New Indexed Universal Life solution from Nationwide can help advisors give clients a balanced life
FOR IMMEDIATE RELEASE
November 7, 2011
Contacts:
Charley Gillespie (614) 249-5701
gillesc1@nationwide.com
Jeff Whetzel (614) 249-6354
whetzej@nationwide.com
Columbus, OH — The recent market volatility has prompted many advisors to look for life insurance solutions that can help clients achieve their goals while minimizing the impact of market fluctuations. Nationwide Financial Services, Inc. today announced the launch of Nationwide YourLife® Indexed UL, a fixed life product that can offer clients the potential for growth and protection from market loss.
“In today’s market, many advisors have clients who are looking for accumulation potential but are still wary of exposing themselves to market volatility,” said Eric Henderson, senior vice president of Individual Products & Solutions for Nationwide Financial. “We designed Nationwide YourLife® Indexed UL to make it easier for advisors to find a competitive solution that meets the needs of this type of client.”
Product benefits
Flexible death benefit guarantees – clients have access to a 20-year base policy death benefit guarantee (reduced for issue ages 65 and above) plus the optional Extended Death Benefit Guarantee rider.
Helps clients with a product that offers cash accumulation potential and minimizes the impact of market loss – this new product features a 12 percent cap rate 1 and a zero percent floor 1 to allow advisors to give clients more stable returns over time. The cap rate allows clients to maximize the interest credits they receive during up markets, while the floor rate protects them from loss during times of market decline.
Average of three market indexes – Nationwide YourLife® Indexed UL uses an annual interest crediting strategy that employs monthly averaging to help protect the interest credited during periods of market volatility. This strategy uses a blended average of three market indexes (S&P 500®, the NASDAQ-100®, and the Dow Jones Industrial AverageSM) and weights them so that clients always benefit more from the better performing indexes. It’s important to note that indexed universal life insurance policies are not stock market investments and do not directly participate in any stock or equity investments. 2
One of the most competitive participation rates in the industry – this product features a 140 percent current participation rate which means that clients could potentially be credited interest at 140 percent of the actual index return , subject to the 12 percent cap rate.
Additional features
Competitive underwriting – underwriting options include simplified issue and guaranteed issue for corporate-owned and corporate-sponsored arrangements.
Access to an indemnity style long-term care rider – advisors can help clients maintain control of their money and their independence by adding a long-term care rider onto the policy for an additional cost. The long term care rider may be known by different names in different states, may not be available in every state and has an additional charge associated with it.
Target clients
Nationwide YourLife® Indexed UL may be a good fit for clients who
are:
• Seeking life insurance that offers guarantees and the potential for
growth
• Looking for more stable accumulation potential during volatile
markets
• In need of flexible death benefit options
• Interested in planning for possible long-term care expenses
• 35 to 55 years of age
For more information about Nationwide YourLife® Indexed UL please visit www.nationwide.com/indexedUL
As your personal situations change (i.e., marriage, birth of a child or job promotion), so will your life insurance needs. Care should be taken to ensure these strategies and products are suitable for your long-term life insurance needs. You should weigh your objectives, time horizon and risk tolerance as well as any associated costs before making a purchasing decision. Also, be aware that interest crediting fluctuations can lead to the possibility of the need for additional premium in your policy. Indexed universal life insurance has fees and charges associated with it that include costs of insurance that vary with such characteristics of the insured as sex, health and age, underlying fund charges and expenses, and additional charges for riders that customize a policy to fit your individual needs.
About Nationwide
Nationwide, 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 A.M. Best. The company provides a full range of
personalized insurance and financial services, including auto insurance,
motorcycle, boat, homeowners, life insurance, farm, commercial insurance,
administrative services, annuities, mortgages, mutual funds, pensions and
long-term savings plans. For more information, visit www.nationwide.com.
1Subject to change
2Past index performance is no indication of future crediting rates because buying an indexed universal life insurance policy does not involve actually purchasing or owning securities or stock, so it’s not the same as investing directly in the stock market and therefore does not receive dividend or capital gains participation.
S & P 500® is a trademark of Standard & Poor's and has been licensed for use by [Nationwide / Nationwide Life Insurance Company / Nationwide Life and Annuity Insurance Company]. The [Policy / Nationwide YourLife® Indexed UL / Nationwide MarathonSM Indexed UL] is not sponsored, endorsed, sold or promoted by Standard & Poor's and Standard & Poor's makes no representation regarding the advisability of investing in the Product.
NASDAQ®, OMX®, NASDAQ OMX®, NASDAQ-100®, and NASDAQ-100 Index® are registered trademarks of The NASDAQ OMX Group, Inc. (which with its affiliates is referred to as the "Corporations") and are licensed for use by Nationwide / Nationwide Life Insurance Company / Nationwide Life and Annuity Insurance Company. The Product has not been passed on by the Corporations as to their legality or suitability. The Product is not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT.
The "Dow Jones Industrial AverageSM" is a product of Dow Jones Indexes, the marketing name and a licensed trademark of CME Group Index Services LLC ("CME"), and has been licensed for use. "Dow Jones®", "Dow Jones Industrial AverageSM" and "Dow Jones Indexes" are service marks of Dow Jones Trademark Holdings, LLC ("Dow Jones") and have been licensed for use for certain purposes by [Nationwide / Nationwide Life Insurance Company / Nationwide Life and Annuity Insurance Company]. Nationwide's [Nationwide YourLife® Indexed UL / Nationwide MarathonSM Indexed UL / Indexed UL] based on the Dow Jones Industrial AverageSM is not sponsored, endorsed, sold or promoted by CME Indexes, Dow Jones or their respective affiliates, and CME Indexes, Dow Jones and their respective affiliates make no representation regarding the advisability of trading in such product(s).
Life insurance is issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio.
Nationwide, Nationwide Financial, the Nationwide framemark, and On Your Side are service marks of Nationwide Mutual Insurance Company.
All guarantees and benefits of the insurance policy are subject to the claims-paying ability of Nationwide Life and Annuity Insurance Company.
