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Do your clients have a long-term need for life insurance and a willingness to accept investment risk?
Variable universal life insurance
Variable life offers clients control of where their net premiums are invested and the potential for higher, tax-deferred cash value returns. While their money has the potential for growth, it’s also subject to market risk and possible loss. In other words, their policy's cash value will fluctuate over time depending upon performance of the investment options your client selects.
Most variable universal life policies offer:
- Underlying variable investment options and investment-driven growth potential for cash value
- A death benefit
- Tax advantages
- Loan provisions and partial surrenders (assuming the policy remains in force), the policy isn't a modified endowment contract and the policy qualifies as life insurance under Internal Revenue Code Section 7702, outstanding loans and partial surrenders will reduce payable death benefit
Read the 5-minute guide to variable life insurance (PDF) for more information about variable universal life insurance.
Important words from Compliance:
Variable life products are sold by prospectus, which describes risk factors, fees and surrender charges that may apply. Variable life products allow the contract holder to choose an appropriate amount of life insurance that has an additional cost associated with it. A portion of the life premium is subject to market risk based on the investment decisions of the policy owner. Cash value varies depending on market earnings or losses. Before investing, you should evaluate your financial ability to continue premium payments and the market risk associated with the variable product, including the risk of lapse of the insurance policy.
Investment products offered are not FDIC-insured, may lose value, have no bank guarantee.
Guarantees and protections are subject to Nationwide's claims-paying ability. Life insurance is issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio.
Producers must be appropriately registered and licensed in the states in which they conduct business in order to offer the referenced products.
