Life insurance is about life, your life. It's about how you want to live your life right now and 20 years from now. It's also about how your loved ones will live their lives when you're gone. Innovative life insurance products offer tremendous flexibility and value. In these uncertain times life insurance is a must to have in anyone's financial toolbox. You and your family deserve to have life insurance coverage you can count on – in good times and bad.
An Indexed Universal Life Policy gives you the potential for growth at a higher rate of interest without the risk of being directly in the market. Indexed universal life insurance has the benefits of traditional universal life plus the potential for greater growth in your policy value.
Unlike a traditional universal life insurance policy where the insurance company sets the interest rate, an indexed universal life policy credits interest to your cash value based partly on the upward movement of a major-market stock index.
Indexed universal life insurance policies credit interest based partly on the upward movement of a major stock market index, so when the market does well, so do you. Over the life of the policy, this could mean more cash value and more supplemental retirement income. And the tax-deferred benefits of a traditional universal life policy still apply.
You also get a guaranteed minimum interest rate with an indexed universal life policy. So while you're taking advantage of the market going up, you'll never suffer losses due to the market going down.
An indexed universal life insurance policy gives you the same flexibility and safety of other universal life policies.
As your needs change, your policy can change, too. You can change the death benefit, increase or decrease your premiums, and add options or riders to fit your needs.
Indexed universal life can help you leave a legacy to pass on to your heirs by giving them as much of your estate as possible, while making sure your tax and other obligations are satisfied.
Indexed universal life insurance provides a tax-deferred way of accumulating a cash value at competitive interest rates.
You can make withdrawals or borrow against, the cash value in your policy. Your indexed universal life policy can also be used as collateral for securing an outside loan, letting you tap the equity in your policy for a variety of needs: education, retirement and emergencies.
The death benefit gives you peace of mind knowing that your loved ones will not face financial hardship should you die. And the value can grow with your family and your needs.
It functions just like other universal life insurance policies. It can also protect your loved ones, supplement your retirement income and help you leave money to your children and grandchildren. The difference is in how interest is calculated.
An indexed universal insurance life policy earns interest based in part on the upward movement of major stock market indices, such as the S&P 500*. This gives you greater potential for growth compared to other universal life policies where the interest rate is declared by the insurance company.
You also get a guaranteed minimum interest rate with an indexed universal life policy. While you're taking advantage of the market going up, you'll never suffer losses due to the market going down. That's because purchasing an indexed policy does not involve actually purchasing securities or stock, so it's not the same as investing directly in the stock market.
The two basic types of indexed universal life policies have to do with how you pay the premiums. One is a large single premium type policy and the other requires the traditional yearly installments. Otherwise both types of policy give you many of the same benefits with a few minor differences.
An indexed single premium policy simply means that your premium or payment is in one lump sum. It's designed for older people who may have a lump sum of money and don't currently need it for income but may need access to it in the future.
A lump sum (often a minimum of $10,000) can be transferred from a bank savings account, a bank certificate of deposit (CD), an IRA and many other places including an annuity.
An indexed universal life policy is generally purchased in yearly or monthly premium payments. This flexible premium policy is ideal for a person of any age who would like to build the value of the policy over a long period of time.
The important thing to remember is that you decide how much your premium is, and you can change that throughout the life of the policy. The death benefit and interest credited to your policy is then determined by your premium amount, your age, and any riders you've chosen for customizing your policy. Your health is also a factor, as you'll need to take a physical exam.
This can be answered by working with us to understand your circumstances and your priorities. You'll want to consider what the beneficiary of your life insurance policy may need to cover: mortgage, credit card debt, consumer loans, childcare, college education for dependents, and funeral costs. Also consider the replacement of your income if others depend on it and for how long it would need to be replaced.
The beneficiary is the person or persons who receive the benefits (the value) of the insurance policy upon your death. You will name those persons when you purchase the policy, and you can change or add them as needed.
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