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Why IUL? Pros and Cons
Indexed Universal Life (IUL) insurance is a type of permanent universal life insurance that provides flexibility in premiums, a cash value component linked to an equity index, and a death benefit. The videos explains a specific of the IUL policy and an overview of iul. Over35andUp is not endorsing any company. Pros: 1. Flexible Premiums and Death Benefit : IUL policies allow you to adjust premiums (within limits) and can let you increase or decrease your death benefit over time. 2. Potential for Growth : The cash value of IUL is tied to an index (like the S&P 500), so there’s potential for growth if the market performs well. Unlike direct stock investments, there’s usually a cap and floor, meaning your cash value has protection against large market losses. 3. Tax Benefits : The cash value growth is tax-deferred, and you can often borrow against the cash value tax-free. 4. Long-Term Cash Value : IULs can build cash value that you can access in retirement...