Life Insurance Basics
What is the difference between whole life and indexed universal life insurance?
Whole life insurance provides guaranteed death benefit, guaranteed cash value growth, and guaranteed premiums. Indexed universal life (IUL) provides flexible premiums, adjustable death benefit, and market-linked cash value growth with principal protection. Whole life is more conservative; IUL has more growth potential.
Key Points
- Whole life: guaranteed death benefit, cash value growth, and premiums
- IUL: flexible premiums, adjustable death benefit, market-linked cash value growth
- Whole life: more conservative, more predictable
- IUL: more growth potential, more flexibility
- An independent agent can help you compare whole life vs. IUL