As you compare all of your options in life insurance, consider the universal life insurance policy. It is one of the lesser known policy options, but it still provides ample protection for many people. It can be the right type of life insurance plan for those who want more from their investment than a basic term or whole life policy can offer. Before you make any investment, consider a few key options available to you.
What is Index Universal Life Insurance?
Universal life insurance, to start with, is a type of policy that offers numerous variations. Some models offer a fixed rate, whereas others offer a variable rate. And you can sometimes select the equity accounts to invest your funds in. One of the ways you can invest your funds is in an indexed universal life insurance policy. In this case, you can allocate cash value amounts to either the equity index account or the fixed account. That is, the funds can offer investments in some of the largest and most well-known indexes. This includes the S&P 500 and even the NASDAQ 100.
Before You Make Any Decision
Before you decide to purchase indexed universal life insurance, there are a few key things to keep in mind:
- These types of life insurance policies have values that are very volatile. They move quite frequently with the indexes they follow. This may mean their value may be lost from time to time.
- With each payment that you make, a portion will pay for the annual renewable term insurance that is based on your life. Then, fees are paid before the rest is added to the cash value. The total amount of cash value is credited, along with any interest rated to what the index earned.
- There are benefits to this type of policy including its overall low cost. That's because you, as the policy owner, hold all of the risk in this type of investment.
- This is one of the more flexible options in life insurance policies because you control where the money goes.
- The death benefit is permanent and won’t change over time.
Is an indexed universal life insurance policy the best fit for your needs? Even if you are not sure, consider it along with other types of life insurance to find the level right for your needs.
Protect your family today. Call General Insurance Services at (800) 766-4478 for more information on Michigan City life insurance.