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Indexed UL Policy Takes Global View

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American General Life Insurance Company has introduced an equity-indexed universal life insurance policy for internationally minded consumers.

American General is basing the crediting rate for the new AIG Elite Global IUL policy in part on the performance of the Hang Seng Index, which covers Asian stocks, and the Dow Jones Euro Stoxx 50 index, which covers Western Europe, as well as on the Standard & Poor’s 500 Composite Price Index, according to American General, Houston, which is a unit of American International Group Inc., New York.

When computing the crediting rate, American General will look at how the 3 indices perform over a 5 year period.

After adjusting for differences in participation rates, American General will base 75% of the crediting rate on the performance of the top performing index and 25% on the performance of the middle performer, the company says.

American General will ignore the performance of the worst performing index when computing the crediting rate.

The policy provides an annual minimum guaranteed interest rate of 2.5%, even if the indices yield negative returns.

American General is responsible for backing the product guarantees.