Indexed UL Offers Global Strategy
February 3, 2010 by NU ONLINE NEWS SERVICE
Published 2/1/2010
A new indexed universal life policy is offering two interest crediting options—an indexed strategy, which includes two global market indexes as well as the S&P 500 index, and a fixed interest strategy.
Called ING Indexed Universal Life-Global, the policy is issued by Security Life of Denver Insurance Company, a member of the Minneapolis-based U.S. arm of ING Groep N.V., Amsterdam.
The indexed strategy credits interest based on a formula that uses a portion of the two better-performing of three indexes—the S&P 500 Index, the EuroSTOXX 50 Index, and the Hang Seng Index—looking back over a five-year period, the company says. It also offers the downside protection of a 1% per-year guaranteed minimum interest rate, says Daniel Mulheran, president of ING U.S. Retail Life Distribution.
The fixed strategy earns interest based upon a current credited interest rate declared by Security Life that will be in effect for at least the first 12 months. At each policy anniversary, the rate may vary, but the insurer says it will never be less than the guaranteed minimum interest rate of 2% per year.
Policyholders can choose between either strategy or use a combination of the two.
The three-index strategy could provide greater cash accumulation than using just the fixed or single-index strategies found in other products, the company says. The 5-year look-back period may also help reduce volatility associated with year-to-year index changes, it says.
Other features include:
– Three death benefit options.
– Waiver of surrender charge rider (used in traditional premium finance cases only).
– Accelerated benefit rider.
– Overloan lapse protection rider.
All guarantees are based on the financial strength and claims-paying ability of Security Life, the company says.
The policy is not an investment in the stock market and does not participate in any index fund, stock or equity investments, it adds.
A new indexed universal life policy is offering two interest crediting options—an indexed strategy, which includes two global market indexes as well as the S&P 500 index, and a fixed interest strategy.
Called ING Indexed Universal Life-Global, the policy is issued by Security Life of Denver Insurance Company, a member of the Minneapolis-based U.S. arm of ING Groep N.V., Amsterdam.
The indexed strategy credits interest based on a formula that uses a portion of the two better-performing of three indexes—the S&P 500 Index, the EuroSTOXX 50 Index, and the Hang Seng Index—looking back over a five-year period, the company says. It also offers the downside protection of a 1% per-year guaranteed minimum interest rate, says Daniel Mulheran, president of ING U.S. Retail Life Distribution.
The fixed strategy earns interest based upon a current credited interest rate declared by Security Life that will be in effect for at least the first 12 months. At each policy anniversary, the rate may vary, but the insurer says it will never be less than the guaranteed minimum interest rate of 2% per year.
Policyholders can choose between either strategy or use a combination of the two.
The three-index strategy could provide greater cash accumulation than using just the fixed or single-index strategies found in other products, the company says. The 5-year look-back period may also help reduce volatility associated with year-to-year index changes, it says.
Other features include:
– Three death benefit options.
– Waiver of surrender charge rider (used in traditional premium finance cases only).
– Accelerated benefit rider.
– Overloan lapse protection rider.
All guarantees are based on the financial strength and claims-paying ability of Security Life, the company says.
The policy is not an investment in the stock market and does not participate in any index fund, stock or equity investments, it adds.
