ING U.S. has launched a new indexed universal life (IUL) product that includes potential for long term accumulation and death benefit coverage for individuals and businesses. Under ING Indexed Universal Life – Global Choice (ING IUL-Global Choice), issued by Security Life of Denver Insurance Company, policyholders have four different crediting strategies available to them as well as the ability to allocate their premiums across the strategies. Also available are new options that hold particular appeal for executive benefit and premium financing programs.
“ING IUL-Global Choice is a versatile life insurance policy with cash-value accumulation potential designed to help individuals, executives and employers achieve their financial goals” said Daniel Mulheran, president of ING Life Distribution. “In this protracted and chronic low interest-rate environment, a product like this appeals to those who are seeking death benefit coverage and tax-advantaged cash-value accumulation. We know there's a growing interest in the market for indexed products, and we believe the ING IUL-Global Choice policy uniquely addresses the needs of our distribution partners and their clients.”
Indexed universal life has emerged as one of the fastest-growing product segments of the insurance industry. Sales were up 29 percent during the first half of 2012 and represented just over 25 percent of all universal life (UL) sales, according to LIMRA industry data. Indexed life insurance products — which provide upside crediting potential if markets perform well along with protection against market downturns — are attractive to clients needing life insurance in today's low interest rate environment and unsettled markets.
Another emerging trend driving IUL growth is the increasing popularity of self-owned life insurance as a way for employers to reward and retain key employees. ING IUL-Global Choice is a life insurance policy providing death benefits that may also help meet the retirement planning needs of executives. The product includes a rider, available for an additional charge, which allows policyholders early access to the cash value of the policy. This is an important feature for Self-Owned Life and Retirement (S.O.L.A.R.) insurance arrangements. In addition to providing death benefit coverage, S.O.L.A.R. insurance arrangements may also provide employees with supplemental retirement income through a cash-value life insurance policy. Employers are increasingly adding S.O.L.A.R. insurance arrangements to executives' compensation packages. ING U.S. has seen a marked increase in the use of S.O.L.A.R. insurance arrangements in the past year.
The ING IUL-Global Choice policy provides three different indexed crediting strategies — the S&P 500® 1 1-year Point to Point Indexed Strategy, as well as 2- and 5-year Global Indexed Strategies. A Fixed Strategy is also available based upon a set interest rate. The Fixed Strategy rate is never less than the guaranteed minimum interest rate of 2 percent per year — set annually on the policy anniversary. The S&P 500® indexed crediting strategy measures the increases, if any, in the S&P 500® over a one year time period. The Global Indexed Strategies credit interest based upon a formula that uses a portion of the two better-performing of three indexes looking back over a two- or five-year period.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].