Everything You Need to Know About Indexed Universal Life Insurance

Commonly referred to as IUL, indexed universal life insurance is life insurance with a cash value, meaning a portion of the policy has a cash value that can earn interest so long as premiums are paid.  

The upside to IUL is the potential for interest gains in addition to the policy having tax-free advantages.

The keyword to understand is “Indexed” meaning the cash value for the policy owner is determined by the stock index, such as the Dow Jones or NASDAQ (examples of indexes). 

Additionally, flexibility is another advantage to consider as consumers are granted permission to adjust the death benefit and pay premiums with the cash value.

Deciphering how it all works and its pros and cons are vital before deciding to move forward with an indexed universal life policy.  

Not to call IUL risky by any means, but the higher rate of return on the cash value is attributed to the no guarantee on the interest rate.

Based on the performance of the index (more on that later), there is the potential for greater returns based on the index’s performance.  

Swipe Up

for more finance, business, and real estate advice

Read More

Early Financial Independence: Living Your Life in 4 Acts (Not Just the 3 You’ve Been Told About)!

Life Insurance Rates By Age: Is There An Ideal Time To Get Insured?