What is indexed universal life insurance?

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An indexed universal life insurance policy is permanent insurance that offers great flexibility for premiums and adjustments for face amount.  The indexed accounts are credited with interest based on the growth in one or more indexes and there is a guaranteed growth rate within the policy. Life insurance is designed to protect your loved ones if there is a premature death in your family. 

What I like best about an indexed universal life insurance policy is the fact that the cash value within the policy can be utilized as a way to generate tax free income for retirement. In other words, this type of policy serves two purposes.

  • The face amount provides protection for your family in the case of a premature death.
  • The cash value growth over the years can generate tax-free income during retirement.

 

March 2016