Explore the Benefits of Indexed Universal Life Insurance!
Explore the Benefits of Indexed Universal Life Insurance!
What is IUL?
Indexed Universal Life (IUL) is a type of
permanent life insurance, which means it has a cash value component in addition to a death benefit. The money in your cash value account can earn interest based on a stock market index chosen by your insurer, such as the S&P 500 or the Nasdaq Composite. Funds don't earn a fixed rate of interest but typically come with an interest rate guarantee..
What is IUL?
Indexed Universal Life (IUL) is a type of permanent life insurance, which means it has a cash value component in addition to a death benefit. The money in your cash value account can earn interest based on a stock market index chosen by your insurer, such as the S&P 500 or the Nasdaq Composite. Funds don't earn a fixed rate of interest but typically come with an interest rate guarantee.
Let's Explore IUL's Key Features!
Let's Explore IUL's Key Features!
No Fixed Interest Rate
Your cash value interest isn't fixed. Instead, it's tied to a market index chosen by your insurer, as explained by NAIC. This differs from universal life insurance, which earns interest like a money market account, according to III. The insurer selects an index, calculates an interest rate based on its performance, and credits it to your cash value account, as per the SEC.
Interest Rate Guarantee
NAIC notes policies usually guarantee a minimum interest rate, even if the index performs poorly. However, interest rates may have an upper limit or 'cap.' Additional features are outlined by the American Institute of Certified Public Accountants.
Adjustable Premium Payments
(Within Limits)
Your policy will likely specify a planned premium for you. However, if you have enough money in your cash value account, you may be able to use those funds to help pay your premiums.
Adjustable Death Benefit
Death benefits are typically flexible with an indexed universal life policy, and you can usually lower them at any time. However, increasing the death benefit may require you to pass a medical examination.
Access To Cash Value
In emergencies, borrowing from your indexed universal life insurance incurs interest. Withdrawals from the cash value may reduce your death benefit permanently. Maintaining a sufficient balance is crucial to avoid policy lapses.
No Fixed Interest Rate
Your cash value interest isn't fixed. Instead, it's tied to a market index chosen by your insurer, as explained by NAIC. This differs from universal life insurance, which earns interest like a money market account, according to III. The insurer selects an index, calculates an interest rate based on its performance, and credits it to your cash value account, as per the SEC.
Interest Rate Guarantee
NAIC notes policies usually guarantee a minimum interest rate, even if the index performs poorly. However, interest rates may have an upper limit or 'cap.' Additional features are outlined by the American Institute of Certified Public Accountants.
Adjustable Premium Payments
(Within Limits)
Your policy will likely specify a planned premium for you. However, if you have enough money in your cash value account, you may be able to use those funds to help pay your premiums.
Adjustable Death Benefit
Death benefits are typically flexible with an indexed universal life policy, and you can usually lower them at any time. However, increasing the death benefit may require you to pass a medical examination.
Access To Cash Value
In emergencies, borrowing from your indexed universal life insurance incurs interest. Withdrawals from the cash value may reduce your death benefit permanently. Maintaining a sufficient balance is crucial to avoid policy lapses.
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Connect with a Finance and Insurance Expert &
Take the first step towards a financially secure future.
Who might choose Indexed Universal Life Insurance?
Individuals seeking life insurance coverage with potential for cash value growth and flexibility in premium payments.
Those interested in tax-advantaged savings and estate planning benefits.
Ready to Secure your Financial Future with Growth & Flexibility?
Connect with a Finance and Insurance Expert &
Take the first step towards a financially secure future.
Who might choose Indexed Universal Life Insurance?
Individuals seeking life insurance coverage with potential for cash value growth and flexibility in premium payments.
Those interested in tax-advantaged savings and estate planning benefits.
Don't leave your Future up to Chance.
Speak with a licensed expert who can help you
find the best option to secure your financial future.
Take the first step towards a financially secure future.
Don't leave your Future up to Chance.
Speak with a licensed expert who can help you find the best option to secure your financial future.
Take the first step towards a financially secure future.
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