Indexed products

Indexed products, especially Indexed Universal Life (IUL) products, have become so popular that the New York Department of Financial Services is investigating the marketing of IULs. The American Council of Life Insurers is also working to find ways to better inform consumers. This session is intended to provide an overview of how indexed products work, the various options available to producers and an update of the latest product innovations. It will also include information on the regulatory scrutiny of indexed products and how advisors can navigate these waters, going forwar...

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INDEXED LIFE INSURANCE PRODUCTS

INDEXED LIFE INSURANCE PRODUCTS (A) INTRODUCTION This bulletin informs life insurers about the Department’s handling of all indexed life insurance products and provides certain requirements for the sale of these products. These contracts are life insurance products where non-guaranteed additional credited interest is based upon a formula that is tied to data or an index outside the contract. Insurance companies frequently use the Standard and Poor’s 500 index. Insurance companies could use other indexes such as the Lehman Brothers’ index. Contract values can vary based upon the performance of the investment markets and the chosen index. The application of the index or outside data to the contract values can vary greatly from contract to contract. The purpose of the requirements...

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