What Does Equity Indexed Universal Life Insurance Mean?

By Patrick Cooper Posted in Life Insurance News

There are many different types of life insurance polices that you can purchase, and there are many riders that you can add on to those polices. Different policies offer different up sides, and not every type of life insurance policy if right for everyone. One type of life insurance policy that has many tax benefits is what is known as equity indexed universal life insurance.

Equity Indexed Life Insurance Has Three Distinct Benefits To It

Equity indexed life insurance is a form of permanent life insurance that has three aspects that all together are unique to this type of life insurance policy. The first is that the cash values of the insurance policy are tax deferred while accumulating. Next, this type of plan allows the proceeds to be transferred tax free when the policyholder dies. Finally, if planning for your children’s college or your own retirement this type of insurance offers the possibility for tax managed income.

Equity Indexed Universal Life Insurance Policies Are Ideal For Accumulating Cash Value

Equity indexed universal life insurance policies are often very affordable. These policies allow you to accumulate cash values that will increase along with a stock index, but at the same time will provide substantial financial protection from the risks of a varying equities market.  The ability to have tax deferment will also allow you as a policyholder to build up significantly more cash value over time.

This type of life insurance policy is ideal for individuals who are financially preparing to put a child or children through college or who are planning to retire in the near future. Equity indexed universal life insurance policies allow the policyholder to accumulate cash value unlike any other type of available life insurance plans.

Equity indexed universal life insurance policies are offered by most all major life insurance companies and are often comparatively affordable. When purchasing a policy make sure that you get price quotes from many different insurance companies because certain insurers may offer much better rates than others.

Related posts:

  1. What Are The Different Kinds Of Life Insurance Plans?
  2. How Much Life Insurance Do I Need?
  3. What Does Traditional Fixed Life Insurance Mean?
  4. What Are Full Endowments For Low Cost Life Insurance?
  5. What Is Universal Life Insurance?

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