Flexible to fund

FLEXIBLE TO FUND

How your IUL TermVest+ payments work

Holding Account

When you make a payment, your money goes into the holding account, where it sits until the 15th of the month. Policy charges are taken out while in the holding account. Your money earns interest while in the account.

Fixed or Index Account

On the 15th, the remainder of your payment is allocated to an index interest account, and/or a fixed interest account – your choice.

Cash Value Growth

Your cash value can grow tax-deferred in both the fixed account and the index account.

The cash value in the index account grows based on the performance of a stock market index. But, you can’t have less than a 0% interest credit. You’ve got upside potential with no downside risk. Although you won’t lose money due to a negative index performance, your cash value can decrease due to policy charges. Fixed account has a guaranteed fixed interest rate of at least 1% for one year. It adjusts at the end of every year. Index Universal Life is life insurance which offers the opportunity to earn index interest based in part on the performance of an underlying index. Indices are not available for direct investment.

FLEXIBLE TO FUND

Understanding accounts

You can treat your policy like a traditional term life insurance policy, or you can choose to increase your payment and build your cash value. If you pay more than the minimum, here’s how funding works.

Every month your policy payment is initially placed in the holding account where interest is credited daily at the fixed account rate. After policy charges are deducted from your payment, you may move any remaining payments to the fixed account and/or the index account (subject to certain requirements).

How you choose to allocate this money is up to you. You can split it 50-50, put it all in one account, or do anything in between!

Please note that, by paying only the premium required for your policy during the fixed payment period, you may be forgoing the potential to build tax-deferred cash value. While these policies offer the potential to build cash value, this is not their primary purpose.
It's important to note the primary purpose of IUL TermVest+ is death benefit protection, but the potential to build cash value is a featured policy benefit. If you choose to pay only the minimum premium required during the fixed cost period, you may be forgoing the potential to build tax-deferred cash value.

FLEXIBLE TO FUND

How is interest credited in the fixed account vs. the index account?

The fixed account is credited interest on a daily basis, similar to a traditional savings account.

Because of the nature of the index account, it credits interest a little differently. If money is moved to the index account, the policy will have a new segment created on the day of transfer. This segment lasts for one year from that date. The next month, a new segment is created. So a policy may have a segment for each calendar month in which money is allocated to the index account.

At the end of the one year period for the segment, the interest credited will be calculated based on the specifics of that segment.

At the end of a segment, the policyholder may 1) restart a new index account segment or 2) reallocate the segment’s maturing value to the fixed account.

Everly

IULTermVest

Coverage for the unpredictable + Cash for the predictable