6 advantages of indexed universal life insurance
September 13, 2016 by STEPHAN R. LEIMBERG, ROBERT J. DOYLE, JR., KEITH A. BUCK
Policyowners of indexed universal life (IUL) enjoy virtually all the advantages they would enjoy if they owned regular universal life policies including (among others associated with all life insurance in general):
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the flexibility to vary premiums and change face amounts;
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the transparency and unbundling of the policy elements allowing them to easily track and compare insurance company projections of these elements and actual performance over time;
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the availability of all three death benefit pattern options;
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access to the whole panoply of riders and special policy provisions;
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use of back-end loads (surrender charges) that phase out over time rather than the front-end loads typical of other types of policies;
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the availability of policy loans from cash values at low or (in periods of high equity index returns) even negative net cost; and
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a guaranteed minimum interest crediting rate.
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