Posted by (American Life Insurance Guide 08/23/2022 News) According to an announcement issued to the public by CAVALIER, a subsidiary of AIN, the American insurance giantNation-wide-National Life, announced a 0.5 percentage point increase in the annual capped rate of return (Cap) for indexed insurance accounts, effective September 2022, 9.
according toAmerican Life Insurance Guide ©️News from member institutions, this rule applies to newly issued policy accounts, as well as to index policy accounts subscribed in the past.
Premiums deposited into index accounts after August 2022, 8, will enjoy the new annual capped yield.
Index insurance products used for asset accumulation, the one-year S&P 500's point-to-point annual capped return increased 0.5% to 9.5%; index insurance products used to protect targets, the same index strategy's Cap value increased by 0.1% .
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Nationwide 2011-2018 Index Account Products/ 
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What is the capped yield?
The capped rate of return, called Cap in English, isIUL Index Insurance Account (Index Universal Insurance) is a feature feature. A core feature of this type of insurance is that in the event of a bad market environment, an annual minimum guarantee of 0% of the funds in the corresponding account is given.In exchange, when the market is good, the interest income paid by the insurance company to the policyholder has aThe upper limit is capped, that is, Cap.
As of the publication date, except for a very few life insurance brands that have adopted lowering the Cap rate, the vast majority of life insurance brands have successively increased the index insurance account interest rate.The average cap rate of the 1-year S&P 500 point-to-point in the market fluctuates between 8.5% and 13%.
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What are IUL Index Insurance Products?
| Nationwide Nationwide Life Insurance Index Insurance Product Introduction | |
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In index insurance accounts, premium funds do not actually enter the market to buy securities, but at the same time participate in market performance and gain the potential for appreciation.Another feature of this type of insurance account is that it provides protection against market downturns by guaranteeing a minimum annual growth rate of 0%. (End of full text)
