One of the advantages of membership with AFFA is that we have done your homework for you. We have shopped hundreds of the best top rated insurance companies in the U.S. and have found the best companies and products. For safety, growth of your money and protection we recommend Index Universal Life Insurance, (IUL).
Did you know less than 2% of all traditional term life insurance policies ever pay out to a beneficiary, but that 7 out 10 people will have a heart attack, stroke or cancer before age 65 and live?
Many people are not aware of living benefits, and don’t realize that this option does NOT cost more than traditional life insurance, but will pay you while you’re alive in the event of a critical, chronic or terminal illness.
At the same time, Indexed Universal Life insurance policies can serve as a great investment option in your retirement portfolio and allow you to accumulate cash on a tax-deferred or tax free basis. Now you can have the best of both worlds.
The funds you allocate for an indexed universal life policy (or IUL) allow you to direct the premium into one or more index allocation options such as the S&P 500 index. The insurance company tracks the index performance and uses a crediting method to calculate your indexed interest and the interest is credited to your cash value.
If the index declines, the crediting formula allows you to avoid the loss and earn zero interest in down years. When the index rises, the insurance carrier credits those positive returns based on its formula, since sometimes there is a maximum crediting rate that can be earned.
The most unique feature is that an indexed universal life policy eliminates the market volatility, yet provides the mechanism to earn competitive interest rates. Traditional market-based vehicles have been on a roller coaster ride since 2000, and consumers continually search for ways to minimize their market exposure.