IUL Stress Test

What if the illustration is too optimistic?

Change the crediting rate, funding duration, charges, and loan assumptions. This simplified model shows sensitivity—it is not a carrier illustration, policy projection, quote, or guarantee.

The model applies a constant annual credit after premium, subtracts a flat annual charge, and compounds loan interest. Real policies use monthly charges, changing cost of insurance, contract-specific crediting and loan mechanics, surrender charges, death-benefit tests, and other variables.

Illustrated path · year 30 net
$477,187
Stress path · year 30 net
$200,521
Illustrated assumptionStress assumption
Request a contract-specific review

What to request from the actual carrier

  • Guaranteed, current, and lower-crediting in-force illustrations.
  • Year-by-year charges and the maximum contract charges.
  • Current cap, participation, spread, and bonus mechanics—and what can change.
  • Fixed vs participating loan terms, loan rate, and treatment of borrowed value.
  • Premium needed to maintain the original objective under each scenario.
  • Lapse year, surrender value, death benefit, and tax consequences with loans.
NAIC illustration materials