Where is the cheapest place to buy IUL? I get this question from time to time when working with my clients. The answer may surprise you. Sometimes the cheapest policy may not be the best. Sometimes policy with more expenses performs better than a cheap indexed universal life insurance policy. If you consider the premiums you pay into the policy versus the income you can generate plus the death benefit that will be paid to your beneficiaries, an IUL policy really is cheap. We are farmers planting seeds for trees that will not be harvested for many years. Now where can you find the cheapest policy?
Well, there are currently more than 40 companies that offer indexed universal life insurance, and we represent the many of them. Brett Anderson of IUL Digest compares every Indexed UL policy sold and ranks them against each other. Each month we get a report that ranks all of these indexed universal life insurance policies by cost, cash value accumulation and income that the policy can produce over a 20-year and 40-year period.
The numbers can be very different for the different companies even though the premiums paid into the policy are the same. If you are not looking at all of the top carriers when you are in the purchasing stage, you may be making a big mistake.
The insurance industry has done a great job at keeping a level playing field. Every advisor has the exact same price as everyone else. The key to getting the best policy is to do your homework.
It is all about plan design.
Depending on how you intend on funding your policy can dictate what carrier will do best for you. It is very wise to choose a company that keeps expenses low inside the policy. These policies are long-term assets – most people intend on keeping the remainder of their lives. If you assume that policy A has 4% more expenses than policy B. 30 to 40 years can mean tens of thousands of dollars in lost benefits.
One recent study showed a difference of around a $50,000 decrease in cash accumulation in policies with higher expenses.
Where can you find the cheapest indexed universal life insurance policy? It all starts with your research. It all starts with asking the right questions. If you are only getting an illustration from an agent that shows the growth and then the income but you are not comparing that to any other companies, then how do you know you have the cheapest policy?
How do you know you have the best policy?
When it comes to indexed universal life insurance, cheap is not always the best. If you are purchasing indexed universal life insurance as a way to supplement your retirement, you want the policy that will produce the largest amount of income when you retire. There are several factors that determine how well your policy will perform, so don’t just leave it to chance. Make sure that you are comparing the best companies before you make that decision.
Why You Need Life Insurance
We’ve helped a lot of applicants purchase an indexed universal life insurance plan. We’ve become experts at these kinds of policies and every other kind of plan out there.
Not having life insurance is a tricky decision. Sure, you don’t have to pay the premiums. You save money, but it’s like riding without a seat belt. 99% you never need it, but you’ll be glad it’s there in case of an emergency.
To get started, how much money will your family owe when you pass away. They’re getting all your debts, what’s the total? Make sure the IUL play (or whatever kind you buy) is at least larger than this number.
After you’ve added up those big numbers (be sure to include your mortgage, student loans, etc.), then you’re ready for the next step. How much do you earn every year and how much income does your family need? The majority of families can’t survive off of one spouse’s income. The policy can help recoup some of the lost money every month.
If you are at the point that you want to know more about indexed universal life insurance or you would like to get a personalized proposal, you should contact us. Just give us a call at 1-800-712-8519 or use the proposal request button on this page.
Frequently Asked Questions
Where is the cheapest place to buy Indexed Universal Life insurance?
I get this question from time to time when working with my clients. The answer may surprise you. Sometimes the cheapest policy may not be the best. Sometimes a policy with more expenses performs better than a cheap indexed universal life insurance policy.
How do I know that I am getting the cheapest Indexed Universal Life insurance policy?
It all starts with your research. It all starts with asking the right questions. If you are only getting an illustration from an agent that shows the growth and then the income but you are not comparing that to any other companies, then how do you know you have the cheapest policy? How do you know you have the best policy? You could be making the wrong choice.
Why would cheaper not be better when it comes to Indexed Universal Life insurance (IUL)?
When it comes to indexed universal life insurance, cheap is not always the best. If you are purchasing indexed universal life insurance as a way to supplement your retirement, you want the policy that will produce the largest amount of income when you retire. There are several factors that determine how well your policy will perform, so don’t just leave it to chance. Make sure that you are comparing the best companies before you make that decision.
