Few things are more important than having the right insurance coverage. About ten years ago, I was involved in a near-fatal crash where I experienced traumatic physical and emotional injuries. It was really challenging for me to endure the hospital stay and subsequent physical rehabilitation, but with the help of my medical team and my insurance company, I was able to overcome the challenge and completely recover. This blog is all about the importance of choosing the right insurance plan so that you can get on with your life and enjoy those precious years with your family and your friends.
Life insurance coverage is essential for many people. The money that is paid out through a life insurance policy after one's death can help loved ones cover funeral expenses and resolve unpaid debts without experiencing undue financial hardship.
Many different types of life insurance policies are available on the market today. If you haven't taken the time to consider an indexed universal life insurance policy for yourself, now is the time to learn about the ways this type of policy can benefit you in the future.
1. Greater Return Potential
One of the features that sets an indexed universal life insurance policy apart from other types of policies is the fact that these policies are connected to an underlying stock index. The annual return that you see on your life insurance policy will be based on the performance of the stock index to which it is tied. Since other types of life insurance typically have a fixed rate of return, you have a greater return potential when you opt for an indexed life insurance policy. Just be sure to work with an agency that offers a minimum return guarantee to avoid losing any money over time.
2. Increased Flexibility
Indexed universal life insurance policies are incredibly flexible. Since no two people have the same needs, this flexibility can be a real benefit for you and your family. You will have the ability to decide how much risk you want to take in the market when building your indexed universal policy. You can adjust your death benefits as your needs change throughout your lifetime. You can even choose from a wide range of riders, including a long-term care rider, that will help you further customize your indexed universal life insurance policy.
3. Tax-Free Capital Gains
Individuals who choose to invest in indexed universal life insurance policies are not required to pay capital gains taxes on the increase their policy sees over time. The only requirement is that the policy cannot be abandoned before it matures. As an added bonus, you will not have to pay any taxes on loans that you might take out against the cash value of your indexed life insurance policy. Having a tax-free source of cash available can help you avoid the penalties and fees that often come with borrowing against a 401(k) or IRA account.
Your insurance agent will be able to provide you with more information about indexed universal life insurance policies.
Share21 June 2022
