Question 1009 of 287 · Texas Life, Accident and Health Agent Exam
How does indexed universal life credit interest to the cash value?
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Correct answer to question 1009
- C: Interest is tied to the performance of a market index, usually with a cap and a floor
Explanation
Indexed life links credited interest to an index such as the S&P 500, but the owner does not invest directly in the market. A floor (often zero percent) protects against loss while a cap or participation rate limits the gain.
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