Skip to main content

2017: Midland National Introduces XL Heritage

Midland National® Life Insurance Company announced the release of a new product offering to customers: XL Heritage Indexed Universal Life insurance (IUL).

The product provides guaranteed death benefit with a single premium and added positive attributes, such as liquidity and living benefits.1

According to a Morgan Stanley study, over the next several decades, the Baby Boom generation could transfer as much as $30 trillion in assets to the next generation.2 XL Heritage was created for Midland National clients between the ages of 50-80 carrying liquid assets amounting $25-200K which is not needed to fulfill retirement needs.

Midland National expects XL Heritage to add incremental sales ranging between 5% and 7% of Midland National’s annual premium revenue. Long-term, sales are expected to increase premiums by 10% to 15%. Additional positive facets to this product include:
  • An Accelerated Death Benefit feature that allows the policy owner to use a portion of the death benefit while they are living. 
  • The product’s cash value isn’t invested in the stock market, the building of cash value is tied to the movement of a selected index--policyholders can also capture a percentage of stock market increase[m1]  while protecting cash value[m2]  against downside risk.
  • The product features an annual reset that locks credited interest at the close of the contract year.
  • The annual premium bonus of 2% (credited as interest to the cash value) is paid during policy years five through nine.3
1 Although XL Heritage is filed as a Flexible Premium Universal Life and allows additional premiums, the product is designed for a single premium payment. There are limited benefits to adding premiums after policy issue - for example, the Account Value will increase with additional premium payments, but the guaranteed death benefit and the Return of Premium Value will NOT. Therefore, clients should carefully consider whether additional premiums should be paid. Product availability subject to state approval.
Source: CNBC 11-30-16, Morgan Stanley 2015, Accenture. The “Greater” Wealth Transfer – Capitalizing on the Intergenerational Shift in Wealth, 2012; Accenture 2016.
3 A guaranteed premium bonus is paid in increments of 2% each year in policy years five through nine for a total of 10%.  Bonus applies to the initial premium less any withdrawals and withdrawal charges.

Popular posts from this blog

1908: 1st Death Claim For Midland National

In 1908, the Dakota Mutual Life Insurance Company (which would eventually be renamed to Midland National Life Insurance Company) saw the first death claim filed.

When the first death claim came early in 1908, it was necessary for Frank Bramble and John Hanten to borrow the funds needed to pay the claim.  Ironically, the company's first recorded death claim was on the life of Nettie Smith, wife of the company's original secretary-treasurer Fred Smith.

She died of appendicitis at the age of 38.  Compared to today, risk of death was higher in the early 1900's.  Many people died from a variety of infections and illnesses that seem minor or unknown today.

To read all the posts about Frank L. Bramble, click here.
To read all the posts about John Hanten, click here.
To read all the posts about Fred Smith, click here.

1906: Company Founded In The Black Hills Of South Dakota

The company that would eventually evolve into Midland National Life Insurance Company was born on a late summer evening in the Black HIlls of South Dakota.

Meeting at the Smead Hotel in Lead, South Dakota, a group of six men (John Walsh, Joseph Moore, Charles Turney, Claude Sterling, Daniel Bannister, and Fred Smith) elected officers for a company to be known as Dakota Mutual Life Insurance Company.  They also authorized the publishing of "legal notice of the company's intention to begin business."

The meeting culminated from months of planning.  Records show expenses dating from May 1906.  Evidently, the proposed name was under debate until shortly before the August meeting since a draft of the Articles of Incorporation was submitted to the South Dakota Secretary of State under the name of "Western Mutual Life Insurance Company."  The company was incorporated on August 30, 1906, and commenced business on September 4.

To capitalize the new company, the directo…

1961: William Rigsbee Named President

In November 1961, William Rigsbee was named president of Midland National.  For the next 31 years, Rigsbee, as president and chief executive officer, set Midland National on a course of unparralleled growth, stability and financial strength.

He established the Regional Sales Director (RSD) program and set in motion a belief that he carried with him through his entire career with Midland National Life - give the agent three things:

1.  Excellent products.
2.  A contract that rewards the agent for superior performance.
3.  The company service philosophy that, "The most important person is the one who makes the sale."

Under his leadership, the company increased life insurance policies in force from $275 million to $50 billion; and achieved a compound annual growth rate of 15% while maintaining superior industry ratings and a high quality investment portfolio.*

*Source: Midland National internal information, 1961.