What does a smaller index number indicate about a life insurance policy?

A smaller index number generally signifies that a life insurance policy may represent a better value for the policyholder. In the context of life insurance, index numbers are often used to measure the cost-effectiveness or affordability of various products. A lower index number indicates that the cost of the policy relative to the benefits offered is more favorable. This means that for each dollar spent, the policyholder receives more coverage or features compared to policies with higher index numbers. Thus, a smaller index number is interpreted as a sign of a more attractive policy option, suggesting that it provides greater benefits for a comparatively lower cost.