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Indexed Universal Life

What do I need to know?

· Universal Life,Life Insurance,Sherman Oaks,life Insurance Types

 

Are you looking for a New Life Insurance Policy? 

Take a Look at Universal Life

There's a lot of information out there about Universal Life Insurance and it can be hard to figure out if this is the best type of policy for you. I'll break down everything you need to know in this blog post. I’ll explain the coverage and I’ll go over how the investment portion works.  We'll go into more depth on each topic as we go along.  

What Type of Policy is This? 

Indexed Universal Life (IUL) is an innovative life insurance product that offers you the opportunity to grow your money tax deferred. The cash value of the policy will increase with market performance, but not decrease. You can borrow against the cash value or surrender it if you need funds inretirement. And there are no fees on withdrawals from the cash value account. This gives you more flexibility than other types of life insurance policies or investments might offer. 

IUL's  provide benefits for both current income protection and future retirement needs. It does have slightly higher premiums but also has more coverage options than term life insurance which makes it perfect for people in their twenties or thirties who are starting out their careers. One good thing about Universal Life Insurance is that as long as there's enough cash value in the policy at any given moment, the company will continue paying out claims (even if there’s a month where you can’t afford to pay your premium). 

It is the return from investments that this life insurance that provides you the opportunity to build cash value and earn market-based returns. This unique feature allows policyholders to benefit from both stable, guaranteed growth as well as potentially higher returns than traditional whole life policies, and unlike 401k's you don't have the worry of losing your money in a down market.  

A Death Benefit and A Guaranteed Investment. 

With an IUL policy, you get all these benefits plus one more– death benefit protection based on the face value of the policy and how much money is in your cash value account at the time of death. If you die before reaching age 100, for example and have $100,000 in your account, the policy will pay you the face value of the policy, plus the $100,000 cash value. This canbe used to cover funeral costs and other final expenses so loved ones don’thave to worry about paying them out of pocket or going into debt because ofthem. That peace of mind makes this type of coverage well worth considering foranyone who wants financial security during their golden years without sacrificing liquidity or access to your savings when you need it most. 

You can use this money in many ways – whether it’s for retirement, college savings or just an emergency fund. And because it’s permanent coverage, you don’t have to worry about not having coverage for your loved ones.  

 You know that life insurance is essential, but have you considered being protected, while having the ability to make market-based returns? This allows you to have life insurance coverage with an investment with an unlimited potential to grow. The Indexed Universal Life Insurance provides you with the best of both of both worlds. 

 

Example: If the index changes by a certain amount each month, that get credited to your account.  When the index goes up, the cash value of your investment goes up by the amount of the cap on your policy, maybe 12%. If the index goes down instead of up, there is no interest credited to your cash value but you do not lose any money. The Increase in value of the account is usually added once per year.  

Why Not Use This to Your Advantage. 

Shopping around for life insurance before you're in a good position is like trying to find a job that pays  better than your current one. You might as well lock in the rates now! Indexed Universal Life Insurance lets you protect yourself and your loved ones against unexpected risks with an investment-based approach that offers  you guaranteed returns with no risk of loss.

It's the perfect insurance policy for Millennials and even Gen Z’s , who are lookingto save more, have work/life balance, invest responsibly, and provide securitywithout being saddled by mountains of debt later, especially tax debt, becausetaxes are going to increase because of the debt that society has taken on.  

Mark and Alice were a couple in their mid-30s who had been saving for retirement. They were trying to decide what type of life insurance they should get. Mark knew he needed insurance, but Alice was still debating whether she wanted it since she never thought about dying before the age of 40. “It’s like I need this because I could die at any time, but then if I don’t dieanytime soon, all that money will be gone! It doesn’t make sense!” A UniversalLife Policy takes care of this concern. It’s a tax-free investment, along withlife insurance.  

Smart, secure, and easy to invest in, Universal Life Insurance that combines a risk-free investment with the security of life insurance coverage. You can gain competitive rates without excessive risk by investing in index funds derived from the stock index, while benefiting from your policy's death benefit if you pass away unexpectedly. Makeyour dollars work for you so they can continue working for generations tocome—guaranteed! 

 

Conclusion: 

As the name suggests, Indexed Universal Life Insurance is an insurance policy that covers you if you should die unexpectedly. This type ofcoverage can help protect your family in case something happens to you while giving you the advantage of having a risk-free investment. The cash value builds tax-free, and it can be withdrawn anytime so there’s never any pressurefor this money to just stay sitting around collecting dust. And even better, ifthings are tight, the cash value of the policy will pay the premium.  There are many advantages and  Aware Insurance can help you find a policy that is for you. One thing we know for sure is that every day spent without protection could be tragic for someone who loves us dearly and you can start investing early.

 For more information call 818-915-0534 or send us an email at info@awareinsurance.com  

Written by Bill Ware

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