How Market Index Linkage Works in Indexed Universal Life Insurance

Indexed Universal Life insurance links cash value growth to a market index—such as the S&P 500—without directly investing in the market. Policyholders benefit from positive index performance while being protected from losses through a guaranteed floor.

What Does “Index-Linked” Really Mean?

Index linkage means:

• Your cash value growth follows an index’s performance

• You do not own stocks or mutual funds

• Losses are limited by a floor, often 0%

This structure creates a risk-managed growth strategy.

Common Index Options

• S&P 500

• NASDAQ 100

• Multi-index blends

• Fixed interest options

{Index availability depends on carrier offerings.}

Caps, Floors, and Participation Rates Explained

Caps

Maximum interest credited during a period.

Floors

Minimum guaranteed interest (often 0%).

Participation Rates

Percentage of index gain applied to your policy.

These controls balance growth opportunity with stability.

Why Index Linkage Appeals to Ohio Families

• Reduces exposure to market volatility

• Supports conservative growth strategies

• Provides transparency

• Aligns with long-term planning goals

Summit Shield uses index linkage to help clients stay in the game during downturns without panic-driven decisions.

Who Is Index Linkage Best For?

• Professionals seeking tax-advantaged growth

• Business owners diversifying assets

• Families prioritizing capital preservation

• Individuals uncomfortable with market swings

Conclusion

Market index linkage allows Indexed Universal Life insurance to deliver growth potential without full market risk. For Ohio families focused on long-term stability, this structure provides a disciplined, shielded approach to wealth accumulation.