Indexed Universal Life (IUL) is a type of life insurance for Americans with a certain set of characteristics that we are about to explain. In order to properly understand what it's about, we need to go through the details that make it different from other life insurances. We are talking about a form of permanent life insurance. This only means that it is designed to last a lifetime. Other types of life insurances are purchased for only short periods of time, such as five of ten years. But IUL is purchased for life and it is a little more expensive than the other life insurance packages out there. The cheaper life insurances that last less time are increased in price through the years.
Permanent life insurance features
This means that as people age, they end up paying far more for the life insurance that doesn't last a lifetime than for the permanent one. Amongst the features that permanent life insurance has, we have the death benefit guaranteed to remain in effect for as long as the premiums are covered. A part of your premiums go directly to pay for insurance coverage and the rest goes to increase the value of the policy's account. All growth in the cash account is tax-deferred. You can withdraw the money from the cash account if you take out a policy loan or get a partial surrender. In short, this type of permanent life insurance does offer far more flexibility than others.
When it comes to making changes to the policy's premium and death benefit amounts. If the premiums are paid, all the money inside that cash account can be withdrawn by the policyholder without affecting the amount of the death benefit. Indexed Universal Life helps you avoid the dangers of investing in subaccounts linked to the performance of a stock market index. Performance floor for subacconts offer the chance to get in on the action of market upside as yo are also protected from downside exposure.
