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