Nationwide Financial increases retention limits
on all permanent life insurance products
Retention nearly doubled in almost all age and amount segments
FOR IMMEDIATE RELEASE
August 17, 2007
Dan Orzano 614-677-5115
Jeff Botti 614-249-6339
Columbus, Ohio— The ever-changing needs of the marketplace require life insurance companies to provide innovative solutions. One of those needs recently solved by Nationwide Financial Services, Inc. (NYSE: NFS) is to provide higher retention limits on its permanent life insurance products*, especially to meet the specialized needs of high-net-worth clients.
“Retention, which is the amount of risk retained by the insurance company that is not reinsured, has been a hot issue recently, and we’re responding to our customers’ needs by doubling our retention across our individual life policies, as well as nearly doubling our retention on survivorship policies,” said Peter Golato, senior vice president for Nationwide Financial. “By increasing our retention limits, producers with clients who require very large amounts of life insurance can do all their business with Nationwide. This means fewer policies for the producer to manage and a simpler underwriting process.”
Specifically, Nationwide’s retention limits for individual life products have increased from $5 million to $10 million, and have increased from $8 million to $15 million for survivorship life products. Additionally, Nationwide will automatically bind a policy up to $50 million for individual life products and up to $60 million on survivorship life products, with a jumbo limit of up to $65 million. The increases do not apply to term contracts.
“Larger cases are complex, and often require tailored, customized solutions,” Golato said. “It can be difficult and time consuming for producers to contact all of the life insurance companies to get their client’s desired amount of insurance. Some producers with ultra high-net-worth clients want more control of where the life insurance policies are placed, so that they have fewer insurance companies to manage on behalf of their client. The higher retention limits means we’re providing producers with a simpler way of managing a complex case.”
*These increases apply to insureds age 25 through 70 rated Table F and below. They do not apply to term contracts.
This underwriting initiative is the latest in a series of improvements made by Nationwide Financial. In the past several years, the company:
- developed a Placement Improvement Program (PIP), which established a Table C to Standard initiative
- instituted competitive Preferred criteria and a Preferred Tobacco class
- created the “Celebratory Cigar” Program for the occasional cigar smoker
- offered standard rates to cancer survivors and for certain coronary conditions, and
- liberalized the stress tests requirements and chest X-ray guidelines.
“Our goal is to provide simpler solutions for our producers and customers,” Golato said. “We want to help advisors grow their business by meeting their clients’ needs. Increasing our retention limits and providing innovative underwriting are just two ways that Nationwide is doing that.”
Important Consumer Information
As with all life insurance, guarantees are subject to the claims-paying ability of the issuing life insurance company. As consumers’ personal situations change (for example, marriage, birth of a child or job promotion), so will their life insurance needs. Care should be taken to ensure this product is suitable for long-term life insurance needs. Any associated costs should be evaluated before making a purchase.
Life insurance has fees and charges associated with it that include costs of insurance that vary with such characteristics of the insured as gender, health and age, and has additional charges for riders that customize a policy to fit individual needs. All riders may not be available in all states.
Neither Nationwide nor its representatives give legal or tax advice. Consumers should contact their legal or tax advisor for answers to their specific questions.
Nationwide, based in Columbus, Ohio, is one of the largest diversified insurance and financial services organizations in the world, with more than $160 billion in assets. Nationwide ranks #104 on the Fortune 500 list. The company provides a full range of insurance and financial services, including auto, motorcycle, boat, homeowners, life, commercial insurance, administrative services, annuities, mortgages, mutual funds, pensions, long-term savings plans and health and productivity services. For more information, visit www.nationwide.com.
Life Insurance products are underwritten by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio.
Nationwide, the Nationwide Framemark and On Your Side are federally registered service marks of Nationwide Mutual Insurance Company.
Investments Retirement Insurance nationwide.com One Nationwide Plaza Columbus, OH 43215-2220