MADISON, Wis. –CUNA Mutual Group has announced thelaunch of Horizon II, a new generation of the MEMBERS Horizon Variable Annuity. The company said it offers an enhanced death benefit that provides total purchase payments or current contract value, whichever is greater. “This benefit combines with the annuity’s ability to invest in risk control accounts which allow a client to set a personal ‘comfort zone’ of risk and reward,” CUNA Mutual said.
According to CUNA Mutual, the Horizon II death benefit feature is intended to give clients more protection during times of market volatility. Contract owners can invest confidently knowing, at a minimum, purchase payments will be returned to their loved ones when they’re gone, regardless of investment performance and market volatility, the company explained.
“This feature aligns the death benefit with the overall structure of the product, which lets investors set an annual limit, or floor, on potential investment losses for a portion of the portfolio,” said Dave Hanzlik, vice president, annuity and retirement, CUNA Mutual Group. “In a broader sense, it also matches the overall philosophy behind all of our annuities – that investors should have the greatest possible visibility of their investment risk and simple, easy-to-understand tools for controlling it.”
Options for Investors
CUNA Mutual said Horizon II investors can allocate a portion of their retirement savings to a variable portfolio with full market exposure – with choices of equity, fixed income and specialty subaccounts that fit their risk tolerance and investment style. The remainder is allocated to risk control accounts linked to various market indexes, with a customized downside floor and upside cap. Each year, the owner can adjust their risk control limits to match changing needs and investment outlook, CUNA Mutual added.
“The value of Horizon II can best be demonstrated to clients using the illustration tool that is now available for appointed advisors,” CUNA Mutual said. “The tool shows how allocations to the risk control accounts and variable subaccount could perform over a chosen time period and also illustrates the death benefit feature. The final printed output can be provided to clients for further understanding.”