Straight answer
An indexed account in an IUL is a part of the cash value that earns interest by a formula tied to an index, such as the S&P 500, without owning it. The formula is the crediting method. The common ones are an annual cap, an uncapped account with a spread, a trigger rate, a monthly sum and a high participation rate on a volatility-controlled index. In a year the S&P 500 gains 20%, Nationwide's published 10.50% cap credits 10.50% and its 5.50% spread credits 14.50%. Caps, spreads and participation rates can change.
- Nationwide one-year S&P 500 cap
- 10.50%
- Allianz trigger rate
- 8.00%
- Allianz monthly cap
- 3.80%
Rates checked November 10, 2026, Nationwide FLM-1737AO (as of March 7, 2026) and Allianz M-8871 (as of November 3, 2026)
On this page
What an indexed account is, and is not
IUL is life insurance first, not an investment. The insurer measures how an index moved over a segment, usually one year, applies the method's limits, and credits the result to that part of your account. If the index falls, the credit is the floor, usually 0%. Nationwide's guide says its policies do not take part in any stock investment and receive no dividends or capital gains.1 S&P 500 accounts measure the price index without dividends.4 Nothing here is a bank or brokerage account, which is why there is no IUL account, only a policy.
A 0% credit is not a 0% year for your account. Cost of insurance, policy fees and any strategy charge still come out, so the value goes down.
The crediting methods, with published rates
| Method | Insurer and account | Current | Guaranteed |
|---|---|---|---|
| Annual point-to-point, cap | Nationwide, 1-Yr S&P 500 PtP | 10.50% | 4.00% |
| Annual point-to-point, cap | Allianz, Standard S&P 500 | 12.25% | Set at issue, at least 0.25% |
| Uncapped, spread | Nationwide, 1-Yr S&P 500 PtP Uncapped | 5.50% | Up to 20.00% |
| Trigger | Allianz, S&P 500 | 8.00% | Set at issue, at least 0.25% |
| Monthly sum, monthly cap | Allianz, S&P 500 | 3.80% | Set at issue, at least 0.50% |
| Monthly average, cap | Nationwide, Multi-Index Monthly Avg | 14.50% | 4.00% |
| High participation, no cap | Nationwide, BNPP Global H-Factor | 260% | 65% |
| High participation, no cap | Allianz, Bloomberg US Dynamic Balance III ER, Classic | 190% | Set at issue, at least 5% |
Nationwide Life and Annuity Insurance Company, IUL Accumulator III rate guide FLM-1737AO, rates as of March 7, 2026. Allianz Life Insurance Company of North America, Allianz Life Accumulator guide M-8871, rates as of November 3, 2026. Both opened November 10, 2026. Current rates apply to new segments and can change. Every insurer we track is on the cap rate page.
- Cap. You get the index change up to the cap.
- Spread. No ceiling, but the spread is subtracted first, so a 5.50% spread credits nothing until the index is up more than 5.50%.1
- Trigger. Allianz's consumer guide says that if the index change is 0% or more, the account gets the trigger rate, however big or small the gain.3
- Monthly sum. Twelve monthly changes are added. Gains are capped each month, losses are not, and a total at or below zero credits 0%.3
- High participation. The index change is multiplied, often by more than 100%, on an index built to swing less.
How each method pays across a year
- S&P 500 change for the year, minus 20% to plus 30%
- Credit, 0% floor in all three
- Index gain above the 10.50% cap, not credited
The cap wins in modest years, the spread wins in big years, and the trigger wins in flat ones. Nationwide's own look-back shows the cost of a cap over time. Over the 10 years to January 15, 2026, its capped S&P 500 strategy would have averaged 7.99% a year, its uncapped spread strategy 10.57%, and the S&P 500 itself 13.66%, all before policy charges.1 Those are hypothetical rates using today's caps, not results anyone received.
Run one year through every method
Volatility-controlled and excess return indexes
The highest participation rates sit on indexes that move money between stocks, bonds and cash to hold their swings to a target. Nationwide's guide says these indexes limit highs and lows, and that the excess return versions subtract a short-term interest rate and index expenses, so they trail a total return version, especially when interest rates are high.1 Allianz says the same about its excess return indexes.2
Many are young and their long histories are built after the fact. The PIMCO Tactical Balanced ER Index launched August 2, 2018 with backtested data from April 22, 2004.2 BNP Paribas Global H-Factor was established April 8, 2022.1 The BlackRock Endura Index in Pacific Life's policies was founded June 14, 2016.4 Under AG 49-A, an illustration for a policy sold on or after April 1, 2026 shows no history table for an index with under 10 years of real history.5 More on volatility-control indexes.
Bonuses, multipliers and the charges behind them
A higher rate often comes with a charge. Nationwide's Multi-Index Monthly Avg High-Cap strategy carries a 25.00% cap and a 0.55% strategy charge that can rise to 1.50%.1 Allianz's Select allocations add a 40% multiplier bonus and take a 1% annual asset charge, its Bonused allocations add a 15% multiplier bonus, and its Classic allocations a 1% flat-rate bonus.3 Allianz notes that bonused allocations generally carry lower caps and participation rates. In a 0% year, an asset charge still comes out.
What can change, and what cannot
Guaranteed in the contract
- The floor, usually 0%
- The minimum cap, participation or trigger rate, and the maximum spread
- The maximum strategy or asset charge
Can change
- Current caps, spreads, trigger and participation rates on each new segment
- Current strategy charges, up to their maximum
- The list of indexes, if one stops being published
Illustrations are not guarantees. AG 49-A limits the rate an insurer may illustrate for any of these methods, which our AG 49 page explains.
The first pages in this section are being checked against their sources and will appear here.
Questions people ask
What are indexed accounts?
They are the parts of an indexed universal life or fixed indexed annuity value that earn interest from an index formula instead of a declared rate. The money is not placed in the index. The insurer credits interest based on how the index moved, within a cap, spread or participation rate.
Which crediting method is best?
None wins every year. A cap tends to do best in modest gains, a spread in large gains and a trigger in flat years. Spreading money across methods smooths the result, and the insurer can change any current rate.
What is the difference between annual point-to-point and monthly sum?
Annual point-to-point compares the index on two dates a year apart. Monthly sum adds 12 monthly changes, caps each gain but not each loss, so one sharp drop can wipe out several capped gains.
Can I lose money in an indexed account?
The credit cannot go below the floor, but the account still pays cost of insurance and fees every month, so its value falls in a 0% year. Any strategy or asset charge also comes out.
Sources (5)
- Nationwide Life and Annuity Insurance Company, Nationwide IUL Accumulator III IUL Rate Guide FLM-1737AO, March 7, 2026. nationwidefinancial.com
- Allianz Life Insurance Company of North America, Allianz Life Accumulator Guide to current rates M-8871, November 3, 2026. allianzlife.com
- Allianz Life Insurance Company of North America, Allianz Life Accumulator consumer brochure M-8119 (R-10/2026), October 1, 2026. allianzlife.com
- Pacific Life Insurance Company, Understanding Your Account Choices, form IUC4009-1124, November 1, 2024. pacificlife.com
- NAIC, Actuarial Guideline XLIX-A as adopted December 11, 2025, December 11, 2025. content.naic.org
Not guaranteed. The insurer can change this figure, within the limits its contract sets.
