Best IUL Life Insurance

Indexed Universal Life Insurance and its Multiple Benefits

In our ongoing effort to provide you with helpful insurance information that you can use, we bring to you a comprehensive overview of indexed universal life insurance. But first a caveat.  When researching insurance options for yourself and your family, you should take into consideration that although the primary purpose of life insurance is to financially protect those who are left behind, there are plenty of spins on this basic bottom line concept to send a head spinning in multiple directions. With increasing levels of uncertainty in all colors and shades which we are forced to confront daily, life insurance has become the order of the day. There was a time when life insurance was generally perceived as a supplement for financial resources in the event of the death of an individual. Today, life insurance is seen not only as a sum of money which will benefit and protect the future of your dependents but also as a potential source of cash flow after retirement. This transforms the entire value proposition related to best IUL Life Insurance into a matter worthy of active pursuit.

The Best IUL Life Insurance

Let us first understand the basic difference between an indexed universal life insurance policy and a standard universal life insurance policy. In a standard universal life insurance policy, the cash value is credited monthly with interest to your account. However, the cost of the policy and other policy charges are debited from the cash value. In the event of late payment of the premium, the fee is deducted from the cash value for that specific month.

An indexed universal life insurance policy, on the other hand, allows the insurer to allocate a percentage of their cash value to either a fixed account or an equity indexed account. These policies credit interest on the basis of the ups and downs of the stock market. If the market performs exceptionally well, you will experience a wind fall. In other words, an indexed universal life insurance policy is a clear combination of insurance coverage and investment potential cautiously managed by your insurance company. As they say, if you are “in good hands,” the benefits can be phenomenal. Your basic insurance coverage, however, remains safe and untouched.

Always remember though that this type of life insurance policy isn’t for everyone. If you don’t have spare change to play around with, stay away from indexed universal life insurance policies.

Benefits Galore

In an indexed life insurance policy, your net investment grows on a tax-deferred basis. What does this mean?  You do not have to pay taxes on your gains until you begin to withdraw your funds. Moreover, you don’t have to incur a 10% IRS penalty like the way you do on an IRA or a 401k in the event of an early withdrawal situation. In other words, the 59 and half rule doesn’t apply. You are free to make withdrawals even before retirement. Think of your indexed universal life insurance policy as your personal bank which protects your funds and makes it available to you each time you need to dip into your savings. Some insurance agents will lead you to believe that there are no management fees involved. This is really not true. Fees are charged in the form of interest adjustments. However, they are minor and well deserved as far as the insurance companies are concerned. Remember that insurance companies too have bills to pay and employees to support.

Financial Security that lasts for Long

It goes without saying that an indexed universal life insurance policy can increase your cash flow when it is time for you to reap your financial harvest and many years of investment. If money and financial independence after retirement happen to be one of your major priorities, it is time to sign up for this type of insurance policy.

Conclusion about Indexed Universal Life Insurance

It is indeed a jungle out there. Remember though that an indexed universal life insurance policy is meant for you if you have some discretionary income which you are willing to invest in the stock market while remaining fully covered. You should also discuss with your insurance agent which index you should be pegged to and what type of indexes are offered by the life insurance company. If you would like an insurance company which we believe is reputable to contact you, simply complete the handy inquiry form on this page, tell us in which country you live and send it to us. You won’t receive any phone calls since we haven’t asked for your phone number. Instead, you will receive reliable insurance information via e-mail that will help you take a decision about your insurance coverage and goals.