On Monday, July 17th, Zurich released its first true accumulation-oriented IUL product, the Accumulation Index UL.
The release of this product breaks new ground for Zurich, perhaps most notably with the introduction of two new features: a higher capped S&P 500 account, designated as the S&P® 500 Plus Index Account, which boasts a very high cap of 14.50%, as well as a guaranteed persistency bonus beginning in policy year 10. With these two factors in place, Zurich makes great strides when illustrating at maximum rates, distinguishing themselves as one of the top contenders in the market.
Zurich’s existing Value Index UL and the new Accumulation Index UL are worlds apart when comparing for income solves. At the 5% illustrated rate, the gap between the two is already significant, but given the guaranteed persistency bonus, this gap further widens the higher the rate. The Accumulation Index UL’s distributions for maximum illustrated rate and par loans are almost entirely at or near the top of the market, with Zurich becoming the new champion at ages under 45 for maximum illustrated rate scenarios. Utilizing Par loans nipped at the leaders’ heels and stayed firmly competitive, but without clenching the title. The story is very different when considering 6% or 5% illustrated rates. Income at 6% tends toward the middle of the pack and moves even further back into the third quartile for 5%.
Beginning in year 10, Zurich provides a guaranteed persistency bonus of 12% on all interest credited for any of its account options, one fixed and four indexed. When paired with the very high cap on the S&P® 500 Plus Index Account, Accumulation Index UL shines brightly for optimistically higher illustrated rates. However, more conservative rates take a severe hit, as the persistency on interest earned isn’t sufficient to give it the edge it needs for competitive distributions.
Targets were all over the board, with most tending towards the middle of the pack and some finding the first quartile for ages 35 and under.
CLICK HERE to view the Accumulation IUL Snapshots PDF
CLICK HERE to view the Index UL vs. Value Index UL PDF