Index-based crediting formula
Learn how the selected index, crediting method, caps and participation rates work under the current policy terms.
A policy that merits a close review
Understand the moving parts of IUL.
Indexed universal life combines life insurance with a policy cash value component. Learn how the contract works before deciding whether to explore it further.
Life insurance
Understanding indexed universal life
An indexed universal life policy is a form of permanent life insurance. Interest credited to the cash value may be determined using an index-based formula described in the contract. The policy owner does not directly invest in the index. Caps, participation rates, floors, charges and other terms affect results and may change as permitted by the policy.
Index-linked crediting is subject to contract terms and does not represent direct investment in an index. Values and outcomes are not guaranteed by past performance. Charges, caps, participation rates, policy changes, underwriting, exclusions and limitations apply. Review the actual contract with a licensed professional.
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Important features to review
Ongoing policy costs
Insurance charges, fees and other deductions can affect policy value. Review how costs may change and how they are assessed.
Policy performance scenarios
Ask to review assumptions, limitations and how different outcomes could affect the policy. Illustrations are not guarantees of future results.
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Who may consider IUL?
It may be appropriate to learn more if you are evaluating permanent coverage and are comfortable reviewing a policy with multiple costs and moving parts.
- People comparing different types of permanent life insurance.
- Those willing to monitor policy performance and review it over time.
- Individuals who want a clear explanation of index crediting, costs and policy risks before making a decision.
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Common questions about IUL
Does an IUL policy invest directly in a stock-market index?
No. The policy does not directly invest in an index. A contract formula may use index performance to determine interest credited to policy value, subject to caps, participation rates, floors, charges and other terms.
Are illustrated IUL values guaranteed?
Illustrations use assumptions and are not guarantees of future performance. Actual results depend on policy charges, credited interest, premiums and contract terms; inadequate funding or changing assumptions can affect policy sustainability.
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Ask questions before you make a decision.
We can help you identify policy terms to review with a licensed professional and understand the assumptions in an illustration.