RICHMOND, Va., June 3, 2013 /PRNewswire/ -- Genworth today announced the launch of its first Index Universal Life (IUL) insurance product, which combines a death benefit with tax-deferred cash accumulation and an optional Accelerated Benefit Rider for Long Term Care Services.
Genworth developed its new Asset Builder IUL in response to consumers' demand for life insurance that is flexible enough to meet multiple needs in a single product. It also addresses consumers' desire for more growth potential than is currently available with traditional fixed life insurance products and less risk than variable universal life insurance.
The result was an index UL insurance product that combines a death benefit for beneficiaries with:
- The opportunity for greater policy value growth by linking the crediting strategy with the S&P 500® Index.
- Protection from market downside: Even if the percentage change in the S&P 500® Index is negative, the minimum crediting rate is 0%. Monthly charges and fees will continue regardless of the crediting rate and will reduce policy value.
- Supplemental income for retirement: If the policy generates sufficient cash values later in life, policyowners can take withdrawals and policy loans to supplement their income.
- Optional Accelerated Benefit Rider for Long Term Care Services, available at an additional cost.
"With low-interest rates jeopardizing the performance expected from traditional fixed life insurance products, consumers are seeking solid alternatives with limited risk," said Patrick Kelleher, executive vice president and leader of Genworth's U.S. Life Insurance Division. "Genworth's Asset Builder Index UL provides all of this and more, including benefits that policyowners can use during their lifetimes."
As a result of persistently low interest rates, index UL policies are experiencing record-breaking sales, growing from a $300 million market in 2006 to a $1.54 billion market in 2012.(1) Index UL policies now represent 30 percent of total UL premiums and 12 percent of all individual life insurance premiums(2).
To help financial professionals meet this soaring demand and ensure that they have the information and tools to help educate their clients about index products, including fixed index annuities, Genworth has also launched The Index Institute(SM). This industry-first virtual resource offers financial professionals the education, tools and support they need to better counsel their clients on how index products work and the role they can play in helping them fulfill their insurance needs and financial objectives.
As part of its commitment to continually raise the bar on service and technology, Genworth's new product leverages the latest advances in technology to make the seemingly complex process of applying for life insurance much faster and easier for both financial professionals and policyowners.
"As we were preparing to enter the index universal life insurance market, we invested time and conducted research with our distribution partners. We used the insights we gained to design a product that is easier to sell and quicker to close, with an easy-to-follow illustration system, clearer marketing materials and compatibility with our existing ePolicy Delivery and Life Quick Request(SM) platforms," Kelleher added.
Asset Builder Index UL is the only index UL product in the industry available on a comprehensive front-to-back electronic platform that features electronic ticket drop, fulfillment and policy delivery, which significantly shortens the application and fulfillment cycle.
Asset Builder Index UL and other life insurance products are underwritten by Genworth Life and Annuity Insurance Company and Genworth Life Insurance Company, Richmond, VA. Products not available in all states and markets.
Genworth Financial, Inc. (NYSE: GNW) is a leading Fortune 500 insurance holding company dedicated to helping people secure their financial lives, families and futures. Genworth companies have leadership positions in offerings that assist consumers in protecting themselves, investing for the future and planning for retirement -- including life insurance, long term care insurance, financial protection coverages, and independent advisor-based wealth management -- and mortgage insurance that helps consumers achieve home ownership while assisting lenders in managing their risk and capital.
Genworth has approximately 5,850 employees and operates through three divisions: U.S. Life Insurance, which includes life insurance, long term care insurance and fixed annuities; Global Mortgage Insurance, containing U.S. Mortgage Insurance and International Mortgage Insurance segments; and the Corporate and Other division, which includes the International Protection and Runoff segments and the wealth management business presented as discontinued operations. Products and services are offered through financial intermediaries, advisors, independent distributors and sales specialists. Genworth Financial, Inc., headquartered in Richmond, Virginia, traces its roots back to 1871 and became a public company in 2004. For more information, visit genworth.com. From time to time, Genworth Financial, Inc. releases important information via postings on its corporate website. Accordingly, investors and other interested parties are encouraged to enroll to receive automatic email alerts and Really Simple Syndication (RSS) feeds regarding new postings. Enrollment information is found under the "Investors" section of genworth.com.
(1,2) LIMRA, U.S. Individual Life Insurance Sales, Q4 2012
S&P 500® Index
The S&P 500® Index is a product of S&P Dow Jones Indices LLC ("SPDJI") and has been licensed for use by Genworth Life and Annuity Insurance Company and Genworth Life Insurance Company hereinafter referred to as "Licensee". Standard & Poor's®, S&P®, and S&P 500® are registered trademarks of Standard & Poor's Financial Services LLC ("S&P") and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Licensee. Licensee Index Universal Life Product(s) are not sponsored, endorsed, sold or promoted by SPDJI, S&P, or their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500® Index.
Although the policy value may be affected by the performance of an index, the policy is not a security and does not directly or indirectly participate in any stock, equity or similar investment including, but not limited to, any dividend payments attributable to any such investment. Market indices do not include dividends paid on the underlying stocks, and therefore do not reflect the total return of the underlying stocks.
Asset Builder Index UL is flexible premium adjustable life insurance (commonly called universal life insurance) with optional index interest crediting. The Asset Builder Index UL product, riders, and benefits are subject to the terms and conditions of its policy forms and to state availability and issue limitations. Genworth Life & Annuity: Policy Form No. ICC12GA1004, ICC12GA1005, GA1004-1012 et al., or GA1005-1012 et al. Rider Form Nos. ICC12GA108R or GA108R-1012 et al.; ICC12GA109R or GA109R-1212 et al; ICC12GA111R or GA111R-1012 et al.; ONE-ADB et al.; ONE-CIR-100 et al.; ONE-WP-TL et al. Genworth Life: Policy Form No. ICC12GL1004, ICC12GL1005, GL1004-1012 et al., or GL1005-1012 et al. Rider Form Nos. ICC12GL108R or GL108R-1012 et al.; ICC12GL109R or GL109R-1212 et al; ICC12GL111R or GL111R-1012 et al.; GE-ONE-ADB et al.; GE-ONE-CIR-100 et al.; GE-ONE-WP-TL et al. Policy, benefits and riders may not be available in all states. Terms and conditions may vary by state.
All guarantees are based on the claims-paying ability of the issuing insurance company.
SOURCE Genworth Financial