Life insurance generally falls into two main categories. Term Insurance Provides coverage for a specific period, such as: 10 years 20 years 30 years 35 years Example: A $500,000 term policy may cost significantly less per month than permanent coverage. However, once the term ends, the coverage may expire. Permanent Insurance Permanent policies may last for life and may also accumulate cash value. Examples include: Whole life Universal life Indexed universal life Permanent pol

An Indexed Universal Life (IUL) policy is a type of permanent life insurance where cash value growth is linked to a market index. Examples may include indexes such as the S&P 500. However, the money is not directly invested in the market. Instead, the policy may receive interest credits based on the performance of the index. Example If the index grows 8% in a given year, the policy may receive interest up to a specified cap. If the market declines, many IUL structures include

Some life insurance policies are designed not only for protection but also for efficient cash value accumulation. This is sometimes referred to as overfunded life insurance. The idea is to contribute more money into the policy (within IRS limits) so that the cash value grows more efficiently. Example Instead of contributing the minimum premium of $5,000 per year, someone might structure the policy to contribute $15,000 per year. More of the money goes toward building cash val