How Index Universal Life Works

Similar to other kinds of fixed insurance, IUL or indexed universal life brings a benefit and a brokerage account. The benefit is made at the start of the policy, but can be modified. The brokerage account reinforces the performance of an index amount. Insurance companies select one or more of those that pay interest to policyholders helping the index’s performance.

Cash accounts are primarily funded through premium payments. The moment the value of insurance is paid for your death benefit, rider charges and other fees start up, the rest is included to your brokerage account. If you ever make changes or arrangements to not make a payment or underpay, those fees are usually taken from the account.

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