LIFE INSURANCE

Indexed Universal Life Insurance

Indexed Universal Life (IUL) is a type of permanent life insurance that offers death benefit protection as well as the potential to earn strong interest crediting rates, growing the cash value of your policy. Indexed Universal Life insurance is unique to other permanent life insurance in the way interest is credited to the policy. IUL offers the ability to earn interest that is linked to the movement of a selected stock market index, Think S&P 500, Russell500, etc. If the index goes down, your credited interest rate is protected by a floor, guaranteeing to never go below zero. The manner in which interest is credited to your IUL policy gives you the potential for strong cash value accumulation, more so than any other type of policy. A key benefit to remember is that IUL offers protection from market risk. IUL’s don’t participate directly in the stock market and the credited interest rate is never less than zero percent. This type of policy is best suited for people 55 and younger who are looking to accumulate tax-free cash for retirement income, or a tax-free pool of money to draw from as needed later in life.