Indexed Universal Life Insurance

Indexed Universal Life (IUL) is permanent life insurance that offers death benefit protection when death occurs. Like other forms of permanent life insurance, your premium payments may earn interest and grow the cash value of the policy. What differentiates IUL from other permanent policies is the way interest is credited. In addition to offering a declared interest rate, IUL offers the ability to earn interest that is linked to the movement of a specified stock market index over a specific time. The way is which interest is credited gives you the potential for strong cash value accumulation. IUL policies also offer protection in a poorly performing market. Most carriers will split your premium into two pre-selected accounts. The first is the Fixed Account, and the second called the Index Account. You, the policy holder can select which account your premiums go into. Most carriers will declare a fixed rate on the fixed account between 3-5% depending on the carrier. For the Index Account the carrier will set an Index Cap Rate and an Index Floor Rate. So think of your premium being split into two buckets. One bucket will grow at a Fixed Rate, and the other will grow depending on your selections and the carriers Index Cap and Floor Rate. Either way, IUL policies build cash value that can be accessed by Partial Withdrawals. Most partial withdrawals are generally tax-free. You can also access the cash value with low-interest policy loans.

To learn more about Indexed Universal Life Insurance products,or to get specific carrier Brochures,  feel free to call or email with questions.

Life Insurance Riders 

Riders are attachments or special amendments that are adding to the core policy that add specific coverage at the request of the policyholder. Riders usually add a small additional cost to the core policy.

Accidental Death Benefit Rider

When added to a life insurance policy, this rider secures an extra amount of money to be paid to the beneficiary/beneficiaries if the policyholder dies as a result of an accident. Often called “double indemnity,” this life insurance rider usually doubles the amount of the death benefit.

Waiver of Premium Rider

This life insurance rider waives the responsibility to pay the premium when the policyholder becomes disabled, during the length of time the policyholder is disabled. Premiums must be paid, but if the insured has become disabled and suffers from loss of income as a result, the waiver of premium life insurance rider will guarantee the active status of your life insurance even if the premiums are not paid. A similar life insurance rider that is especially beneficial is the disability income rider, which secures a monthly income should the insured become permanently disabled.

Accelerated Death Benefit Rider

This life insurance rider allows the insured to collect either all or a portion of their life insurance policy while they are alive. The insured can claim this rider if he/she is diagnosed with a terminal illness, requires long-term care or admission to a nursing home. With these conditions, the insured would most likely be unable to continue work and earn an income. This life insurance rider can help relieve some of the financial burden and medical costs.

Renewal Provision – Guaranteed Insurability Rider

This life insurance rider guarantees your life insurance policy’s renewability at the end of its term (assuming you purchased a term life insurance policy and not a permanent whole life insurance policy). Upon renewal, you can add coverage to your policy and will not need to give further proof of your insurability. However, consult with your insurance agent to find out whether your provider grants this rider with conditions (does it expire after a certain age? Is renewability only valid within a set time period?). This life insurance rider is especially valuable because a term life policy may expire before the policyholder has passed on, but at a time when the policyholder’s condition is uninsurable.

Family Income Benefit Rider

This life insurance rider provides a continuous monthly payment to your beneficiaries upon your death. Rather then receiving one lump sum, your beneficiaries can receive the death benefit in monthly payments, which means a reliable source of income. When adding this life insurance rider, the insured (you) chooses the length of the term you would like to give this income security.

Not all riders are available for each product, please check with Comrade Financial Group to make sure any and all riders are available.