There’s a lot of information out there about Universal Life
Insurance and it can be hard to figure out if this is the best type of policy for
you. I’ll break down everything you need to know in this blog post. I’ll
explain the coverage and I’ll go over how the investment portion works.  We’ll go into more depth on each topic as we
go along.

A little about Universal Life Policies 

This type of policy provides benefits for both current
income protection and future retirement needs. It does have slightly higher
premiums but also has more coverage options than term life insurance, which
makes it perfect for people in their twenties or thirties who are starting out
their careers. One good thing about universal life insurance is that, as long
as there’s enough cash value in the policy at any given moment, the company
will continue paying out claims (even if there’s a month where you can’t afford
to pay your premium).

Indexed Universal Life (IUL) is an innovative life insurance
product that offers the opportunity to grow your money tax deferred. The cash value
of the policy will increase with market performance, but not decrease. You can
borrow against the cash value or surrender it if you need funds in retirement, and there are no fees on withdrawals from the cash value account. This means
more flexibility than other types of life insurance policies or investments
might offer.

This is a type of permanent life insurance that provides the
opportunity to build cash value and earn market-based returns. This unique
feature allows policyholders to benefit from both stable, guaranteed growth as
well as potentially higher returns than traditional whole life policies,
without the worry of losing money in a down market.

Why is this different from a Whole Life Policy? 

With an IUL policy, you get all these benefits plus one more
– death benefit protection based on the face value of the policy and how much
money is in your cash value account at the time of death. If you die before
reaching age 100, for example and have $100,000 in your account, the policy
will pay the face value of the policy, plus the $100,000 cash value. This can
be used to cover debts, taxes and other final expenses, so loved ones don’t
have to worry about paying them out of pocket or going into debt because of
them. That peace of mind makes this type of coverage well worth considering for
anyone who wants financial security during their golden years without
sacrificing liquidity or access to their savings when they need it most.

You can use this money in many ways – whether it’s for
retirement, college savings or just an emergency fund. And because it’s
permanent coverage, you don’t have to worry about not having coverage as you get older. 

Is a Universal Life Policy right for me? 

You know that life insurance is essential, but have you
considered being protected, while having the ability to make market-based
returns? This allows you to have life insurance coverage with an investment
with limitless potential to grow. The Indexed Universal Life Insurance provides
you with the best of both of both worlds.

Example: if the index changes by a certain amount each
month. When the index goes up, the cash value of your investment goes up by the
amount of the cap on your policy, maybe 12%. If the index goes down instead of
up, there is no interest credited to your cash value and it does not lose any
money. The Increase in value of the account is usually added once per year.

Is now a good time for me to get insured? 

Shopping around for life insurance before you’re in a good
position is like trying to find a job that pays as better than your current
one. You might as well lock in the rates now! Indexed Universal Life Insurance
lets you protect yourself and your loved ones against unexpected risks with an
investment-based approach that offers guaranteed returns with no risk of loss.
It’s the perfect insurance policy for Millennials and even Gen Z’s , who are looking
to save more, have work/life balance, invest responsibly, and provide security
without being saddled by mountains of debt later, especially tax debt, because
taxes are going to increase because of the debt that society has taken on.

Mark and Alice were a couple in their mid-30s who had been
saving for retirement. They were trying to decide what type of life insurance
they should get. Mark knew he needed insurance, but Alice was still debating whether
she wanted it since she never thought about dying before the age of 40. “It’s
like I need this because I could die at any time, but then if I don’t die
anytime soon, all that money will be gone! It doesn’t make sense!” A Universal
Life Policy takes care of this concern. It’s a tax-free investment, along with
life insurance.

Smart, secure, and easy to invest in. This is universal life
insurance that combines a risk-free investment with the security of life
insurance coverage. Gain competitive rates without excessive risk by investing
in index funds derived from the stock index, while benefiting from your
policy’s death benefit if you pass away before ceasing monthly premiums. Make
your dollars work for you so they can continue working for generations to
come—guaranteed!

Conclusion: 

As the name suggests, Indexed Universal Life Insurance is an
insurance policy that covers you if you should die unexpectedly. This type of
coverage can help protect your family in case something happens to you while
giving you the advantage of having a risk-free investment. The cash value
builds tax-free, and it can be withdrawn anytime so there’s never any pressure
for this money to just stay sitting around collecting dust. And even better, if
things are tight, the cash value of the policy will pay the premium.  There are many advantages and  Aware Insurance can help you find a policy
that good for you. One thing we know for sure is that every day spent without
protection could be tragic for someone who loves us dearly and you can start
investing early. For more information call 818-915-0534 or send us an email at bill@awareinsurance.com

www.awareinsurance.com