Some life insurers are still introducing annuities that protect the value of premium contributions, despite worries about stock market, bond market and interest rate volatility.
National Western Life Insurance Company and North American Company for Life and Health Insurance — a Sammons Financial subsidiary — are two companies that have added non-variable indexed annuities in recent weeks.
What It Means
Some life insurers continue to brave volatility to protect customers against it.
Principal Protection
Austin, Texas-based National Western Life introduced a non-variable indexed annuity designed for its own organization for independent marketing organizations, The Sterling Group.
The IMOs in the group are Advisors Excel, CreativeOne, Financial Independence Group, Gradient Insurance Brokerage, Impact Partnership and M&O Marketing.
National Western Life says it will offer the NWL New Frontiers contract solely through The Sterling Group, via the FireLight electronic application system.
The product links the crediting rate to the performance of investment index strategies with one-year, two-year, and six-year durations.
The contract offers exclusive access to an index from J.P. Morgan, and the J.P. Morgan Factor Focus index.
North American Company for Life and Health, which is based in West Des Moines, Iowa, rolled out a new edition of an existing non-variable indexed annuity.
The new NAC BenefitSolutions 10 offers a contract and rider combination that can guarantee protection for 125% of the premiums a customer has paid.
The rider has a charge equal to 1.2% of the "Benefit Base" amount.
Registered Index-Linked Annuities
Some big life insurers are unveiling registered index-linked variable annuities, or products that provide a limited buffer against decreases in the value of the premiums fed into a contract.
Global Atlantic Financial Group, a New York-based insurer, has launched the ForeStructured Growth RILA contract through a subsidiary.
