What Is A Index Universal Life Insurance Policy?

  1. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    A universal life policy is a form of permanent life insurance.  That means that properly funded it will not expire before the insured dies.  It is also a flexible payment plan, which means that the owner can determine the amount and frequency of deposits into the contract.  The funding for an index universal life is unique.  The interest credited to the cash value of the policy (the thing that makes it last) is set each year by the company based upon one of the leading stock market indexes.  The companies often guarantee that the rate of interest will not go below zero, and may realize a general rise in interest based upon the associated index.
    Answered on August 26, 2014
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  2. 4249 POINTS
    Gary Lane
    President, Lane Independent Agency, Southern California
    This is my specialty and my prized product! With Indexed Universal Life you can be part of the growth of the stock market but not part of the numerous and regular downswings. The increases may be capped but the drops do not occur since you lock in the growth from the previous year with our product! We provide a product with LIVING BENEFITS that can cover your life/death/retirement/medical problems/other conditions. Our National Life Group exclusive product through the Premier Financial Alliance Agency, pays while you are alive, and also at your death, so you save money by combining your coverages into this great product! The stock market will go up and down, but your growth will outperform it over time, and with none of the downward swings! Talk with a live agent. GARY LANE. Thank you.
    Answered on August 26, 2014
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  3. 5877 POINTS
    Stan Cox II
    Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
    Indexed Universal Life is a policy that is tied to a specific stock index such as the S&P 500 or the NASDAC or some other stock index. They have a minimum guaranteed interest that is paid into the cash value once the initial fees and cost of insurance has been covered, which typically takes several years. Then it is possible that the interest gained will be more than than the guaranteed minimum depending on the performance of the Index. As the low end is capped and will never be less than the guarantee, the top end is also capped and will never exceed that amount - typically 11 or 12%. Sounds pretty attractive, but remember the cost of insurance continues to rise and will be taken from the gains.
    Answered on September 21, 2015
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