Within today’s world the demand for life insurance protection and the aspiration for the cash value growth without incurring any losses are constantly on increase. A great option that caters to both the needs together is Indexed Universal Life Insurance (IUL). Let’s understand in detail about IUL.
What is Indexed Universal Life Insurance?
Indexed Universal Life Insurance (IUL) is a type of insurance that does two tasks together. It offers life insurance protection in addition to increasing the value of cash. Moreover, the insurer gains when the stock market goes up but at the same time doesn’t lose when the market suffers.
Advantages of Indexed Universal Life Insurance
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Growth Factor
IUL helps in the growth of cash value depending on the stock market index. Without directly investing into stock market and thus saving himself from the stress of down market the insurer gets the profit when the market goes up this results in the growth of cash value.
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Safe Initial Investment
With downside market protection there is no risk of losing the initial amount invested because the insurer has nothing to do with the stock failure, he gets the profit only when the market goes up.
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Tax-free Growth
There is no need for paying taxes on your profits or even for the loans that you take. Thus, making it a great option for earning good amount without any deductions. As a result, you can get savings for your future without compromising your lifestyle.
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Flexible Premiums and Death Benefit
With IUL there is flexibility in paying premiums and death benefits. Insurer can increase or decrease amount as per their ongoing financial conditions providing a way to tackle the situation when you are low on budgets.
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Easier access of Cash Value
The insurer has the benefit of borrowing or withdrawing from the cash value of his policy, which provides them with a backup when they meet with any unforeseen events or increased expenses.
Also, the loans generally taken under this policy are tax free.
Why to choose Indexed Universal Life Insurance?
Indexed Universal Life Insurance provides you dual benefits. It offers life insurance protection in addition to the increase in cash value which is a great option for people who want to save their funds with profits with neither losing their initial investment nor incurring any losses.
All these factors help you to be stress-free because the funds are in safer hands.
FAQs
Q: Can I lose money in IUL?
A: No, there is no possibility of losing your money in IUL even after the market goes down or completely crashes.
Q: Is IUL good for investing?
A: Keeping in mind the no risk and tax-free factor, it can be said that IUL is a good option for you.
Q: Can I change the amount for my premium?
A: Yes, you enjoy the freedom of changing the premiums as per your financial conditions.
Q: Can I withdraw money when I am in need?
A: Yes, you can withdraw money when you need it and also you can borrow loans which are generally tax-free.
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.
If you have any queries or doubts regarding the insurance products then feel free reach to us with below information.
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