Indexed Universal Life Insurance: What is it and how does it work?

Indexed Universal Life Insurance (IUL)

Indexed Universal Life Insurance (IUL) is a permanent life insurance policy that offers lifetime protection and a cash value component linked to a financial market index, such as the S&P 500.

Main features:

1. Flexible Premium: Premium payments can be adjusted according to the needs of the holder.
2. Cash Value Growth: Part of the premium goes to a cash value account that grows based on the performance of a market index, with earnings limits.
3. Death Benefit: Provides a financial benefit to the insured's beneficiaries.
4. Access to Cash Value: Accumulated funds can be used through loans.

Benefits

– Potential Growth: Possibility of higher returns compared to other permanent insurance.
– Loss Protection: This guarantee protects the cash value in the markets.
– Flexibility: Adjust premiums and coverage according to changing needs.
– Liquidity: Access to accumulated cash value for various financial needs.

The IUL combines security and growth potential, ideal for those seeking protection and a long-term savings tool.