Indexed Universal Life policy provides you with life coverage and investment potential, with returns linked to a stock market index.
For maximizing the returns on your indexed universal life policy, read the strategies given below.
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Caps and Floors
IUL policies come with caps (maximum return limits) and floors (minimum return guarantees). Check these terms carefully. Select policies with higher caps if you wish for a high growth potential, while making sure that minimum return floor is fit for you.
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Extra Premium Payments
Paying more than the minimum premium will increase your policy’s cash value that can lead to enhanced investment opportunities. Extra contributions provide more funds to participate in the indexed accounts and thus give high returns over time.
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Adjust Index Allocations
Many IULs (Indexed Universal Life) let you allocate cash value among various indices. Regularly review your index performance keenly and make alterations based on market conditions and your risk tolerance.
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Manage Loans Wisely
Taking loans against your policy’s cash value may seem to be an attractive idea but it is crucial to manage them carefully. Loans may lead to interest accumulation and may reduce your cash value if you fail to repay them. Use this feature strategically and ensure timely repayment.
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Avoid Excessive Withdrawals
Frequent or large withdrawals can reduce your policy’s cash value and affect future returns. Withdraw sparingly and only when necessary to maintain a healthy cash value and ensure continued growth.
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Reviewing Your Policy
carefully review your policy to be aware of the market trends and to make changes as per the need. Also, analyze your financial situation and make alterations in your strategy for aligning it with your goals.
Conclusion
Having a good knowledge of IUL policy and managing it well can lead you to earn maximized returns and thus help you to accomplish your financial objectives.
You may also consult an advisor to enhance your strategy and make your policy more efficient.
Start planning today with www.infinitisurance.com– Your insurance consulting agency in Connecticut, which has more than 30 years’ experience in insurance and financial products.
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