Index UL Tied to S&P500

Depends on the indexing strategy! The Excel IUL has a pretty competitive strategy, actually. Check out the attached illustration, and read the first three pages carefully. They will answer your question and give you a good deal of insight into how the policy works.

(This was just run using the default values; I didn't do anything special here. The software automatically defaults to putting 100% of allocations into the capped account and I didn't change it.
 

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"Indexed" is a very misleading term in the title of the product. It's just used to measure the performance of the rates. NONE actually participate in the index. No major company manufactures this product.
 
"Indexed" is a very misleading term in the title of the product. It's just used to measure the performance of the rates. NONE actually participate in the index. No major company manufactures this product.

Really?

PacLife, Lincoln, and Aviva aren't major companies?
 
Really?

PacLife, Lincoln, and Aviva aren't major companies?

To add to this list: Penn Mutual, ING, Axa, Union Central and there are others...


Gulp gulp gulp that coolaid right down..... but of course when compared against mother mutual, everything is a second rate "non major" company.... lol
 
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To add to this list: Penn Mutual, ING, Axa, Union Central and there are others...


Gulp gulp gulp that coolaid right down..... but of course when compared against mother mutual, everything is a second rate "non major" company.... lol

What do you want to bet that the quiet company he works for sends him on a trip to Milwaukee every August on his dime?
 
I guess to be fair you could say that he's right - no company has a policy where the gains directly participate in the index. Interest is credited to the policy based on the index account, but it's not a direct investment in the index.

That's a hell of a hair to split unless you're with FINRA or something, though.
 
I guess to be fair you could say that he's right - no company has a policy where the gains directly participate in the index. Interest is credited to the policy based on the index account, but it's not a direct investment in the index.

That's a hell of a hair to split unless you're with FINRA or something, though.

He is correct and the distinction is much more than splitting hairs. No indexed life contract can exactly match the index returns due to the nature of how the insurance company makes the product feasible. In order to offer a guaranteed floor on the product, most of the premium goes into bonds and the rest into index calls/LEAP contracts.

Many unethical or uninformed advisors sold indexed products as market returns with no down side. Far, far from the truth. It's simply a credit based on the underlying index performance. BIG difference.

I like the product in the right circumstance, but it needs to be sold correctly.
 
I actually just bought one because I wanted to understand it better and see how it does! Thanks for the earlier explanation and info.
 
I sell a lot of Paclife and WRL IUL and I own a Pac IUL.

Pac has a no-cap IUL with a 0% floor on their 5 yr segment.
 
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