Universal Life Insurance (UL) comes in a variety of flavors, from fixed to variable income models that allow you to choose from a variety of stock accounts to invest in.
Indexed Universal Life Insurance (IUL) allows owners to distribute funds to fixed or capital index accounts. You can also visit https://topwholelife.com/indexed-universal-life-cost/ to know more about index whole life insurance.
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Indexed Universal Life Insurance policies offer accumulated deferred retirement taxes while retaining a lump sum death benefit. People who need permanent life insurance coverage but want to take advantage of the potential for money accumulation through stock indexes can use IUF as primary person insurance for business owners, a premium financing plan, or a planning tool.
Indexed Universal Life Insurance is considered an advanced life insurance product because it is difficult to adequately explain and understand.
When the premium is paid, part of it pays the insurance fee based on the life span of the insured. All fees are paid and the remainder is added to the monetary value. The total amount of money earning interest is due to the increase in the stock index (but not directly invested in the stock exchange).
The selected index value is recorded at the beginning of the month and compared with the value at the end of the month. If the index rises during the month, interest is added to the monetary value.
While not for everyone, IUF insurance is a viable option for people who want the security of a fixed universal life insurance policy and the opportunity to earn interest on a variable policy.