When it comes to universal life insurance, it means a policy which is based on cash value that is credited monthly with interest. But, the policy is debited monthly by the cost of insurance charges and other policy charges and fees will be drawn from the cash value if ever no premium payment is made on that specific month.

The indexed universal life policies credit interest based partly on the major stock market index. In short, if the market does good or well then you will benefit too. More cash value and more supplemental will be your retirement income.

Have you notice now a day that most people rely on their insurances and you can see different kinds of insurance had spread almost everywhere and more and more insurance companies cater to the different security which they think needed by the people anywhere. Some people have different types of life insurance they purchased in different insurance companies.

The indexed universal life can be considered as life’s contract and a good choice for those that who don’t only seek for life security but as well as financial growth or stability. Covers almost everything and the limit is not only for life security but also brings highlights to have your investment grow and also allows the holder of the policy to come up with cash value deferred tax and this is a great access for one’s own retirement.

It is a flexible kind of permanent life insurance that offer low cost protection in term of insurance and as well as savings. The Indexed universal life insurance policy offer a variety of popular indexes to choose from and it allows the policy holder to choose or decide the percentage of the funds which they want to allocate to the fixed and indexed portion.

The indexed universal life insurance policy offers bright financial plan and insurance but this is not for everyone. Not all life insurance policy are advantageous, there is also some disadvantages. Having the IUL policy needs a planning and you also need to educate yourself regarding this policy. This kind of policy needs some monitoring to see where your money goes, so you need to think of all the possibilities before having this investment.

Educate yourself before having this IUL policy since this need monitoring, financial planners as well as attention since it is not only a life insurance but as well as investment. Always study the consequence or steps as to insure stability and security. For sure you don’t want to engage in an investment like this that when you retire, you got nothing. Remember that most people who have life insurance seldom monitor their policies.

If IUL has an advantage so as well as disadvantage since this two comes always hand in hand, the advantage and disadvantage. So better do your research before getting IUL policy and if ever you have a friend who have IUL policy better ask and let your friend explain it to you. Always try to know the disadvantage of every life insurance policy, not only their advantages. Don’t be melting or tempted with the magical words of their advertisement.

Source by Gordon H. Smith

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