Columbus, OH— To address growing concerns about market volatility, Nationwide has added new index options to one of its indexed universal life insurance products, Nationwide IUL Accumulator II 2020.
The new indices offer consumers more choices for growth potential even in choppy markets. Each index takes a unique approach to limiting the impact of market volatility - one selects investments based on the business cycle while the other focuses on removing the potential for human bias.
J.P. Morgan MercuryIndex – A global multi-asset index with an equity allocation based on the current stage of the business cycle, along with diversified fixed income and volatility-based commodities allocations rebalanced dynamically based on market conditions.
BNP Paribas Global H-Factor Index – An index that helps keep volatility low and provides more stable and consistent returns through a methodology that identifies and removes overpriced stocks with a high probability of losing value due to human behavior.
“The three major stock market indices have been taking huge hits and how to find growth potential is a big client concern right now, especially with fears about the long-term impact of inflation,” said Holly Snyder, president of Nationwide Life at Nationwide Financial. “These new indices are an effective solution for clients wanting to balance their desire for additional growth with the need to manage market volatility risk.”
The new volatility control indices help limit the impact of market volatility and are available to protect new and existing Nationwide IUL Accumulator II 2020 policyholders.
“Providing consumers competitive index options is something Nationwide does really well,” Snyder added. “Not only are we trying to bring these options for new members, we also want to do right by our existing members and give them the same tools for success.”
Additional IUL enhancements:
Higher participation rates – Each index will include three indexed interest strategies with no cap rates and participation rates of up to 175% for a J.P. Morgan MercurySM strategy and 220% for BNPP Global H-Factor®.
Higher target premiums – Higher base target premiums – 5% to 18% higher than current target premiums across all cells; the rates vary by age and gender.
Plus Strategy Credit – This is a non-guaranteed credit, separate from the indexed interest credit and available to new and in-force Nationwide IUL Accumulator II 2020 policyholders who choose to allocate to a Plus indexed interest strategy. At the current 0.60% rate, it's like increasing the floor rate to 0.60%.
Surrender Value Enhancement Rider and Change of Insured Rider – Two new riders to serve more advanced planning needs.