North American Announcing New Index Strategy
Beginning July 31st, a new high-par rate option was made available on all currently marketed North American IUL products to provide policyholders with another option to navigate diverse market conditions. Note that web illustrations will be updated to reflect this addition beginning July 29th.
Read on for the details!
From North American:
We are excited to announce a new, high participation (par) rate option on the licensed Fidelity Multifactor Yield IndexSM 5% ER, for exclusive use on currently marketed North American IUL products. This high-par option is not a replacement to the current product offering, but provides policyholders with another option in regards to index selection to handle diverse market conditions. This high-par version offers more crediting potential through a higher participation rate, while still providing downside protection with a zero percent floor.
The high-par option will be available on all currently marketed IUL products beginning July 31, 2023
Highlights
A trusted, privately held company founded in 1946, Fidelity Investments has diverse investment capabilities across a multi asset class platform.
North American’s high-par version utilizes an annual point-to-point crediting methodology and will have a higher participation rate, relative to our existing option.
Allocations to this index can provide a chance for more upside potential, strong downside protection, and account value accumulation to the policyholder.
Click to learn more.
Availability & Key Dates
The high-par option is available in all states and territories. Funds can be allocated to the new high-par option on all new and inforce eligible business July 31, 2023.
Please note the following guidelines regarding electing the new high-par option:
For inforce business: To elect the high-par option on inforce cases, the normal process for making changes to indices will need to be followed. The Indexed Life Request form (O-2800 Rev. 5-23) has been revised to include the new option.
For business not yet placed in force: To elect the high-par option on cases in New Business or Policy Change that have not yet been placed in force, a new allocation form (ICC16L3189B Rev. 7-23, or appropriate state version) will need to be fully completed and submitted. The instructions on what changes are wanted to the indices selected would be completed on the new allocation form. If the high-par option is added to a case that was already issued prior to July 31, 2023, the case will need to be reissued.
Note that there are no restrictions with the policy date when the new high-par option is selected.
Illustrations & e-Apps
Beginning July 29, 2023, SimpleSubmit and Web Illustrations will be updated with the new forms and the ability to elect and illustrate the high-par option.