Indexed Universal Life vs Term Insurance
Indexed universal life insurance (IUL) and term life insurance are two different types of life insurance policies. Term life insurance provides coverage for a specific period of time, such as 10, 20, or 30 years. If the policyholder dies during the term of the policy, the death benefit is paid to the beneficiaries. If the policyholder outlives the term of the policy, the coverage expires and there is no death benefit. IUL is a type of permanent life insurance, which means it provides coverage for the policyholder's entire lifetime as long as premiums are paid. IUL policies also have a cash value component, which can accumulate over time based on a specified index, such as the S&P 500. The death benefit and cash value of an IUL policy can increase over time, but they are also subject to market fluctuations. In summary, term insurance is a less expensive option for temporary coverage, while indexed universal life insurance provides lifetime coverage with the potential for cash