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Indexed universal life insurance is a type of permanent life insurance that offers the death benefit of traditional whole life insurance while providing the cash value growth potential of universal life insurance. The cash value of indexed universal life insurance is credited with a return that is based on the performance of one or more stock market indexes, such as the S&P 500.
With indexed universal life insurance, policyholders have the potential to earn a higher rate of return on their cash value than they would with a traditional fixed-rate universal life insurance policy. However, there is also the potential for negative returns if the stock market indexes perform poorly.
Indexed universal life insurance policies offer the flexibility to choose how your premiums are allocated between the death benefit and the cash value. You can also choose how your cash value is invested, which gives you the opportunity to control your risk.
Indexed universal life insurance can be a good choice for people who want the death benefit of whole life insurance but don’t want to miss out on the potential for cash value growth. It’s important to understand the risks and rewards of this type of policy before you purchase it.
With indexed universal life insurance, policyholders have the potential to earn a higher rate of return on their cash value than they would with a traditional fixed-rate universal life insurance policy. However, there is also the potential for negative returns if the stock market indexes perform poorly.
Indexed universal life insurance policies offer the flexibility to choose how your premiums are allocated between the death benefit and the cash value. You can also choose how your cash value is invested, which gives you the opportunity to control your risk.
Indexed universal life insurance can be a good choice for people who want the death benefit of whole life insurance but don’t want to miss out on the potential for cash value growth. It’s important to understand the risks and rewards of this type of policy before you purchase it.
