Indexed Universal Life (IUL) Insurance

Upside potential with downside protection

We at Lowdermilk & Associates have partnered with Midland National to offer Indexed universal life (IUL) insurance. IUL provides the opportunity to earn interest based on the upward movement of a stock index. However, money is not actually invested in the stocks that make up the index.

1. When premium is placed into an index account, the beginning value of the index is recorded.
2. After 12 months, the change in the index value is calculated.*
3. Based on the change in the index value, interest is credited to the index account, subject to a maximum (cap) and a minimum (floor). The index floor means that the index account value doesn’t decrease below its annual starting point due to changes in the index value. Let’s take a look at the cause-and-effect relationship between the index and the index account using a fictional index. There are three different scenarios that could happen – the cap year, the floor year, and the between year.