What's The Difference Between Index Universal Life And Whole Life Insurance?

​Have you heard about the Index Universal Life insurance? If so, you might want to know more about it. This article will review the key differences between IUL and whole life insurance.

Whole life and index universal are 2 types of permanent insurance. How are they different then? If your curiosity is piqued, continue reading.

About Whole Life Insurance
Whole life insurance has nice coverage for the policyholder’s family. The benefits include premiums that don’t increase with age and pay face value at 10, 20, or 65. Moreover, the coverage can give you the option to borrow a cash value, and withdrawals will be non-taxable.

About Index Universal  Life Insurance
By the name itself, this type of insurance has earnings directly tied to an equity index. IUL also provides their policyholders an option to give a part of their net premium to a cash account. In return, the cash account will earn interest based on the index’s performance. 

The insurance provides flexible payment, high earnings on interest, and loans should you need them later in life.

IUL Vs. Whole Life
There are key differences between IUL and whole life in many aspects.

IUL

• Various payment options
• Allows you to take out a cash value
• Accumulated interest is non-taxable
• Interest changes over time

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Whole Life

• Fixed monthly premium payment
• Allows you to loan against the policy
• Potential to accumulate cash value over time
• Interest is fixed.

Understanding The Key Differences
The first key difference is that whole life offers fixed monthly premiums while index universal gives an option to have flexible payment.  

Another key difference is the interest. For IUL, the interest is paid, in contrast to fixed monthly interest. 

Lastly, IUL can be considered an excellent retirement investment, unlike whole life insurance, which has potential growth while you’re still alive.

Conclusion
Both whole life and index universal are permanent life insurance policies. Regardless of what you’ve chosen,  both offer substantial coverage for you and your family.  In return, you’ll have a worry-free future.

At Roper Insurance Services, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (828) 697-6709. Get your free quote today by CLICKING HERE.