When selecting a Variable Universal Life (VUL) insurance policy, it’s important to recognize that different insurance companies offer a variety of features tailored to meet individual needs. Given the complexity of VUL insurance, no one provider stands out as the absolute best for every person. Instead, each company has its strengths, offering flexibility, coverage, and additional benefits that may resonate differently with various policyholders. That’s why it’s difficult to rank providers definitively. However, some of the most respected names in the industry include 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 all these companies have earned a strong reputation for their products, this review will specifically focus on one of the most attractive VUL options available today: Nationwide Mutual Insurance Company’s VUL.
Nationwide Mutual Insurance Company’s VUL Insurance: A General Review
Nationwide Mutual Insurance Company has been a pillar of the insurance and financial services industry for more than 90 years. With its longstanding history, Nationwide has become known for offering a diverse range of high-quality products designed to meet the financial protection and growth needs of policyholders. One such product is the Nationwide® Advisory Variable Universal Life (VUL) insurance policy, which stands out as a robust solution for individuals looking for permanent life insurance that also allows for tax-advantaged asset accumulation.
The Nationwide VUL is particularly attractive for those seeking a flexible, customizable policy that integrates life insurance protection with the opportunity to invest for future growth. By combining the benefits of life insurance with investment options, Nationwide’s VUL is designed to offer a dual solution that can not only protect your family in case of an untimely death but also help you build wealth for the future. This review will explore the key features, benefits, and advantages of the Nationwide VUL, highlighting why it could be an excellent choice for those seeking long-term financial planning.
What is Nationwide VUL?
The Nationwide Advisory Variable Universal Life (VUL) insurance policy is a fee-based product designed with flexibility and customization in mind. As a permanent life insurance product, it provides policyholders with a death benefit that ensures their loved ones are financially protected. What sets it apart from traditional life insurance products is its ability to accumulate cash value through investments. The money you pay into your Nationwide VUL policy above the cost of insurance premiums is invested in a variety of subaccounts and indexed interest strategies, which can grow over time.
One of the primary benefits of the Nationwide VUL is its potential for tax-deferred growth. Policyholders can direct premiums into subaccounts that are not subject to taxation while they remain within the policy, allowing for enhanced wealth accumulation. This makes Nationwide VUL an appealing choice for individuals looking for a life insurance policy that can also serve as an investment vehicle for long-term financial growth.
Key Features and Benefits of Nationwide VUL
1. Death Benefit Protection
As with any life insurance product, the primary function of the Nationwide VUL is to provide death benefit protection. This ensures that your beneficiaries will receive a financial payout in the event of your death. Nationwide VUL offers flexible death benefit options, allowing policyholders to adjust their coverage as their needs change over time. Whether you need basic coverage or a more substantial benefit, Nationwide provides options that can be tailored to suit individual requirements.
2. Tax-Deferred Growth
One of the standout features of Nationwide VUL is its potential for tax-deferred growth. When you invest in the subaccounts or indexed strategies offered by the policy, your money grows without being taxed, which means it has the potential to accumulate more quickly over time. You will only be taxed when you access the funds, which can be done through withdrawals or loans from the policy. This tax-deferred growth can play a critical role in helping policyholders achieve their long-term financial goals, such as funding retirement or building a legacy.
3. Investment Flexibility
Nationwide VUL offers a wide range of investment options, providing policyholders with the flexibility to choose how their premiums are allocated. With over 140 investment options, including a variety of funds and indexed interest strategies, you can build a portfolio that matches your risk tolerance and financial goals. This extensive investment selection ensures that you have the opportunity to make the most of your policy’s growth potential, whether you prefer more conservative, low-risk investments or are comfortable with higher-risk, potentially higher-return options.
35+ Fund Families: Nationwide VUL offers a selection of more than 35 well-known fund families, ensuring a wide variety of investment options to choose from.
Low-Cost Investment Options: With 85 funds available that charge management fees under 1.00% and 40 funds with fees under 0.50%, Nationwide VUL ensures that policyholders can invest efficiently with lower costs impacting long-term growth.
4. Supplementing Retirement Income
The cash value accumulated within a Nationwide VUL policy can also serve as a valuable source of supplemental income during retirement. As the policy grows, policyholders can access the funds through policy loans or withdrawals, which can help bridge the gap between their other retirement savings and income needs. This makes Nationwide VUL an excellent option for individuals looking for a flexible, tax-efficient way to enhance their retirement income.
5. Business Planning
For business owners, Nationwide VUL can be an essential component of a broader business planning strategy. The policy can be used for purposes such as key person insurance, funding buy-sell agreements, or providing financial security for the business in the event of the policyholder’s death. Additionally, the policy’s investment options offer business owners a way to grow wealth while maintaining the necessary insurance coverage to protect the business.
6. Legacy and Estate Planning
Nationwide VUL is also an excellent tool for individuals looking to build a legacy or plan for their estate. The policy’s tax-deferred growth and flexible death benefit can be used strategically to minimize estate taxes and maximize the inheritance left to beneficiaries. The ability to accumulate wealth in the policy while ensuring a substantial tax-free payout to heirs makes Nationwide VUL an attractive option for legacy planning.
Nationwide VUL: Low Cost and No Sales Loads
One of the key reasons Nationwide VUL is so appealing is its cost efficiency. Designed to be a low-cost option for life insurance, Nationwide VUL avoids many of the common fees associated with other insurance products:
No Commissions: Since Nationwide VUL is a fee-based product, there are no commissions to be paid to agents, which helps keep costs down.
No Administration Fees: Many life insurance policies come with administrative fees, but Nationwide VUL does not impose these charges, making it a cost-effective option.
No Surrender Charges: Unlike other policies, Nationwide VUL does not charge surrender fees, giving policyholders the flexibility to adjust their policy as needed without additional costs.
This structure ensures that more of your money is being put toward growing your policy’s cash value rather than being absorbed by fees.
Designed with Registered Investment Advisors (RIAs) in Mind
Nationwide VUL is specifically designed to meet the needs of Registered Investment Advisors (RIAs), making it an ideal choice for clients who work with financial advisors. By providing tools that integrate seamlessly with top data aggregator platforms such as Albridge, ByAllAccounts, eMoney, and Tamarac, Nationwide makes it easier for advisors to manage their clients’ assets and calculate advisory fees. Additionally, Nationwide’s simplified underwriting process helps expedite the approval of policies, making the entire experience faster and more efficient for both clients and advisors.
Dedicated Advisory Consultants
To ensure policyholders get the most out of their Nationwide VUL, Nationwide provides access to dedicated advisory consultants. These experts are available to help you understand your financial solutions, answer questions about your policy, and assist in integrating the VUL into a broader, holistic financial plan.
Nationwide’s Reputation and Stability
With more than 90 years of experience, Nationwide is one of the largest and most trusted financial services companies in the world. Initially founded as a small mutual auto insurer, Nationwide has grown into a powerhouse in the insurance and financial services industry, offering a wide range of products that cater to the unique needs of its customers. This long-standing reputation for reliability, customer service, and financial strength ensures that Nationwide VUL policyholders are partnering with a company that is committed to their financial security.
Nationwide VUL offers an exceptional combination of life insurance protection, investment flexibility, and tax-advantaged growth potential. With a range of investment options, low fees, and customizable death benefits, the Nationwide VUL accumulator is an excellent choice for those looking to build wealth while ensuring their loved ones are protected. Whether you’re planning for retirement, managing your estate, or securing your family’s future, Nationwide VUL offers the tools you need to craft a solid financial strategy. With Nationwide’s expertise and commitment to customer service, you can trust that your policy will be a valuable asset in your financial journey.