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How an Index Account Works
Indexed Universal Life Insurance
It provides two main advantages:
Death Benefit Protection and an Index Account that Shields You from Negative Returns through a zero percent floor and subject to a cap.
Rules of the Game
If the Index Account were a game of football and the football team an index selection in a life insurance policy, here’s a breakdown of how the Index Account works in simple terms.
It's always first down.
You can never lose yards.
Up to a 12 yard gain per play.
Midland National changes the rules!
Watch the Play-By-Play below.
The Play-By-Play
Take a look at what happens with these "new rules" in the play-by-play below!
BACK TO STARTClick on the "Next" button or the numbers here to view Play-By-Play!
SCROLL TO GAME SUMMARY
Under normal rules, the team would have gained a total of 19 yards (gains of 10, 8, and 19 with a loss of 18 yards) and the ball would have been spotted at the 39-yard line.
However, with the new rules, the team, gained 30 yards and the ball is spotted squarely at the 50, which is an
extra 11 yards downfield!
What does this mean for you?
Imagine if the football team was an Index Selection such as S&P 500® Annual Point-to-Point in a life insurance policy. The maximum 12-yard rule represents the cap rate, and the fact you never lose yards is similar to no downside risk. Each play is a year and the yardage gains are locked in interest crediting!