The recently-announced guide explains the way in which indexed life insurance offers advantages for individuals and their families, such as a cash value component that is linked to the stock market index.
With the new guide from Indexed Universal Life, members of the public are able to determine which type of life insurance is most appropriate for their personal circumstances. The guide explains key ways in which indexed life insurance varies from more common types of life insurance, such as whole life insurance and universal life insurance, and how it compares to a Roth IRA.
Life insurance provides a way for people to ensure that their loved ones will be compensated and cared for if something happens to them. Although 70% of Americans believe that life insurance is necessary, only 54% actually have some form of life insurance coverage. The new guide from Indexed Universal Life includes a calculator to help individuals through the process of determining whether indexed universal life insurance is right for them: IUL Calculator
An IUL policy provides death benefit protection during a person’s lifetime, alongside a cash value component. While all types of life insurance include a cash value component, the difference between IUL and other forms of insurance is that the IUL cash component is linked to stock market performance.
Because it is linked to the stock market, an IUL has the opportunity to earn greater amounts of interest than the cash component of whole life insurance or universal life insurance policies. A company spokesperson says: “The return within an IUL policy is based on an underlying market index. Because of this, the returns within an IUL policy can be higher–sometimes much higher–than that of a whole life insurance policy that only calculates the interest on a set rate.”
Indexed universal life insurance also offers particular benefits for retirees. These benefits include stability of principal, a buffer against investment risk, and tax diversification. More information can be found here: IUL In Retirement
The expert insurance team at Indexed Universal Life is on hand to answer any questions or concerns that people may have regarding life insurance and the policy selection process.
Indexed Universal Life
P.O. Box 3540