Dollar Cost Averaging

When the market index linked to your IUL performs well, your premium purchases fewer index credits. Conversely, when the market index is down, the same premium amount buys more index credits. Over the long term, dollar cost averaging may lower the average cost of your index credits, potentially leading to greater cash value accumulation in your IUL policy.

Key Points to Consider for IUL Dollar Cost Averaging

• IUL policies offer the flexibility to adjust premium payments, but consistent contributions via dollar cost averaging can be a strategic approach
• A single premium may be paid and then drip-fed over 12 months into a stock market index being tracked by the IUL insurer
• The potential benefit lies in smoothing out the impact of market volatility on cash value growth.
  
• It's essential to remember that IUL performance is tied to the chosen index and has caps and participation rates that can impact returns.

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