Though both indexed universal life (IUL) and whole life insurance policies offer death benefit coverage, in the new guide, the company discusses how each policy differs. Understanding these differences, especially for those nearing or planning their retirement, is essential to choosing the right policy, says Indexed Universal Life.
More details can be found at IUL vs Whole Life
A major point of deviation between IUL insurance and whole life coverage is in how the returns on each policy’s cash component are calculated. According to the report, all life insurance policies have a cash value component, but unlike whole life, IUL insurance’s cash component is linked to an underlying stock market index.
This feature, as the guide notes, means the cash component of an IUL policy can perform significantly better than that of whole life insurance, which has a fixed interest rate set by the insurance company.
The guide explains that, in addition to its market-tracking cash component, an indexed universal life insurance policy has a built-in feature to prevent value loss when a market downturn happens, thus providing principal stability.
While each policy has its advantages, the company recommends that readers consult with a financial professional who can answer their questions and help them determine which product to choose.
A company spokesperson said, “If you compare indexed universal life insurance versus whole life insurance, it is important to understand how each works and how they may work for you and your specific financial needs. Because, even though both IUL and whole life are types of permanent life insurance, the way that they operate can differ–in some cases, substantially.”
About Indexed Universal Life
The company is a leading expert on indexed universal life insurance, providing educational resources, helpful tools, and access to IUL professionals to help individuals make informed decisions about their insurance needs.
Indexed Universal Life has an IUL calculator available at IUL Calculator that anyone can use to evaluate their monthly premium cost and cash value accumulation.
Additional information can be found at IUL In Retirement
Indexed Universal Life
[emailprotected]
+1-800-743-9221
P.O. Box 3540
Silver Springs
United States
COMTEX_437462923/2764/2023-07-27T19:21:16