Indexed Universal Life Insurance (IUL) in Houston and the benefits it can provide
What lets you save for retirement while protecting your family from unexpected costs? An IUL Insurance, that’s why you want to start looking into IUL if you’re in the Houston area! An indexed universal life policy gives you two types of protection: term insurance and permanent insurance:
- Term insurance pays out a certain amount of cash each year until you reach age 65. Once you turn 65, however, you no longer receive any income benefits.
- Meanwhile, permanent insurance continues to pay out a death benefit even after you retire. This way, your beneficiaries won’t have to worry about paying bills or dealing with estate taxes.
What other benefits can one have acquiring an Indexed Universal Life Insurance (IUL) in Houston?
- Indexed universal life insurance in Houston is a type of whole life insurance where the policyholder pays a fixed premium throughout his/her lifetime. This type of insurance is ideal for those who want to save money over time. However, they do not offer any cash value.
- Whole life insurance policies have two components – death benefit and premiums. Death benefit refers to how much money the insured person receives upon the death of the owner. Premiums refer to what the owner pays each year towards the payment of the death benefit. In indexed universal life insurance in Houston, the amount paid annually remains constant until the end of the owner’s life. Thereafter, the annual premium increases at a rate determined by the age of the owner.
- An index-linked whole life insurance policy in Houston provides the same protection as regular whole life insurance. However, its primary difference lies in the fact that the owner does not pay any additional amounts towards the payment of the policy. Instead, the insurer invests these funds in financial instruments called “indexes”. These indexes increase or decrease according to changes in interest rates, inflation, and stock market performance. As a result, the cost of paying out the death benefit remains unchanged.
- A major advantage of indexed universal life insurance in Texas is that the owner gets to choose whether he wants to invest his own savings in stocks and bonds or use them to pay off the policy. If the owner chooses to invest, then he earns higher returns than if he had simply deposited his money in a bank account. On the other hand, if the owner decides to withdraw some portion of his investment earnings, he can use them to reduce the size of the death benefit.
- Indexed universal life in Houston offers many advantages. One of them is that the owner can decide exactly how much he wants to contribute towards the payment of the insurance policy. Another advantage is that the owner can access the cash value whenever he wishes without having to wait till the end of his life. Moreover, since the owner enjoys tax breaks, he may find himself saving more than expected.
Interested in Indexed Universal Life Insurance (IUL), what to know?
While purchasing indexed universal life insurance in Texas, it is advisable to shop around for the best deal. You should compare different types of policies, their features, and prices before making your final decision. We know an expert who can help you understand your personal situation and see if there’s anything they can do for you. Contact Man Nguyen at MN Financial Solutions LLC for advice on how to apply this strategy, and which Indexed Universal Life Insurance would fit best.
