Affordable, permanent overage… with cash-value growth potential
March 16, 2015 – COLUMBUS, Ohio–(BUSINESS WIRE)–Today, Nationwide released the YourLife® Indexed Universal Life (IUL) suite, adding two new IUL products to its existing portfolio of financial solutions to help advisors meet the specific needs of their clients.
“Advisors who do their homework know our IUL delivers the best consumer value” The Nationwide YourLife Indexed UL Accumulator (IUL Accumulator) offers permanent coverage and the potential for cash value growth to supplement retirement income. Clients can choose between a fixed option and six indexed interest strategies, including a new uncapped strategy and an international strategy.
The Nationwide YourLife Indexed UL Protector (IUL Protector) offers clients looking for affordable, permanent coverage with the opportunity for cash value growth potential. An optional Extended No-Lapse Guarantee rider delivers a cost-efficient death benefit guarantee with an automated monitoring service to help keep the guarantee on track. “Advisors who do their homework know our IUL delivers the best consumer value,” said Mike Vaughan, associate vice president for life insurance at Nationwide.
A better individual fit…
“These two new products are built to deliver that same impact, but now advisors are able to provide a better fit relative to individual client needs.” IUL sales have outpaced the market for several years. Arguably, no company exemplifies that trend more than Nationwide. In November 2011, Nationwide entered the IUL market, and the company now ranks eighth in total IUL sales according to LIMRA sales data.1
“Low interest rates and IUL’s guarantees during a volatile market have driven sales the past few years, and we’ve gained quite a bit of market share in a relatively short amount of time,” said Eric Henderson, senior vice president of life insurance and annuities at Nationwide. “This suite is backed by our history as a strong, stable company and is the next step in providing advisors with a diversified portfolio of client solutions.”
Nationwide’s indemnity-style long-term care rider, which at a 40 percent election rate is one of the highest in the industry2, is an available option on the suite of products. Indemnity-style means the monthly benefits are paid to the policyowner tax free3, 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.4
New Features
Two new features, both guaranteed by Nationwide, help the suite deliver greater cash value potential or more affordable protection and death benefits:
Indexed Interest MultiplierSM – This is an additional interest calculation factor applied at segment maturity – guaranteed5 by Nationwide – offering the potential to exceed the current segment cap rate. Both IUL Accumulator and IUL Protector offer a 15 percent indexed interest multiplier.6
Nationwide IUL Rewards ProgramSM – Nationwide 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. Program eligibility and benefits are specific to the accumulation or protection goals of each product.7
Call 1-800-321-6064 or visit www.nationwidefinancial.com/iul for more information about the Nationwide YourLife IUL suite.
1 LIMRA's 2014 U.S. Retail Individual Life Insurance Sales report
2 For Nationwide products that offer this rider, per competitor survey results October 2014.
3 Benefits are tax free after qualifying requirements are met. The LTC rider is intended to be a qualified long-term care policy under Section 7702B(b) of the Internal Revenue Code. Nationwide and its representatives do not give legal or tax advice. Consult an attorney or tax advisor for answers to specific questions.
4 Please note that while bills and receipts are not required to collect monthly benefits, some paperwork will be necessary to establish the initial claim.
5 Guarantees are subject to the claims-paying ability of the issuing insurer.
6 An indexed interest strategy with the Indexed Interest Multiplier will have a lower cap or participation rate than a strategy without one.
7 Premium payments must meet or exceed the net accumulated premium test on designated testing dates for the respective products to receive the benefit. Testing dates are policy year 16 (earlier if issue age 51 or older) for IUL Accumulator and policy years 21 onward for IUL Protector. For IUL Protector, IUL Rewards program is not available if death benefit option 2 is elected.
About Nationwide
Nationwide, a Fortune 100 company based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the U.S. and is rated A+ by both A.M. Best and Standard & Poor’s. The company provides a full range of insurance and financial services, including auto, commercial, homeowners, farm and life insurance; public and private sector retirement plans, annuities and mutual funds; banking and mortgages; pet, motorcycle and boat insurance. For more information, visit www.nationwide.com. Nationwide, Nationwide YourLife, Nationwide is on your side, Join the Nation and the Nationwide N and Eagle are service marks of Nationwide Mutual Insurance Company.
