We're no strangers to voicing our concerns about lofty indexed universal life insurance assumptions. In fact, we were an early voice seeking to temper the returns on IUL as the product began picking up serious steam nearly a decade ago. Then came the complaints from major life insurers. Most of those insurers had a vested interest in subduing index accumulation figures.
Those companies dealt heavily in the whole life insurance space and sought to bring expectations closer to their own cash value projections. Right, wrong, or indifferent, they won a small victory in 2015. The NAIC formulated Actuarial Guideline 49, which placed several restrictions on the assumptions agents could make concerning the projected index accumulation rate on indexed life insurance products.