Indexed Crediting and Flexible Funding

Read the Free Lesson → free · no signup wall

Chapters in this video

  1. 0:00 Index ownership and contract crediting
  2. 1:16 Cap, participation, spread, and floor
  3. 2:29 Participation, cap, and spread calculations
  4. 3:39 Floor, charges, and lapse risk
  5. 5:07 Indexed versus variable life
  6. 5:43 In-force illustrations and projections
  7. 6:09 Rapid-fire exam recap

What this video covers

  • How indexed life uses an external index to calculate credits without giving the policyowner direct ownership or voting rights
  • What caps, participation rates, spreads, and floors do in a crediting formula
  • How to calculate a credit using participation and a cap, following the contract’s stated order
  • Why a participation rate multiplies an index change while a spread subtracts percentage points
  • How charges can reduce policy value despite a floor, and how flexible funding can still lead to lapse
  • How indexed crediting differs from variable life subaccounts and their direct investment performance
  • How to read guaranteed and non-guaranteed columns in an in-force illustration without treating projections as promises

Read the full lesson, free

This video's complete written lesson is free to read in the CertFuel app, no signup wall. The complete Life and Health course also includes adaptive practice questions and spaced-repetition flashcards, available in Free Beta.

Read the Free Lesson → free · no signup wall