Why You Should Consider An Indexed Universal Life Insurance Policy

Have you been considering a life insurance policy so that you can give your family financial protection, but you don't like the idea of throwing your money away to premiums that you may never get back? Then you may be curious to learn about indexed universal life insurance policies (IULs). Here are a few benefits that they can provide.

You Can Grow Your Money Risk-Free

When you invest in an IUL, be aware that a small amount of your premiums will go toward a death benefit. The rest of your premium will grow over time through your IUL provider. The policy acts as a risk-free investment. This is done by investing your money in a stock market index, which is a conglomerate of different stocks that are bundled together into a portfolio.

In addition, you grow your money in your IUL risk-free. If the stock market index goes up, then your investment goes up. If the stock market index goes down, then you do not lose any money. This is because your earnings and losses are capped so that your investments go up and never down. 

You Receive Lifelong Death Benefits 

Most people are familiar with term life insurance, which gives you protection if you were to pass away within a set period of time. If you outlive your policy, then you will need to purchase a new term insurance policy that will be much more expensive in your old age. IULs have a lifelong death benefit, which means your loved ones will receive it at some point as long as you keep paying your premium. 

You Can Borrow Money From Your Policy

It is possible to take a loan from your IUL policy for expenses that you need while you are still alive. That money that you take out is not taxed, and your base investment that remains is still growing. You will pay interest on the money that you borrow, and you will need to pay it back. However, it can be a great way to get access to the money in your policy and not have to go through a local lender. 

Your Earnings Won't Affect Social Security

Worried about how much money you will receive in social security? Know that the earnings from your IUL policy will not be counted as income. This allows you to take money out of your IUL before you reach the age of retirement, and it won't impact the future social security earnings that are owed to you.

For more information about indexed universal life insurance, reach out to a local service.