Indexed universal life insurance offers financial assistance for you and your loved ones. It has a cash value component, which can accrue into a solid source of supplemental income. You can use this to cover your premiums as well. With this policy, your cash value has the potential for giving you the highest rate of return, because it utilizes something that no other policy does – a stock market index.

What Are The Steps For Enrollment?

From the beginning, you’ll be assessed for insurability risk. This can include a medical exam and other forms of medical underwriting (such as questionnaires). The younger and healthier you are, the lower your premiums will be.

At this point, you’ll be able to choose a policy of a desired death benefit size. And with indexed universal policies, you may be able to choose the stock index you want your cash value to be invested in, like the Nasdaq 100 or S&P 500. You also have an interest account that grows at a low fixed rate.

How Does The Cash Value Build?

The cash value builds tax-free as you pay premiums, though you can also make unlimited contributions on your own.

When you pay premiums, you’re mostly paying for the cost of insurance, and once that’s covered, the remainder goes toward your cash value. You can choose the amount you want allocated to your index and interest accounts.

Your insurer may set a participation rate on your index gains, in which your insurer will take a percentage of the amount your index earns.

For example, if you have a $20,000 cash value with a 50% participation rate, this is how your account will grow according to a 10% market index gain:

Since the market can experience downtrends, the returns on your investments will not always result in a significant increase in your cash value. However, many indexed universal policies also offer a guaranteed interest rate, so while it may not consistently have the same magnitude of exponential growth, it will grow nonetheless.

How Can I Use The Cash Value?

With indexed universal policies, you can use the cash value to pay premiums, or you can borrow against it to use for your own intents and purposes.

Some policies may allow for you to pass your cash value along to your loved ones in addition to the death benefit.

Get Your Indexed Universal Policy Today!

Game Changing Benefits can help you find a policy that gives you the means to build savings and provide for your loved ones all within the same policy. It’s not for everyone, but if you prefer to have more control over how your policy is managed, indexed universal life insurance may be the right policy for you. Call us today at 972-331-1060​ to learn more!