Indexed universal life insurance receives interest crediting based on the performance of some external index, such as the Standard & Poor’s 500.
An insurance company purchase options in the S&P 500 and invest a portion of your premium. These options have a 0-2% floor and a 10-13% cap.
Top 7 Benefits of Indexed Universal Life Insurance Policies
- Protection of your principal against market losses
- Growth potential when the market is up
- Taxed the same as Life Insurance
- Tax-free access to cash values
- Lock in positive returns
- Adjustable death benefits with flexible premiums
- Permanent, tax-free death benefit
The historical performance of the S&P 500 is not intended as an indication of its future performance nor is it guaranteed. This graph is only intended to demonstrate how the S&P 500, with dividends, would be impacted by a hypothetical growth cap of 11% and a hypothetical growth floor of 0%.