We always like to see clients’ policies being credited at their cap rates; however, in a down market we also like to see that your clients are protected. Down markets are often where the value proposition of an IUL product is truly revealed – they show how your client can not only experience upside potential, but also have downside protection.

Our client-approved historical performance flyers for Income Advantage IUL and Life Protection Advantage IUL show how clients have received credits when the S&P 500 has been up (equivalent to the cap rate in most months), and now based on December and January’s S&P 500 performance, these flyers also show how their downside was limited to the 0.00% floor.
 
Will a Client’s Cash Value Decrease in a Down Market?
One thing clients need to be aware of is that in a down market they can still experience a decrease in their policy value – this loss comes in the form of the policy’s charges and fees. When the S&P 500 is down, all carriers are crediting 0.00%, but your client will experience a greater loss with carriers that have higher policy charges and fees.

That is why we are proud to be the carrier with some of the lowest policy charges in the industry. In a month where the S&P 500 declines from the previous year, our clients will feel less of an impact than they would with a competitor policy that has higher charges.

Take a look at our IUL cost comparison flyer >>
 

How Do Index Loans Work in a Down Market?
If your client has an index loan on their policy, it is important to know that in months where the S&P 500 is down, the client is still receiving charges on their index loans – charges that are not offset by interest credits. Clients should be aware of this and know the impacts this could have on their policy’s performance. With our IUL policies, the maximum we will ever charge your client on their index loan is 6.00% – GUARANTEED, which limits their downside risk. With other carriers, the index loan rate could change, leaving your client susceptible to additional risk.

Learn how this works in our index loan flyer >>
 

Out IUL Philosophy
We are proud to offer straightforward IUL products where clients has upside potential and downside protection without all the complexity that you will find in many products on the market today. When products offer complex features, they often come with additional policy charges and fees – ones that could put your clients’ policies at more risk, especially in a down market.

For even more information on our IUL products, visit discoveriul.com.
 

IUL Performance in the Current Markets

 
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