How Indexed Universal Life Insurance Works by Benjohnson
It works like any other universal life insurance. It can also protect your loved ones, to supplement your retirement income and help you to leave money to their children and grandchildren. Universal Life Insurance earns interest based in part on the upward movement of the major indexes like the S&P 500 *. This gives a higher growth potential compared with other policies and universal life insurance, which states the interest rate the insurance company.
You also get a minimum guaranteed interest rate with indexed universal life policy. While enjoying the bull market that never loses suffered due to market recession. This is because buying a policy is not indexed to purchase securities or securities, which is different as direct investment in the stock market.
There are two basic types of indexed universal life insurance have to do with how you pay the premiums. This is a general type of individual policy premium, and the other requires the traditional annual installments.
A single premium
It Indexed to a single premium policy simply means that a premium or a lump sum payment. It is designed for the elderly, who may be a fixed amount of money and do not currently need the income, but perhaps its availability in the future.
Key features
• Free death benefit, the guaranteed minimum tax rate of interest
• Effective transfer to heirs
• No medical examination
• Benefits for nursing homes and terminal illness
Flexible premium
Indexed universal life insurance policies are usually purchased in annual premium payments or monthly. This policy of variable annuities, Aviva is ideal for a person regardless of age who wants to increase the value of the policy over a longer period. The important thing to remember is that you decide how your premium is and you can change the whole life policy. The death benefit and the interest credited to your policy are determined by the amount of your premium, age, and all pilots who have chosen to customize the policy.
Some key features of death
• Tax-free withdrawals
• Free transfer up to 20%
• Effective heirs
• Guaranteed minimum interest rate