Indexed universal life credits interest based on the movement of an external index, filtered through a cap, a participation rate and a floor. It was almost certainly presented to you with an illustration showing a smooth assumed crediting rate running out to age one hundred. That illustration was a projection under stated assumptions. It was never a promise, and the distance between what was illustrated and what has actually been credited is why most owners end up reading a page like this one.
For National Life Group policies there is an extra wrinkle worth resolving first: which of the group’s two insurance companies issued the contract. This page is education only.
In This Article
- LSW Issues Most of the Group’s Indexed Business
- Illustrated Rates Versus Credited Rates
- Caps and Participation Rates Are Not Locked
- Reading the Annual Statement Against the Original Illustration
- Company Structure, Strength and New-Business Status
- Ownership Change Mechanics
- Free, No-Obligation Policy Review
- Frequently Asked Questions
LSW Issues Most of the Group’s Indexed Business
National Life Group is a trade name of National Life Insurance Company of Montpelier, Vermont, Life Insurance Company of the Southwest of Addison, Texas, and their affiliates, and the group states that each company is solely responsible for its own financial condition and contractual obligations. Life Insurance Company of the Southwest, universally referred to as LSW, is the Texas-domiciled subsidiary that issues most of the group’s indexed universal life business.
LSW was chartered in 1955. National Life Insurance Company, chartered by the Vermont Legislature in 1848, acquired a majority interest in LSW in February 1996, and LSW became a wholly owned subsidiary in June 1999. If your indexed contract names LSW, correspondence, illustrations and any ownership change run to that company, not to the Vermont entity, even though both operate under the same trade name and share a mailing hub.
Illustrated Rates Versus Credited Rates
An indexed universal life illustration applies a hypothetical crediting rate uniformly, year after year. Real crediting is computed segment by segment against index movement and then run through the cap, the participation rate and the floor. Even when the average index return over a decade matches the illustrated assumption, the credited result frequently lands below it, because caps truncate the strong years while floors only prevent negative crediting rather than restoring missing growth.
The shortfall does not stay put. Interest credited below assumption leaves a smaller account value, and the monthly cost of insurance charge is levied on the net amount at risk, roughly the death benefit minus the account value. Smaller account value means larger net amount at risk means larger deduction, which shrinks the account value further. A policy illustrated to carry itself can end up demanding premiums that were never in the plan.
Caps and Participation Rates Are Not Locked
The parameters that determine your crediting are generally declared by the insurer and can change at renewal, subject to guaranteed minimums stated in the contract. This is the term most owners did not absorb at the point of sale.
- Cap rate. The maximum credited for a segment. A cap reduced from twelve to nine percent lowers every strong year going forward.
- Participation rate. The share of index movement used in the calculation before the cap applies.
- Floor. The minimum credited, commonly zero percent. It prevents index losses from being credited but does not stop policy charges from consuming account value.
- Guaranteed minimums. The lowest cap and participation rate the insurer may declare under the contract. Ask what yours are, because they define the true worst case.
A zero-percent crediting year is not a neutral year. Charges still come out, so the account value falls even though nothing was lost in the index.
| Compare | Original illustration | Current statement |
|---|---|---|
| Account value at this policy year | Projected figure | Actual figure |
| Crediting for the year | Level assumed rate | Rate actually credited per segment |
| Cap rate | Cap in effect at issue | Cap currently declared |
| Participation rate | Rate assumed at issue | Rate currently declared |
| Annual policy charges | Illustrated deductions | Deductions actually taken |
| Issuing company | Named on the illustration | Named on the statement |
Reading the Annual Statement Against the Original Illustration
Place the original sales illustration beside the most recent annual statement and compare the same policy year. The projected account value against the actual account value is the whole story in a single line. If the actual figure trails the projection materially, the policy is on a different trajectory than the one it was sold on, and only a current in-force illustration shows where that trajectory ends.
Note that National Life Group’s published life insurance service forms list covers ownership changes, beneficiary changes, surrenders, dividend directions, lost policies and paid-up insurance requests, but does not include a self-service in-force illustration request, so plan on requesting one by phone at the group’s listed customer service number, 1-800-732-8939. The comparison table below is a workable format.
Company Structure, Strength and New-Business Status
On January 1, 1999, under a mutual insurance holding company reorganization, National Life Insurance Company converted from a mutual to a stock life insurance company. Its shares are held by NLV Financial Corporation, a wholly owned subsidiary of National Life Holding Company, and policyholders of National Life became voting members of that top-level holding company. The reorganization was undertaken in part to create a more flexible capital structure and to position the enterprise for strategic acquisitions.
The group is actively writing rather than in runoff. For 2025 it reported roughly $65.7 billion in assets under management, $703 million in core earnings, $634 million in life insurance sales and $229 million in flexible annuity sales, with statutory consolidated admitted assets of $55.7 billion against liabilities of $52.4 billion at December 31, 2025. A.M. Best has affirmed a Financial Strength Rating of A+ (Superior) for National Life Insurance Company and Life Insurance Company of the Southwest, the insurance subsidiaries of NLV Financial Corporation, with stable outlooks. Ratings are periodically revised, so confirm the current rating on the carrier’s own ratings page.
Ownership Change Mechanics
A settlement is completed by a recorded change of ownership. National Life Group publishes an Ownership Change Form described as covering a new owner, a corporate name change, or showing a new trustee of an existing trust owner, for use with life policies. The group states that forms may be faxed to 802-229-7054 or mailed to National Life, 1 National Life Drive, Montpelier, VT 05604. Signature requirements must match the carrier’s records, and the change is effective only once the company records it and issues written confirmation.
Free, No-Obligation Policy Review
Pine Lake Life Solutions provides education and a free, no-obligation policy review at (305) 209-7183 comparing your original illustration against current statements and explaining what the crediting history has done to the policy’s trajectory. Pine Lake does not purchase policies, does not guarantee eligibility or value, and does not give legal, tax or investment advice.
Pine Lake Life Solutions is an independent education and referral resource. Pine Lake is not affiliated with, endorsed by, appointed by or connected to National Life Insurance Company, Life Insurance Company of the Southwest or any National Life Group company, and Pine Lake does not purchase policies. Nothing here is legal, tax or investment advice, and no eligibility or dollar value is promised. The only thing offered is a free, no-obligation policy review at (305) 209-7183.
Frequently Asked Questions
Is my indexed universal life policy issued by LSW or by National Life?
Check the cover page of the contract. Life Insurance Company of the Southwest, the Texas-domiciled subsidiary chartered in 1955, issues most of the group’s indexed universal life business, while National Life Insurance Company is the Vermont entity chartered in 1848. Each company is solely responsible for its own contractual obligations.
Why is my account value below what the original illustration projected?
Illustrated crediting is a level assumption, while actual crediting is calculated segment by segment through a cap, a participation rate and a floor. Caps truncate strong index years while floors only prevent negative crediting, so realized results commonly trail the illustration, and lower account values then attract higher cost of insurance charges.
Can the cap on my policy be lowered?
Crediting parameters such as cap and participation rates are generally declared by the insurer and can change at renewal, subject to the guaranteed minimums stated in your contract. Ask the issuing company what those guaranteed minimums are, because they define the worst case you are actually exposed to.
How do I get an in-force illustration from LSW?
By phone. National Life Group’s published life insurance service forms list does not include a self-service in-force illustration request, covering instead ownership changes, beneficiary changes, surrenders, dividend directions, lost policies and paid-up insurance. General customer service is listed at 1-800-732-8939.
Does Pine Lake purchase indexed universal life policies?
No. Pine Lake does not purchase policies and is not affiliated with or endorsed by National Life Group, National Life Insurance Company or LSW. The only service offered is a free, no-obligation policy review at (305) 209-7183.
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Related Reading
- Sell My National Life Group Whole Life Policy
- Sell My National Life Group Guaranteed Universal Policy
- How To Read In Force Illustration
- How To Compare Life Settlement Offers
- Evaluating Life Settlement Offer
- How To Find Licensed Life Settlement Broker
- Sell My Nationwide Universal Life Policy
Pine Lake Life Solutions does not purchase life insurance policies and does not provide legal, tax, or investment advice. Information provided is for educational purposes only. Eligibility for any option, including life settlements, is not guaranteed and depends on individual circumstances, policy terms, underwriting, and market conditions. Consult independent legal, tax, or financial professionals before making decisions regarding a life insurance policy.