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Market History Report

Why use an Index Universal Life for Premium Finance rather than a Whole Life Product?

The earnings rate of the underlying life contract needs to have sufficient earnings above the loan rate incurred by the premium finance loans.  In the case of Whole life products the company declares the Dividend Rate for the year ahead, while the Index Universal Life products provide policy credits base on index allocation choices.


There has been a generally declining trend in Whole Life dividend payments over the last 30 years.  The average 2018 dividend rate is 5.46% on Whole life policies which is not sufficient to provide an ongoing arbitrage between the finance loan rate and the dividend rate.  

For further details about IUL crediting see:  Market History Report

Historical Dividends of Whole Life Products (1988 - 2017)

Related Video:

What is PremiumLife™? 

This animated video explains the key benefits and risks of a PremiumLife™ Indexed Universal Life insurance strategy and shows viewers how it works in simple terms.

Information provided is general and educational in nature, and is not intended to be, and should not be construed as, legal or tax advice. Universal Financial Consultants does not provide legal or tax advice. Laws of specific states or laws relevant to a particular situation may affect the applicability, accuracy or completeness of this information. Federal and state laws and regulations are complex and subject to change. Universal Financial Consultants makes no warranties with regard to the information or results obtained by its use. Universal Financial Consultants disclaims any liability arising out of an agent’s use of or reliance on, the information.


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