What is the most commonly tracked index in indexed UL and indexed Annuity sales?
Dow Jones Industrial Average
Bloomberg Barclays US Aggregate Bond Index
Participation Rates and Cap Rates can change at the end of each segment period.
The Participation Rate is:
Locked in for the life of the Annuity.
The percentage of the Index Gain applied to the Interest Credit calculation
Can be changed at any time by the carrier during the segment period
Can only be changed at the end of each segment period
Both B and D
Participation rates can reach as high as 150% and higher.
To gain in the good years and not lose in the bad years, approximately ______% of the client’s money is invested in high quality, low-risk investment vehicles, such as corporate bonds and government securities, and the balance is invested in option contracts on the various Indexes.