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Indexed Universal Life (IUL) offers the potential to build tax-deferred cash value that is dependent on strategy allocations, interest crediting rate set by the Company and the changes in either the S&P500® index or the MSCI Emerging Markets Index. After completing the Interest Rates pane, click Quick View in the navigation pane to preview the calculated illustration values or click on the next screen in navigation pane.
Which strategy is best?
Many people assume that the strategy with the highest illustrated rate will perform the best since maximum illustrated rates are determined by historical index results. However, as we see again and again, past performance is not an indicator of future performance. In fact, there is no way to know which indexed strategy will perform the best, either over the long term or the short term. There are several things that could be considered "best practices" when determining indexed strategy allocations and there is no way to predict which strategy will perform the best, but by spreading the allocation across all of the strategies, you can potentially capture at least some of the best returns. Another option is to use the Systematic Allocation Rider which can be added to any of our indexed universal life policies. Systematic Allocation allows your clients to use a lump sum or 1035 exchange and spread the premium out over a 12-month period rather than dumping it into the policy all at once. By spreading the premium out over the course of a full year, clients can capitalize on potential interest rate crediting dates and reduce interest rate risk associated with one annual crediting anniversary.
If you're still unsure please contact the Life Sales Desk to discuss your particular case.
On the toolbar, when the Show Alerts link is active, click the link to display a list of all validation alert messages.
Alert icons indicate the severity of the validation alert:
indicates an invalid entry error.
indicates a warning.
indicates an informational message.