#44 | Global Hindsight Bias

One of the long-running debates in Indexed UL is whether the 5 Year Global Hindsight strategy is superior to vanilla one year point-to-point S&P 500 options. The issue is far from resolved and ING threw more fuel on the fire a couple of weeks ago when it announced a 5% increase in the participation rates on its Global accounts. I’ve generally avoided discussing the Global option specifically because, frankly, I don’t think it’s particularly relevant. The vast majority of IUL premium still goes to vanilla indexed accounts. But illustrated rates on Global strategies have hit stratospheric levels and interest has started to pick up. So I decided to throw in my two cents, for whatever it’s worth.