Index Universal Life
What is Index Universal Life?
Index Universal Life (IUL) is a form of permanent life insurance that combines the death benefit of traditional life insurance with a cash value component that can grow over time with limited downside.
This cash value growth is linked to the performance of a designated market index, such as the S&P 500, a gold index, or a real estate index.
Who Is Eligible for Index Universal Life?
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Eligibility for Index Universal Life is typically for individuals who meet the insurance company's eligibility requirements. These requirements may include factors such as age, health status, and insurability. The specific criteria can vary between insurance providers.
Features
Death Benefit
Like other life insurance policies, Index Universal Life offers a death benefit that is paid to beneficiaries upon the insured's passing. The death benefit can provide financial protection for loved ones, help cover outstanding debts, or serve as an inheritance.
Cash Value Accumulation
One of the key features of Index Universal Life is the potential for cash value growth over time. The policy's cash value can increase based on the performance of the chosen index. This allows policyholders to participate in market gains while providing downside protection – typically a guaranteed minimum return to protect against market losses.
Flexibility
Index Universal Life policies often offer flexibility in premium payments, allowing policyholders to adjust their premium amounts within certain limits. Additionally, policyholders may have the option to access the cash value through policy loans or withdrawals, providing financial flexibility during their lifetime.
