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Hi Synchro,

This is all handwaving BS, Dave. All you're saying is that the return the insurance company gets using whatever is in their investment account will factor into how generous they can be with caps and floors.
No... you're failing to read what I actually wrote, even despite actually re-quoting it in italics.

Care to try again?

That is, simply, a separate issue from THE WAY THE COMPANY CREDITS THE ACCOUNT, which is EXPLICITLY stated in the contracts to reflect THE CHANGE IN THE INDEX, period. No more, no less.
NO... 2 things more;
1. A floor credit level, which the account receives no matter whether the index hits it or not, and,
2. A periodic ceiling credit level, which is the maximum the account receives.

These floor and ceiling parameters matter (at least if you've been paying *any* attention to Ray,)
AND
These floor and ceiling parameters are determined by the option spread pricing,
WHICH
is determined, in part, by the dividends of the underlying.

If you can SUPPLY SOMETHING FROM A COMPANY THAT ISSUES IULs which states that the dividends ARE included in the calculation, please do.
I've provided the references to options valuations.
Do you not understand that linked info?

I've explained how IULs are built using options.
Do you not understand how IULs work?

I can bring you the water, I can't drink it for you.
Dave Donhoff
Leverage Planner

PS. if you wanted to try to figure out what an IUL would pay out if dividends were *NOT* involved, you would have to determine some non-conventional theoretical method of valuing options in order to estimate what a particular option spread might cost in a given market situation... and then apply the theoretical general account returns without dividends to by used to by the sans-dividends options.

But it could never be anything but theoretical, because options that ignore dividends aren't traded.
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