In addition to the traditional investment features of Universal Life and Annuity contracts, monies such as premium deposits, dividends, loans, and agent balances are treated as funds, giving the ID 3 user flexibility in dealing with the monies associated with any of its clients. Fund accumulations are processed as activity occurs providing the ability to obtain a current account balance at any time. Any activity, whether external or scheduled, causes interest to be calculated and accumulated within the interest component to the date of the activity. Interest may also be scheduled for calculation and accumulation on specific calendar dates, such as month or year-end. Both the banding and tiering of interest rates are supported based on fund value, fund value net of loans, and accumulated payments less withdrawals.
Funds impaired by loaned funds can access an independent set of interest rates.
In addition, rates may be banded based on units. Optionally, the pro-rata surrender charge may reduce the charge applicable at full surrender. ID 3 supports multiple free withdrawals or can limit free withdrawals to one per year. The amount of free withdrawal may be based on a fixed or cumulative percentage of fund value, accumulated excess interest, or is limited to accumulated interest. Restart is a process invoked when it is recognized that an activity occurred which requires the recalculation of fund accumulations.