Life insurance can give you the peace of mind knowing that your beneficiaries will receive financial support after your death. As you shop for life insurance, you’ll be able to choose from many policy types, and it’s important to choose the policy that’s right for your needs and goals. Indexed whole life insurance can be an appealing choice if you want a policy with a cash value that can grow.
Indexed whole life insurance is a type of lifelong coverage; as long as you pay your premiums, your beneficiaries will receive a benefit after your death. This type of policy also has a cash value component. When you pay your premium, a portion of that premium goes toward the cash value. You can choose the cash value’s market index, so your policy’s cash value can grow if the investment performs well.
An index universal whole life insurance policy offers several appealing benefits. The premiums stay level during your life, so you can budget for your payments. The policy also offers lifelong coverage as long as you make your premium payments on time. Additionally, the death benefit from an equity indexed life insurance policy is generally not taxable, so your beneficiaries get to keep the full amount they receive.
Since this type of life insurance has a cash value, it can potentially grow. Even if the market index performs poorly, your money is protected from loss by a guaranteed minimum interest rate. That means that your cash value won’t decrease; it just may not grow as quickly as it could if the market performed well.
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While there are many advantages to indexed whole life insurance, it’s important to be aware of the drawbacks. The cash value of your policy may be capped, so be sure to thoroughly read your policy before signing up.
Indexed whole life insurance premiums are usually higher than the premiums for a term life insurance policy, but remember that term life insurance only lasts for a designated period. With whole life insurance, the coverage lasts your entire life as long as you continue to pay your premiums.
An indexed whole life insurance policy may be appealing if you’re looking for a policy that will stay in effect for your entire life. If you want to grow your money but are worried about potential stock market losses, this type of life insurance can serve partially as an investment venue without the risk of losing your money.
To start exploring your options, you can get free life insurance quotes online today. You can use those quotes to explore different types of life insurance and different policies, so you can find the best price on the policy that’s right for you.
