Vesting Schedule

A Vesting Schedule typically refers to the predetermined timeline that outlines when policyholders gain full ownership or rights to the accumulated cash value or additional benefits within their policy. While IUL policies generally allow policyholders to access their cash value through loans or withdrawals, certain bonuses or incentives offered by the insurance company may be subject to a vesting schedule. This means that the policyholder must maintain the policy for a certain period of time before fully benefiting from these additional features. The vesting schedule ensures that the policyholder is committed to the policy and helps the insurance company mitigate early withdrawal risks.