Transcript Why Nationwide IUL?

Nationwide YourLife®
Indexed UL
Why Nationwide’s Indexed UL?
May, 2012
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Nationwide YourLife
Indexed UL
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Life Insurance issued by Nationwide Life Insurance Company and/or Nationwide Life and Annuity Insurance
Company.
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Guarantees are subject to the claims paying ability of Nationwide.
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As your clients' personal situations change (i.e., 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 their long-term life
insurance needs. They should weigh any associated costs 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 their
individual needs.
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Indexed universal life policies are not stock market investments and do not directly participate in any stock or
equity investments. Past index performance of an index is no indication of future crediting rates because you are
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.
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Not a deposit Not FDIC or NCUSIF insured Not guaranteed by the institution
Not insured by any federal government agency May lose value
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© 2012 Nationwide Financial Services, Inc. All rights reserved
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Nationwide YourLife®
Indexed UL
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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.
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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.
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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 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)
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Nationwide’s IUL
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•Current rates, subject to change as frequently as monthly.
• **Riders may not be available in every state, may be known by different names in certain states are available for an additional charge.
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Nationwide Indexed UL
Rider Highlights
Long Term Care rider
• Indemnity style – tax-free payments made directly to the policy owner, and no bills or receipts
need to be submitted
• Eligibility Requirements – unable to perform two or more of the activities of daily living for a
period of 90 days (elimination period); or have a cognitive impairment
• Qualified LTC Services include – Nursing Home Care, Home Health Care and Hospice, Assisted
Living, and Adult Day Care
• Monthly Benefit is the lesser of:
- 2% of the long-term care specified amount or
- Daily amount allowed by HIPAA ($310/day in 2012) x number of days in the month
Extended Death Benefit Guarantee rider (EDBG)
• EDBG Duration – 21 years to Lifetime
• EDBG Percentage – 50% to 100% of the Specified Amount
• Cumulative premium requirement; Unlimited catch up (no interest)
• 100% allocation to Indexed Account only (if EDBG rider elected)
• Advanced Payment Premium – discounted premium requirement if paid within the first ten
policy years
• Catch Up: Because of our Premium Design - Catch up price is Cumulative Missed premiums
(unlike Shadow Account designs you see on NLG UL's, or for AVIVA and Minn Life's IUL)
Keep in mind that as an acceleration of the death benefit, the LTC rider payout will reduce both the death benefit and
cash surrender values. 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.
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Why Nationwide?
Monthly Averaging
• Potential to minimize market timing risk
• Smooth volatility by averaging returns over 12 points in time vs. 2
Multi-Index Blend
• S&P 500®, NASDAQ-100®, Dow Jones Industrial AverageSM
• Performance weighted: 50% (best), 30% (2nd best), 20% (3rd)
• Takes the guess work out of allocation
140% current Participation Rate*
• Consider current volatile market
• Expecting modest market performance – 140% may be ideal
* Current rates are subject to change
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.
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Coming Soon (June 2012)
New Indexed Strategy
• S&P 500® Annual point-to-point *
• 100% Participation Rate (current & guaranteed)
• 12% Cap Rate (current)
Conditional Return of Premium rider
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This rider benefit provides upon surrender the greater of net surrender
value or a percentage of the cumulative premiums, including 1035
premiums, based on policy year:
Policy Years 1-3: 100%
Policy Year 4: 95%
Policy Year 5: 90%
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Eligibility requirements and annual premium requirements must be met
* Current rates are subject to change
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Which strategy is right for
your clients?
Annual point-to-point
This strategy is a good fit for clients who anticipate
steady market growth in the near future
Monthly Average
This strategy may work better for clients who are
wary of market volatility and believe it will continue
in the near future
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Calculating Interest Credited –
The power of the weighted Blend and 140% participation rate
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* Reference Index Performance Rate
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Applying Participation Rate, Cap, Floor
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12% cap, 0% floor and 140% participation rate are all current rates and subject to change
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Incorporate IUL into your
Existing Product Solutions
Accumulation and Income:
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Alternative to VUL
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Alternative to Accumulation UL’s
IUL can be used for Protection sales:
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Alternative to Current Assumption UL
• Solve to Endow or Solve to Carry ($1)
IUL can be used for Death Benefit Protection sales:
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Alternative to No-Lapse Guaratee UL
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Alternative to VUL (w/ NLG riders)
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Disclosure
• IMPORTANT BENCHMARKING INFORMATION: All
competitive information is believed to be current as of April
2012. Information was compiled from the latest company
software. Aviva v2.9.0.407, ING v2011.07, Lincoln v14.5,
Pacific Life v11.04, John Hancock v8.0, Axa v7.1, Penn
Mutual 11.1, Nationwide v2.4 and Minnesota Life’s web
based software. All information presented is deemed
reliable and Nationwide has made every effort to make sure
it is accurate; however, it’s possible that there are
differences between the products compared which are not
reflected and/or of which we are unaware. For this reason,
its completeness and accuracy cannot be guaranteed.
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Income solve with
Withdrawals/Declared Loan
• Expect Nationwide’s competitiveness to vary when traditional
income solves are used
* 8.30% represents the maximum illustrated rate for Nationwide’s Multi-Index strategy. All
other rates represent the carriers default credit rate upon illustration start up
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Income solve with
Withdrawals/Declared Loan
• Same scenario as previous except for 7.00% credit rate is used for
all
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IUL Premium Solves (Endow)
Nationwide YourLife Indexed UL will compete well in protection
oriented premium solves
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IUL Policy Charges
vs. Top IUL competitors
Nationwide YourLife Indexed UL generally has lower internal
policy charges, especially in early years (thru yr. 20)
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IUL Premium Solves (Endow)
Older age example
Same case, with $100k
1035/Dump In
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IUL EDBG Rider (NLG rider)
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Age 55+ for Level Pays & 10 Pays
Must Allocate 100% to Indexed Strategy
High target premiums for Nationwide IUL w/EDBG vs. competitors
Cumulative premium catch up (no interest)
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Quick Summary of Nationwide’s
IUL
One product to meet many consumer needs:
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Death Benefit Protection (low premium solves)
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Accumulation potential
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Guaranteed Coverage (optional EDBG rider)
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Long Term Care coverage (optional LTC rider)
These riders may be known by different names in different states, may not be
in every state and have an additional charge associated with them.
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Quick Summary of Nationwide’s
IUL Sweet Spots
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Low Premium Solves to Endow
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Especially when illustrative rates are same or comparable
Wide range of competitiveness (Age 45 – 65)
• Income Solves
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Option 1 DBO (level) more competitive than Option 2
Alternative loans available
• EDBG rider flexibility and targets
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Cumulative premium catch up (no interest)
21 yrs to Lifetime NLG and ability to specify 50% to 100% for NLG
Higher target premiums
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All premium must be allocated to Index Strategy with the EDBG rider
• Competitive Target Premiums (2-yr rolling)
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QUESTIONS?
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