Indexed universal life insurance can help cover many financial needs. But it is just one of many kinds of life insurance available. As you go through your insurance options, you may be unsure of what could be right for your needs and situation.
Indexed universal life insurance is a form of universal life insurance. Another name for this insurance is “IUL insurance.” The “universal” part means that you have flexibility with your premium payments and other policy components. You may adjust your premium, death benefit, and other parts of the policy throughout the contract.
You may elect to change how much you pay in premium costs each year. However, minimum premium amounts must be covered, or the policy will lapse. But as long as the policy stays in force, it will provide you with lifelong coverage.
Another distinction of IUL insurance is that it holds greater potential for earning interest. Interest crediting is tied to an index, like the S&P 500 price index. This may be attractive to those looking for more growth opportunity than just a fixed rate over time.
Let’s get into the basics of indexed universal life insurance, its features, and potential uses for it in a financial plan.
