A large insurer is introducing a guaranteed minimum accumulation benefit rider aimed at purchasers of variable universal life insurance.
The insurer, Nationwide Financial Services Inc., Columbus, Ohio, says its new Wealth Guard GMAB rider can guarantee that the cash value of a purchaser’s VUL policy will be equal to at least 85% of their principal investment or 85% of the highest policy anniversary cash value, whichever is greater.
Customers also can buy a version of the rider that will guarantee that the cash value will be equal to at least 100% of the principal investment.
To keep the guarantee in place, the rider purchasers must meet premium requirements, Nationwide says.
The issuing life insurer is responsible for backing the rider guarantees, Nationwide says.
Customers who use the Wealth Guard rider with Nationwide’s free Automated Income Monitor service can turn the guaranteed accumulation benefit into a reliable, automated income stream, Nationwide says.