Universal and Indexed Life
Chapters in this video
What this video covers
- How universal life separates the death benefit from account value, and how premiums, interest, charges, loans, and withdrawals affect that value
- Why flexible premiums do not make a policy self-funding, and how a funding shortfall can lead to a grace period and lapse
- How adjustable-life changes may involve underwriting, insurer approval, and effective dates
- How declared interest differs from indexed crediting, and why policyowners do not directly invest in the index
- What a cap, participation rate, spread, and floor each do to an indexed interest credit
- Why an index-credit floor does not prevent policy charges from reducing account value or guarantee that coverage stays in force
- How to compare guaranteed and non-guaranteed projections, calculate the effect of lower interest credits, and convert monthly premiums to annual budget amounts
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.