Are you looking for the flexibility of adjustable premiums
and face amount, with the opportunity to increase cash value? What if you could
do this without downside risk of investing in the market? It’s not a dream;
it’s a reality with Indexed Universal Life Insurance.
What is Indexed Universal Life?
IUL policies offer tax-deferred cash accumulation for
retirement while maintaining a death benefit. It is perfect for those
individuals that need permanent life insurance protection but wish to take
advantage of possible cash accumulation. Indexed Universal Life works great for
key-man insurance for business owners, estate-planning vehicles, premium
financing, and retirement income.
How Can They Do That?
A portion of the paid premium goes to annual renewable term
insurance based on the life of the insured. All fees are paid and the remaining
premium goes into the cash value of the policy. The cash value is credited with
interest based on increases in the equity index. However, it is not directly
invested in the stock market. Most IULs offer a guaranteed minimum fixed
interest rate and a choice of indexes. The index gains are credited back to the
policy either on a monthly or annual basis. For example, if the index gained 5%
from January 2010 to January 2011, the 5% is multiplied by the cash value. The
resulting interest is added to the cash value. If the index goes down instead
of up, no interest is credited to the cash value, but their account value does
not go down.
The Perks!
• Minimize Risk: The policy is not
directly invested in the stock market, thus reducing risk
• Death Benefit: Permanent coverage
• Low Cost: The premiums are low
• Cash Value Accumulation: Cash
value credited to the policy grows tax deferred. The cash value can pay the
insurance premiums, which over time may allow the policy-holder to stop paying
premiums out of pocket.
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