An IUL policy’s value is linked to a stock market index. As a result, the returns may vary depending on how the underlying index performs.
The following outlines a number of additional types of life insurance policies.
If the policyholder dies within a predetermined period of time, typically between 10 and 30 years, term life insurance provides a fixed benefit.
Although there is no cash value accumulation, this is one of the simplest and most cost-effective types of life insurance.
2 Whole life insurance is more permanent, and as long as premiums are paid, the policy covers the policyholder’s entire life. In comparison to an IUL insurance policy, the policy gains value on a predetermined schedule and incurs fewer fees. They do not, however, come with the ability to adjust premiums.
Although variable life insurance is more complicated than IUL insurance, it offers even more flexibility. The cash value of a variable policy may be affected by the performance of particular stocks or other securities, and your premium may also fluctuate. Variable life insurance is therefore regarded as more risky than other types of life insurance.
