IUL vs Term Life Insurance

When it comes to life insurance, there are several options to consider, including Indexed Universal Life (IUL) and term life insurance. Each serves different needs and goals. Let’s explore the differences to help you choose the right policy for your situation. (IUL vs Term Life Insurance)

IUL Overview:

Indexed Universal Life (IUL) insurance combines life insurance with investment opportunities. The policy’s cash value grows based on a stock market index, providing potential for higher returns along with life insurance protection.

Term Life Insurance Overview:

Term life insurance provides coverage for a specific period, such as 10, 20, or 30 years. It’s straightforward and typically offers lower premiums compared to permanent life insurance policies like IUL.

Key Differences:

1. Coverage Duration:
   • IUL: Provides lifelong coverage.
   • Term Life: Coverage lasts for the specified term only.
2. Premiums:
   • IUL: Generally higher due to the investment component and lifelong coverage.
   • Term Life: Typically lower, making it more affordable in the short term.
3. Cash Value:
   • IUL: Accumulates cash value over time, which can be accessed for loans or withdrawals.
   • Term Life: Does not build cash value; it’s purely for death benefit protection.

Choosing between IUL and term life insurance depends on your financial goals and coverage needs. For expert guidance in selecting the right policy, contact The Policy Shop today.