Indexed UL SP500 Actual Returns
- Thread starter JFBAgent
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- 292
Annuitiesgenius.com
It would be nice but no. To my knowledge, you can only get real returns on VUL quoters.
- 4,549
There are indeed investment software & spreadsheets online for the actual S&P 500.
Keep in mind, not only caps/par/floor rates come into play with index UL or annuity, but also the index insurance products also do not receive the stock dividends paid by the 500 companies of the S&P.
- 10,318
Yes, many illustrations show the year by year return of that index along with the corresponding Index Return a hypothetical policy would have received at the current Caps.
Most show the past 20 years for each index selection... however, some indexes being used on IULs were not around 20 years ago, some of those might show the hypothetical return if it had existed... others might not show anything at all past the year of inception.
This is found in the "Overview" section of the illustration where it explains the Indexes used and corresponding Indexing methods. It is not on the actual Illustration Ledger showing hypothetical performance moving forward.
- 10,318
Also, some carriers illustration software allows you to enter the index return year by year. So you could manually enter the past 20 year return using the returns listed in the explanation section showing the past 20 years.
- Thread starter
- #7
Thank you all. The overview will discuss the index and the historical returns in gener but I’m interested in a company that actually applies the calculation to the ledger to look at hard numbers. Can anyone name a specific carrier that does that?
I’m familiar with sp500 price index vs total return and such. Carriers will illustrate this on the annuity side but not on the IUL side.
I’m familiar with sp500 price index vs total return and such. Carriers will illustrate this on the annuity side but not on the IUL side.
- 10,318
None do it because regulations do not allow them to. Regs make them utilize an average rate for the default.
But, again, you can manually enter the historical returns to show it illustrated in the ledger. Many IUL carriers allow this in their illustration software. (take the 20y returns shown in the overview and manually enter them)
That's what I was talking about in my initial response.
Unless you're doing what scagnt83 suggests (manually entering returns) then I don't know of any software that does that.
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