This permanent life insurance provides a death benefit to your beneficiaries but also offers a cash-value component that can grow over time. Life insurance is often put into two groups. You’ve got term life insurance, which has no cash value unless you pass. Or you’ve got whole life insurance, which has a cash value, but you’ve got to keep paying those premiums for life. There’s another type of life insurance that you can consider that offers funding flexibility and a cash-value component — universal life insurance.
There are three types of polices within the universal life category: variable universal life, fixed universal life and indexed universal life (IUL). In this article, we’ll explore how IUL works so that you can determine if it is right for you.
Please note that these are extremely complex products that should be set up and guided by a trusted financial professional. Your current health may have a major impact on the policy and its associated fees, which will influence whether it makes sense for you to fund it. Please proceed with caution when considering an IUL, or any investment product, for that matter. There is no such thing as a perfect investment.