Whether you’re an accountant, a financial planner, or a regular person just wanting to make wise choices with your money, index universal life insurance should be on your radar of options to consider. Why, you may ask? The simple reason is because it provides a tool to balance the opportunity of higher investment potential with a safety net to absorb potential risk that may accompany growth. It essentially provides a means to build wealth with the security of insurance. However, it offers other benefits that may surprise you.
While he was not a reliable accountant or financial planner, per se, but a genius, nonetheless, Albert Einstein was known to say, “Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.” Or, perhaps you’ll take your advice from Warren Buffet who said, "My wealth has come from a combination of living in America, some lucky genes, and compound interest." The point is, compound interest can be a game changer according to your favorite accountant, financial planner or other geniuses throughout history. If Warren Buffet and Albert Einstein believe in the power of compound interest, who am I to baulk at their wisdom? In fact, one the of the greatest attributes of the index universal life policy is that it specifically uses compound interest to create potentially very high cash value within the policy itself, and most importantly, it is non-taxable, and can be used later to fund your retirement in a way that can not only be reliable, but also fulfilling and abundant.
Generally speaking, the index universal life insurance policy follows the growth of the stock market, which as we know can be highly profitable. However, you don’t need your accountant to tell you that the stock market can be risky, as well. It generates great wealth and great loss, alike. This is why the index universal life insurance policy has a unique future incorporated into it which prevents losses from going below zero. So, while other investment types carry more risk, the index universal life insurance policy minimizes that risk level, while still permitting high growth, which is incredibly unique. Additionally, the IRS offers tax exemptions in the domain of life insurance, so another beautiful feature of the index universal life insurance policy it that it can be a useful tool in building retirement wealth.
Something else you may find interesting - and possibly very surprising, regarding the index universal life insurance policy is that the death benefit can become applicable during life. For example, in cases of critical, chronic or terminal illness, you can tap into the policy to fund what is needed during this trying time. So, like most life insurance products, you would gain the assurance of knowing your family will be taken care of when you pass, but unlike most other life insurance products, you could also be covered during life in circumstances where access to such funds could prove exceptionally crucial.
This truly is a unique product to leverage the power of investment with the safety of insurance. So, when we consider this option, it becomes clear that index universal life insurance policies provide a unique array of benefits including the opportunity for high growth that parallels the stock market, yet with less risk and more protection. Additionally, you gain nontaxable retirement income that grows within the policy, life insurance benefits for family members upon death, and a safety net in the event of dire illness during life, which in essence, also protects your family. In fact, the statistics on bankruptcy following a critical illness are staggering, and ever-growing. Your family doesn’t need that burden - not in your life, nor your death. Ask your accountant or financial advisor if an index universal life insurance plan may be a good fit for your investment and insurance needs. Be sure to ask about when the policy lapses. Index universal life insurance policies often offer lower premiums than whole life insurance. Also, unlike term life insurance, you can grow the cash value within the policy. Your insurance provider or financial planner could have suggestions on which policy or combination of policies could be your pathway to a fulfilling, safe and wealthy retirement.
