Ohio National introduces new indexed universal life insurance
October 10, 2017 by Globe Newswire
CINCINNATI, Oct. 09, 2017 (GLOBE NEWSWIRE) — Ohio National Financial Services is pleased to introduce 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.
Tracing its corporate origins to 1909, Ohio National markets a variety of insurance and financial products through more than 50,000 representatives in 49 states (all except New York), the District of Columbia, Puerto Rico and through affiliated operations in South America. Additional subsidiaries operate in New York and Connecticut. As of December 31, 2016, its affiliated companies have $41.8 billion total assets under management. Products are issued by The Ohio National Life Insurance Company and Ohio National Life Assurance Corporation. Ohio National is proud to be named a “Top Workplace” in Cincinnati for eight consecutive years by Enquirer Media (June 2010-2017) and employs more than 1,300 associates. Please visit Twitter for more information and for the latest company updates, connect with Ohio National on LinkedIn, Facebook, and Instagram.
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.
Loans from life insurance policies that are not classified as modified endowment contracts are generally not subject to tax but may be taxable if the policy lapses, is surrendered, exchanged or otherwise terminated. In the case of modified endowment contracts, loans are taxable to the extent of policy gain and a 10% penalty may apply if taken prior to age 59 1/2. Consult your tax advisor on whether policy loans may be taxable in your particular situation. Income tax-free death benefits and loans apply to Federal taxes only. Loans and withdrawals, if taken, reduce the death benefit.
Choosing to pay the lower, no-lapse, premium amount will guarantee that the policy continues for the no-lapse period, but does not provide guaranteed cash value. If you fail to pay the minimum no-lapse premium and the guarantee does lapse, the premium required to continue your policy may be larger than you anticipated.
The No Lapse Guarantee period is five years from the date of issue if the optional additional coverage term rider is included.
The potential tax consequences of the Overloan Protection Rider have not specifically been determined by the IRS or the courts. You should consult a tax advisor.
Premium payments are placed into a holding account called the Interim Account until the next sweep date, which is when values in the Interim Account transfer into the Fixed or Index Accounts within the policy.
The ABR is not long-term care insurance. It is an acceleration of the death benefit for an individual that is certified as being permanently chronically ill or terminally ill. The rider does not provide a lifetime benefit payment, nor may it cover all of the expenses associated with long-term care. It is not intended to replace the need for long-term care insurance. Rider benefits and features vary by state.
Indexed universal life insurance is issued by Ohio National Life Assurance Corporation. Product, product features and rider availability vary by state. Issuer not licensed to conduct business in NY.
Life insurance policies contain exclusions, limitations, reduction of benefits and terms under which the policy may be continued in force or discontinued. For complete details of coverage, contact the company for additional information.
This product does not offer an investment in the market or in any particular index.
This material is for general use with the public and is not intended to provide investment, insurance or tax advice for any individual.
Susan McDonald, ALMI
Lisa Doxsee, APR