August 31, 2023
US Pacesetter Index 101
What it is and why clients may want to add it to their inforce policies.
In October, the US Pacesetter Index will become available for inforce IUL policies, so now is a good time to review why we offer this indexed crediting strategy.
Approach
US Pacesetter seeks to optimize growth potential while systematically managing exposure to risk.
Asset classes
US Pacesetter invests in three asset classes*:
- S&P 500® futures
- 10-year U.S. bond futures
- Commodity futures (long and short)
US Pacesetter Index diversification across asset classes can help drive consistency in returns and reduce risk.
Allocation
US Pacesetter shifts allocation depending on whether the U.S. economy is in a growth phase, intermediate phase, or shrinking phase.
Indexed crediting strategies
US Pacesetter is one of two No Cap strategies available to your clients.
To learn how index crediting works and what other indexed crediting strategies are available, log onto the agent portal and visit the Indexing overview page.
Inforce availability
The following policies will be able to take advantage of the US Pacesetter indexed crediting strategy:
- FlexLife and PeakLife IUL policies issued between 10/28/2019 and 09/24/2022 (except in NY)
- SurvivorLife IUL policies issued between 05/03/2021 and 09/24/2022 (except in NY)
* Indexed life and annuity products do not directly participate in any stock or equity investments. When discussing this or other index strategies with your client, explain that this is not an investment in the market and that this is a method for crediting interest and disclose any cap, participation rate or threshold that will apply. For an Index with volatility control and the additional costs deducted from the Index value, the positive Index value change may be less than that of similar indices that do not include volatility control and do not deduct these costs. This may result in less interest that will be credited. When included in a fixed indexed life or annuity product with the protection of a 0% floor, the benefit of reduced downside will not be realized for index returns below 0%. There is no guarantee that index objectives will be met. For more information on the index, please refer to flyer above.
