Nationwide Advisory VUL allows for management of funds within the product without a life license
Nationwide has launched a new variable universal life (VUL) insurance product built specifically for fee-based investment advisors that allows for management of funds within the product without a life license.
Nationwide Advisory Variable Universal Life is a permanent life insurance policy with a customizable guarantee that keeps the cost of the protection separate from the rest of the investment. This is the first fee-based VUL fully integrated within the registered investment advisor’s operating system and it can also be sold by dually registered and hybrid advisors.
“With no surrender charges Nationwide Advisory VUL keeps your clients’ investment money completely liquid,” said Holly Snyder, president of Nationwide’s life insurance business. “It also has an investment component and allows you to integrate the policy’s subaccounts into your assets under management and collect your customary asset management fee.”
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The product features a diverse fund lineup comprised of over 30 of the most recognizable fund managers in the industry such as Vanguard, DFA, PIMCO, American Funds and Fidelity. Because the cost of protection is separate from the rest of the investment, it can give investment dollars the opportunity to grow more quickly and efficiently.
“There are fewer fees associated with this product compared with a traditional VUL,” Snyder added. “There are also no surrender charges upon full surrender of the contract, and no sales loads, which allows more money to be contributed and go to work for your client faster.”
Nationwide Advisory VUL also provides clients the ability to authorize their investment advisor to take their advisory fee from the policy as an advisory loan or as a withdrawal.
Tax advantages
With over 140 subaccount options and index interest strategies this product has a broad range of appeal for investment advisors seeking tax preferred planning for their clients. When structured properly one of the many benefits of life insurance is the tax preferred treatment of subaccount growth and income distribution.
Nationwide Advisory VUL offers tax-deferred cash accumulation, tax-free income, tax-free fund exchanges and an income tax-free death benefit. And, unlike some qualified retirement plans, it has no contribution limits, no phaseouts for high earners and no 10% penalty for early withdrawals from clients under age 59½.
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Customize to the client’s needs
The Long-Term Care Rider II is available at an additional charge. The Overloan Lapse Protection Rider II helps prevent heavily loaned contracts from lapsing. And other living benefits such as terminal illness, chronic illness, and critical illness riders help with unexpected illnesses. All four riders (excluding LTC II) are automatically included and cost nothing unless they are invoked.
Additional Nationwide Advisory VUL product highlights:
- It’s integrated into many of the top data aggregator platforms
- It offers high-quality investment options along with indexed interest strategies
- NationwideAdvisory.com, Nationwide’s free trading platform, makes trading easy and efficient. You can manage assets, create investment models, make group trades and take advisory fees
- Nationwide offers simplified underwriting that can provide a faster and more efficient underwriting process with no paramedical exams or labs. A simple application and online interview can fulfill the requirements for policies with a face amount up to $5 million
- You can choose the amount of time you would like the death benefit to be guaranteed and the no-lapse guarantee premium is level and will not change.
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