An FIUL policy from Allianz Life Insurance Company of North America (Allianz) starts with a death benefit that is generally income-tax-free to beneficiaries. But it also provides your clients the opportunity to build accumulation value based on positive changes in external market indexes.
However, different index allocation options react differently depending on the economic environment.
Because it’s impossible to predict future market environments and which index allocation option (or fixed allocation) could provide the best result in a given year, having multiple allocation options can help your clients seek more consistent results.
Diversification can help reduce risk, smooth out volatility, and potentially help clients avoid receiving a zero interest credit from their index allocations.