Why Do We Analyze and Manage Only Indexed Universal Life (IUL)?
Plan Trackers specializes in analyzing and managing indexed universal life insurance. This is due to the unique capabilities of IUL and the many "moving parts" that can affect performance. In addition to providing a death benefit, IUL is often purchased for the purpose of accumulating capital. This is sometimes done with the assistance of a duplifunding, or borrowing against the policy's cash value to apply all or part of the proceeds as additional premium contributions. This process has the potential to augment the return on the cash contributions made by the policy owner. However, it is a two-edged sword. In order for duplifunding to provide added return, the overall index credits must exceed the cost of borrowing. Plan trackers can help in the decision making process as to whether or not to borrow, how much to borrow, and whether or not the index used as the investment component within the policy is the right one.
IUL is only one of many types of life insurance. All can benefit from expert advice and in-force management throughout their existence, but IUL has more ongoing choices to make to optimize policy performance and to protect the policy from adverse consequences .
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