New solutions to address market volatility added to Nationwide indexed universal life insurance product
New index options offer more growth potential by controlling for market volatility
Columbus, OH— To address growing concerns about market volatility, Nationwide has added new index options to one of its indexed universal life (IUL) 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 MercurySM Index – 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.
Nationwide, a Fortune 100 company based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the United States. Nationwide is rated A+ by both A.M. Best and Standard & Poor’s. An industry leader in driving customer-focused innovation, Nationwide provides a full range of insurance and financial services products including auto, business, homeowners, farm and life insurance; public and private sector retirement plans, annuities, mutual funds and ETFs; excess & surplus, specialty and surety; pet, motorcycle and boat insurance. For more information, visit www.nationwide.com. Follow us on Facebook and Twitter.
Nationwide, the Nationwide N and Eagle and Nationwide is on your side are service marks of Nationwide Mutual Insurance Company. Third-party marks that appear in this message are the property of their respective owners.
© 2022 Nationwide
This material is not a recommendation to buy or sell a financial product or to adopt an investment strategy. Investors should discuss their specific situation with their financial professional.
Indexed universal life insurance policies are not stock market investments, do not directly participate in any stock or equity investments, and do not receive dividends or capital gains. Past performance of an index is not an indicator of future crediting rates.
Guarantees are subject to the claims-paying ability of the issuing insurer. Products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio.
The J.P. Morgan MercurySM Index (“Index”) has been licensed to Nationwide Life and Annuity Insurance Company (the “Licensee”) for the Licensee’s benefit. Neither the Licensee nor Nationwide products are sponsored, operated, endorsed, recommended, sold or promoted by J.P. Morgan Securities LLC (“JPMS”) or any of its affiliates (together and individually, “JPMorgan”). JPMorgan makes no representation and gives no warranty, express or implied, to contract owners taking exposure to the Product. Such persons should seek appropriate professional advice before making any investment. The Index has been designed and is compiled, calculated, maintained and sponsored by JPMS without regard to the Licensee, the Product or any contract owner. JPMorgan is under no obligation to continue compiling, calculating, maintaining or sponsoring the Index. JPMorgan may independently issue or sponsor other indices or products that are similar to and may compete with the Index and the Product. JPMorgan may also transact in assets referenced in the Index (or in financial instruments such as derivatives that reference those assets). These activities could have a positive or negative effect on the value of the Index and the Product.
This product is not sponsored, endorsed, sold or promoted by BNP Paribas or any of its affiliates (collectively, “BNP Paribas”) or any third-party licensor of information to BNP Paribas. Neither BNP Paribas nor any other party (including without limitation, New Age Alpha LLC (“NAA”), any calculation agents or data providers make any representation or warranty, express or implied, regarding the advisability of purchasing this product. The BNP Paribas Global H-Factor® Index (the “Index”) is the exclusive property of BNP Paribas with no ownership claim made with respect to H-Factor® which is a registered trademark owned by NAA and licensed to BNP Paribas for the limited purpose of creating and licensing the Index, and all NAA indices and any index data thereto that are components of the Index. BNP Paribas and the Index are service marks of BNP Paribas and have been licensed for use for certain purposes by Nationwide Life and Annuity Insurance Company. Neither BNP Paribas nor any other party has or will have any obligation or liability to owners of this product in connection with the administration or marketing of this product, and neither BNP Paribas nor any other party guarantees the accuracy and/or the completeness of the Index or any data included therein.
Nationwide may discontinue any index that becomes unavailable (i.e., is no longer published) or the calculation of which is substantially changed. Nationwide may substitute with a comparable index or may adjust the method of calculating index segment interest.