Choosing the right Variable Universal Life (VUL) insurance policy depends on several factors, including the level of coverage needed, investment preferences, and long-term financial goals. With so many options available, ranking the best VUL insurers is a challenging task, as each company brings its own unique set of strengths to the table. That said, seven insurance providers stand out for their exceptional offerings: Pru Life UK, New York Life Insurance Company, Sun Life Assurance Company of Canada, Prudential Financial, Inc., Nationwide Mutual Insurance Company, AXA, and Lincoln National Corporation. Each of these companies has earned a stellar reputation for delivering comprehensive and flexible life insurance solutions. In this article, we will focus on Nationwide Mutual Insurance Company’s VUL insurance product, particularly the Nationwide Advisory VUL, which combines robust protection with a variety of investment opportunities.
Nationwide Mutual Insurance Company’s VUL Insurance: A General Review
When it comes to building wealth while ensuring long-term protection for your loved ones, Nationwide’s Advisory Variable Universal Life (VUL) insurance offers a compelling solution. Designed with both protection and investment growth in mind, the Nationwide Advisory VUL provides policyholders with a customizable, tax-advantaged way to grow their assets while enjoying the security of permanent life insurance coverage. With its flexible premium structure, wide range of investment options, and tax-deferred growth potential, this VUL policy can help you achieve a variety of financial goals—from securing your family’s future to supplementing retirement income.
What is Nationwide Advisory VUL Insurance?
The Nationwide Advisory Variable Universal Life insurance policy is a flexible and low-cost solution designed to meet the needs of individuals who want both life insurance protection and the ability to accumulate wealth. This fee-based VUL product allows policyholders to make contributions above the cost of insurance, with the excess going into a variety of investment subaccounts and indexed interest strategies. The money in these accounts has the potential to grow over time, providing cash accumulation that can be accessed for various financial needs, such as retirement, business planning, or estate planning.
One of the standout features of the Nationwide Advisory VUL is the ability to manage your policy’s investments with the help of an investment advisor. The policy offers a broad range of investment options, allowing you to tailor your strategy to your risk tolerance and financial goals. Additionally, the policy provides tax-deferred growth, meaning that any earnings within the policy are not taxed until you access the funds, giving your investment more time to grow.
Key Features of Nationwide Advisory VUL Insurance
Death Benefit Protection Like any permanent life insurance policy, the Nationwide Advisory VUL provides a death benefit that ensures your beneficiaries are financially protected in the event of your passing. The death benefit is guaranteed as long as you meet the premium requirements, and it can provide your loved ones with the financial resources they need to cover expenses, pay off debts, or maintain their standard of living. The amount of the death benefit can be customized based on your needs and goals.
Tax-Deferred Growth One of the most attractive aspects of Nationwide’s VUL insurance is the tax-deferred growth of the cash value. As you make additional contributions to your policy, those funds are invested in a variety of options, and any growth is not taxed until you decide to access the funds. This allows you to accumulate wealth over time without the immediate tax burden that comes with other investment vehicles.
Wide Range of Investment Options Nationwide offers an extensive selection of over 140 investment options within the Advisory VUL, including more than 35 fund families and a variety of funds with low management fees. Many of these funds are rated highly, with over 55 funds rated 4- or 5-stars. This wide array of investment options gives you the flexibility to choose investments that align with your financial objectives, whether you’re seeking growth, income, or a balance of both.
The available funds include equity, bond, and money market portfolios, providing a diverse range of options to suit various risk profiles. For those who prefer a more hands-off approach, Nationwide also offers indexed interest strategies, which can provide a more predictable return while still offering the potential for growth based on market performance.
Low-Cost Structure One of the primary advantages of Nationwide’s Advisory VUL insurance is its low-cost structure. The product is designed with no commissions, no administration fees, and no surrender charges, ensuring that more of your premium goes toward building cash value and providing coverage. This makes it an attractive option for individuals who want to minimize fees while maximizing the value of their insurance policy.
Additionally, there are no surrender periods or charges, which means you won’t face penalties if you decide to withdraw funds or make changes to your policy. This flexibility allows you to manage your policy on your terms, without being locked into a rigid structure.
Advisory Fee Flexibility For clients working with registered investment advisors (RIAs), Nationwide’s Advisory VUL insurance includes the option to have advisory fees debited directly from the policy’s cash value. This allows the advisor to manage the policy as part of a comprehensive financial strategy, with the fee structure offering up to 1.5% of the adjusted cash value. Importantly, this fee can be debited without creating a taxable event, ensuring that you maintain the tax-deferred benefits of the policy while compensating your advisor for their expertise.
Business and Estate Planning The Nationwide Advisory VUL is also an excellent tool for business owners and individuals engaged in estate planning. The flexible premium structure and the ability to build cash value over time make it ideal for funding buy-sell agreements, key person insurance, or other business-related needs. Additionally, the death benefit can be structured to provide for estate tax liabilities, helping you leave a legacy for your family or a charitable organization.
How Nationwide Advisory VUL Insurance Works
To understand how the Nationwide Advisory VUL insurance policy works, it’s essential to grasp its key components:
Premium Payments: You pay premiums into the policy, with a portion going toward the cost of insurance and other administrative expenses. Any amount above the cost of insurance is allocated into investment subaccounts or indexed strategies.
Investment Options: You can choose from over 140 investment options, including equity and bond funds, money market portfolios, and indexed interest strategies. These funds are professionally managed, with the option for you to work with an investment advisor to tailor your portfolio to your financial goals.
Cash Value Accumulation: As your policy’s investments grow, the cash value of your policy increases. This cash value is tax-deferred, meaning you won’t pay taxes on the growth until you access the funds. You can borrow against the cash value or make withdrawals, though this will reduce the death benefit and may have tax consequences.
Death Benefit: The death benefit is paid to your beneficiaries upon your passing, and the amount can be customized based on your needs. This death benefit provides financial protection for your loved ones and can be used to cover a variety of expenses, such as funeral costs, mortgage payments, and living expenses.
Why Choose Nationwide Advisory VUL Insurance?
Comprehensive Protection: Nationwide’s Advisory VUL offers a combination of permanent life insurance protection and the potential for wealth accumulation, making it an ideal choice for individuals looking to secure their financial future.
Tax-Deferred Growth: The policy allows your investments to grow tax-deferred, meaning you have more time for your wealth to accumulate without the immediate tax burden.
Customizable Investment Options: With over 140 investment options, Nationwide provides the flexibility to build a portfolio that aligns with your risk tolerance and financial objectives.
Low-Cost Structure: Nationwide’s VUL insurance comes with no commissions, no administration fees, and no surrender charges, making it a cost-effective solution for those looking to minimize fees while maximizing the value of their policy.
Advisory Fee Integration: The ability to work with an investment advisor and have their fees debited directly from the policy without creating a taxable event is a significant advantage for clients working with financial professionals.
About Nationwide
Founded more than 90 years ago, Nationwide Mutual Insurance Company has grown from a small mutual auto insurer into one of the largest and most respected financial services providers in the world. Nationwide is committed to helping its customers achieve financial security and peace of mind by offering a wide range of insurance products, investment options, and financial planning tools. Whether you’re looking to protect your family, grow your wealth, or plan for retirement, Nationwide’s comprehensive solutions are designed to meet your unique needs.
The Nationwide Advisory VUL insurance policy offers a powerful combination of life insurance protection, investment opportunities, and tax advantages, making it an excellent choice for individuals looking to secure their financial future. With its customizable features, low-cost structure, and flexible investment options, Nationwide’s VUL insurance is a versatile solution that can be tailored to meet your long-term goals. Whether you’re planning for retirement, business succession, or estate planning, the Nationwide Advisory VUL provides the tools and flexibility you need to build and protect your wealth.