Account Value

Account Value in an IUL policy refers to the total amount of money accumulated in the policy after premiums have been paid and interest has been credited, minus any withdrawals, loans, or charges. It reflects the cash value component of the IUL policy, which can be influenced by the performance of a chosen index (e.g., S&P 500) without directly participating in the stock market. The Account Value can be accessed during the policyholder's lifetime through policy loans or withdrawals and plays a crucial role in determining the death benefit and maintaining the policy's active status.

Note: While the Account Value can grow based on the index's performance, IUL policies typically have both a guaranteed minimum interest rate (floor) to ensure the value doesn't decrease due to negative market performance and a cap rate, which limits the maximum interest credited in highly positive market conditions.