Equity Indexed Universal Life InsuranceEquity indexed universal life insurance is new type of insurance that is offered by many life insurance companies as a way to expand their product line to better serve their customers. Because it is a rather new type of life insurance policy, it is not well understood by many who are shopping for life insurance. You can take a few moments to read this article and get a quick overview of equity indexed universal life insurance to see if it is the type of life insurance policy for you and your family.
What is Equity Indexed Universal Life InsuranceEquity indexed universal life insurance is basically a combination of traditional whole life insurance and a newer type of life insurance called variable life insurance. Whole life insurance is a policy that builds up value over time as you pay premiums and can be accessed at some point or remain in effect until time for the death benefit to be paid out. Variable life insurance is a type of life insurance in which there is an investment component which allows you to invest part of the policy into various types of investment opportunities, thus allowing you to benefit when financial markets are good. An equity indexed universal life insurance policy is not as risky as a variable life insurance policy because the investment is made toward the overall movement of an index rather than specific stocks and bonds. Also, there are generally maximums that you can make along with minimums that you can lose unlike most variable life insurance plans.
Benefits of Equity Indexed Universal Life InsuranceThe general benefit of an equity indexed universal life insurance policy is that is combines the security and features of the traditional whole life insurance with the potential to earn money dependent upon the upward trend of an equity index, such as the S&P. There are some specific benefits listed below.
Different life insurance companies will offer different riders, waivers and additional options and features to their equity indexed universal life insurance policies. The above benefits are general to all equity indexed universal life insurance policies, but they do not guarantee that you will not lose money on the investment component of the policy. It is a good idea to consult with a financial professional, other than a life insurance agent, to help you make the decision of if and when an equity indexed universal life insurance policy is a good value for you.
More to Come From Equity Indexed Universal Life InsuranceBecause this is such a new product, there are many innovations that are being developed to make this a better life insurance product for consumers. There are more and more variations available with increased flexibility of investment to accompany the security of whole life insurance. When searching for equity indexed universal life insurance, make sure to ask your life insurance agent of any new innovations offered by your life insurance company to stay on the cutting edge of this product.
Start Getting Rate Quotes For Equity Indexed Universal Life InsuranceYou can compare equity indexed universal life insurance with other forms of whole life insurance as well as term life insurance. Cost is always an issue, so you can use our free life insurance rate finder tool to compare rates and policies to see which is the best value and fit for you. It is quick and easy and can save you money on your life insurance policy. |
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