Midland National is expanding its Index Universal Life product line
DES MOINES, Iowa, May 24, 2021 / PRNewswire / – Midland National® Life Insurance Company (Midland National) has launched a new Indexed Universal Life Insurance Product (IUF) that provides life insurance coverage that only life insurers can offer while accumulating potential long-term cash value for other uses, including to supplement retirement income. Strategic Accumulator 2 is the newest product in Midland National’s innovative IUF portfolio.
“This policy addresses a growing consumer need – how to protect your family while getting cash value or tax benefits across your entire financial portfolio,” he said Jerry Blair, Midland National, Chief Distribution Officer. “Earning and growing cash value is critical because so often customers earn years of protection, or even decades, before they may have to contribute to topping up their retirement income. In this case, time is literally money.”
This IUF insurance product can be a solution for people looking for ways to plan their financial future. Strategic Accumulator 2 is ideal for clients:
- dependent on death protection
- who have a high income, a large amount of assets to protect, or both
- worried about her family’s financial needs if death occurs during the working years
- who have maximized 401 (k) or individual retirement savings plans – or who may not qualify for an IRA
- seeking the opportunity to mitigate the tax impact on future pension funds
“This product is strategically designed to be competitive if it offers potential future revenue streams,” said Blair. “This is often necessary when policyholders retire. It also helps make this product stand out in a crowded market.”
The new IUF contains the Fidelity Multifactor Yield IndexSM 5% ER option that aims to reduce volatility as part of their strategy. The Fidelity Index is exclusive to Midland National1and currently has a participation rate of 125%, no upper limit, a non-guaranteed bonus of 1.65% from the first year and a non-guaranteed bonus of 2.65% from the 11th year, although the rates are subject to change.
Strategic Accumulator IUL 2 also offers a fixed income equity loan2 that uses a declared interest rate and participates in the index account. The loan, available in the first year of the policy, currently receives a 2 percent interest bonus but is not eligible for any other interest premium. This type of loan offers the opportunity for performance improvement and, in turn, can provide better cash value management.
In addition, customers can access a portion of the policy’s death benefit while receiving expedited death benefit if they are diagnosed with a qualifying illness. To simplify the application process, Strategic Accumulator 2 is available with accelerated underwriting, with no lab tests or exams, online application, and no eSignature options if a face-to-face meeting with an agent is not possible or preferred.
About Midland National Life Insurance
Midland National for over 115 years® The life insurance company (Midland National) leads the industry and owes its strength to its commitment to stability, innovation and dedicated customer service. Midland National is accredited by the Better Business Bureau and has an A + (Superior) rating from AM Best, a large independent independent reporting and rating company that rates an insurance company based on the company’s financial strength, operational performance and performance obtain the ability to meet its ongoing obligations to policyholders. This rating is the second highest of 15 categories and was confirmed by AM Best for Midland National as part of the Sammons® Financial Group, Inc. on August 19th, 2020.
Founded in 1906 as the Dakota Mutual Life Insurance Company, Midland National has protected families and legacies for generations. Midland National is one of the leading insurance companies in The United States. Midland National is a member of Sammons Financial Group, a subsidiary of Sammons Enterprises, Inc. West Des Moines, Iowaand its life insurance businesses in Sioux Falls, South Dakota, Midland National operates in 49 states and the United States District of Columbia through its 12,000 licensed sales professionals. More information can be found here.
- Exclusive to Midland National as part of the Sammons Financial Group. Midland National has licensed the Fidelity Multifactor Yield Index 5% ER for the exclusive use of its IUF products.
- The net cost of a fixed rate participating policy loan can be negative if the credits earned are less than the calculated interest rate. The net cost of the loan could also be higher than a standard policy loan if the amount credited is less than the interest charged. In the extreme example, the amount credited could be zero and the net cost of the loan would be the maximum interest rate minus a guaranteed bonus. In short, fixed rate loans have greater uncertainty about the rate of interest credited than standard loans.
The Fidelity Multifactor Yield Index 5% ER (the “Index”) is a multi-asset index that offers exposure to companies with attractive valuations, high quality profiles, positive momentum signals, lower volatility and higher dividend yields than the broader market than the US -Government bonds, which can reduce volatility over time. Fidelity and its trademarks are service marks of FMR LLC. Fidelity Product Services LLC (“FPS”) has licensed this index for specific purposes to Midland National® Life Insurance Company (the “Company”) on behalf of the Product. The Index is the exclusive property of FPS and is created and compiled without regard to the needs, including but not limited to the fitness needs of the company, the product, or the owners of the product. The product is not sold, sponsored, endorsed or promoted by FPS or any other party involved in or related to the creation or creation of the Index. The company decides at its own discretion whether and how the product is linked to the value of the index. FPS does not offer any investment advice in relation to the Index to the owners of the Product or any other person or organization, and in no event shall a holder of a Product Agreement be considered a client of FPS.
Neither FPS nor any other party involved in or related to the creation or creation of the Index has any obligation to continue to provide the Index to the Company in relation to the Product. Neither FPS nor any other party involved in or related to the creation or creation of the Index makes any representation in relation to the Index, Index information, performance, annuities in general, or the Product in particular. Fidelity Product Services LLC disclaims all warranties, express or implied, including any warranties of merchantability or fitness for a particular purpose or use. Fidelity Product Services LLC assumes no responsibility or liability in relation to the product.
Indexed universal life insurance products do not represent an investment in the “market” or the applicable index and are subject to all insurance fees and charges normally associated with most universal life insurance policies.
Strategic Accumulator IUL 2 is issued by the Midland National Life Insurance Company, Administration Office, on Insurance Form Series L153 or the government version, including all applicable endorsements and drivers. A Sammons Plaza, Sioux Falls, SD 57193. Products, features, drivers, endorsements, or age issues may not be available in all countries. Limitations or restrictions may apply.
SOURCE Midland National Life Insurance Company