New Nationwide YourLife Protection VUL Targets Clients Aged 30 Thru 50 |
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Written by U.S. Insurance News
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Monday, 28 April 2008 |
Regardless of their customer base, financial professionals are bound to have at least a few clients for whom the newest offering from Nationwide Financial Services, Inc., is suitable.
Nationwide has launched YourLifeSM Protection VUL, a flexible premium, adjustable, variable universal life product with a customizable guarantee death benefit rider.
Peter Golato, senior vice president for Nationwide Financial, said that while the new product can help meet the needs of a variety of clients, its targeted client is between the ages of 30 and 50 and in the higher middle-income market. Further, the ideal candidate has a small amount of flexible income and prefers to pay a lower level annual premium until discretionary income builds.
“Generally, the client is looking for death benefit protection in amounts from $150,000 to $750,000,” Golato added.
YourLife Protection VUL has a large secondary market as well—typically, clients seeking slightly higher face amounts, competitive premiums that will short pay or single pay the policy, and guaranteed death benefit protection. These clients range from 40 to 60 years of age and are most likely seeking death benefit protection for more than $1 million.
“While high cash value accumulation is not the primary objective, these clients do appreciate the potential to earn more through the variable investments accounts than would be afforded by a fixed product of the same type,” Golato said.
With YourLife Protection VUL, a financial professional can offer clients:
- simple, customizable death benefit guarantee protection
- competitive premiums on a policy with accumulation potential
- nationally known investment lineups
- easy-to-use policy-management tools
“Many people under age 50 are still paying mortgages, saving for college, or paying off college loans, or many other things that seem to chip away at their budget,” Golato said. “Reasonably priced and flexible coverage is what this VUL product offers to our clients.”
Nationwide offers a minimum 10-year guarantee protection. The policyholder can elect to extend the guarantee death benefit protection for 20 years, up to a lifetime with a rider available at an additional charge. Golato said this rider, one of many that can be added to this product, gives advisers and agents the ability to meet several different risk tolerance levels among their clients.
“Nationwide offers the flexibility to choose how much guarantee is needed or choose how long to guarantee the policy,” he said. “The guarantee is designed to be simple to understand and policy management tools make maintaining it easier. Clients and financial professionals don’t have to worry about the timing of their payments, like they do with other no-lapse guarantee products. As long as the client pays the total extended death benefit accumulation premium prior to the policy lapsing, he or she can catch up at anytime.” |
