Q: Should I Consider An Indexed Life Insurance Policy?
No! This is just another type of cash value life insurance policy dressed up like an investment product to try and appeal to someone’s desire to have stock market like returns without the risk typically associated with the market. Indexed Universal Life is just a gimmick where by the insurance company tries to insulate you from stock market losses by offering shared investment earnings when the market is up and minimum returns when the market goes down. The policy still maintains all the same flaws of a typical cash value policy, but add additional fees and expenses along with you losing the upside of the market which is typically much higher than the high end payment from an indexed product. We have addressed many of these other issues on this blog in the Life Insurance section or you can visit our website www.zanderinsurance.com and click on the ‘Term vs. Cash Value” link to learn more about this discussion.