Changing financial tides could hit IUL cap rates

January 3, 2023 by Kyle Mills

Indexed universal life (IUL) cap rates have reached low tide, which makes long-term projections much less attractive for current and future policyholders.

It is not hyperbole to say “every IUL policy sold in the last 10 years illustrates lower today than it did when it was sold,” assuming maximum illustrative rates. Some will argue this, but that does not provide answers about the future of permanent products, including whole life, IUL and universal life (UL).

Click HERE to read the full story via INN

Wink’s Note: I found this article somewhat odd. It didn’t even mention new money vs. portfolio crediting on life insurance products.
 The author, Kyle Mills thinks that indexed life cap rates are going to increase in the first half of 2023. What do you think?  Join in the conversation HERE. – sjm

Originally Posted at InsuranceNewsNet on January 1, 2023 by Kyle Mills.