Choose Wisely in Guaranteed vs Indexed Universal Life
Exploring Indexed Universal Life Insurance
Indexed Universal Life (IUL) insurance provides a unique blend of life insurance coverage with the potential for cash value growth linked to a stock market index, such as the S&P 500. Unlike GUL, IUL policies offer cash accumulation features, allowing policyholders to benefit from market gains while enjoying downside protection through minimum guaranteed interest rates. This makes IUL an appealing choice for those interested in building wealth alongside securing life insurance.
The cash value component of IUL policies can be a powerful tool for financial planning. Policyholders can access these funds through loans or withdrawals, offering a flexible resource for future needs, such as retirement or education expenses. However, it's important to note that while IUL offers growth potential, it also involves more complexity and risk compared to GUL, as the performance is tied to market indices2.