What is Index Universal Life
Indexed universal life insurance (IUL) is a hot product on the market when it comes to owning an IUL policy. People often consider Indexed Universal Life, a type of permanent life insurance, when they're looking for the potential of cash value accumulation for retirement while maintaining a death benefit, and an even greater potential for growth through indexing of interest credits.
The premium payments you make to your IUL policy have the potential to earn interest and grow the cash value of your policy over the years.
An index universal life policy is tied to a stock market index such as the S&P 500. The stock market provides a benchmark for which the IUL policyholder's cash accumulation account is credited.
When the index performs well, your cash value builds at a faster rate, earning you more money that can increase your cash value. In contrast, if the index doesn't do or perform well, your cash value will accumulate at a slower rate. The amounts credited to the cash value in your IUL grow tax-deferred, and may be used to pay insurance premiums, providing the flexibility to reduce or even stop making out-of-pocket premiums payments as long as the minimum premium payment is being met.
Most IUL policies come with a guarantee that you will be credited a certain amount during a given time period - regardless of how the market performs. If the stock market crashes, your cash value won’t go down; it just won’t grow. The good thing about the Index Universal life policies is that they can’t lose money.
It's important to note that the account value, any policy loans or surrenders may be subject to policy charges, surrender charges, transaction fees, and may reduce the cash value and death benefits of your policy.
We know that the life insurance process can be long and frustrating, but we are here to help make it as quick and simple as possible. It’s our mission to help you, our client, find a quality and affordable plan for your family.