Indexed Whole Life Insurance. It has a cash value component that acts as a saving medium at a return rate set by the. Indexed universal life insurance is a type of permanent life insurance — a life insurance policy that stays in effect for your whole life as long as the premiums are paid (as opposed to a term policy, which expires after a set amount of time).
Using indexed universal life insurance (iul) is a great strategy for wealth accumulation because although every policy contains an annual earnings limit, the policy also contains a minimum earnings limit as well. A term life insurance is more affordable and offers financial peace of mind. Both types of policies provide permanent protection with an investment component that can grow over time, but iul (like other ul policies) provides more flexibility to deal with changing circumstances by allowing you the policyholder the option of raising or lowering your premium payments 8.
Types Of Life Insurance Policies Explained
However, in 2018, iul sales grew at record levels as consumers looked for protection from stock market instability. Indexed universal life insurance is a type of permanent life insurance that pays interest based on the movements of the stock market. Indexed whole life insurance gains cash value based on an investment index chosen by your insurance company. Indexed universal life insurance vs.
