IUL Max Illustrated Rate Change Effective 02/01/21

Effective February 1, 2021, the IUL maximum illustrated rates in WinFlex Web will increase slightly as follows:

Income Advantage IUL:

• 100% Participation Rate with 10% Cap:  Increasing from 6.17% to 6.20%
• 140% Participation Rate with 7% Cap:  Increasing from 4.74% to 4.77%
• 50% Participation Rate with No Cap: Increasing from 5.80% to 5.84%

Life Protection Advantage IUL:

• 100% Participation Rate with 8.5% Cap:  Increasing from 5.42% to 5.45%
• 140% Participation Rate with 6% Cap:  Increasing from 4.11% to 4.14%
• 40% Participation Rate with No Cap: Increasing from 4.66% to 4.69%

IUL Express:

• 100% Participation Rate with 9.25% Cap:  Increasing from 5.80% to 5.84%
• 140% Participation Rate with 6.50% Cap:  Increasing from 4.43% to 4.46%
• 45% Participation Rate with No Cap: Increasing from 5.23% to 5.27%

Please note, only the maximum illustrated rate is changing. The IUL participation rates and caps will remain the same for February 2021.

Why is the max illustrated rate increasing? The original Actuarial Guideline 49 (AG49), which was introduced in September of 2015, provided insurance companies with a standardized way to calculate the maximum illustrated rate. Part of this calculation takes into account how the index has performed over a look-back period. This period averages the annual return for all possible 25-year periods from the most recent 65 calendar years. After the close of each calendar year, we recalculate the maximum illustrated rate taking into account a new 65-year look-back period. The maximum illustrated rates going into effect on February 1st use the S&P 500 performance from 1956-2020.

To learn more about Income Advantage IUL, Life Protection Advantage IUL and IUL Express, visit discoveriul.com.