Shopping for a life insurance policy and wondering what the differences between whole life and indexed universal life insurance are? This guide from Indexed Universal Life can help.
While thinking about life insurance is something you may not want to do - it allows you to protect your loved ones from financial hardship upon your death.
But, deciding which policy to buy can be daunting. That’s where this guide from Indexed Universal Life comes in.
The company discusses the differences between whole-life insurance and indexed universal life (IUL) insurance - two popular choices for life coverage.
Understanding these differences, especially if you’re retiring soon, is essential to choosing the right policy.
Read the full guide at IUL vs Whole Life
A major point of deviation between IUL insurance and whole life coverage is in how the returns on each policy’s cash component are calculated. According to the report, all life insurance policies have a cash value component, but unlike whole life, IUL insurance’s cash component is linked to an underlying stock market index.
This feature, as the guide notes, means the cash component of your IUL policy can significantly perform better than that of whole life insurance, which has a fixed interest rate set by the insurance company.
The guide explains that, in addition to its market-tracking cash component, an indexed universal life insurance policy has a built-in feature to prevent value loss when a market downturn happens, thus safeguarding your principal.
While each policy has its advantages, the company recommends that you consult with a financial professional who can answer your questions and help you determine which product to choose.
Go to What Is IUL for additional info.
A company spokesperson said, "If you compare indexed universal life insurance versus whole life insurance, it is important to understand how each works and how they may work for you and your specific financial needs. Because, even though both IUL and whole life are types of permanent life insurance, the way that they operate can differ—in some cases, substantially."
About Indexed Universal Life
The company is a leading expert on indexed universal life insurance, providing educational resources, helpful tools, and access to IUL professionals to help individuals make informed decisions about their insurance needs.
Indexed Universal Life has an IUL calculator available at IUL Calculator that you can use to evaluate your monthly premium cost and cash value accumulation.
Get the expert advice you need to make informed decisions now. Click on IUL In Retirement
