The Guardian Life Insurance Company of America (Guardian) has launched a new feature for its whole life insurance product, designed to provide a new dimension for cash value growth by linking to S&P Index Performance.
Known as the Index Participation Feature (IPF), the new feature enables whole life policyholders to connect a portion of their cash value to the performance of the S&P 500 Price Return Index, subject to a cap and floor.
When a policyholder allocates money to the IPF, dividends on these paid-up additions are adjusted based on the performance of the S&P 500 Index, subject to a 12.5% percent cap and a 4% guaranteed floor, that ensures the policy’s downside exposure is limited, claims the life insurer.
Furthermore, the IPF allows policyholders to change their IPF allocation for future index periods, thereby giving flexibility over time.
Guardian individual life and wealth management executive vice president Michael Ferik said: "Guardian is delivering a fresh, new perspective on Whole Life insurance and taking it to the next level.
"The IPF is an innovative rider that individuals and their financial advisors have been looking for during this low interest rate environment.
"It offers a unique opportunity for index-linked upside potential, while still supporting the robust guarantees that policyholders have come to expect with Whole Life. And best of all, clients can change their IPF allocations as their needs change, so they are never locked in."
The IPF is available on select Guardian Whole Life policies solely at the time of sale.