With inflation at an all-time high, most Americans are worried about their financial future, and more than half (56%) are concerned with keeping up with the cost of living.¹ Insurance products of the past few years may not generate enough income to sustain clients to and through retirement.
Enter NWL® Income+, a new annuity from National Western Life (NWL). Primarily for the bank, broker- dealer, and RIA channels, NWL Income+ is an innovative single premium immediate annuity (SPIA) with an indexed option feature providing guaranteed lifetime income payments, plus the potential of increased income payments in the future to offset the impact of cost-of-living increases.
Helping introduce NWL Income+ is Paul Caspers, Vice President of Sales at NWL. A 30-year industry veteran, Caspers recently joined NWL, seizing the opportunity to run the sales teams, driving production and sales within their protected distribution networks.
Guaranteed Steady Stream of Income
NWL Income+ is designed to provide a guaranteed steady stream of income that can be used to help cover recurring costs such as medical bills, a mortgage payment, or even small, monthly regular expenses.
Working with Achaean Financial Holdings (Achaean Financial), a product development company, NWL is one of the first carriers with access to the underlying design of NWL Income+.
“NWL Income+ is going to fill a void in the marketplace,” says Caspers.
With the NWL Income+, clients receive a fixed initial payment for the first three years that is determined at issue. Beginning in year four, NWL Income+ offers clients the opportunity to increase income payments based on the inflation rate tied to the Consumer Price Index for all Urban Consumers (CPI-U). This unique design also utilizes a three-year point-to-point indexed option based in part on a formula linked to the performance of the S&P MARC 5% Excess Return index to provide the opportunity for increasing income payments to help keep pace with inflation.
Any increase in income payments becomes the new guaranteed floor below which payments can never fall. The opportunity for additional future increases also exists. Those increases could help offset the impact of inflation or unplanned expenses.
“This design can help alleviate some of the concerns clients have about keeping up with the rising inflation,” says Caspers.
A Step-Up from Inflation-Adjusted Products of the Past
With NWL Income+, when inflation is down clients may build a surplus account that can be used to increase income payments in years where inflation exceeds the index performance.
Beginning in year four, payments could increase or stay the same, but they will never decrease. Achaean Financial’s intellectual capital is built into the product, creating an economically viable solution for the consumer, which NWL is proud to be able to put it in the hands of producers and their clients.
Built on a Strong Foundation
Founded in 1956, NWL focuses on the mission of offering innovative annuity and life insurance products that further progress legacy planning. This is done by ensuring financial strength though judicious investment philosophies, fostering strong distribution relationships and empowering people to deliver exceptional service to policyholders and financial professionals. Offering an innovative annuity like NWL Income+ fits well into NWL’s strong product portfolio.
“We have made a conscious effort to listen to our distribution partners and our agents regarding what they want and how they want to do things. And that includes the design of products,” says Chad Tope, Executive Vice President and Chief Marketing Officer at NWL.
With an independent ratings of A (Excellent) from A.M. Best and A- (Strong) from Standard & Poor’s, NWL will bring NWL Income+ into institutions they haven’t previously focused on.
“The high caliber team we’ve hired is starting to prove dividends for us by establishing relationships and delivering the products that financial professionals want to sell, and consumers need,” says Tope.
Well-positioned today and for the future, the NWL team is confident in their ability to meet and exceed the needs of agents and advisors and their clients.
“Under Paul's leadership we have been working diligently with our wholesalers, enhancing their capabilities at delivering solutions to agents, as well as working with them on case design and positioning,” says Tope. “With the rollout of NWL Income+ and our focus on serving financial professionals and their clients, everything is coming together seamlessly. The future and upward mobility of National Western Life is going to be very well received in the marketplace.”
Initially, NWL will distribute the NWL Income+ through an exclusive group of independent marketing companies, so reach out today to get access to this innovative annuity.
For Agent Use Only — This document has not been approved under the advertising laws of your state for dissemination to individual purchasers.
NWL® Income+ base policy form ICC22 01-1192-22, 01-1192-22, and state variations. Cash surrender rider form 01-3189-22, associated forms 01-3189(5SC)-22, and state variations. Commutation Rider ICC21 01-3188-21, and state variations.
Not FDIC or NCUA insured / May lose value / Not bank or CU guaranteed / Not a deposit / Not insured by any federal agency
The S&P MARC 5% Excess Return Index is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and has been licensed for use by National Western Life Insurance Company. S&P®, S&P 500®, US 500, The 500, iBoxx®, iTraxx® and CDX® are trademarks of S&P Global, Inc. or its affiliates (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by National Western Life Insurance Company. NWL® Income+ is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P MARC 5% Excess Return Index.