policy issued under policy form number ICC20-V15S-PVC / VUL-15S-PVC 7-20 and state variations thereof. Product features and availability may vary by state.
Investors should carefully consider the investment objectives, risks, charges and expenses of Protective Strategic Objectives II Variable Universal Life insurance and its underlying investment options before investing. This and other information is contained in the prospectus for Protective Strategic Objectives II Variable Universal Life and its underlying investment options. Investors should read the prospectuses carefully before investing. Prospectuses may be obtained by contacting PLICO at 800-456-6330.
Invesco Buffered Funds seek, over a specified annual outcome period, to provide investors with returns that match those of the S&P 500® (the "Underlying Index") up to an upside cap (the "Cap"), while providing a buffer against the first 10% of Underlying Index losses. The value of the Fund's shares will be impacted by the price volatility of both the Underlying Index and options contracts on the Underlying Index. The Fund's return may not match the return of the Underlying Index and may experience tracking error. Buffers (the first 10% of Underlying Index losses over the Outcome Period – a designated period of one year) are designed to limit downside losses for shares purchased at the beginning and held until the end of the Outcome Period; there's no guarantee that the Buffer will effectively protect against all losses. If the Underlying Index experiences losses of more than 10% over the relevant Outcome Period, investors will bear all such losses on a one-to-one basis. If shares are purchased after the beginning of or redeemed before the end of the Outcome Period, there may be no effect of the Buffer and the result may be a loss of investment. If the Underlying Index experiences returns over the Outcome Period more than the Cap, the Fund will not participate in the returns beyond the Cap. Shares purchased after the beginning of the Outcome Period or if the Fund's net asset value has already achieved returns at or near the Cap, may not experience any return on investment, but remains vulnerable to loss. In this situation, you should not invest in the Fund.
At the end of the trading day immediately before the first day of each Outcome Period, a new Cap is established, based on the market conditions and current prices for options contracts on the Underlying Index. Cap levels may rise or fall for subsequent Outcome Periods and are unlikely to remain the same. If Caps for future Outcome Periods were to decrease, there would be less opportunity to participate in any future positive returns of the Underlying Index. If shares are purchased after the start of the Outcome Period or redeemed before the end of the Outcome Period, investment returns may vary significantly. The Fund does not utilize an investing strategy that seeks the returns of the Underlying Index in all cases. Caps and the Buffers are designed to provide investors with an investment return that differs from the return of the Index over an Outcome Period if the index performance (less Fund fees and expenses) exceeds the Cap or is negative. Investor who redeems shares before the conclusion of an Outcome Period are unlikely to realize returns that correspond to the performance of the Index since the start of the Outcome Period.
Existing investors are legally permitted to redeem shares they already hold throughout the Outcome Period on any trading day. Such redemptions may increase the transaction costs of the Fund and cause its operating expenses to be allocated over a smaller asset base, leading to an increase in its expense ratio. Investors redeeming large amounts of shares rapidly or unexpectedly, may cause the Fund to have to sell portfolio securities at times when it would not otherwise do so, which could negatively impact the Fund's net asset value, liquidity and its ability to achieve its strategy.
The Fund is subject to certain other risks. Please see the Fund's prospectus for more information regarding the risks associated with an investment in the Fund, which can be found at www.protective.com/eprospectus.
WEB.4840712.02.24
Variable universal life insurance involves the risks of investing in stocks, bonds and other securities; market, interest rate and credit risk; and, loss of principal. If the investment performance of underlying investments is poorer than expected (or if sufficient premiums are not paid), the policy may lapse or not accumulate sufficient value to fund the intended application.
Investments in variable universal life insurance policies are subject to fees and charges from both the insurance company and the managers of underlying investments. Loans and withdrawals may negatively impact policy value, investment performance, death benefit, and any Lapse Protection.
Variable universal life insurance policy issued under policy form number ICC20-V15S-PVC / VUL-15S-PVC 7-20 and state variations thereof. Product features and availability may vary by state.
Investors should carefully consider the investment objectives, risks, charges and expenses of Protective Strategic Objectives II Variable Universal Life insurance and its underlying investment options before investing. This and other information is contained in the prospectus for Protective Strategic Objectives II Variable Universal Life and its underlying investment options. Investors should read the prospectuses carefully before investing. Prospectuses may be obtained by contacting PLICO at 800-456-6330.
Invesco Buffered Funds seek, over a specified annual outcome period, to provide investors with returns that match those of the S&P 500® (the "Underlying Index") up to an upside cap (the "Cap"), while providing a buffer against the first 10% of Underlying Index losses. The value of the Fund's shares will be impacted by the price volatility of both the Underlying Index and options contracts on the Underlying Index. The Fund's return may not match the return of the Underlying Index and may experience tracking error. Buffers (the first 10% of Underlying Index losses over the Outcome Period – a designated period of one year) are designed to limit downside losses for shares purchased at the beginning and held until the end of the Outcome Period; there's no guarantee that the Buffer will effectively protect against all losses. If the Underlying Index experiences losses of more than 10% over the relevant Outcome Period, investors will bear all such losses on a one-to-one basis. If shares are purchased after the beginning of or redeemed before the end of the Outcome Period, there may be no effect of the Buffer and the result may be a loss of investment. If the Underlying Index experiences returns over the Outcome Period more than the Cap, the Fund will not participate in the returns beyond the Cap. Shares purchased after the beginning of the Outcome Period or if the Fund's net asset value has already achieved returns at or near the Cap, may not experience any return on investment, but remains vulnerable to loss. In this situation, you should not invest in the Fund.
At the end of the trading day immediately before the first day of each Outcome Period, a new Cap is established, based on the market conditions and current prices for options contracts on the Underlying Index. Cap levels may rise or fall for subsequent Outcome Periods and are unlikely to remain the same. If Caps for future Outcome Periods were to decrease, there would be less opportunity to participate in any future positive returns of the Underlying Index. If shares are purchased after the start of the Outcome Period or redeemed before the end of the Outcome Period, investment returns may vary significantly. The Fund does not utilize an investing strategy that seeks the returns of the Underlying Index in all cases. Caps and the Buffers are designed to provide investors with an investment return that differs from the return of the Index over an Outcome Period if the index performance (less Fund fees and expenses) exceeds the Cap or is negative. Investor who redeems shares before the conclusion of an Outcome Period are unlikely to realize returns that correspond to the performance of the Index since the start of the Outcome Period.
Existing investors are legally permitted to redeem shares they already hold throughout the Outcome Period on any trading day. Such redemptions may increase the transaction costs of the Fund and cause its operating expenses to be allocated over a smaller asset base, leading to an increase in its expense ratio. Investors redeeming large amounts of shares rapidly or unexpectedly, may cause the Fund to have to sell portfolio securities at times when it would not otherwise do so, which could negatively impact the Fund's net asset value, liquidity and its ability to achieve its strategy.
The Fund is subject to certain other risks. Please see the Fund's prospectus for more information regarding the risks associated with an investment in the Fund, which can be found at www.protective.com/eprospectus.
WEB.4840712.02.24