What is an Indexed Universal Life Insurance Policy
A permanent life insurance which offers both a death benefit and a cash account that typically tracks the performance of the S&P 500.
Primary Purpose of an Indexed Universal Life Insurance Policy
IUL policies offer income flexibility in retirement, allowing the withdrawal of funds as a regular income stream or access to the total cash value, all while maintaining a death benefit component.
Benefits of an Indexed Universal Life Insurance Policy
An aggressive cash account with guarantees against losses, also offers many tax-free benefits, the ability to borrow against the cash account or withdraw funds during your lifetime.
Drawbacks of an Indexed Universal Life Insurance Policy
More complex than other types of insurance and requires ongoing management in order to keep premiums at optimal rates and to minimize losses to the cash value.