Nationwide has launched the Nationwide Indexed Universal Life (IUL) suite, adding two new IUL products to the portfolio of financial solutions to help advisors meet the specific needs of their clients.
For both products, clients can choose from among seven indexed interest strategies and a fixed account to use in different market conditions – and to match clients’ risk tolerance at any point in their life.
Nationwide Indexed Universal Life Accumulator II (IUL Accumulator) is focused on protection with cash accumulation for income. It offers permanent coverage and the potential for cash value growth to supplement retirement income.
Nationwide Indexed Universal Life Protector II (IUL Protector) is focused on low-cost life insurance protection. It offers clients affordable, permanent coverage with the opportunity for cash value growth.
Nationwide life insurance and annuities senior vice president Eric Henderson said: “These two new products are built to provide a better fit relative to individual client needs and do it through a very transparent approach.
“And the products contain the flexibility for the client to reallocate to a different indexed option if they choose.”
With seven indexed interest strategies, clients choose to pay a charge for strategies with more growth potential or select a lower cost option.
Henderson said: “We want to help advisors be upfront with consumers, help them understand the policy charges, and hopefully prevent situations where the consumer did not understand what they bought or was surprised by a charge.
“Our product provides consumers with choices. Do you want to stick with what you have been doing or are you willing to take on more risk for more potential reward? There are more expensive options with greater upside potential or there are low cost options with a lower cap rate.”
More Growth Potential
Both IUL Accumulator and IUL Protector include a 15 Percent Nationwide Multiplier that starts in the sixth year of the policy. This is an additional credit applied at segment maturity – guaranteed by Nationwide – offering the potential to exceed the current segment cap rate.
Available on select strategies, is a 50 Percent Advanced Multiplier starting in the first year of the policy – guaranteed by Nationwide – offering the potential for additional credits to be applied to the policy and exceed the current segment cap rate. For example, a 50 Percent Multiplier when the indexed interest is 10 percent means an additional 5 percent credit for the policy owner.
Henderson said: “The charge for this feature is for the guarantee that your return will be enhanced by the multiplier.
“The 50 percent multiplier has the best benefit for the consumer when market performance is in the 5 percent to 15 percent range. But if the market is not great, the charge can result in lower policy performance during the span of the segment. We want advisors and their clients to understand the benefits, cost and potential risk.”
Also among the seven indexed interest strategies are options which offer higher cap rates for an additional charge. For example, Nationwide offers a 25 percent current cap rate to the High Cap Multi-Index Monthly Average strategy.
LTC Rider is available on both products
Nationwide’s Long-Term Care Rider II is an indemnity-style long-term care rider, which means the monthly benefits are paid to the policyowner tax-free, regardless of monthly expenses. Nationwide’s long-term care rider does not require policy owners to turn in receipts, and monthly verification of billable services is not needed
Guaranteed IUL Rewards Program
Nationwide IUL Rewards Program rewards clients for premium payments that meet or exceed a qualifying threshold and offers an automated monitoring service that helps keep the policy on track to receive the benefit. The rewards are guaranteed by Nationwide when eligibility requirements are met.
Henderson said: “Our automated monitoring keeps clients informed and on track to get the most from their policy.
“And unlike products offered by others, our rewards program is guaranteed. There is no guessing to whether a client will benefit when they do their part. Nationwide has never changed or lowered bonuses – guaranteed or not – to policyholders who make good on their end of the bargain. Doing otherwise is counter to how we treat members.”
Source: Company Press Release