Nationwide: Overloan Lapse Protection Rider II To Be Added to In-Force Policies Starting Oct. 11

09-23-2021

This past May, Nationwide announced their new Overloan Lapse Protection Rider II available starting June 14, 2021 on Nationwide IUL and VUL policies. The new rider offers important enhancements over the original Overloan Lapse Protection Rider including the option to invoke it at a younger insured age (65 instead 75), no minimum cash value requirement and no requirement to withdraw the entire cash basis. The new rider is now available on policies issued using the Cash Valuation Accumulation Test (CVAT), in addition to those issued using the Guideline Premium Test (GPT).

Nationwide is now adding these enhancements − or in the case of CVAT policies, the entire rider − to in-force policies for the following products:

Nationwide products to be updated with Overloan Lapse Protection Rider II starting Oct. 11, 2021:

IUL products introduced in 2018 and 2020	VUL products introduced in 2017
Nationwide IUL Accumulator II 2020 Nationwide IUL Accumulator II Nationwide IUL Protector II 2020 Nationwide IUL Protector II Nationwide Survivorship IUL 2020 Nationwide Survivorship IUL	For registered representative use only Nationwide VUL Accumulator Nationwide VUL Protector

Eligible states: The products listed above are approved in all states except Montana, New York and the Virgin Islands.

CVAT vs GPT policies: Eligible Nationwide IUL and VUL policies issued before June 14, 2021, will be updated with the new Overloan Lapse Protection Rider II rider based on how the policy was issued:

• CVAT policies – Since CVAT policies were not issued with an Overloan rider, the new Overloan Lapse Protection Rider II rider will be added.
• GPT policies – Since GPT polices were issued with the original Overloan Lapse Protection Rider, the enhanced features of the new rider will be added as an endorsement or amendment depending on the state. Instructions and a pre-paid return envelope will be provided for amendment forms to be returned.

Notifying policyowners and producers: Once an in-force policy is updated with the new rider or enhanced features, Nationwide will notify the policyowner via the appropriate CVAT or GPT letter and copy the producer. The letter will include a copy of the rider, endorsement or amendment.

Timing: Updating policies with the new rider will start October 11, 2021 and continue for several months. In 2022, the Overloan Lapse Protection Rider II will be added to some older universal life products not listed above. Nationwide will share more after the first of the year regarding which products and when.

Please give BUA a call at 1-800-792-6795 if you have any questions.