Allocating the IUL Premium
When making your IUL premium payment, the policy holder may be able to choose different deposit options. Some insurance carriers use what is known as a “bucket” strategy for allocating the premium dollars.
For instance, each premium payment could be handled as a separate “bucket” – either fixed or indexed – and within the indexed buckets, they could even have different index starting points, different possible credited interest rates, and even different annual reset points with which to begin the next index period.
Example IUL Investment Choices.
As an example, a policy holder may be able to choose from options such as the S&P 500, the Russell, the Dow Jones, the Gold Index, and even from a variety of different foreign market indexes.