(AP Photo/Richard Vogel)

Agents with National Agents Alliance (NAA) will be able to offer the Phoenix Simplicity Index Life product to their clients. The Phoenix Companies Inc., (NYSE: PNX) announced the new distribution agreement on February 6. NAA is the first among a small group of distributors yet to be found that will be allowed to offer the product.

Phoenix Simplicity Index Life (IUL) is an indexed universal life insurance product that provides universal life insurance protection coupled with the ability to build cash value. The redesigned product has a simplified issue format making the underwriting process much less arduous and invasive. IUL offers permanent death benefit protection and the qualities of an indexed feature.

Due to the current low interest rate environment, IUL is expected to look attractive to potential clients; the index feature is linked to the performance of the S&P 500 Index, allowing a potential for higher earnings. Consumers are able to swap pre-existing life insurance policies with IUL through the 1305 exchange. This should only be done after a tax advisor consulted and any adverse tax consequences are not imminent.

“We are very excited to bring the Phoenix Simplicity Life Index product to the NAA platform, we believe this product’s unique set of features, including cash accumulation potential without the risk of loss due to market downturns, will resonate with lose seeking a simpler, more  focused flexible life insurance solution” said Andy Albright, President & CEO of NAA.