Equity indexed Universal life insurance
What is Equity Indexed Universal Life Insurance
Equity Indexed Universal Life insurance, or EIUL, is a Permanent Life Insurance Contract with it’s Cash Values Credited Based On the Performance of an Underlying Stock Index with Downside Protection.
How Equity Indexed Universal Life Insurance Works
Like straight universal life insurance coverage, the cash value of Equity Indexed Universal Life Insurance is invested by the insurance company into their general account where it earns interest. Instead of the insurance company crediting the cash value of the policy with it earnings, the insurance company instead uses those proceeds to buy option contracts on an underlying index allowing for the potential for higher gains without the downside risk present in a VUL contract.
Who Buys Equity Indexed Universal Life Insurance?
Individual looking for long-term death benefit protection with the potential for a better return on their cash value accumulation that what straight universal life insurance provides while protecting their principal may purchase a EIUL contract.
Contact Decision Tree Financial to Discuss How Equity Indexed Universal Life Insurance Fits Into Your Financial Plan