Monthly Point-to-Point Method

In insurance, especially within Indexed Universal Life (IUL) policies, the Monthly Point-to-Point method is a notable strategy for interest crediting. Its features include:

• Crediting Strategy: Determines how interest is credited to the policy's cash value.
• Index Performance-Based: Relies on the changes in a selected market index.

Process and Calculation:

• Monthly Index Tracking: Monitors the index's performance each month.
• Annual Interest Credit: Interest is applied to the policy at the end of each contract year, based on this monthly tracking.

This method offers a dynamic way to calculate interest, aligning the policy's growth with market trends, and providing a mechanism for potentially enhancing the cash value of an IUL policy.