What’s hot? Fixed Index UL
This plan of permanent life insurance is getting a lot of attention for some very good reasons:
- Principal is guaranteed. You may experience little or no gain in cash value in a given year, but basis is guaranteed and some contracts have a floor of up to 2% credited interest rate.
- Upside market potential not found in other universal life contracts.
These plans can be very difficult to understand because there are a number of moving parts that have to come together at the right time for maximum cash value accumulation. But, carriers have made a lot of efforts to decomplicate set up and explain – in regular English – how the contract works.
The Index design can be particularly advantageous in a period of uncertainty and market volatility as long as the policyowner understands that, like all permanent plans of insurance, this is primarily a life insurance policy that pays an income-tax- free lump sum of money upon the death of the insured as long as sufficient premiums are paid. Cash value accumulation may accrue tax-deferred over a long period of time to provide for emergencies or to supplement available assets during retirement years. Patience and persistence are the keys to getting the most out of this kind of life insurance policy.
For more information about this increasingly popular plan of life insurance, call Designs In Life.
