Four Indications That You Should Choose An Indexed Universal Life Insurance Policy

Choosing a life insurance policy can be challenging and confusing. One of the options you will have when you're on the market for life insurance is an indexed universal life insurance policy. This might be a good option for you depending on your situation and goals.

The following are four indications that you should choose an indexed universal life insurance policy. 

You want to have the option of creating tax-free cash flow.

Other options you have for investing might allow you to create cash flow, but most sources of cash flow are taxed. Purchasing an indexed universal life insurance policy is one of the few ways that you can enjoy cash flow options without paying tax on your cash.

With indexed universal life insurance, you can enjoy tax-free cash flow through policy loans. Of course, the death benefit on your policy will also be tax-free for your beneficiaries if you pass away. 

You want to minimize investment risk.

While you no doubt want to grow your money through investing with your life insurance policy, you may be concerned about facing excessive risks. You don't want to lose your hard-earned money due to a change in the market.

Fortunately, with an indexed universal life insurance policy, you are protected from risk to some extent thanks to the fact that your insurer will be open to investment risk while you will not be. You won't have to deal with negative returns when you choose an indexed universal life insurance policy. 

You need a death benefit for your family but also want to accumulate cash value.

One of the primary reasons why you would want a life insurance policy would be to provide a death benefit to your family if something happens to you.

An indexed universal life insurance policy comes along with a death benefit that your beneficiaries will receive as long as you're current on policy payments. At the same time, an indexed universal life insurance policy offers the added benefit of accumulating value over time, unlike term life insurance policies. 

You want to enjoy control when it comes to pursuing your particular investment goals.

Some insurance policies are fairly limited in terms of the choices policyholders can make and the control policyholders have over their policy terms. Indexed universal life insurance policies are generally highly customizable. You can make decisions regarding investment risk and policy riders.

If you want to feel in control of your life insurance policy with plenty of choices, you might want to take out an indexed universal life insurance policy.