What is Indexed Universal Life Insurance?

Indexed universal life insurance (IUL) is permanent life insurance that gives the potential for strong cash value accumulation. It offers death benefit protection with premium payments that may earn interest and grow the cash values of the policy, based partially on the increases of market indexes. One of the best benefits of indexed universal life insurance is that it offers protection even in a market that is performing poorly.

How is IUL Different from Other Permanent Life Insurance?

There are many different forms of universal life insurance, from the basic fixed-rate policies to variable options. The variable policies allow the policyholder to choose various equity accounts in which he or she can invest.

Indexed universal life insurance is different from other types of universal life insurance in the way that the interest is credited to the policy. IUL offers an option that is linked to the movement of a chosen stock market index over a period of time.

With IUL, you don’t participate directly in the stock market, and the interest rate is never less than 0%. Your IUL policy won’t ever have a negative index crediting rate, even in a down market.

With IUL policies, policyholders are able to choose the percentage of their funds that they want to allocate to a fixed account or an equity index account.

There is a wide variety of popular indexes to choose from, such as the Nasdaq 100, the S&P 500, and others.

Key Features of an Indexed Universal Life Policy:

  • Flexible options for paying premiums
  • Guaranteed to never have an interest rate that is lower than 0%
  • The cash value inside an IUL policy has growth potential
  • Greater growth potential than traditional universal life policies

Since indexed universal life insurance policies are considered a “hybrid” type of policy, they are usually very affordable and are considered to be safer than the average variable policy. Contact us today to learn more about the indexed universal life insurance option; we can help you find the best policy to suit your lifestyle and your needs.

Richard Reich

CEO - Licensed Agent

Richard Reich CEO and Licensed agent

In my 20+ years as an independent life and disability insurance broker, I have personally assisted thousands of clients with their life and disability insurance needs.  Being independent, I represent many highly-rated insurance companies and, because I am not beholden to any one insurance company, my focus is to find the right company and policy for each individual client. I believe that when people shop for insurance (or anything else, for that matter) on the Internet, they are looking for a simple, non-intrusive, non-pressure method of doing so.  I strive to treat my prospective clients with the utmost respect and I believe an educated prospect can make the right decision without sales pressure. Please feel free to contact me at your convenience.