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ProdMod: Nationwide to Increase Select IUL & VUL Target Premiums & Spread Rates

FROM NATIONWIDE…

We have two changes to our IUL and VUL products that will become effective in January 2023.

15% TARGET PREMIUM ENHANCEMENT

First, for new business, where the first-year premium is the lesser of 3 times the base target premium or the 7-pay premium, we are increasing the target premiums by 15%. We are pleased to offer you this enhancement to support your work in securing and servicing over-funded cases. It will be available starting January 9, 2023, on:

  • Nationwide IUL Accumulator II 2020
  • Nationwide New Heights IUL Accumulator 2020
  • Nationwide VUL Accumulator

How it Works

An additional 15% target premium will be paid on new policies funded within the first 12 months at the lesser of 3 times the base target or the 7-pay premium. Here’s an example:

  • Base Target Premium = $10,000
  • Paid First-Year Premium = $30,000
  • 15% of Base Target Premium = $1,500
  • Enhanced Target Premium (Base Target Plus 15%) = $11,500

Click for more details on the 15% target premium enhancement.

Important Dates

  • January 6, 2023: Life illustration software will be updated with the new 15% Enhanced Target Premium
  • January 9, 2023: To qualify for the 15% Enhanced Target Premiums, policies must be funded and in-force on or after January 9, 2023. Policies may be backdated for any legitimate reason and will be eligible for the Enhanced Target Premiums.

SPREAD RATE INCREASE

Second, effective January 15, 2023, we are increasing the spread rates on the uncapped S&P 500 indexed interest strategies in our IUL and VUL products.  Although we’ve kept our S&P 500 spread rates lower than similar strategies from many other carriers throughout a long period of high hedging costs, we now have to raise them. This change applies only to the uncapped S&P 500 strategies in the IUL and VUL products that offer them.

We are glad to assure you the cap rates we increased on the capped S&P 500 strategies, effective Sept 15, 2022, are still in effect. 

Important Dates

  • December 9, 2022: Life illustration software will be updated with new spread rates and new maximum illustrative rates for the uncapped S&P 500 strategies only. Please make sure you are using version 4.40 or higher.
  • December 15, 2022: Segments created on this date will receive the old spread rates. Policies must be in force and premium and/or transfer instructions received at Nationwide no later than this date to receive the old spread rates.

Click for more details on spread rate changes in currently marketed products.

Find out more about these changes from Nationwide…

ProdMod: Nationwide Announces Price & Max Issue Age Improvements on Multiple Products

FROM NATIONWIDE…

Nationwide is pleased to announce the following price and product improvements effective November 7, 2022:

  • Price improvements on No-Lapse Guarantee Universal Life II
  • Additional price improvements on Nationwide CareMatters II
  • Maximum issue age increase for YourLife CareMatters (CA and NY)

No-Lapse Guarantee UL II Price Improvement

  • Beginning November 7, 2022, Nationwide is implementing a price improvement across all scenarios for the current No-Lapse Guaranteed UL II product. These changes do not apply to No-Lapse Guarantee UL II in New York.
  • The price improvement is a price decrease for all no-lapse guarantee solve scenarios.
  • The typical price decrease will range from 5% to 15%; however, the percent decrease varies by the characteristics of the case.

Click for more details on No-Lapse Guarantee UL II Price Improvement

CareMatters II Price Improvement

  • Beginning November 7, 2022, Nationwide is implementing a second price improvement of 2022 across all scenarios for the current CareMatters II product. These changes do not apply to Nationwide YourLife CareMatters in New York and California.
  • The price improvement is an average pricing decrease of 5% for all scenarios. There will be a price decrease for all scenarios; however, the percent decrease varies by the characteristics of the case.

Click for more details on CareMatters II Price Improvement

YourLife CareMatters (CA & NY) Max Issue Age Increase

  • Beginning November 7, 2022, the maximum issue age for YourLife CareMatters will increase in California and New York. These changes do not apply to Nationwide CareMatters II.
  • In California, applications for individuals older than the previous maximum issue age must be submitted on paper. E-applications will not be accepted.

Click for more details on YourLife CareMatters Max Issue Age Increase

Find out more about these changes from Nationwide

CompChange: Nationwide Announces 10% Target Premium Increase on Multiple Products

FROM NATIONWIDE…

We are pleased to tell you about Nationwide’s 10% increase in target premiums for a limited time only starting Oct 17, 2022. This offer is available on the following products:

  • Nationwide IUL Accumulator II 2020
  • Nationwide New Heights IUL Accumulator 2020
  • Nationwide VUL Accumulator1
Important Dates
  • Oct 17, 2022 to Jan 6, 2023 – Formal applications received during this time period are eligible for the 10% target premium increase. Policies must be funded and in-force by March 31, 2023.
  • Jan 7, 2023 – Compensation special ends; target premiums revert to the lower level in effect on Oct 16, 2022.
  • Mar 31, 2023 – Eligible policies must be funded and in-force to qualify for the higher target premiums.
Illustration Software Updates
  • Oct 14, 2022 – Illustration software will be temporarily updated with the increased target premiums.
  • Jan 7, 2023 – Illustration software will return to the pre-Oct 14, 2022 target premiums and no longer illustrate the higher targets.
1The 2022 year-end compensation special is not available on corporate-sponsored individually-owned policies or multiple-life cases

Find out more about these changes from Nationwide…

ProdMod: Nationwide Announces IUL Cap Rate Increases, Effective September 15

FROM NATIONWIDE…

Interest rates are up, and so are our cap rates! We are increasing cap rates by 0.50% on the capped S&P 500 indexed interest strategies in Nationwide IUL Accumulator II 2020, for both new and in-force business. Many of our older IUL products (even those with guaranteed multipliers) will have higher cap rates too, up to an additional 0.10%.

The changes go into effect September 15, 2022. This means that starting August 16, 2022, any premiums going into those indexed interest strategies with changes will benefit from the higher rates.

Important Dates

  • August 16, 2022: Life illustration software will be updated with new cap rates and new maximum illustrative rates
  • August 16, 2022: New premiums received on or after this date will receive the new cap rates
  • September 15, 2022: Segments created on this date will receive the new cap rates – new premium, transfers (including DCA) and reallocations of matured segments
Nationwide Old & New Cap Rate Comparisons

 

Find out more about these changes from Nationwide…

ProdMod: Nationwide Announces Reprice and Higher Max Issue Age to CareMatters II

FROM NATIONWIDE…

Nationwide is pleased to announce price and product improvements to CareMatters II effective July 11, 2022.

Price Improvement
The price improvement is an average decrease of 5% for all scenarios. There will be a price decrease for all scenarios; however, the percent decrease varies by the characteristics of the case

Higher Maximum Issue Age
The maximum issue ages for CareMatters II will also be increasing from 70 to 75 for Single Pay, 5-Pay, and 10-Pay cases when electing our Minimum Refund of Premium with Maximum LTC.

Any policies with an effective date on or after July 11, 2022, will receive the improved pricing. Normal CareMatters backdating rules apply. These changes do not apply to Nationwide YourLife CareMatters in New York and California.

Click to view the transition guidelines.

Find out more about these changes from Nationwide…

AdminUpdate: Nationwide to Resume Life Insurance Sales in Washington

FROM NATIONWIDE…

We are happy to announce that beginning on May 2, 2022, we are accepting applications for all life insurance products available for sale in the state of Washington. This includes Nationwide CareMatters, which has been available since Feb 4, 2022.

Please note that backdating is not available for applications received after May 2, 2022.

We understand that your recent service experience might not have been what you normally expect from us. We are excited that we are now in a place to reopen business in Washington and to provide the service levels that Nationwide is known for. We are demonstrating that commitment through increased staffing and our investment in continued system changes to help us better serve you.

Want faster turnaround? Use our digital resources.

NOTE: When selling through an intermediary, identifying them in the electronic application will help expedite processing.

Find out more about these changes from Nationwide…

ProdMod: Nationwide Announces New Volatility Control Indices

FROM NATIONWIDE…

IUL Accumulator II 2020 Enhancements – Effective 4/30

To address a wider range of needs and the growing concerns about market volatility, we are making changes to our IUL Accumulator II. These changes include higher participation rates, Plus Strategy Credit and Higher Target Premiums.

To learn more about these enhancements and for current rates, please see Nationwide’s Product Overview.

Now Available: New Volatility Control Indices

J.P. Morgan Mercury Index — A global multi-asset index with an equity allocation based on the current stage of the economic cycle, along with diversified fixed income and volatilitybased commodities allocations to help provide more stable and consistent returns. The index rebalances dynamically based on market conditions.

BNP Paribas Global H-Factor Index — A global equity index that helps provide more stable and consistent returns using an equity selection methodology based on actuarial principles to identify and remove overpriced stocks with a higher probability of losing value. It includes additional risk management through dynamic allocations to fixed income.

For additional information on the new volatility control indices, click here.

Find out more about these changes from Nationwide…

AdminUpdate: Nationwide’s Standard Rate Class Eligible for Accelerated Underwriting

FROM NATIONWIDE…

Now, clients rated “Standard” or better, including tobacco, are eligible to accelerate to a final decision without having to take an abbreviated exam. This is just one more way we are providing a more seamless experience for you and your clients within our Nationwide Intelligent Underwriting process.

Nationwide Intelligent Underwriting streamlines the life insurance application process for both you and your financial professionals, and it’s available with most of our term and permanent life insurance products. Our faster and more efficient underwriting process allows you to spend more time growing your business. Here’s how:

  1. Our acceleration process helps place cases faster. Accelerated cases in good order are issued within 24 to 48 hours
  2. The acceleration process is simple and easy. When a case accelerates, our placement rate is 95% — there are no random holdouts.
  3. There’s the flexibility of an Online Interview or a Tele-Interview conducted by medical professionals. With our new Online Interview, clients provide personal and health information electronically through a secure and easy online process. Our Tele-Interview is still available as well and eliminates the back and forth between the Brokerage General Agent (BGA) the financial professional.
  4. You maintain control. We keep you informed about the process every step of the way. BGAs remain involved by ordering medical records, if needed.
  5. There’s direct involvement with your case manager and underwriter. There is no separate Intelligent Underwriting team, so relationships remain intact.
  6. Acceleration is available for a wide range of rate classes. It allows for acceleration of Standard or better risk classes including tobacco.
  7. It allows for the acceleration of the Long-Term Care Rider for some of the healthiest clients.
  8. Clients need to participate in only one questionnaire experience. Their online or telephone interview now serves as a single touchpoint to provide information about their nonmedical and medical history. At the end of the online or telephone interview, digital or electronic voice signatures are utilized. This approach reduces cycle times and helps you spend less time on application forms.
  9. Clients no longer need to take a full paramedical exam. Only an abbreviated exam is necessary when needed. The examiner will collect height, weight, blood pressure and pulse information and urine and blood samples.
  10. It provides a flexible approach. Clients can still receive the best rate class even if they don’t qualify for acceleration.

Click here to view more details on how Nationwide Intelligent Underwriting can help streamline the life insurance application process.

Find out more about these changes from Nationwide…

ProdMod: Delayed! Cap Change Coming to Nationwide IUL Products

FROM NATIONWIDE…

Nationwide cap rate decrease delayed 2 months for new business: New effective date: March 15, 2022

Thank you for all the life applications you have submitted over the past few months. We appreciate your partnership and patience as we continue to process your clients’ applications.

Recently we announced a decrease to our IUL and VUL cap rates to take effect on January 15, 2022. To allow more time for pending policies to be put in force and receive the higher caps for their initial index segment(s) – the new cap rate changes will be delayed until March 15, 2022 for new business.

Please keep in mind

  • Two more sweep dates at higher rates. This extension provides the opportunity to receive the current higher cap rate for up to 2 sweep dates (January 15, 2022 and February 15, 2022). Any segments created on or after March 15, 2022, will receive the lower cap rates.
  • All illustrations run at the new, lower rates. No exceptions. The new cap and maximum illustrative rates are in the life illustration software and will not revert to the old rates for this 2-month delay. As a result, no illustrations can be run at the former (higher) cap and maximum illustrative rates – with no exceptions.
  • Older illustrations must match the offer. Illustrations ran prior to the rate update will be accepted as long as they match the offer.
  • Old and new cap rates. A listing of all cap rate changes is available in our illustration system or by following this link.

Important dates

  • February 15, 2022: Segments created on this date will be the last segments to receive the old cap rates.
  • March 15, 2022: Segments created on this date or later will receive the new cap rates.

The original January 15, 2022 effective date for the cap rate decreases will apply to the Nationwide YourLife® products that are no longer sold.

AdminUpdate: Nationwide Releases Online PHI for CareMatters II

FROM NATIONWIDE…

Personal History Online Interview

Your clients applying for CareMatters® II have the option to complete their personal history interview online, giving them the convenience of being able to complete it within their schedule. The online interview covers the same content as the telephonic interview but with an interactive interface to help the client provide the necessary information. For clients 60 and over, a telephonic cognitive screening is required.

What are the advantages of the online interview?

  • It’s available 27/4 and your clients won’t have to schedule a specific time to complete it.
  • If they exit the interview, it will remember where they left off when the log back in.
  • A help number is available (available M-F 8 a.m. to 8 p.m. ET at 1-877-202-4819) and they can switch to the telephonic interview if they are having difficulties.

How does it work?

  • When the initial application is received, a welcome email will be sent to you and the proposed insured.
  • Shortly after, an email with the link to access the interview will be sent and the applicant can get started.
  • After using the link to access the interview, the applicant will need to enter their last name, date of birth and the last 4 digits of their Social Security number.
  • The interview link is active for 10 days, and reminders are sent on days 3, 6 and 9 prior to expiration on day 10.
  • Both you and your client will receive an email confirmation when they have completed their interview.

Find out more about these changes from Nationwide…

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