Does IUL indexed interest compound? Learn what happens after indexed interest is credited, how policy values can build over multiple crediting periods, and why cash-value growth is not the same thing as simply compounding an index return.
How is IUL indexed interest actually calculated? Follow the process from index movement to participation rate, cap, spread, floor, and the final indexed-crediting result, then see why that number is not the same as your policy’s overall return.
What is an IUL spread? Learn how a spread can reduce an indexed-crediting result, how it differs from a cap and participation rate, and why it can matter when projecting retirement income.
What does an IUL participation rate actually mean? Learn how participation rates affect indexed interest, how they differ from caps, and why the rate used in an illustration can change projected retirement income.
What does an IUL cap actually do? See how a 10% cap can limit indexed interest during strong index years, how it works with a 0% floor, and why cap assumptions matter when projecting retirement income.
Is an IUL actually invested in the S&P 500? No. Learn what “indexed” really means, how the S&P 500 can affect indexed interest, and why IUL crediting is different from owning an index fund.