The Index universal life insurance policy that not only offers a death benefit, but also potentially Policy Value accumulation without exposure to market declines.
The Index Universal Life II policy offers the option to allocate your net premiums* to a Basic Interest Account, the S&P 500® Index Account, or a combination of the two.
Do your goals require a stable Policy Value or potentially higher Policy Value accumulation?Regardless of your choice, you have the security of a Guaranteed Minimum Interest Rate.
You control how your net premiums are allocated When a premium payment is made, it is applied to the Basic Interest Account,the S&P 500® Index Account, or both, according to your instructions.
The S&P 500® Index Account In Detail
The S&P 500® Index Account is credited with Excess Index Interest based, in part, on changes in the S&P 500® Index, excluding dividend income.The net premiums that are allocated to the S&P500® Index Account earn interest at a guaranteed minimum effective annual interest rate of 1%throughout each Segment Period.
At the end of each Index Account Segment Period, the Company determines whether any Excess Index Interest (earnings above the guaranteed minimum rate) will be credited for the Segment Period just ended.
Understanding Segments
How the Segment Periods affect your Account Option.
* Segments are components of the Account Options to which net premiums and/or transfers of Policy Values are allocated.
* There are up to 12 Segments and each Segment begins on a Monthly Policy Date.
* Each Segment lasts for 12 months (the Segment Period).
* The value of an Account Option is the sum of its Segment values and any amount pending application to that Segment.
* Net Premiums received on dates other than the Monthly Policy Date will be credited with minimum index account interest for the S&P 500® Index Account and current interest for the Basic Interest Account until they are allocated to the next Segment
The S&P 500® Index is one ofthe most well-known market benchmarks.
Commonly used for index insurance products, the S&P 500® Index tracks 500 large cap common stocks actively traded in the United States, and is one of the most well known market benchmarks.
The Index Universal Life policy’s Index Account is credited with excess interest based in part, on changes in the S&P 500® index, excluding dividend income.
The Index Value is the closing value of the Index, generally as of 4:00 M Eastern time on a date on which the Index is published.
Since its first publication in 1957, the S&P 500® has been widely regarded as the best single gauge of large cap stocks in the United States.
Index changes may be positive or negative, but the policy have two Guaranteed.
Minimum interest rate:
However, you have the security of knowing you will never be credited less than the guaranteed minimum interest rate(0%-1%).
CAP interest rate :
The maximum percentage of index change your index account can be credited(12%,13%, 15%....).
Participation Rates
The Freedom Index Universal Life II does not use a participation rate method in calculating Excess Index Interest.
Caps
The Cap is the maximum percentage of Index Change that can be used to determine the amount of Excess Index Interest credited to an Index Account Segment. At the end of each 12-month Segment Period, we compare the Cap to the Index Segment’s index change percentage.
The interest crediting rate equals the lesser of the Cap or the Index Segment’s index change percentage.
The Cap is set by the Company at its discretion at the beginning of each Segment Period. The Cap may increase or decrease and may differ between Index Account Segments.
Tax-Free Death Benefit
Tax-Deferred Earnings
Tax-Free Transfers
Tax-Free Loans and Cash Withdrawals
Security of a No-Lapse Guarantee
Flexible Premium Payments
Income Protection Option (IPO)
Death Benefit Options: level or Increasing