Some Index Universal Life insurance policies link interest credited to the cash value and premium financing rates to SOFR. Changes in SOFR can, therefore, impact the growth of your policy's cash value and the cost of borrowing if you are using premium financing to fund your IUL policy.
The Secured Overnight Financing Rate (SOFR) is a key benchmark interest rate that measures the cost of borrowing cash overnight using U.S. Treasury securities as collateral. It's a broad measure, incorporating various types of short-term loans, and serves as a critical reference rate in financial markets.
Some Index Universal Life insurance policies link interest credited to the cash value and premium financing rates to SOFR. Changes in SOFR can, therefore, impact the growth of your policy's cash value and the cost of borrowing if you are using premium financing to fund your IUL policy.
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