On Monday, October 9th, Symetra embarked on their first foray in Indexed Universal Life by releasing its new income-oriented Accumulator IUL. This product targets the more aggressive and optimistic IUL sale by entering with the strongest presence at maximum illustrated rate, especially when utilizing participating loans.
When illustrating at a maximum rate and taking participating loans for distributions, Accumulator IUL regularly finds the top of the market. It is the victor in this arena for the majority of scenarios ages 45 and below, though it also maintains top-tier status almost throughout. The story is slightly hampered when taking out fixed loans, but still lands firmly within the first-quartile for the most part. Accumulator IUL moves further down the ladder as illustrated rates become more conservative. At 6%, most scenarios find the cusp of the first and second quartiles, but the wind is mostly gone from its sails for 5% as it tends much closer to the middle of the pack.
Accumulator IUL sports a 15% guaranteed persistency multiplier to the index credit beginning in year 11. It also grants a guaranteed lookback of 2% over any 8-year period and the life of the policy. Introduced in this release is the Symetra exclusive volatility control, the JPMorgan ETF Efficiente® 5 Index.
While not primarily intended as a death-benefit protection play, Accumulator IUL does see some competitive purchase at maximum illustrated rate, specifically for limited-pay scenarios, ages 50 and below. For this reason, the product is included in the LifeTrends $1 CSV at Maturity Benchmarks. Other than this brighter band of competitive premiums, it sees the middle or back of the pack almost everywhere else. High minimum premium thresholds tend to overfund the policy on death-benefit solves, leading to high premiums and very high cash values at maturity.
Targets were fairly scattered for maximum distributions, but had some competitive areas. In protection scenarios, targets were mostly dominant across the board.
CLICK HERE to view the Accumulator IUL Max Dist Snapshots PDF
CLICK HERE to view the Accumulator IUL $1 @ Maturity PDF