Page 4 - Understanding IUL Insurance

CASH VALUE OPTIONS
IUL is different than other forms of permanent cash value life insurance. In addition to
offering a traditional declared Guaranteed Minimum Interest Rate on Fixed Interest Accounts ,1 an IUL policy also offers the ability to earn interest that is linked to the movement of a selected stock market index over a specific period of time, such as the S&P 500®, Russell 2000®, EURO STOXX 50® and the NASDAQ-100®.
GUARANTEED FLOOR
An IUL policy may have its cash value directed into one or more Stock Market Indexed Accounts. These accounts are not directly invested in the stock market, however their performance is based on the the performance of these stock market indices. While the stock market index may go up or down, an IUL policy will never be credited less than the Guaranteed Minimum Interest Rate, or the "floor".
If the stock market index goes down, your IUL policy will never be credited a negative interest rate. This mechanism provides downside protection when the stock market index is negative, and the potential for strong cash value accumulation when the stock market index is positive. While you have the potential to earn higher returns when the stock market index is positive, you will have peace of mind that you will not ever have to worry about negative returns.
HIGHLIGHTS:
• The interest rate credited to the policy’s index account value is based on the performance of the index or indices chosen and will never be less than 0%.
• The premiums are not invested in any stocks, bonds, or equity investments.
• The index performance does not include dividends on the stocks that make up each index.
• The premium allocation to an Stock Market Indexed Account does not represent an investment in any index or market.
1 Guarantees are based on the claims paying ability of the issuing insurance company.
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