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!
18-YARD LOSS
18-YARD LOSS
The play‑by‑play
Take a look at what happens with these "new rules" in the play‑by‑play below!
NO LOSS, NO GAIN
NO LOSS, NO GAIN
The play‑by‑play
Take a look at what happens with these "new rules" in the play‑by‑play below!
9‑YARD GAIN
9-YARD GAIN
9-YARD GAIN
9-YARD GAIN
The play‑by‑play
Take a look at what happens with these "new rules" in the play‑by‑play below!
11-YARD GAIN
11‑YARD GAIN
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.