There is a difference between universal life insurance and indexed universal life insurance. You should understand the fact that the indexed life insurance is a type of permanent life insurance. The policy will be in force as long as you are alive. The policy will be active as long as you pay the premium. As you pay the premium, part of the premium will go for the death benefit and the other part will go for a cash value account. If there is money in the cash value account, it will generate interest. The money generation is based on the index selected by the insurer.
There are certain distinctive features in an indexed universal life insurance plan. There will not be any fixed rate interest with the life insurance product. The rate of interest is based on the index chosen by the insurer.
The performance of a set of investments will be tracked and the most appropriate index will be selected by the insurer. The interest will be calculated based on the index and it will be credited to your cash value account.
You should choose a dedicated agent so that your insurance needs will be assessed and you will settle for the best insurance plan without any issues.
However, the interest rate will be guaranteed by the insurer. A minimum index rate will be applied so that the cash value of the insurance policy will increase. The interest rates are subjected to the upper limit as well.
If you go for indexed universal life insurance, you will go through the planned premium as well. The money present in the cash value can be adjusted towards the premium payment.
You can take advantage of the adjustable death benefit associated with the indexed universal life insurance. The death benefit can be lowered at any point of time without any issues. If you would like to increase the death benefit, you should want to go for medical examination.
There will be immediate access to the cash value so that you will be able to make the most of your investment. The withdrawals from the cash value are also permitted. However, if you fail to manage sufficient balance in the cash value account, the policy might lapse.
You should choose indexed universal life insurance if you would like to go for lifelong life insurance. The cash value can be built over a long-term without any issues. There will be great opportunity to experience growth based on the market value of the fund. You will also be able to shield the product from the market risks. To choose the best insurance product to fulfill your short-term and long-term needs, you should consult an experienced insurance provider so that there will not be any issues.
If there is a great performance in the market, there will be great growth and you will earn more. In some instances, the benefits will be more than the regular universal life insurance.
Most of the customers opt for indexed universal life insurance so that they will be able to make more money in the shortest period of time.