Equity Indexed Life Insurance

Equity Indexed Universal Life Insurance, also referred to as EIUL, can be defined as permanent life insurance created with the consumer in mind. This universal life insurance maintains the same flexibility as others, yet the interest crediting is slightly different. According to the 2006 Census Bureau Report, nearly forty-five percent of American homes have inadequate or no life insurance, and equity indexed life insurance is a good method of getting the protection their family deserves.

Are you in need of a life insurance policy with permanent protection? Contact a financial planner in your area today to explore the benefits of an Equity Indexed Life Insurance policy.

Essentially, the insurance companies created this form of insurance because the consumers were unhappy with the possibility of losing cash value in the event of a decrease or flat in the market. In the prior scenario, the cash value within an Equity Indexed Life Insurance policy will be credited a guaranteed minimum interest rate. In other words, in the event of an increase in the market, the policy owner will benefit accordingly and as the market slopes downward the policy owner will still earn some interest.

Some of the other benefits of an Equity Indexed Life Insurance plan include:

• Equity indexed returns
• Tax-deferral
• Tax insurance protection
• Guaranteed minimum returns
• Access to cash value
  

Based upon the Equity Indexed Life Insurance policy chosen, the amounts credited to the cash value can be determined by a particular method or a combination of methods. These methods, which determine the amount to be credited to the cash value, consist of: the participation rate, the spreads or asset fees, and/or caps. The participation rate consists of the percentage increase in the index, whereas the spreads or asset fees consist of a stated percentage which is deducted from the increase in the index. Caps consist solely of a maximum annual increase which is credited to the cash value.

Are you in need of a life insurance policy with permanent protection? Contact a financial planner in your area today to explore the benefits of an Equity Indexed Life Insurance policy.