From the product design innovators behind one of the top-selling accumulation fixed indexed annuities
SCOTTSDALE, Arizona – Strategic partners Nationwide and Annexus, whose previous collaboration produced one of the industry’s top-selling accumulation fixed indexed annuities (FIAs), launched a new indexed universal life insurance solution.1 Nationwide New Heights® Indexed Universal Life Accumulator (New Heights® IUL) is a new low-cost IUL that incorporates exclusive index options from the companies’ highly successful FIAs and offers strong guarantees, enhanced accumulation opportunities and an optional long-term care (LTC) benefit.
“Traditionally, clients have used annuities to accumulate retirement assets, life insurance to provide a death benefit, and LTC insurance to cover long-term care costs. But life insurance has evolved to meet a broader range of client needs,” said Holly Snyder, President of Nationwide Life Insurance. “New Heights IUL is that evolution, combining powerful cash value growth opportunities, a source of tax-free income in retirement, a tax-free death benefit and an optional long-term care benefit.”
“The current U.S. equity bull market is the strongest in history, but Wall Street forecasts project S&P 500 Index returns over the next decade to be much lower than the last,” said Annexus Co-Founder Don Dady. “New Heights IUL leverages two exclusive indices backed by academic research and proven investment strategies, with the goal to provide more consistent returns through a variety of market conditions.”
New Heights IUL offers an alternative to the S&P 500: the NYSE® Zebra Edge® Index. “History has shown that U.S. equities offer strong long-term growth potential, but research demonstrates that within equities, the most popular stocks historically have been more volatile and provided lower returns,” said Yale University professor and renowned economist Roger Ibbotson. “Behavioral finance suggests that people can make irrational investment decisions and chase popular stocks. Avoiding popular stocks could be a key to higher returns with less risk.” The NYSE® Zebra Edge® Index applies Ibbotson’s behavioral finance filtering process to remove the riskiest and most volatile companies, thereby providing an opportunity for more stable long-term returns.
New Heights IUL also offers global diversification through the J.P. Morgan Mozaic II℠ Index. The index utilizes some of the same investment philosophies used by the largest institutional investors to seek steady growth through a variety of global market environments.
There are several optional benefits featured in New Heights IUL including the LTC II cash indemnity rider, which can provide a guaranteed monthly benefit to help cover expenses, without requiring clients to submit receipts. Clients can use the benefit to cover any costs they choose, including to pay a family member that may be helping to provide care.
“The market has experienced an influx of high-fee, large-multiplier IUL products that look extremely attractive on the surface, especially when illustrated,” said Annexus Co-Founder Ron Shurts. “As we look to the future, market forecasts point to much lower performance than what we’ve experienced over the last decade, and those high fees could have a significant impact. We intentionally chose to go a different direction by launching a low-cost IUL with exclusive index options designed to provide better long-term client outcomes.”
Clients seeking more information on New Heights IUL should contact their financial professional. Financial professionals should contact their Annexus-contracted Independent Distribution Company for access to this product.
Nationwide, a Fortune 100 company based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the United States. Nationwide is rated A+ by both A.M. Best and Standard & Poor’s. An industry leader in driving customer-focused innovation, Nationwide provides a full range of insurance and financial services products including auto, business, homeowners, farm and life insurance; public and private sector retirement plans, annuities and mutual funds; excess & surplus, specialty and surety; pet, motorcycle and boat insurance. For more information, visit www.nationwide.com. Follow Nationwide on Facebook and Twitter.
Annexus designs solutions to help Americans grow and protect retirement savings. For over a decade, Annexus has developed market-leading fixed indexed annuities and indexed universal life insurance products. Annexus products are the result of partnerships forged with the industry’s leading insurance carriers and the world’s largest investment banks. A handpicked network of financial professionals provides Annexus solutions to help clients take control of their retirement. Find out more about Annexus and its products at www.annexus.com.
1Source: Beacon 3Q 2019 fixed annuity sales of accumulation fixed indexed annuities from all channels; income-only products excluded.
This material is not a recommendation to buy, sell, hold or roll over any asset, adopt an investment strategy, retain a specific investment manager or use a particular account type. It does not take into account the specific investment objectives, tax and financial condition or particular needs of any specific person. Investors should discuss their specific situation with their financial professional.
This policy allows for flexible premium payments, but it’s important to adequately fund it to keep it in force and to help meet your needs and those of your beneficiaries.
Indexed universal life insurance policies are not stock market investments, do not directly participate in any stock or equity investments, and do not receive dividends or participate in capital gains. Past index performance is no indication of future crediting rates. Also, be aware that interest crediting fluctuations can lead to the need to pay additional premium to meet your goals and/or prevent the policy from lapsing. Be sure to choose a product that meets long-term life insurance needs, especially if personal situations change — for example, marriage, birth of a child or job promotion. Weigh the costs of the policy and understand that life insurance has fees and charges that vary with sex, health, age and tobacco use. Riders that customize a policy to fit individual needs usually carry an additional charge.
All guarantees and benefits of the insurance policy are backed by the claims-paying ability of the issuing insurance company. They are not backed by the broker/dealer and/or insurance agency selling the policy, or by any of their affiliates, and none of them makes any representations or guarantees regarding the claims-paying ability of the issuing insurance company. Nationwide and its representatives do not give legal or tax advice. An attorney or tax advisor should be consulted for answers to specific questions.
While ratings can be objective indicators of an insurance company’s financial strength and can provide a relative measure to help select among insurance companies, they are not guarantees of the future financial strength and/or claims-paying ability of a company. The broker/dealer from which a policy is purchased, the insurance agency and any affiliates of those entities make no representations regarding the quality of the analysis conducted by the rating agencies. The rating agencies are not affiliated with the abovementioned entities nor were they involved in any rating agency’s analysis of the insurance companies.
The J.P. Morgan Mozaic II℠ Index (“Index”) has been licensed to Nationwide Life and Annuity Insurance Company (the “Licensee”) for the Licensee’s benefit. Neither the Licensee nor Nationwide New Heights® IUL Accumulator (the “Product”) is sponsored, operated, endorsed, recommended, sold or promoted by J.P. Morgan Securities LLC (“JPMS”) or any of its affiliates (together and individually, “JPMorgan”). JPMorgan makes no representation and gives no warranty, express or implied, to contract owners taking exposure to the Product. Such persons should seek appropriate professional advice before making any investment. The Index has been designed and is compiled, calculated, maintained and sponsored by JPMS without regard to the Licensee, the Product or any contract owner. JPMorgan is under no obligation to continue compiling, calculating, maintaining or sponsoring the Index. JPMorgan may independently issue or sponsor other indices or products that are similar to and may compete with the Index and the Product. JPMorgan may also transact in assets referenced in the Index (or in financial instruments such as derivatives that reference those assets). These activities could have a positive or negative effect on the value of the Index and the Product.
The NYSE® Zebra Edge® Index has been licensed to Nationwide Life and Annuity Insurance Company (“Nationwide”). Neither Nationwide nor the Nationwide New Heights® IUL Accumulator (the “Product”) is sponsored, operated, endorsed, recommended, sold or promoted by Zebra Capital Management, LLC (together with its subsidiaries and affiliates, “Zebra”), NYSE or UBS and in no event shall Zebra, NYSE or UBS have any liability with respect to the Product or the Index. Zebra, NYSE and UBS make no representations, give no express or implied warranties and have no obligations with regard to the Index, the Product, the client or other third party. The marks NYSE® and NYSE Arca® are registered trademarks of NYSE Group, Inc., Intercontinental Exchange, Inc. or their affiliates. The marks Zebra® and Zebra Edge® are registered trademarks of Zebra Capital Management, LLC, may not be used without prior authorization from Zebra Capital Management, LLC, and are being utilized by NYSE under license and agreement.
The Long-Term Care Rider II is available at an additional charge. While bills and receipts do not need to be submitted each month to receive monthly LTC benefits, they may be needed to help establish the claim. Keep in mind that, as an acceleration of the death benefit, the Long-Term Care Rider II payout will reduce both the death benefit and cash surrender values. Make sure life insurance needs will be met, even if the rider pays out in full. Costs for long-term care vary by person, and there is no guarantee the rider will cover all long-term care costs. Nationwide pays long-term care benefits to the policyowner. If the insured is not the policyowner, there is no guarantee that benefits will be used to pay for long-term care. The Long-Term Care Rider may not be available in all states.
Nationwide and its affiliates are not affiliated with Annexus, its affiliates or its Independent Distribution Companies (IDCs).
Products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. Nationwide, Nationwide is on your side, Nationwide New Heights, New Heights, and the Nationwide N and Eagle are service marks of Nationwide
Mutual Insurance Company. Third-party marks that appear in this document are the property of their respective owners.
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