Upside Potential
Downside Protection
In addition to death benefit protection, our Indexed Universal Life Insurance products offer cash value accumulation potential. Policy values can be placed into any of the multiple crediting strategies plus a fixed account to diversify your growth strategy. The indexed strategies offer upside accumulation value potential in your client’s life insurance policy based in part on the performance of a major index. All of our indexed strategies offer downside protection from loss with a 0% Floor Guarantee. Our 1% Floor Option provides even more downside protection, in times when the index does not perform positively in a policy year.
Indexing Overview
What is IUL?
Index Universal Life Insurance offers all the features of a universal life insurance product: death benefit protection; accessibility with living benefits; cash value potential through interest credits. Its core difference from universal or whole life products is an IUL’s ability to offer flexible options in how cash value is accumulated. Through indexed interest crediting strategies, IUL offers the potential for cash value accumulation based on positive growth of a market index—upside potential—and a guaranteed 0% or 1% floor in the event of a decline in the index—downside protection.
IUL is ideal for affluent or emerging affluent clients wanting to purchase a life insurance product that offers more than just a death benefit and living benefits protection. Because IUL products perform best when funded to their limit, IUL is designed as a solution for clients looking for opportunities for cash value potential without the risks of a volatile financial market.
Our IUL products offer 6 interest crediting strategies:
- 1 fixed interest crediting strategy – using fixed interest crediting
- 5 indexed crediting strategies over 3 indices
What is indexed interest crediting?
Indexed interest accounts calculate interest on a market index (such as the S&P 500®). Tracking the performance of the market index, interest may be earned when the index goes up. If the index drops, the values earned based on interest crediting strategies are protected from loss. Interest is credited based on the change in interest over a period of time or index segment (using Point-to-Point strategy) and credited up to a specific Participation Rate or Cap Rate.
What are the index crediting strategies?
3 Market Indices | 5 Point-to-Point Interest Crediting Strategies |
S&P 500® | Cap Focus Participation Focus 1% Floor |
UBS | Balanced Trend Index (not available in NY) |
Société Générale | US Pacesetter Index |