Nationwide Indexed UL fixed rate change; new maximum illustrated rates
Fixed Interest Strategy rate
Nationwide is committed to carefully managing our life product portfolio in order to remain a strong, stable carrier you can rely on. To keep this commitment — and in response to the persistently low interest rate environment — we are changing the Fixed Interest Strategy rate1 for all IUL products (see list below) from 3.50% to 3.25%, effective April 1, 2017.
While our illustration software will reflect this change on Feb. 6, the new Fixed Interest Strategy rate will not be applied to policies until the beginning of the next quarter, April 1.
Maximum illustrated index rate In line with AG 49 — the regulatory standard for IUL illustrations — we reassess our maximum illustrated index rate each year based on historical lookback rates. Therefore, we are making the following changes to our maximum illustrated index rate, effective Feb 6, 2017:
- The rate will increase from 6.48% to 6.50% for all but one of our indexed strategies.
- The S&P 500® Annual Point-to-Point Indexed Interest Strategy with Multiplier* will decrease from 6.48% to 6.40%.
* Not available on Nationwide YourLife® Indexed UL
A recent change to AG 49 also stipulates that all illustrations — both new and in force — are now subject to the maximum rates; previously, they did not apply to policies issued before the original implementation of AG 49 in September of 2015. Therefore, beginning on Feb. 6, the new maximum illustrated index rates will apply to all new and in force illustrations across all Nationwide IUL policies, regardless of policy issue date.
We appreciate your patience as we implement the AG 49 and Fixed Interest Strategy changes together; we hope you find the transition as simple as possible.
These changes apply to the following products
- Nationwide YourLife® Indexed UL
- Nationwide YourLife® Indexed UL Accumulator
- Nationwide YourLife® Indexed UL Protector
Important dates
| Effective date | Change |
| 2/6/2017 | Nationwide’s illustration software updated with:
|
| 4/1/2017 | The Fixed Interest Strategy rate changes to 3.25% for all Nationwide IUL products |
We will inform life insurance producers about these changes in our February newsletters.
As always, we’re here to help. Nationwide remains strongly committed to serving your firm’s IUL needs through very competitive products, many guaranteed features and our proud history of cost of insurance rate decreases — not increases.
If you have questions, please call us at 1-(888)-767-7373.