Ray,I *think* what you are saying is that the company takes dividends into account when they set the cap. No, the company is almost entirely looking at two factors when they set caps;1. general account yield, which determines their optoin buying budget,2. How high of a spread will their budget allow, relative to the current costs of the spread.It is the option spread that includes the value of the dividends. Thus, the IUL performance *INCLUDES* dividends. If the dividends were not included in the formulae for option pricing, the option spread would be more expensive and the caps would be lower. Going to 0%/18% is $1,324,000.The S&P account final value: $1,759,000.OK, $1,324,000 with no catastrophic loss risk.$1,759,000 with full exposure to that risk.Not apples to apples... can't declare any "winner" (else the 'passive' lottery players trump us both.)We're back to the point of the very first post 6 (8? 10?) months ago.Dave DonhoffLeverage Planner
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