How do index account segments work?

For Accumulation IUL:

  • New segments are created on the
15th of each month when premium is moved from the holding account. Index parameter rates can fluctuate, but are guaranteed until the segment matures.
  • A policy may contain multiple segments at one time. Each segment lasts for one year.* Once an allocation is made, it cannot be reallocated until the segment ends.
  • Each segment will determine the amount to credit upon the segment's maturity date. At each segment maturity date, account value can be reallocated to any available index option and/or the fixed account.

For more information, refer to the Accumulation IUL Rate Sheet or the Accumulation IUL Agent Guide

*Indexed accounts formed in the first policy month mature after 11 months. All other index segments mature after one year.

Updated