New Indexed IUL Product Makes its Debut

Credit: ©ISTOCK.COM/THITAREESARMKASAT

Ohio National Financial Services has introduced a new indexed universal life (IUL) insurance product that offers the flexibility and protection of a universal life policy, with indexed account options to help build cash value.

“The Virtus IUL policy provides the protection component our clients need and so much more,” said Chris Calabro, CLU, ChFC , Ohio National’s senior vice president, life insurance strategic business. “For customers who need to save for future needs such as their retirement or a child’s college education, it also offers a variety of crediting strategies and benefits – more than a normal fixed rate product. What also makes Virtus IUL stand out is its efficient, low-expense design that will help it perform better in a wider variety of market conditions.” Highlights of its accumulation, protection and flexibility features include:

• Three index accounts and a fixed account so customers can allocate premiums to fit their needs

• A minimum participation rate of 100 percent for all index accounts

• A step-up of at least 30 basis points to all index segments of a policy, as well as to the fixed account beginning in the 11th policy year1

• Two flexible loan options (index and standard) with the ability to switch between them as needs change 2

• Overloan protection rider

• A 2 percent cumulative account value true-up3

• An accelerated benefit rider (ABR), which is a living benefit that accelerates a portion of the death benefit if the insured is defined as chronically or terminally ill

• Up to a 20-year no lapse guarantee

These, in addition to other strong features, help make Virtus IUL a good balance for clients’ accumulation and protection needs, according to the company.

1 For account values in the Fixed account, the 30 basis point step-up will only be credited provided the current interest crediting rate is greater than 2 percent.

2 Once a loan option is selected, you cannot switch for 12 months.

3 The 2 percent cumulative account value true-up guarantees that upon full surrender or death in policy year six or later, the cash value will never be less that it would have been if all premiums had been allocated to the fixed account and credited with 2 percent interest since issue.