ANTHONY BATTLE Life insurance comes in a variety of forms and can assist in providing some financial relief to you and your loved ones in the event that you pass away.
It can be hard to know which type to choose, from whole to term and universal to variable. especially when you include unique insurance products like indexed universal life (IUL) insurance.
You can reap the benefits of market gains while building a cash value with this kind of policy. IUL, also known as equity-indexed universal life insurance, guarantees a payout to your heirs in the event of your death.
IUL, like other forms of universal life insurance, has a cash value that grows in proportion to paid premiums.
If you cancel the policy, you can get the cash value or use the money to take out a loan and use it for other things.
1 The premiums for these policies go toward term life insurance that can be renewed annually. After fees are deducted, the remainder is added to the policy’s cash value.
Interest is paid on the cash value based on changes in an equity index on a monthly or annual basis. Before buying IUL insurance, it’s important to know how it works because some people may find it useful. When compared to other types of life insurance, there are numerous benefits and drawbacks.
