Today, there are more options for Index UL coverage than ever before. Offering the upside to earn considerable interest on cash value with a crediting floor to protect against any negative returns in your index allocations, it is no wonder that IUL sales now account for 30% of the UL premium according to LIMRA.
As more IUL solutions are introduced, carriers are looking to differentiate their products from the competition by offering unique crediting strategies that provide for a more diversified allocation. Aviva’s product offers three new index allocation options, all of which use the annual point to point crediting method. Using the S&P 500 index, you can now allocate into an increased participation account (200% Participation Rate) or an increased cap account (15% Cap). For advisors looking to provide an international allocation, there is an option that credits based on the Hang Seng Index using a 14% Cap Rate.
We’re here to help you understand all of the available options in the IUL Marketplace and select the strategies that are most appropriate for your clients. If you have clients who might benefit from learning more about IUL, please call your Life Sales Rep today.