IUL BASICS
This type of permanent life insurance can provide a death benefit and cash value
What is permanent life insurance?
The S&P 500 is an example of this kind of benchmark
What is market index?
This is a policy value that can accumulate over time before certain deductions or adjustments.
What is cash value?
The person who owns the policy and controls rights such as beneficiaries and certain policy changes.
Who is the policy owner?
An IUL illustration shows values based on assumption; it is not a guarantee of future perfomance.
What is an illustration?
The amount paid to keep an IUL policy in force is commonly called this
What is the premium?
This limits the credited interest rate to a maximum percentage for a crediting period.
What is a cap?
A policy loan generally allows the policy owner to access this, subject to policy and tax rules
What is cash value?
The person whose life is insured under the policy.
Who is the insured?
This risks can occur if loans and withdrawals are not managed and the policy ultimately lapses.
What is lapse and potential tax risk?
This is the amount paid to the beneficiaries when the insured dies, subject to policy terms
What is the death benefit?
This is the minimum indexed- account designs designs, subject to policy terms.
What is a floor?
If a policy is surrendered, this amount may be available after applicable charges and adjustments
What is surrendered value?
The people or entities designated to receive the policy's death benefit.
Who are the beneficiaries?
The index-linked crediting method does not mean the policy owner directly owns this.
What is the underlying stock-market index?
This feature can credit interest based in part on the performance of an external market index
What is indexed interest crediting?
This method can use a change in an index from one point in time to another to determine credited interest.
What is point to point indexing?
These charges can apply when a policy is surrendered during a specified period.
What are surrender charges?
This occurs when the policy no longer has enough value to cover required charges and the grace period expires.
What is a lapse?
A producer should consider client needs, objectives, finances, and these requirements.
What are applicable laws and carrier rules?
Unlike term insurance, this type of policy is designed to provide coverage for life if properly funded and kept in force
What is permanent insurance?
This can reduce the amount credited when an indexed strategy uses a margin.
What is a spread or margin?
These transactions can reduce policy value and may affect the death benefit and policy and performace
What are loans and withdrawals?
The amount needed to keep a policy in force depends on charges, funding, performance, and these.
What are policy terms and assumptions?
A key reason to review an IUL periodically is to compare actual performance and funding with these.
What are the original assumptions and illustration?