Should You Consider Index Universal Life Insurance?

If you decide that you would like a cash value type of life insurance policy, an index universal life insurance policy may be worth considering.

The most important aspect of your life insurance planning is to make sure you have enough life insurance to meet your needs.  You may decide to mix and match your life insurance....buy some term life insurance and universal life insurance or index universal life insurance.

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Index Universal Life Insurance Advantages:

When compared to a traditional universal life insurance policy, a potential advantage of index universal life insurance is the potential to grow your cash values above and beyond a universal life insurance policy.

Index Universal Life Insurance Disadvantages:

A potential disadvantage of index universal life insurance is that if the stock index used to determine performance does poorly, you may end up with a zero return with your index universal life insurance, compared to a traditional universal life insurance policy that has a guaranteed minimum interest rate.

If the index performs poorly, you may have to pay additional premiums in order to keep your index universal life insurance policy in-force.

Should You buy Index Universal Life Insurance?

We are big believers in "buy term insurance and invest the difference."  With that being said, there are times when an index universal life insurance policy is a good option.

Before you buy an index universal life insurance policy, look at your other options available such as funding your 401k and other retirement options at higher levels...you may find that a 401k, especially if you have an employer match is a better option for your money than a life insurance policy.

Some business owners and other high income earners who have reached contribution limits with their other retirement vehicles, find an index universal life policy to be an attractive option for them.

LifeInsuranceAdvisors is the leader when it comes to life insurance planning and will help you with your life insurance planning.