Index Universal Life Insurance vs. Term Life Insurance
Index universal life insurance is a financial product that allows our loved ones to be taken care of, after we cannot. Most of us know the importance of index universal life insurance, yet, statistics show that over 33% of households are under insured. However, a scary statistic starts to unravel. Luckily for most, index universal life insurance can be very affordable if you know what kind of life insurance to purchase. We will take a look at the lower priced policies versus some of the policies with more benefits.
Term life insurance can be a good tool in protecting your loved ones in the event you are no longer able to take care of them. If you want to make sure your child has enough funds to pay bills, go to college, cover expenses, this is a low cost policy that can help. However, if nothing happens to you, no funds are returned to you. NOTE: Some term life policies allow you to convert into a universal life policy. An index universal life insurance policy can help you if you make good money and do not mind the heavier premium compared to term insurance, why is the premium higher?This is because you can borrow against the cash value which accumulates with an index universal life insurance policy. One huge benefit is the tax advantages. Rather than a traditional IRA which in the case of your death, gets transferred to your beneficiary, they will be taxed on this money. Sometimes up to 33%! With life insurance, you can contribute the same amount of money and pass the policy on without the hefty tax charges.
Index universal life insurance has proven to be useful since the concept first came to mind. Term life insurance can help for a temporary situations if you are not comfortable with the higher premium typically associated with universal life insurance policies. Contacting a licensed health, life, and annuity agency would be the first best step in identifying which life insurance policy best fits your goals and individual situation. Step up to the plate, and show your family that you are thinking about their future. Index universal life insurance sometimes comes into play when you discuss retirement plans, if you are a Florida resident, feel free to look at out informative website on Florida life insurance.
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