A whole life policy is a type of permanent life insurance that provides coverage and protection for an insured person’s entire life.
It has a number of features that make it different from other forms of insurance, such as a cash value component, which accumulates over time and can be used as a loan or withdrawal, or as an additional source of income in retirement.
Alternatively, an index universal life (IUL) policy is a form of permanent life insurance that is more flexible than a whole-life policy.
IUL policies allow the insured to customize their policy to fit their needs, including changes in premium payments, death benefit amounts, and cash value accumulation.
While an IUL policy can provide more flexibility and more options, it also comes with more risk, since the policyholder can make changes that can affect the policy’s performance.
The IUL also offers more death benefits than the whole life for the same premium. It’s like a blend between whole life and term when it comes to the amount of death benefit it provides.
Both offer the potential for tax-free cash value growth over the insured’s lifetime.
financialeducation #financialliteracy #lifeinsurance #IUL #wholelife
