Index Performance and Rates
Indexed Universal Life insurance (IUL) provides death benefit protection and the opportunity to earn interest based on the upward movement of a stock index such as the S&P 500®. However, money is not actually invested in the stocks that make up the index, and the products are subject to all policy fees and charges normally associated with most universal life insurance.
The charts below provide historical performance of the two index crediting methods available with XL Heritage IUL. You may choose to allocate premium into any combination of one or both index crediting methods and/or the policy's fixed interest account.
The following chart shows historical detail for each year in the most recent 20-year period. While not a predictor of future results, this historical view of returns can help demonstrate how these index options have performed in the past to help you decide which index options are right for you. These calculations assume money is allocated on December 31 or the next available business day if the 31st is not a business day.
Average Rate of Return
The average rate of return uses the current index cap rate, index spread rate and index participation rate, and assumes money is deposited on each business day of the year (the floor of 0% is applied in each year.) All index crediting methods may not be available in all jurisdictions. The Maximum Illustrated Rate is the average return (using current cap rates) of a rolling 25-year period over a 65-year time span or, if less, the longest time span available.
Caps, Spreads, and Participation Rates
In addition to providing death benefit protection and a simple way to maximize your legacy, XL Heritage Indexed Univeral Life insurance offers the opportunity for cash value growth through a Fixed Account and an Index Account. You can allocate money to either account, or to a combination of both.
The Fixed Account offers a current interest rate, which is subject to change based on the current interest rate environment. However, the Fixed Account offers a Guaranteed Minimum Interest Rate.
Current Interest Rate: 3.20%1
Guaranteed Minimum Interest Rate: 0.25%
The Index Account credits interest based on the upward movement of the S&P 500® Composite Stock Price Index. Interest credited is limited on both the “top” and “bottom". The Index Account features a zero percent floor, meaning that interest credited is never less than zero percent. So, the Index Account can’t lose money due to poor index performance. While Indexed Universal Life insurance provides the opportunity to earn interest on the upward movement of a stock index, your premiums are not actually invested in the stocks that make up the index.
Interest credited in the Index Account may also be subject to an Index Cap, Participation or Spread Rate depending on the index and crediting method you select.
Index Selection Options
XL Heritage offers two index selections—S&P 500® Annual Point-to-Point and S&P 500® Annual Point-to-Point with Spread. You can choose to allocate your money to a combination of the index selections shown below. Index caps and spread rates are evaluated and changed periodically. Regardless of which index selection(s) you choose, the participation rate of 100% and a floor of 0% is guaranteed.
Use the following to determine which caps and spreads apply to the current version of the XL Heritage product. Please note, rates provided are specific to new issues; rates for inforce policies may be different.
Index/Crediting Method: S&P 500® Annual Point-to-Point
Current Index Cap Rate: 6.50%
Minimum Index Cap Rate: 0.50%
Current Index Spread Rate: None
Maximum Index Spread Rate: None
Index/Crediting Method: S&P 500® Annual Point-to-Point with Spread
Current Index Cap Rate: None
Minimum Index Cap Rate: None
Current Index Spread Rate: 5.75%
Maximum Index Spread Rate: 30%
With Midland National's XL Heritage product, policy loans are available starting in the first policy year. Loan requests can be made at any time and are processed immediately.
Current: 4.00% All Years
Guaranteed: 6.00% All Years
Current: 3.00% All Years
Guaranteed: 0.25% All Years
The historical rates provided are indicative of past performance and are not intended to predict future performance. Rates are rounded to the nearest 0.1%.
THE S&P 500® COMPOSITE STOCK PRICE INDEX
This index does not include dividends paid by the underlying companies.
The S&P 500® is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by Midland National Life Insurance Company (the Company). Standard & Poor’s®, S&P®, and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by the Company. The Company’s Product(s) are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, any of their respective affiliates (collectively, “S&P Dow Jones Indices”). S&P Dow Jones Indices makes no representation or warranty, express or implied, to the owners of the Company’s Product(s) or any member of the public regarding the advisability of investing in securities generally or in the Company’s Product(s) particularly or the ability of the S&P 500® Indices to track general market performance. S&P Dow Jones Indices’ only relationship to the Company with respect to the S&P 500® is the licensing of the Index and certain trademarks, service marks and/or trade names of S&P Dow Jones Indices or its licensors. The S&P 500® is determined, composed and calculated by S&P Dow Jones Indices without regard to the Company or the Company’s Product(s).
S&P Dow Jones Indices have no obligation to take the needs of the Company or the owners of the Company’s Product(s) into consideration in determining, composing or calculating the S&P 500®. S&P Dow Jones Indices is not responsible for and has not participated in the determination of the prices, and amount of the Company’s Product(s) or the timing of the issuance or sale of the Company’s Product(s) or in the determination or calculation of the equation by which the Company’s Product(s) are to be converted into cash, surrendered or redeemed, as the case may be. S&P Dow Jones Indices has no obligation or liability in connection with the administration, marketing or trading of the Company’s Product(s). There is no assurance that investment products based on the S&P 500® will accurately track index performance or provide positive investment returns. S&P Dow Jones Indices LLC is not an investment advisor. Inclusion of a security within an index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, nor is it considered to be investment advice. Notwithstanding the foregoing, CME Group Inc. and its affiliates may independently issue and/or sponsor financial products unrelated to the Product(s) currently being issued by the Company, but which may be similar to and competitive with the Company’s Product(s). In addition, CME Group Inc. and its affiliates may trade financial products which are linked to the performance of the S&P 500®.
S&P DOW JONES INDICES DOES NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE S&P 500® OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P DOW JONES INDICES SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY THE COMPANY, OWNERS OF THE PRODUCT(S), OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE S&P MIDCAP® and the S&P 500® INDICES OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. THERE ARE NO THIRD PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND THE COMPANY, OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES.
The current Index Participation Rate, Cap Rate, Index Spread Rate, and Index Floor Rate reflect current rates as of this publishing and are subject to change. For updates to these rates, please contact your Midland National agent.
1. The current Fixed Account Rate reflects the current rate as of this printing and is subject to change.
The primary purpose of life insurance is to provide a death benefit to beneficiaries.
Income and growth of accumulated cash values is generally taxable only upon withdrawal. Adverse tax consequences may result if withdrawals exceed premiums paid into the policy. Withdrawals or surrenders made during a Surrender Charge period will be subject to surrender charges and may reduce the ultimate death benefit and cash value. Surrender charges may vary by product, issue age, sex, underwriting class, and policy year.
Life insurance policies have terms under which the policy may be continued in force or discontinued. Current cost of insurance rates and interest rates are not guaranteed. The Index Accounts are subject to caps, participation rates and spread rates. In no case will the interest credited be less than 0 percent. Please refer to the customized illustration provided by your agent for additional detail. The policy’s death benefit is paid upon the death of the insured. The policy does not continue to accumulate cash value and excess interest after the insured’s death. For costs and complete details, write to Midland National Company, Client Communications, One Sammons Plaza, Sioux Falls, SD 57193, or call
Indexed Universal Life products are not an investment in the “market” or in the applicable index and are subject to all policy fees and charges normally associated with most universal life insurance.
XL Heritage is issued on policy form series L145 respectively by Midland National Life Insurance Company, Administrative Office, Sioux Falls, SD 57193. Products, features, riders, endorsement or issue ages may not be available in all jurisdictions. Restrictions or limitations may apply.
NOT FDIC/NCUA INSURED, MAY LOSE VALUE INCLUDING LOSS OF PRINCIPAL, NO BANK/CU GUARANTEE, NOT A DEPOSIT, NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY.