SKA Financial Group is proud to work with the country’s top carriers. This blog highlights one of the best products on the marketplace right now. With historical returns of over 13%, the past performance of this Indexed Universal Life policy outperforms most stock market indices over the past 20 years.
The insurance industry is a highly competitive marketplace which requires a constant need to reinvent oneself to grow and succeed. Carriers have been looking to alternate indices than the typical S&P suite, and some compelling alternatives have emerged that alter the possibilities of indexed universal life.
JP Morgan Mercury Index (Nationwide)
The JP Morgan Mercury Index is a multi-asset index that combines equity, fixed income, and commodity assets which it regularly reshuffles as we move through the business cycle. This constant reshuffling allows the index to achieve positive returns, even when the stock market is seeing red. Below is a comparison of the JP Morgan Mercury Index and the S&P 500 over the last 15 years.
As you can see, the JP Morgan Mercury Index held strong through both the 2008-09 and the 2020 market crash, delivering positive crediting through financial hard times.
Better yet, the JP Morgan Mercury Index does not have a cap, so you can earn better returns during good years. There are three different strategies that Nationwide allows you to invest into the JP Morgan Mercury Index.
Strategy #1: JP Morgan Mercury Plus
0.60% Credit
155% Participation Rate
0% Charge
0% Floor
No Cap
Example: If you choose the JP Morgan Mercury Plus strategy, and the annual return is 10%, you will earn 10% multiplied by the participation rate of 155%, plus the 0.60% credit. The 10% growth will therefore credit you 16.1%.
Strategy #2: Year JP Morgan Mercury High Par
No Credit
175% Participation Rate
0% Charge
0% Floor
No Cap
Example: If you choose the JP Morgan Mercury High Par strategy, and the annual return is 10%, you will earn 10% multiplied by the participation rate of 175%. The 10% growth will therefore credit you 17.5%.
Strategy #3: JP Morgan Mercury High Par Select
No Credit
215% Participation Rate
1% Charge
0% Floor
No Cap
Example: If you choose the JP Morgan Mercury High Par Select strategy, and the return is 10%, you will earn 10% multiplied by the participation rate of 215%, minus the 1% charge. The 10% growth will therefore credit you approximately 20.5% (the 1% charge is applied to cash value at the beginning of the segment, slightly altering return by a few basis points).
Here are the historical crediting rates for 1-Year JP Morgan Mercury High Par Select:
- 5 year: 8.93%
- 10 year: 12.04%
- 15 year: 13.07%
The JP Morgan Mercury Index is only one of many new indices that has revolutionized the Indexed Universal Life marketplace, and it is a powerful tool indeed. Do on average 13%+ returns with the protection of a floor appeal to you? Contact us today to discuss if this is the right strategy for you.
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