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Hot IUL category gets another boost with trio of new products

Brian Anderson

Indexed Universal Life insurance policy sales – already on track for a record-setting year in 2017 – figure to get an additional boost from a trio of new IUL products that were introduced to the market recently.

According to the latest edition of Wink’s Sales & Market report released in September, IUL sales in the U.S. topped $485 million in the second quarter of 2017, up more than 11% from the first quarter and up nearly 10% year to date.

“Indexed life sales are on track to set another sales record in 2017,” said Sheryl J. Moore, President and CEO of both Moore Market Intelligence and Wink, Inc. “The most recent trends in product development are absolutely translating to increased sales of these innovative products.”

According to LIMRA figures, IUL had the largest premium growth of any product category in second quarter, and represented 56% of UL premium and 21% of all individual life insurance premium.

Here’s a closer look at three brand-new IUL products, including two that were introduced this week:

Ohio National introduces Virtus IUL

Cincinnati-based Ohio National Financial Services introduced a new indexed universal life (IUL) insurance product on Oct. 9 that offers the flexibility and protection of a universal life policy with indexed account options to help build cash value.

“The Virtus IUL policy provides the protection component our clients need and so much more,” said Chris Calabro, CLU, ChFC, Ohio National’s senior vice president, life insurance strategic business. “For customers who need to save for future needs such as their retirement or a child’s college education, it also offers a variety of crediting strategies and benefits – more than a normal fixed rate product. What also makes Virtus IUL stand out is its efficient, low-expense design that will help it perform better in a wider variety of market conditions.”

Highlights of its accumulation, protection and flexibility features include:

  • Three index accounts and a fixed account so customers can allocate premiums to fit their needs
  • A minimum participation rate of 100% for all index accounts
  • A step-up of at least 30 basis points to all index segments of a policy, as well as to the fixed account beginning in the 11th policy year1
  • Two flexible loan options (index and standard) with the ability to switch between them as needs change 2
  • Overloan protection rider
  • A 2% cumulative account value true-up3
  • An accelerated benefit rider (ABR), which is a living benefit that accelerates a portion of the death benefit if the insured is defined as chronically or terminally ill
  • Up to a 20-year no lapse guarantee

These, in addition to other strong features, help make Virtus IUL a good balance for clients’ accumulation and protection needs, the company said in a release announcing its availability.

Tracing its corporate origins to 1909, Ohio National markets a variety of insurance and financial products through more than 50,000 representatives in 49 states (all except New York), the District of Columbia, Puerto Rico and through affiliated operations in South America. Additional subsidiaries operate in New York and Connecticut. Visit www.ohionational.com for more information.

1 For account values in the Fixed account, the 30 basis point step-up will only be credited provided the current interest crediting rate is greater than 2%.

2Once a loan option is selected, you cannot switch for 12 months.

3 The 2% cumulative account value true-up guarantees that upon full surrender or death in policy year six or later, the cash value will never be less that it would have been if all premiums had been allocated to the fixed account and credited with 2% interest since issue.

Indexed universal life insurance is issued by Ohio National Life Assurance Corporation. Product, product features and rider availability vary by state. Issuer not licensed to conduct business in NY.

Symetra debuts Symetra Accumulator IUL

Bellevue, Wash.-based Symetra Life Insurance Company, a growing provider in the individual life insurance space, has expanded its universal life portfolio with the Oct. 10 introduction of Symetra Accumulator IUL.

A flexible premium adjustable life insurance policy with index-linked interest options, Accumulator IUL is designed for permanent life insurance coverage, maximized policy value growth and supplemental income potential.

“Recognizing that the number of moving parts and policyowner decision points can make the purchase of an IUL product daunting, we’ve introduced Accumulator IUL with an emphasis on a simple story: index options that are focused and specifically designed to help meet client needs while our underlying policy charges are transparent and easy to understand,” said Dan Guilbert, executive vice president, Symetra Individual Life and Retirement Divisions. “Symetra Accumulator IUL features a straightforward but compelling dual strategy. It’s an accumulation-focused IUL product offering inherent and optional features that can help clients achieve both their protection and retirement goals.”

Symetra Accumulator IUL product highlights include:

  • Strong policy cash value accumulation potential and policy distributions.
  • Three index options

1) S&P 500® Index

2) JPMorgan ETF Efficiente® 5 Index—a volatility controlled option licensed exclusively to Symetra.

3) Blended S&P 500® and JPMorgan ETF Efficiente® 5 Index — a 2-year 50% blended option that combines S&P 500® Index performance with the volatility control of JPMorgan ETF Efficiente® 5 Index over a longer period of time.

  • Index credit based on the index segment value at the beginning of the index segment term, less any withdrawals or standard loans taken during the term.
  • Guaranteed persistency bonus of 15% of the index credit beginning in policy year 11.
  • A 2% cumulative lookback guarantee that may increase policy values every 8 years.
  • Ability to switch between standard or participating loans once per year without repaying the loan.
  • Current guaranteed minimum cap on the S&P 500® Index of 3.5%.

For more information about Symetra Accelerator IUL, contact the Symetra Life Sales Desk at 1-877-737-3611 or visit www.symetra.com/iul.

National Life Group unveils PeakLife IUL

National Life Group member companies National Life Insurance Company and Life Insurance Company of the Southwest introduced PeakLife Indexed Universal Life Insurance on Sept. 18, designed to meet the sophisticated planning needs in the mass affluent and emerging affluent markets.

PeakLife helps individuals and business owners protect what matters most, while also helping address more complex planning needs, the company said in a release about the introduction.

“Instead of going to market with a Swiss army knife and cramming a lot of features into one product, we want to have products that are more focused on a specific market or client need and PeakLife is a prime example of this,” said Achim Schwetlick, senior vice president and head of the business innovation group at National Life Group.

PeakLife is designed to provide a death benefit as well the potential for cash value accumulation through indexed linked interest crediting strategies.

“PeakLife is custom built for the emerging affluent and high net worth markets. It’s ideal for individuals seeking a well-funded policy to leave a tax-free death benefit.* And, it also meets the needs of business owners looking to fund executive benefits to attract and retain key talent,” said Stephanie Burmester, associate vice president and actuary at National Life Group.

In addition, PeakLife Indexed Universal Life Insurance offers a suite of living benefits provided by optional, no-additional premium accelerated benefit riders that allow customers to access all or part of the death benefit during their lifetime if they experience a qualifying terminal, chronic, critical illness or injury.

For financial professionals looking to learn more about this new IUL product or the complete product portfolio and services offered by the companies of National Life Group, please contact the Sales Desk at 800-906-3310, Option 2. Learn more about National Life Group at http://www.NationalLife.com.

National Life Group is a trade name of National Life Insurance Company, Montpelier, Vt., Life Insurance Company of the Southwest, Addison, Texas, and their affiliates. Each company of National Life Group is solely responsible for its own financial condition and contractual obligations. Life Insurance Company of the Southwest is not an authorized insurer in New York and does not conduct insurance business in New York.

*Internal Revenue Code § 101(a)(1). There are some exceptions to this rule. Please consult a qualified tax professional for advice concerning your individual situation.



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