The Guardian Life Insurance Company of America has introduced new Index Participation Feature (IPF), which allows Whole Life policyholders to link a portion of their cash value to the performance of the S&P 500 Price Return Index.
Policyholders can allocate a portion of their paid-up additions cash value, selecting an allocation from 0% to 100%, with the IPF.
Dividends on these paid-up additions are adjusted based on the performance of the S&P 500 Index, when a policyholder allocates money to the IPF.
The new feature will also allow policyholders to change their IPF allocation for future index periods, offering flexibility over time.
Guardian individual life and wealth management executive vice president Michael Ferik said: "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 guarantees6 that policyholders have come to expect with Whole Life."
The company is providing IPF on select Guardian Whole Life policies and available exclusively at the time of sale.