Nationwide: Updated IUL and SIUL products for 2020

10-30-2020

On November 7, 2020, Nationwide will launch an update to their Nationwide IUL Accumulator II, Nationwide IUL Protector II and Nationwide Survivorship IUL products. The changes build on their low-cost, transparent design that’s focused on putting customers’ needs first.   The following new products are being introduced to replace their counterparts:

Old Products	New Products
Nationwide IUL Accumulator II	Nationwide IUL Accumulator II 2020
Nationwide IUL Protector II	Nationwide IUL Protector II 2020
Nationwide Survivorship IUL	Nationwide Survivorship IUL 2020

Illustration software to be updated Nov. 7, 2020

What is Changing?

• Removing all multipliers
• Keeping five of the indexed interest strategies and increasing the cap rate on two of them; lowering the cap rate on two; and increasing the spread rate on one
• Increasing the maximum illustrated rate for core strategies
• Lowering the maximum illustrated spread on IUL alternative loans to 0.50%

Important dates:

• Nov. 6, 2020: Applications must be received in good order to receive the old product.
• Nov. 7, 2020: Applications received on or after this date will be for the new, updated products. 

Transition Rules:

Application Signed Date November 6, 2020:	Old products: Applications for an old product must be signed on or before November 6, 2020 to be eligible for the product New products: Applications signed on or after November 7, 2020 will be considered an application for a new product
Application Received Date November 6, 2020	Old products: Applications for an old product must be received in the Home Office on or before November 6, 2020 to be eligible for the product New products: Applications received on or after November 7, 2020 will be considered an application for a new product regardless of the application signed date
Funding Deadline January 29, 2021	Old products: In addition to the above deadlines, the policy must also be in force and funded by January 29, 2021

1035 Exchanges

For policies funded by 1035 money in any state, the In-Good-Order (IGO) 1035 paperwork must come with the application with the same date restrictions above. The 1035 requests then will be sent to the relinquishing carrier by Nationwide and tracked following standard procedures. These cases will have an extended funding deadline of March 29, 2021.

Reopening applications for the old products

Closed applications reopened on or after November 7, 2020 will be considered an application for the new product. This applies to applications closed due to outstanding underwriting requirements or otherwise “not taken” and regardless of the original application signed date.

Backdating to save age

Both the old and new products can be backdated to save age. Applications for older products that are received before the deadline, can be current dated.

Nationwide has long been an advocate for transparency with low costs, guarantees and illustration supplements that emphasize their focus on putting customers’ needs first. Likewise, Nationwide is proud of their consistency in never increasing COI rates on in-force policyholders, never decreasing our persistency bonuses — and not restricting applications due to COVID-19.  Nationwide carefully designs, prices and manages their life insurance products to offer long-term value for policyowners and to make sure they remain a strong, stable company to honor their promises.