Editor’s note: This is part one of a two-part series about indexed universal life insurance and how it can be used in retirement planning. Part one explains indexed universal life (IUL) policies and how they work. Part two, coming tomorrow (June 1), will explore three ways an IUL could be used to generate retirement income.
Life insurance is often put into two groups. You’ve got term life insurance, which has no cash value unless you pass. Or you’ve got whole life insurance, which has a cash value, but you’ve got to keep paying those premiums for life. There’s another type of life insurance that you can consider that offers funding flexibility and a cash-value component — universal life insurance.
