How Index Account Works
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How Index Account Works
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Why you should give us your IUL business

How an index account works

Indexed universal life lnsurance

In addition to death benefit protection, indexed universal life insurance provides the potential to earn cash value growth through either a fixed account, an index account that protects your from losses, or a combination of both. With an index account, interest is credited based on how a financial index performs. The minimum interest rate is zero (a floor) that protects against loss. There is also a maximum that would limit growth (a cap). The money in the policy is not directly invested in any index or the stock market.

Rules of the game

If the index account were a game of football and the football team an index selection in a life insurance policy, here’s a breakdown of how the index account works in simple terms.

It's always first down.

You can never lose yards, (the floor).

Up to an 11 yard gain per play, (the cap).

North American changes the rules!

Watch the play‑by‑play below.

The play‑by‑play

Take a look at what happens with these "new rules" in the play‑by‑play below!

START AT THE 20‑YARD LINE

NEXT

START AT THE 20‑YARD LINE

NEXT

The play‑by‑play

Take a look at what happens with these "new rules" in the play‑by‑play below!

NEXT

10-YARD GAIN

Your quarterback throws for a 10‑yard gain!
The ball is spotted at the 30‑yard line.

10-YARD GAIN

Your quarterback throws for a 10-yard gain!
The ball is spotted at the 30-yard line.
NEXT

The play‑by‑play

Take a look at what happens with these "new rules" in the play‑by‑play below!

18-YARD LOSS

Your quarterback is sacked at the 12-yard line for an 18-yard loss. But we've changed the rules so that you can never lose yards.
NEXT

18-YARD LOSS

Your quarterback is sacked at the 12‑yard line for an 18‑yard loss. But we've changed the rules so that you can never lose yards.
NEXT

The play‑by‑play

Take a look at what happens with these "new rules" in the play‑by‑play below!

NO LOSS, NO GAIN

Even though your quarterback is sacked at the 12-yard line for an 18-yard loss, the ball is spotted back at the 30-yard line where the play began, and it's still first down.
NEXT

NO LOSS, NO GAIN

Even though your quarterback is sacked at the 12-yard line for an 18‑yard loss, the ball is spotted back at the 30‑yard line where the play began, and it's still first down.
NEXT

The play‑by‑play

Take a look at what happens with these "new rules" in the play‑by‑play below!

9‑YARD GAIN

Your quarterback throws for a 9‑yard gain! The ball is spotted at the 39‑yard line, and it's still first down.

9-YARD GAIN

Your quarterback throws for a 9-yard gain! The ball is spotted at the 39-yard line, and it's still first down.

9-YARD GAIN

Your quarterback throws for a 9-yard gain! The ball is spotted at the 39-yard line, and it's still first down.

9-YARD GAIN

Your quarterback throws for a 9-yard gain! The ball is spotted at the 39-yard line, and it's still first down.
NEXT
NEXT

The play‑by‑play

Take a look at what happens with these "new rules" in the play‑by‑play below!

19-YARD GAIN

Your quarterback throws for a 19-yard gain, but...
NEXT

19‑YARD GAIN

Your quarterback throws for a 19‑yard gain, but...
NEXT

The play‑by‑play

Take a look at what happens with these "new rules" in the play‑by‑play below!

11-YARD GAIN

Even though you made a 19-yard play, the 11‑yard maximum kicks in so your team has to "give back" 8 of the yards. The net result is a gain of 11-yards and the ball is spotted squarely on the 50-yard line.
START OVER

11‑YARD GAIN

Even though you made a 19‑yard play, the 11‑yard maximum kicks in so your team has to "give back" 8 of the yards. The net result is a gain of 11‑yards and the ball is spotted squarely on the 50‑yard line.
START OVER

Click on the "NEXT" button or the numbers here to view play‑by‑play!

SCROLL TO GAME SUMMARY

GAME SUMMARY

Under normal rules, the team would have gained a total of 20 yards (gains of 10, 9, and 19 with a loss of 18 yards) and the ball would have been spotted at the 40‑yard line.

 

However, with the "new rules," the team gained 29 yards and the ball is spotted at the 50, which is an extra 10 yards downfield!

What does this mean for you?

Imagine if the football team was an Index selection in an indexed universal life insurance policy. The maximum 11 yards represents the cap rate, and the fact you never lose yards represents the floor with no downside risk. Each play is a year and the yardage gains are locked in interest crediting!

 

Talk to your North American financial professional for details on how you can put an Indexed Universal Life Insurance policy to work for you.