In-force illustration every year
The only projection that reflects what actually happened.
Design & strategy · Ownership
The IUL annual review checklist: what to check every year so the policy survives
An IUL is not a set-it-and-forget-it product; it’s a machine with dials the carrier can turn. The owners whose policies work are the ones who review them every year. Here’s the checklist — seven items, one hour, and a policy that stays alive.
Who this is for: Every IUL owner, and every agent who promised to review the policy annually.
The seven checks
One: request an in-force illustration — the current projection based on today’s cash value, caps, and charges — and check the lapse year at the guaranteed column and at a conservative rate. Two: note any cap, participation-rate, or asset-charge changes since last year, and reallocate strategies at the anniversary if warranted. Three: compare actual premiums paid to the funding plan; if a lean year happened, schedule the catch-up. Four: if loans exist, compute loan-plus-interest against cash value and set an alarm threshold. Five: decide whether it’s time to switch from an increasing to a level death benefit as funding ends. Six: confirm the policy remains non-MEC and note the MEC premium for the coming year. Seven: review beneficiaries, ownership, and any trust coordination after life changes.
Why this matters more than the product choice
Two identical policies bought the same day diverge over twenty years based almost entirely on whether they were reviewed: one owner caught a cap cut and reallocated, kept funding on plan, switched the death benefit option on time, and watched loans; the other paid what the bill said and found out at 74 that the policy was dying. The annual review is the difference. If your agent doesn’t schedule it, schedule it yourself — and if they can’t produce an in-force illustration, find one who can.
The essentials
What actually matters here
Loan ratio has an alarm threshold
Decide the number in advance; act when it’s crossed.
The option switch has a date
Increasing to level when funding ends — don’t forget it.
IUL can genuinely fit when…
- You’ll calendar the review at the policy anniversary
- Your agent produces an in-force illustration on request
- You track the funding plan and the loan ratio
- You update beneficiaries after every life change
Slow down when…
- You’ve never seen an in-force illustration
- Nobody told you caps changed
- Loans exist and nobody’s tracking the ratio
Straight answers
Questions people actually ask
What is an in-force illustration?
A projection the carrier produces for an existing policy using its actual current cash value, caps, charges, and loans — showing where the policy is headed under guaranteed and illustrated assumptions from today forward. It’s the single most useful document for an IUL owner and should be requested every year.
How often should an IUL be reviewed?
Annually, at the policy anniversary — when strategy reallocations take effect and a new in-force illustration reflects the year’s crediting and any cap changes. More often if loans are large or funding changed materially.
What should I do if my IUL’s cap was cut?
Reallocate among strategies if another offers better terms, rerun the in-force illustration at conservative rates to see the effect on the lapse year, and adjust funding if needed. A cap cut isn’t fatal to a well-funded policy; it’s fatal to one nobody is watching.
Honest, or not at all
See whether IUL actually fits your situation
Tell us a little about your goals and we'll show you the honest picture — including the guaranteed column, the real costs, and whether term or whole life does the job better. We're paid the same either way, which is why we can tell you the truth.
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- Illustrations explained line by line, guaranteed column first
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