Index universal life insurance can be a very confusing product. But, it has a lot of advantages. What makes indexed universal life insurance unique is the ability to receive positive returns based on the performance of the chosen index without being subject to losses.
In today’s financial environment index universal life insurance provides policy owners with the opportunity to participate in market returns without participating in negative returns.
It is important to remember these are still life insurance policies. And, there is still a cost to having life insurance protection. So while you may have a guaranteed return of zero percent it is possible for the policy cash value to go down based on policy expenses.
When considering index universal life insurance it is important to work with somebody who understands how the policy works.
The information contained in this article is hypothetical. Results and performance will vary based on a number of factors. If you are interested in indexed universal life insurance you should consult with a licensed advisor to help you understand and evaluate your options.