Start here. Or call us at Want affordable coverage for your child? Indexed universal life provides death benefit protection and the potential for cash value growth linked to specific market indices, subject to caps and floors. We offer a variety of life insurance policies from which to choose. For more information on indexed universal life insurance policy options - or other types of life insurance - give us a call at and talk with a Protective Life Agent.
Indexed universal life insurance is a specific type of universal life insurance that offers lifetime protection and flexible features. Indexed universal life insurance is for people who need lifetime protection, flexible features and potential cash value accumulation to help meet their financial needs for the future. At Protective Life, we recognize that everyone has different financial needs. For more information on whole life insurance policy options - or other types of life insurance - give us a call at and talk with a Protective Life Agent.
Indexed Universal Life IUL is a permanent life insurance policy in which your premium payments can earn interest and help grow the cash value in your policy. Similar to universal life insurance, the differentiator with IUL is the way cash value growth occurs. You will have a choice of two interest accounts which work together to help you build cash value. For an IUL, the potential cash value accumulation is based on changes in one or more stock market indices, subject to caps and floors.
When the market does well, so does your policy. Over the life of the policy, this could mean more cash value. The Indexed Account credits interest to your policy based on positive performance of a specific index, giving you a greater opportunity to build cash value, subject to caps and floors. What is Indexed Universal Life Insurance?
Choosing a Life Insurance Company. Life Insurance Basics. Life Insurance Policy Finder. Life Insurance Calculator. For more information give us a call at and talk with a Protective Life Agent.
Whole life offers a cash value account that grows at a guaranteed rate of interest that's set by the insurance company. Some insurers pay a dividend, which clients can use to purchase additional coverage. Customers pay a fixed premium for the duration of the policy. Universal life also has a cash value account that grows based on a minimum interest crediting rate that's established by the company. If the insurer's own underlying investments fare well, the company may pay additional interest toward your cash value. Customers pay flexible premiums with universal life insurance, which means that you may be able to skip premium payments if your cash value is sufficient to cover the policy's costs.
Variable life links the growth of your cash value to underlying investments known as subaccounts, which are like mutual funds. If you were to withdraw cash from your policy up to the amount you had originally invested, you would receive it free of taxes, but any earnings that are taken out may be subject to income taxes.
That's why loans are attractive: If you borrow, you use the policy as collateral and take a tax-free loan from the cash value. The insurer offers indexed universal life insurance policies. Also, the interest rate for repayment is generally low — 4.
One reason to borrow from your policy might be to manage your modified adjusted gross income and tamp down Medicare costs. But be aware that borrowing — especially if you take regular loans without repaying them — can also go wrong.
Please consult your tax advisor for advice about your own situation. Not available in MA. Another thing to bear in mind is that the Federal Reserve's recent decision to cut a key interest rate — as well as the long-term trend of lower interest rates — affects insurance companies. One reason to borrow from your policy might be to manage your modified adjusted gross income and tamp down Medicare costs. Life insurance is the best way to leverage your dollars up in a tax efficiant manner.
Policy loans become problematic when individuals borrow so much they can't afford to pay the premiums and loan interest. At the same time, if an over-stretched borrower ceased paying premiums and allowed the policy to lapse, he would get a tax bill, too. Another thing to bear in mind is that the Federal Reserve's recent decision to cut a key interest rate — as well as the long-term trend of lower interest rates — affects insurance companies.
More from Personal Finance: Stressed by the stock market? Here are some alternatives How to protect yourself amid recession fears When unpaid debt reduces your Social Security payments. Similarly, holders of variable life insurance policies who take large loans from their policies must be mindful of how a long market decline might affect them. If you already own cash value life insurance, be sure to revisit it with your financial advisor to check on your cash value and make sure its performance is on track.
Markets Pre-Markets U. Key Points. If you have a permanent life insurance policy with cash value, you can take out a tax-free loan. Glenn Daily, a fee-only insurance consultant, owns a whole life insurance policy.