ING said that it will introduce a new indexed universal life insurance product that will offer interest crediting based on an indexed strategy option that includes two non-US stock market indexes.
The new product, named ING Indexed Universal Life-Global (ING IUL-Global), offers policy holders death benefit protection and a choice of fixed interest strategy or an indexed strategy.
The company said that the indexed strategy credits interest based upon a formula that uses a portion of the two of three indexes such as S&P 500 Index, the EuroSTOXX 50 Index, and the Hang Seng Index. The indexed universal life has the potential for higher interest than a universal life insurance product as there is cash-value protection against market declines than variable universal life through a guaranteed minimum interest rate.
The company said that the three-index strategy offered in ING IUL-Global could provide cash accumulation than using just the fixed or single-index strategies found in other products. The five-year look-back period may also help to reduce volatility associated with year-to-year index changes.
According to ING, the fixed strategy of ING IUL-Global earns interest based upon a current credited interest rate that will be in effect for at least the first 12 months. At each policy anniversary, the rate may vary, but it will never be less than the guaranteed minimum interest rate of 2% per year. Policy holders can choose between the fixed strategy, the indexed strategy or use a combination of the two.
The features that have been included in the ING IUL-Global features product are three death benefit options, waiver of surrender charge rider (used in traditional premium finance cases only), accelerated benefit rider, and overloan lapse protection rider.
Daniel Mulheran, president at ING, said: ING IUL-Global’s indexed strategy offers both the potential to capture some upside from the best two of three indexes, with the downside protection of a 1% per-year guaranteed minimum interest rate.
It is a great product for those who need life insurance and are looking for potential cash accumulation, supplemental retirement income, executive benefits or are interested in financing their premiums.