The Monthly Average Method is a way to determine the value of a variable universal life insurance policy by looking at its average value throughout the month. Instead of using daily values, this method calculates the average over the month to smooth out fluctuations caused by market changes. This approach helps in determining interest credits and charges, providing a clearer picture of your policy’s performance.
Using the Monthly Average Method can help policyholders avoid confusion caused by daily market volatility. This method gives a more stable understanding of how the policy is growing, making it easier for you to track your investment over time. It’s an important aspect of managing a variable life insurance policy effectively.