{"id":4614,"date":"2022-02-01T15:55:00","date_gmt":"2022-02-01T15:55:00","guid":{"rendered":"https:\/\/www.annuityfyi.com\/?page_id=4614"},"modified":"2023-05-22T10:53:33","modified_gmt":"2023-05-22T10:53:33","slug":"legacy-accel","status":"publish","type":"page","link":"https:\/\/www.annuityfyi.com\/fixed-indexed-annuities\/reviews\/legacy-accel\/","title":{"rendered":"Product Review | United Life Legacy Accel Indexed Universal Life Insurance Policy"},"content":{"rendered":"
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Legacy Accel is fundamentally a generous cash alternative capable of generating up to about 7.5% a year by investing in a low volatility index or the S&P 500, based on its performance over the last five years.<\/em><\/strong><\/p>\n\n\n\n

United Life\u2019s Legacy Accel May Be a Profitable Haven in Today\u2019s Difficult Investment Environment<\/strong><\/h4>\n\n\n\n

No question, this is a tough time for investors. At current writing, the stock market has been on the verge of a correction. Bond interest rates, meanwhile, are shooting up sharply, depressing the value of bonds following a Federal Reserve proclamation that it will increase interest rates this year to combat inflation.<\/p>\n\n\n\n

Moreover, interest rates currently are still low, which means plain vanilla fixed annuities are not particularly attractive, either.<\/p>\n\n\n\n

Is there a way out?<\/p>\n\n\n\n

In fact there is, and it\u2019s in the form of an indexed universal life insurance policy offered by United Life\u2019s Legacy Accel. Net of expenses you can expect returns from 0.50% to 7.50% annually. Investors can exit the investment at any time without penalty. Essentially, it\u2019s a lucrative cash alternative.<\/p>\n\n\n\n

The investment closest to this is a fixed indexed annuity, which is unlikely to have the same upside potential as Legacy Accel because of unusually low index participation rates today. And if you want a guaranteed income rider, that costs about 1% a year, further undermining returns in exchange for guaranteed income. Most importantly, FIAs, unlike Legacy Accel, charge hefty penalties for early withdrawal, which is no small thing in an environment of rising interest rates.<\/p>\n\n\n\n

Why is this so? Odds are good that fixed annuities and other fixed-rate products will be offering better deals a year from now. But those locked into FIAs today won\u2019t have the flexibility to shop around.<\/p>\n\n\n\n

The minimum investment in Legacy Accel is $25,000. Investors can invest in S&P MARC 5% index, a low volatility index offering a 135% index participation rate, or in the S&P 500 with an annual cap of 7.5%.<\/p>\n\n\n\n

Those who invest in this strategy are not intending to hold the policy until death like a standard life insurance contract. United Life\u2019s Legacy Accel provides the opportunity to earn more interest than a savings account, or mutual fund, without having to assume the risks in the market. That said, this policy does offer a tax-free death benefit should the insured pass while the policy is in-force.<\/p>\n\n\n\n

It\u2019s important to note that a potential downside to Legacy Accel is that the health of its owner is not insignificant. To qualify for the product, prospective owners must answer \u201cNo\u201d to 19 health-related questions, which may be difficult, in particular, for the older set. Those who had significant heart issues in the last five years, for instance, don\u2019t qualify. The good news is that couples can work around this if one of them is healthy. If the husband has health issues, for instance, he can buy the policy and name the wife as the insured.<\/p>\n\n\n\n

It\u2019s impossible to know how a buyer of Legacy Accel today would fare financially down the road, but the odds seem good that they can generate average annual returns of perhaps 4% to 5%, depending, in part, on which of the two indexes they invest in. Most pundits don\u2019t think the market moving forward will be as robust as it has been in the last three, unusually strong, years. But this doesn\u2019t mean the markets still won\u2019t fare modestly well.<\/p>\n\n\n\n

Here is a summary of the key pros and cons of Legacy Accel:<\/p>\n\n\n\n

Pros<\/strong><\/p>\n\n\n\n