Nationwide Life Insurance Company Review 2022 – Forbes Advisor – Forbes

Term life
Whole life
Indexed universal life
Guaranteed universal life
Variable universal life

Nationwide’s term life insurance

Term life insurance is life insurance that offers steady rates for a level term period. For example, if you want life insurance to cover income replacement if you die and have 20 years left before retirement, a 20-year term policy would be an option. After the level term expires, you can renew or buy a new policy, but you should prepare for a significant increase in premiums.

Term life insurance does not build cash value and, as a result, it is often the cheapest type of life insurance to purchase.

Nationwide YourLife Guaranteed Level Term is Nationwide’s term product offered in level terms of 10, 15, 20 or 30 years for buyers ages 18 to 70 (age limits depend on term length). After the level term period, renewing annually at a higher premium, up to age 95, is an option. The minimum coverage amount is $100,000.

If you decide to convert the term policy into a permanent policy, Nationwide allows you to do that up to age 65. If the coverage is of equal or lesser value, no additional medical exams or underwriting will be required for the term life conversion.

Nationwide’s guaranteed universal life

Guaranteed universal life insurance offers the potential for flexible premiums and death benefit amounts, up to specified limits, but the ability to accumulate cash value could be minimal. Since policyholders can expect minimal gains from this type of life insurance, it is usually cheaper than other universal life products.

Nationwide No-Lapse Guarantee UL II is Nationwide’s universal life insurance option targeted for affluent clients with low risk tolerance. It is available to people up to age 85 and with a minimum face amount of $100,000. This low-risk product comes with two no-lapse guarantees, one for the initial period and one for an extended period that can be customized to up to age 120.

Nationwide’s whole life insurance

Whole life insurance is an option for people looking for a low-risk life insurance policy with fixed premiums and guaranteed cash value accumulation.

Nationwide Whole Life 100 is one of three whole life products sold by Nationwide and is available to people ages 0 to 80. Minimum face amounts range from $10,000 to $250,000 depending on your health classification, which the insurance company determines. You can continue paying fixed premiums on Whole Life 100 until you reach age 100. You are guaranteed the full death benefit if you die unless you have borrowed or withdrawn against the cash value. In that case, the death benefit is reduced by whatever you owe. If you make it to age 121, Nationwide will pay out the death benefit and cease coverage.

Instead of fixed premiums until age 100, Nationwide 20-pay Whole Life offers a guaranteed death benefit if you pay the fixed premium for the first 20 years and take no withdrawals or loans against the cash value.

Nationwide Simplified Whole Life is an option for people who have purchased an eligible Nationwide auto and/or homeowners insurance policy. It offers basic protection between $10,000 and $50,000, a simplified application and no medical exam requirements.

Nationwide’s indexed universal life insurance

If you’re looking for a death benefit that will grow (or decline) with an index, like the S&P 500, indexed universal life insurance (IUL) is an option. This type of life insurance links your cash value to an index. It includes participation rates, caps and floors that may keep the policy from the biggest gains and losses.

IULs also offer the flexibility to vary premiums and death benefits and take withdrawals or tax-free loans against the cash value. However, keep in mind that if your cash value gets too low to cover policy expenses and fees, the IUL policy could lapse.

Nationwide Indexed Universal Life Accumulator II is a life insurance product focused on cash value accumulation and available to buyers ages 18 to 85. It is offered with a minimum $100,000 face amount and two cash accumulation investment strategies. You’ll have the option of a fixed interest strategy with a guaranteed minimum interest rate of 1%. Or, for a higher risk option, you can choose an indexed strategy tied either to the performance of the S&P 500 or a combination called the Multi-Index Monthly Average, including S&P 500, Nasdaq-100 and the Dow Jones Industrial Average.

The IUL Accumulator II includes a participation rate of 100%, a floor rate of 0% and a cap between 9% and 13%, depending on the investment strategy you choose.

A  participation rate is the percentage of the index performance used to calculate your interest crediting rate. For example, if the participation rate is 100%, then 100% of the index gain will be credited to your cash value, up to your cap rate.

A floor rate is the guaranteed minimum rate that protects your cash value from loss, no matter how the market performs. Your loss can’t dip below this amount, so it is called a “floor rate.”

Nationwide also offers an IUL focused more on protection than accumulation called the Nationwide Indexed Universal Life Protector II.

Nationwide’s variable universal life insurance

Variable universal life (VUL) insurance comes with various features, including cash value investments with sub-account choices, the flexibility to vary premium amounts and frequency of payment and death benefit options.

This permanent life insurance is intended to stay in place throughout your lifetime. VUL insurance includes the ability to borrow tax-free or withdraw from your cash value but can lapse if your cash value gets too low to cover policy expenses and fees. VUL insurance policies typically include significant fees and are best suited for people comfortable with higher risk because of the investment component.

Nationwide Variable Universal Life Accumulator is available to buyers up to age 85 with a minimum face amount of $100,000. Its main purpose is cash value accumulation. Policyholders can choose from three investment strategies: the S&P 500 Annual Point-to-Point, One-Year Uncapped S&P 500 Point-to-Point, and a Multi-Index Monthly Average that combines the S&P 500, Nasdaq-100 and Dow Jones Industrial Average. The cap rate, participation rate and floor depend on which investment strategy you choose. For example, if you go with the S&P 500 Annual Point-to-Point, the participation rate is 100%, the cap rate is 8.5% and the floor is 1%.

Nationwide’s protection-based version of the VUL Accumulator is the Nationwide Variable Universal Life Protector.