Indexed universal life insurance is one of the types of the permanent life insurance the protects the insured for the entire life.

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Contrary to the term life insurance, the indexed life insurance covers the insured for the entire life and hence falls under the category of the permanent life insurance. Permanent life insurance policies are expensive than the term life insurance policies as it offers additional saving feature which is known as the cash value. In permanent life insurance policy, the insured does not have to worry about the expiration of the policy, the beneficiary gets paid when the insured dies as long as the premiums are being paid timely.

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Indexed universal life is designed on an index strategy of investment. This means that the cash value participates in the growth of the index (such as S&P 500) that it is allocated to, with a cap. However, the cash value does not participate in the down market because there is a 0% floor. This gives the policy owner the peace of mind that even if the market collapses, the cash value does not go down. So, the cash value goes up with the market (with a cap) and stay flat if the market goes down (0% floor).

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Upon premium payment, a portion of the premium goes to the cash value which is then invested in an indexed strategy.

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This policy also includes living benefits (with few companies) and also if designed appropriately, it can offer a disbursement to the policy owner. Hence you do not need to die to avail all the benefits of this policy it could come in handy as a living benefit plan for some people.

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Indexed universal life comes with the following benefit

• Protection for entire life

• Living benefits (with few companies)

• Generates cash value

• High rate of returns (based on index strategy)

• No loss of cash value

• Tax free pay out to the beneficiary

• Income stream (disbursement)

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Please call us to find out more details on any of the products or book your free Financial Needs Analysis session with one of our experienced agents who will help you understand your needs and will also help you to choose the type of insurance and the benefit amount that is right for you.