I’ve had a couple advisors call recently with confused clients who have seen a much lighter cash value accumulation on their annual statements than the original illustration projected. A definite cause for concern, especially since the indexes have climbed higher over the past year.
A simple explanation; Policy dates often don’t line up with Index segment crediting dates. These dates can vary depending on the initial funding of the contract. For example, a policy year may run 3/1 to 3/1, however the indexing credit period may run 4/1 to 4/1. In this case, the 3/1 annual policy statement would not include the annual contract gains. Those will be credited one month later on 4/1.
To solve this issue, we can grab the contract values after the crediting period ends. This gets us where we expected to be, in line with the illustrated accumulation value. Sometimes even better!
Hope this helps!!
Mike
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