Nationwide Financial Services last week announced the launching of The Next Generation variable universal life insurance policy.
The company is touting the cash-value life insurance product for its low fees and investment options.
The product offers 39 mutual funds from 14 money managers, including Fidelity, Dreyfus, and OppenheimerFunds, and it offers options covering all asset classes and domestic and international funds.
Mortality and expense charges have been reduced to half the industry average, depending on the size of the contract.
The charges, which are levied annually on the subaccount, decrease in proportion to the amount invested. The charges are 0.6% for the first $25,000 of assets, 0.3% for the next $225,000, and 0.1% on assets over $250,000.
Next Generation also offers tax-free policy loans even during the first year the contract is held.
Variable universal life is used mainly as an investment vehicle for retirement or college costs, and it protects families or businesses in the event of the death of a family member or key executive.
Variable universal life is the fastest-growing kind of life insurance. It grew to comprise 17% of life insurance sales in 1996, from 7% in 1992.
