The Floor in an Indexed Universal Life insurance policy refers to the minimum interest rate that is credited to the cash value of the policy, regardless of the performance of the index it is tied to. It provides a safety net for policyholders by ensuring that, even in a poor market scenario, the cash value will not decrease below a certain predetermined level due to market fluctuations.
The Floor in an Indexed Universal Life insurance policy refers to the minimum interest rate that is credited to the cash value of the policy, regardless of the performance of the index it is tied to. It provides a safety net for policyholders by ensuring that, even in a poor market scenario, the cash value will not decrease below a certain predetermined level due to market fluctuations.
Typically, the floor is set at 0% or 1%, meaning that even if the market performs negatively, the policyholder's account will not lose value due to investment performance.
The Floor in an Indexed Universal Life insurance policy refers to the minimum interest rate that is credited to the cash value of the policy, regardless of the performance of the index it is tied to. It provides a safety net for policyholders by ensuring that, even in a poor market scenario, the cash value will not decrease below a certain predetermined level due to market fluctuations.
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