Protecting your family comes in many forms. One of these is getting a life insurance. Life insurance has several varieties. You just need to choose which one fits your needs. One type of Life insurance that’s worth it is the Indexed Universal Life Insurance.
What is Indexed Universal Life Insurance?
It is a type of Universal Insurance also known as a permanent insurance. This type does not have a fixed interest rate. The insurance will base upon the performance of the market index.
You do not lose money whenever the market is down. This means that your principal money is guaranteed. It will not be affected with any market dips.
Advantages of IUL Insurance
· Enjoy the Benefits of Unlimited Contributions
Several traditional retirement schemes have a limited contribution. The IUL Insurance does not have a limit with its contribution. This means, you can put in as much money as you want each year for your insurance.
Once you eventually withdraw the cash you have invested in your IUL, you are guaranteed that it is tax free. Meaning, you can get a check each month from the life insurance that does not have tax deductions. The Indexed Universal Life Insurance is definitely a good investment for retirement.
· No Age Limit Requirement
A regular retirement program can be tricky. You need to wait for a specific age in order to get the money from the insurance. With the IUL Insurance, you can take advantage of your retirement benefits at any age.
· Death Benefit is Tax-free
Your beneficiaries need not worry about paying taxes. Your IUL Insurance has a death benefit that’s tax-free. The total money will evenly be distributed to the beneficiaries listed when needed.
· Take Advantage of Loans
You can borrow money from your IUL Insurance. The amount will depend on the available cash and on your policy. Once you make a loan from your IUL Insurance, you do not have to pay it back. There also will not be any penalties.
Types of Life Insurance
Actually, there are three types. First is the Term Life Insurance, then there’s the Whole Life Insurance, and lastly, the Universal Life Insurance. The Indexed Insurance is under the Universal Life Insurance. Here is a detailed information on all three:
1. Term Life Insurance Policy
A life insurance that will last for a couple of years. It has a term. The average duration for this kind of term policy is 10 years. This means that when the policy holder dies within this specific period of time, the beneficiaries get the total amount of the insurance for the 10 years.
There is a special formula for the total amount of premium to be paid off by the policy holder for this type. In order to get cheap life insurance quotes, you can always ask the insurance policy experts.
2. Whole Life Insurance Policy
This is a permanent type of life insurance. While the Term Life Insurance has a specific period, this one does not. There is no expiration date for its coverage and you are guaranteed with its death benefit.
Its premium amount is fixed. So whatever age you started to pay for the premium, it will be the same after many years. As long as you pay the premium each year, you are taking advantage of this insurance type.
3. Universal Life Insurance Policy
Also, a permanent type of insurance but you are able to adjust the premiums and death benefits. It’s a cash-value account. The best part is you are able to get higher interest rates once the cash value improves. You also can use the cash for pay-outs to your premium. Indexed Life Insurance is a form of Universal Life Insurance.
Save For Retirement!
It is crucial that you save for old age. There are several retirement schemes that you can choose from. All you need to do is find the best. One of the best with more advantages when you retire is the Indexed Universal Life Insurance.
This type of insurance gives you the peace of mind once you get older. You can enjoy life with the cash outs you get. The best part is the IUL Insurance is tax-free.