An Indexed Universal Life (IUL) quote today with Transamerica allowed a 7.75% maximum to their illustration rate for the S&P 500 Index Account. Consumers should be aware of the wide discrepancies in illustration rates and request, especially for the benchmark S & P 500 index, that all comparison quotes be run at a uniform interest rate, for example 5.00%, not the maximum the allowed. Otherwise product and carrier comparisons are rather meaningless.
Maximum illustration rate S & P 500, annual point to point, 100% participation: May 31, 2017
7.75% Transamerica “Transamerica Financial Foundation IUL®”
6.96% Symetra “Symetra Accumulator IUL”
6.68% Minnesota Life “Orion Indexed Universal Life ”
6.26% Prudential “PruLife® Index Advantage UL”
6.16% American General ” Max Accumulation Plus IUL”
6.09% Voya ” Voya Indexed Universal Life Protector”
5.50% Minnesota Life “Eclipse Protector Indexed Life”
Life Insurance Illustrations National Association of Insurance Commissioners
To provide guidance to policies whose benefits are tied to an external index or indices, the NAIC adopted Actuarial Guideline XLIX (AG 49) on August 16, 2015. AG 49 was developed to bring uniformity to the illustrations of policies tied to an external index or indices by providing a reasonable cap on the illustrated credited rate. Uniformity across illustrates helps clients to more easily compare the policies of different companies.
