What is Index Universal Life Insurance
Indexed universal life (IUL) insurance is a type of Index Universal Life Insurance which is permanent and provides a cash value growth component along with a death benefit.
Cash Value
The money in a policyholder's cash value account can earn interest by tracking a stock market index selected by the insurer. If your policy also has a fixed-rate account, you can choose how much you want to go into each account. Based on increases in an equity index the total cash value is credited with interest.
Equity Index Account
Unlike other Universal policies, Index Universal Life Insurance policies allow for cash value growth through an equity index account.
How does it work..
Premium Paid:
A portion of the premium paid goes to pay the cost of the insurance base on the calculation of the life insured life along with relevant fees. The other portion of the premium paid goes to the cash value.
Barrow against the accumulated cash value of the policy. The loan does not have to be paid back and if it is not repaid it will be deducted from debt value.
Premiums can be flexible. It can be lowered or increased
3.There is flexibility in investment, the policyholder controls the amount risked in equity-indexed accounts and the death benefit amounts can be adjusted as needed.
No limit to annual contribution
Death benefit is permanent, not subject to income or death taxes, and not required to go through probate.
There is less risk the policy is not directly invested in the stock market, reducing risk.
Tax free retirement
