IUL Investment Features
Although many people purchase life insurance for the death benefit protection that it can offer, today there are also many savings and IUL investment related advantages that are associated with particular types of life insurance policies. This is especially true when it comes to indexed universal life.
IUL investment offers a death benefit component, along with an investment-related element. For example, IUL policies have a return that is linked to an underlying market index (or in some cases, more than one index).
Standard & Poor’s 500 (S&P 500)
Standard & Poor’s 400 (S&P MidCap 400)
NASDAQ 100 Stock Price Index (NASDAQ 100)
EURO STOXX 50
Dow Jones Industrial Average (DJIA)
Typically, as the owner of an indexed universal life insurance policy, you can choose to allocate your policy premiums to the available indices, in any combination. You may also allocate premiums to the policy’s fixed account. (It is important to note that your funds are not invested directly in the market itself, but rather through the insurance company’s general account).
Because there are so many different life insurance options that are available today – including numerous features within various life insurance policy categories like IUL – it is important that you talk with a financial professional who is experienced in indexed universal life before you purchase a policy. That way, you can ensure that you get answers to any questions that you may have and that you have a better understanding of how an IUL investment policy could fit in with your specific financial situation.