Whole Life Versus Indexed Universal Life

National Underwriter does an annual article, “Illustrating the Actual vs. Illustrated WL returns of several insurance companies” (Dec. 31, 2007), which shows the difference between the illustrated rates of whole life companies versus the actual returns in the policies. It’s very good information and shows us the problem with being too aggressive with how we illustrate policy returns. I will pick some numbers from the chart I found to be interesting. The chart takes the current illustrated rates and the actual rate of return from 1987–2007.

Whole Life Versus Indexed Universal Life
Source: Producer's Web