Indexed Universal Life Insurance

Indexed Universal Life Insurance
Life insurance, which is the most visited by people considering savings-type life insurance, can basically cover a lifetime, which is the same as Whole Life Insurance, or the method of formulating pure premiums and the form of savings income. Varies.

Similarly, IUL’s insurance premiums are divided into pure insurance premiums and cash valley with savings, and unlike Hall Life, where dividends change according to the company’s performance, it goes along with the rate of return on the stock market. In general, the higher the risk, the higher the rate of return.

In particular, IUL, unlike previous variable insurance, will follow the stock market, but if the index crashes and falls negatively, it will be fixed at the bottom of 0% to prevent any loss.

On the contrary, even if the rate of return on the stock market soars above 10%, we will not be able to receive more than the cap specified by the insurance company.

For example, even if the stock market crashed in 2008 and the stock market crashed by -50%, IUL subscribers did not suffer any damage just because they had no profit, even if the S & P 500 in 2019 soared by more than 29%. If the cap is 9.5% depending on the insurance company, you can only earn 9.5%.