Choosing the right Variable Universal Life (VUL) insurance provider can be a complex decision. With so many companies offering their own unique benefits and features, it’s challenging to rank them definitively. What works best for one person might not be the ideal choice for another, as insurance needs and financial goals vary greatly from person to person. That said, the following seven companies are recognized as leaders in the VUL market, each offering products that stand out for their flexibility, innovation, and commitment to policyholder success: 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. While each of these providers excels in their own way, this review will focus specifically on the benefits of Nationwide’s VUL offering, often referred to as the Nationwide VUL accumulator.
Nationwide Mutual Insurance Company’s VUL Insurance: A General Review
Nationwide Mutual Insurance Company has established itself as a significant player in the life insurance industry, offering a diverse range of solutions to meet the financial protection and asset accumulation needs of its clients. One of their standout products is the Nationwide Advisory Variable Universal Life (VUL) insurance policy, also known as the Nationwide VUL accumulator. Designed with flexibility, cost-efficiency, and growth potential in mind, this policy offers a powerful combination of life insurance protection and investment opportunities.
In this comprehensive review, we’ll explore the key features and benefits of the Nationwide VUL accumulator, examining how it can help policyholders achieve their financial and insurance goals, whether they’re looking to secure a legacy, supplement retirement income, or grow assets in a tax-advantaged environment. With more than 90 years of experience and a reputation for customer-centric solutions, Nationwide has crafted a product that’s as versatile as it is reliable.
What is Nationwide VUL Accumulator?
At its core, the Nationwide VUL accumulator is a variable universal life insurance product designed to provide both death benefit protection and potential for cash value accumulation. With Nationwide’s VUL, you have the ability to direct premiums toward a variety of investment subaccounts, which can potentially grow over time based on market performance. This dual purpose—providing financial protection for loved ones and growing wealth—makes the Nationwide VUL an attractive choice for many people seeking a comprehensive life insurance product.
Nationwide’s VUL product stands out for its flexibility, allowing policyholders to adjust the death benefit and premium payments throughout the life of the policy. This ensures that as your needs evolve, so too can your policy. The money that is paid into the policy above the cost of insurance premiums can be invested into a wide array of funds and indexed interest strategies. The potential for tax-deferred growth within the policy’s cash value makes it an appealing option for individuals looking for a long-term investment vehicle.
Key Features and Benefits of Nationwide VUL Accumulator
Death Benefit Protection
The primary function of any life insurance product is to provide a death benefit that will financially protect your loved ones in the event of your passing. Nationwide’s VUL is designed to offer flexible death benefit options. Whether you need a basic level of coverage or more comprehensive protection, you can customize the death benefit to fit your changing needs throughout life.
Tax-Deferred Growth
One of the major advantages of the Nationwide VUL is the potential for tax-deferred growth. Premiums that exceed the cost of insurance can be allocated into investment subaccounts, where they have the potential to grow over time without being subject to taxes until you withdraw or borrow from the policy. This tax-deferred growth can significantly enhance the long-term value of the policy, making it a useful tool for wealth accumulation.
Supplementing Retirement Income
In addition to its death benefit, Nationwide VUL offers a valuable opportunity for retirement planning. By accumulating cash value in a tax-advantaged manner, the policy can serve as a supplemental income source in retirement. Policyholders can access the cash value through policy loans or withdrawals, which can help supplement other retirement income streams.
Business Planning
Business owners often look for ways to protect their business and provide for its future. Nationwide VUL offers a flexible solution for business planning needs. This policy can be used for purposes such as funding buy-sell agreements, providing key person insurance, or creating a financial legacy for the business. With the ability to customize the policy’s death benefit and investment options, it provides business owners with a versatile planning tool.
Legacy and Estate Planning
Nationwide VUL is also an excellent option for those looking to plan their estate and leave a lasting legacy for their heirs. The policy’s death benefit can be structured to provide a tax-free payout to beneficiaries, and the cash value can be built over time to help fund the policyholder’s legacy goals. Additionally, with tax-deferred growth, the policyholder’s estate has the potential to grow significantly over time.
Nationwide VUL Accumulator: Low Cost, No Sales Loads
What sets Nationwide VUL apart from many other life insurance products is its cost-efficiency. Nationwide’s VUL is designed to offer a low-cost life insurance solution with no commissions, no administration fees, and no surrender charges. This means that policyholders can keep more of their money working for them, whether it’s building cash value or funding their insurance protection.
Key cost advantages include:
No Commissions: Nationwide VUL is a fee-based product, meaning there are no commissions paid to agents, which helps keep the costs down for the policyholder.
No Administration Fees: Unlike many other life insurance products that include administrative fees, Nationwide VUL does not charge these additional costs, making it even more affordable.
No Surrender Charges: Nationwide’s VUL does not come with surrender charges, which gives policyholders more flexibility if they decide to adjust or terminate their policy.
140+ Investment Options for Customization
For those interested in growing their cash value, Nationwide VUL offers an extensive suite of investment options. With over 140 investment choices, policyholders can create a portfolio that aligns with their financial goals, risk tolerance, and time horizon. Nationwide provides access to:
35+ Fund Families: A diverse range of well-known and respected fund families, allowing policyholders to diversify their investments.
55 Rated 4- or 5-Star Funds: For those seeking top-rated investment options, Nationwide VUL includes more than 50 funds with 4- or 5-star ratings from Morningstar.
Low-Cost Investment Options: Over 85 funds have management fees under 1.00%, and 40 funds are available with management fees under 0.50%, making the policy an efficient way to invest over time.
These investment options provide policyholders with a high degree of flexibility in how their policy grows, making it easy to adapt to changing market conditions.
Designed for Registered Investment Advisors (RIAs)
Nationwide’s VUL is tailored specifically for Registered Investment Advisors (RIAs), offering a streamlined experience for both advisors and their clients. With simplified underwriting, Nationwide makes it easier for advisors to get their clients approved quickly, reducing delays and creating a more efficient experience.
Additionally, Nationwide integrates with major data aggregator platforms, such as Albridge, ByAllAccounts, eMoney, and Tamarac, so that advisors can easily track their clients’ assets under management. This integration also allows advisors to calculate fees efficiently, helping them manage their advisory relationships more effectively.
Dedicated Advisory Support
Nationwide recognizes the importance of providing strong support for both clients and financial advisors. As part of its commitment to helping clients make the most of their Nationwide VUL, Nationwide offers access to dedicated advisory consultants. These professionals are available to assist with understanding the product, integrating it into a broader financial strategy, and addressing any questions or concerns along the way.
Nationwide’s Legacy of Trust and Stability
For more than 90 years, Nationwide has been a trusted name in the insurance and financial services industries. What started as a small mutual auto insurer has grown into one of the largest and most respected financial services companies in the world. Nationwide’s long-standing reputation for reliability, customer service, and financial strength makes it a solid choice for anyone considering a variable universal life insurance policy.
The Nationwide Advisory Variable Universal Life (VUL) policy—also known as the Nationwide VUL accumulator—is an outstanding life insurance solution for those seeking a flexible, low-cost, and tax-advantaged way to build wealth while protecting their loved ones. With its customizable features, low fees, and a broad range of investment options, Nationwide VUL stands out as an ideal choice for those looking to secure their financial future. Whether you’re planning for retirement, estate planning, or protecting your business, Nationwide VUL offers the tools you need to create a comprehensive, long-term financial plan.