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Actualizado
Let us begin by talking about what is Indexed Universal Life Insurance, people need to understand how this type of insurance works. This is just like all life insurances, in the sense that it is also a form of permanent life insurance. This means that this type of life insurance is designed to last you a lifetime. Indexed Universal Life Insurance differs from other life insurances because it remains active as long as you stay current on your premium payments or when you reach the maturity date specified by the policy. This life insurance has a cash value component in which both gains and losses are tied to an index like the S&P 500.
Can you withdraw money from your IUL Account?
You have the option to borrow against your cash value through a policy loan or withdraw cash value. Once you pass away, your beneficiaries do get a death benefit. However, this amount will be reduced by any loans not paid or withdrawals you took from the cash value. Always keep this in mind when you decide to either withdraw or borrow money. Universal life insurance is also flexible because it does allow you to change your death benefits and/or premium payments. There are specified limits you need to follow in order to make any of these changes. But make no mistake, withdrawing money is definitely possible with Indexed Universal Life Insurance.
With Indexed Universal Life Insurance, you get the ability to participate in the market's upside while being protected from downside exposure. This sounds too goo to be true, that's because subaccounts don't allow people to benefit from the full extent of the market's upside. Despite the limitations, there is always a chance to earn some portion of the market's upside at the same time you are being protected from a potential market crash. This has turned into an attractive policy for investors who are searching to grow without any market risk.
