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
- 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.
- 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.
Find out more about these changes from Nationwide…