Equity-Indexed Universal Life Insurance

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What is 'Equity-Indexed Universal Life Insurance'

A permanent life insurance policy that allows policyholders to tie accumulation values to a stock market index. Indexed universal life insurance policies typically contain a minimum guaranteed fixed interest rate component along with the indexed account option. Indexed policies give policyholders the security of fixed universal life insurance with the growth potential of a variable policy linked to indexed returns.

BREAKING DOWN 'Equity-Indexed Universal Life Insurance'

Indexed universal life insurance differs from variable universal life insurance in that indexed policies follow a stock market index, while variable policies can allow policyholders to allocate funds to a variety of investment vehicles, such as stocks, bonds and equity funds. Indexed policies tend to be less expensive than variable policies, and offer greater security against stock market declines.

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RELATED FAQS
  1. Is index life insurance right for me?

    Hello, I am a 32 year old male and I am thinking of purchasing index universal life insurance, but it seems too good to be ... Read Answer >>
  2. Can I convert my universal life policy to a whole life policy?

    It seems like my universal policy keeps going up each year in premiums. ... Read Answer >>
  3. What is indexed universal life insurance?

  4. If an individual becomes a policyholder of a variable life insurance policy and ...

    The correct answer is b. Insurance companies issuing variable life policies must allow the holders of those policies to exchange ... Read Answer >>
  5. What is variable life insurance?

    Variable life insurance is a permanent life insurance policy with an investment component. Read Answer >>
  6. What is the difference between term and universal life insurance?

    Term life insurance is the most basic of insurance policies. It is nothing more than an insurance policy that provides protection ... Read Answer >>
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