Indexed Survivorship Universal Life increases the upside cash value potential by having interest indexed to equities. No money is actually invested in equities, so there is less downside risk, as with variable universal life.
Compared here is Prudential, the most competitive guaranteed survivor universal life (GSUL) at age 65, verses North American’s Survivorship GIUL , guaranteed indexed universal life.
Age 65 – Quotes
| Face Amount | Annual at Preferred Plus |
Solve | Face Amount/ Cash Value Year 20 non-guaranteed |
Face Amount/ Cash Value 30 non-guaranteed |
Carrier |
| $1,000,000 | $10,551 | life time guarantee (G) | $1,000,000 (G) $32,452 |
$1,000,000 (G) 0 |
Prudential G-SUL |
| $11,501 | lifetime guarantee (G) |
$1,000,000 (G) $227,260 |
$1,000,000 (G) $174,244 |
North American | |
| $11,899 | lifetime guaranteed (G) increasing face amount |
$1,000,000 (G) $1,236,087 $236,087 |
$1,000,000 (G) $1,013,451 $13,451 |
North American | |
| $14,379 | increasing face amount $1 age 100; non-guaranteed (NG) | $1,516,506 $516,506 |
$1,703,636 $703,636 |
North American | |
| $19,209 | increasing face amount endow age 100; non-guranteed (NG) | $1,749,395 $749,395 |
$2,318,908 $1,318,908 |
North American |
North American: S & P 500 Annual Point-to-Point Non guaranteed illustrative rate 8.30%
Comments: Illustrations, required for the applicant to sign, provide very clear charts as to guaranteed elements and non guaranteed projections. What’s best for the couple involved depends on their situation and risk tolerance. I favor increasing face amount policy designs over level face amounts.
Without the lifetime guarantee, couples do run the risk that steadily poor performance over the years would cause the policy to potentially laspe at the current premium. Guarantees on the North American products quoted above were in the 20 year range. Mid point was in the 25 year range. Couples should fully realize how these policies work, both guaranteed and non guaranteed elements, before selecting a product.