I heard John Hancock recently came out with some illustration software that will calculate the actual illustrated rate you should be using when running an IUL illustration (based off cost/history/caps etc...). Has anyone heard of this?
I heard John Hancock recently came out with some illustration software that will calculate the actual illustrated rate you should be using when running an IUL illustration (based off cost/history/caps etc...). Has anyone heard of this?
But NAIC suggested regs (which most companies have adapted to) have the illustration software default to the 20 year or 30 year historical lookback based on the Current policy parameters.
If this is what you are referring to then they are definitely not the first to do this.
Most IUL companies have lots of "historical" data based on the current policy design. And many illustration systems have that option in the illustration itself.
Also, I would suggest modifying the default rate to a lower one, such as 6.5% or 7% max. It is a more probable number based on rolling historicals.
Thank you for the info but I did locate it. Essentially you tell it what you think the S&P 500 will return "long-term" and then it backs into what it thinks the right "translated" rate would be, based upon your cap & participation rate, incorporating black-scholles for option pricing and looking at historical pricing.
