Lowered Index Expectations

We have discussed indexed universal life insurance (IUL) at great length in previous podcast episodes, but we know the big question remains: does it work? So, to further investigate that question, we decided to update a bit of an experiment we ran about ten years ago. We will use a hypothetical IUL contract (a real contract from which we have borrowed heavily, but we won't name names) with a minimum interest rate of 0% per year and a maximum of 10%.  We're viewing this from two different approaches, one will be a model based on Monte Carlo methods, and the second will be a historical analysis of 140 years of annual growth in the S&P 500 index. With the S&P index, we used a mean return of 10% with a standard deviation of 15%. If that comparison interests you, please listen to the full episode. __________________________________________ If you'd like to explore your own life insurance strategy, please click right here to get in touch with us. We work with people nationwide every day, and we'd be happy to hear from you too.