Indexed Universal Life Insurance

If you want a policy that has the potential to earn you a higher cash build-up while giving you significant tax advantages, then Indexed Universal Life insurance might be the thing for you! Indexed Universal Life insurance falls under the umbrella of Permanent Life insurance. While this type of insurance has many of the same perks that Whole Life insurance can give you, it is not the same!

Both Indexed Universal Life insurance and Whole Life insurance can accumulate a cash savings component alongside the death benefits. However, Whole Life insurance is generally thought to be the safer of the two policy options. This is due to the level of risk involved with Indexed Universal Life insurance policies.

The reason for the risk mainly boils down to the cash value build-up that this insurance can accumulate. Typically Whole Life builds on a fixed interest rate, which might not increase drastically but is steady. Whereas with Indexed Universal Life insurance, there is no fixed interest rate. So depending on how open you are to potential risks, you could come out far ahead!

It Might Be Risky Business…

When it comes to the interest rate for Indexed Universal Life insurance, the rate is typically picked by the insurer based on a market index. You should keep in mind that there are no guarantees on market returns because of the risky nature of not having a fixed interest rate. Your premiums might also be in flux over time due to this.

Indexed Universal Life insurance can also have fees and other types of costs attached to the policy, so be sure to ask an agent about it first. Some of these costs include, but are not limited to:


Surrender Charge

Fee and Commission

Administrative Expenses

Premium Expense Charge

Give a team member a call and schedule an appointment for a sit-down with us today! We want to make sure you’re getting the most out of your policy. Indexed Universal Life insurance is generally a policy for people who are looking to invest an initially large up-front lump sum in order to achieve a tax-free retirement.

An example of how this would work is similar to how a Roth IRA works. This is where you pay taxes now on the money you put into the fund, and later, when you pull it out, you get the money tax-free. You should also bear in mind that there is a cap on returns when it comes to an Indexed Universal Life insurance policy.

But It Might Just Be Worth The Risk!

A few perks for Indexed Universal Life insurance policies is that despite all the risk and possibility of a downside, there is also an upside to that profit too! This policy has the best potential in making you money, plus there is a broad and flexible market. Falling onto the high potential of returns, our team members will walk you through the call options this policy can use.

Another one of the previously mentioned perks to Indexed Universal Life insurance is the tax-free payout you’ll eventually receive! What this means is that you don’t have to pay any kind of taxes when you withdraw the gained savings. You won’t even have to worry about your cash value amount shrinking if you accept Social Security benefits. You can use both as a form for retirement with no impact on the two.

Indexed Universal Life insurance will provide you the permanent coverage you deserve so long as the premiums are paid. A great benefit of the flexible nature of this type of insurance is that it can be designed and tailored to fit you. This means personalization that meets your investment and planning goals, not a one-size-fits-all policy. Our team at Best Life Insurance Houston is very avid about ensuring that you get the insurance that meets your exact needs.

At the end of all the pros that have to do with the accumulated cash build-up, you still get death benefits. This money can be utilized to pay off any debts or pay for funeral expenses. Death benefits can help your loved one financially during a difficult time or even set their future up! Our team at Best Life Insurance would love to help you set something up within your policy to help you invest in your family’s future!

Reach Out To Our Team Today!

Give us a call to schedule an appointment today because we would love to meet with you personally. You deserve an insurance plan that will last your whole life and will work for you! We always hope that with our help, we can set you on a path that will plant the seeds of your family’s future legacy. You can count on our team at Best Life Insurance Houston to always put our best foot forward when finding the right policy options.

We will work together to find out what type of policy will best fit your situation and goals. From there, our team will work on finding you a policy that won’t overload you with high premium payments. Just remember that Indexed Universal Life insurance can be a risk, but sometimes it takes a risk to payoff!

The bottom line of Indexed Universal Life insurance is that it can offer your beneficiaries financial support by way of death benefits and build a cash value. This is a more intricate insurance policy, so be sure to ask our team questions if you have any concerns. We want to help you find the best fit, and that can mean picking a policy you didn’t initially think of going with. But rest assured that our agents have your well-being and future security in mind and will always be candid with you!

If you want to learn more about Indexed Universal Life insurance, pick up a phone and call us today. We at Best Life Insurance Houston are always happy and willing to take the time, so you better understand your options. Don’t miss out on the right coverage anymore, and contact us today!

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