Good news! Thanks to Nationwide’s strength and stability, a better interest rate environment and our focus on the customer, policyholders will soon benefit from many increases to cap and/or participation rates in Nationwide IUL Accumulator II 2020, Nationwide IUL Protector II 2020 and Nationwide Survivorship IUL 2020. Increased participation rates will also be applied to the new volatility control strategies in Nationwide IUL Accumulator II (2018). These are in addition to cap rates we increased in September 2022.
For Nationwide New Heights® IUL Accumulator 2020, participation rates are going up on all of the indexed interest strategies tied to the NYSE® Zebra Edge® and J.P. Morgan MozaicSM II indices — in both the current and 2019 products.
We are also increasing the Fixed Interest Strategy crediting rate in our 2020 IUL products.
The improved interest rate environment has not offset the impact of prolonged, elevated hedge costs for the uncapped S&P 500® strategy. As a result, we are increasing the spread rate to 15% on this strategy in the New York IUL products, 2015 IUL Accumulator and two VUL products with indexed interest strategies.
The updated AG 49-A regulatory changes are expected in May 2023 and will affect the maximum illustrative rates on two of our IUL indexed interest strategies: the J.P. Morgan Mercury SM Plus and the BNPP Global H-Factor® Plus. The maximum illustrative rates will remain nearly unchanged for all other strategies in our 2020 IUL products. The maximum illustrative rates do not affect actual performance, just the rate used in the illustration.
Important dates
March 16, 2023
Life illustration software will be updated with:
- New cap, participation, spread and fixed rates
- New maximum illustrative rates for all strategies
April 7, 2023
Life illustration software lowered to a 5.33% maximum illustrative rate for the Plus strategies
- The lower rate is due to the anticipated AG 49-A regulatory changes expected in May 2023
- We recommend running illustrations with this lower rate for the Plus strategies
April 15, 2023
All rate changes are effective
- Segments created on this date will receive the new rates
- Includes new premium, transfers (including DCA) and matured segment reallocations
May 1, 2023
Effective date for expected AG 49-A changes
- New and revised illustrations must comply with AG 49-A changes
- Illustrations must use the lower maximum illustrative rate when allocating to the Plus strategies
