This whiteboard session walks through five hypothetical index years — up 18%, up 6%, down 12%, flat, up 25% — and shows exactly what a policy with a 0% floor and 10% cap would credit in each, including how fees land on the result.
What the session covers
- Why the credited rate is not the index return
- The sequence-of-returns picture: how floors change the shape of bad decades
- A side-by-side of the same contributions in a taxable index fund versus an IUL design, with honest assumptions in both columns
- Where the illustration software's default assumptions tend to flatter the result
Transcript
A full transcript is available below the video for accessibility, per our content standards. If you prefer reading, the companion article "How Indexed Universal Life Actually Works" covers the same ground.
Hypothetical figures are for education only and are not a projection of any actual product's performance.
IULvideocrediting