A fixed indexed universal life insurance (FIUL) policy is a life insurance product that provides you the opportunity, when adequately funded, to participate in the growth of the market or an index without directly investing in the market. At the core, an FIUL is designed to provide protection for your loved ones in the event that you pass away, but it can also provide you a wide array of benefits while you’re still living. One of its unique features is the ability to develop a cash value in your policy that’s connected to the growth of an external market.
FIUL vs. term life insurance: What’s the difference?
The primary differences between an FIUL and a term life insurance policy is the flexibility and the benefits outside of the death benefit.
A term policy is life insurance that guarantees payment of a stated death benefit during a specified period of time (or term) and a specified premium. Once that term expires, you have the option to either renew it for a new term, terminate or convert it to a premium coverage. You typically would use this for one purpose and for one period of time in your life.
An FIUL is a flexible premium life insurance policy that has the safety and security of a death benefit along with the ability to build cash value growth through index crediting.
Many policies also include protection that allow you to access your death benefit if you get sick and need the money sooner. If you experience critical, chronic or terminal illness, you may have the ability to use one of these benefits. An FIUL can be used as a safety net and is not a replacement for a long-term health care plan.
Be sure to consult your financial professional to see what type of life insurance and benefits fit your needs.
How can an FIUL benefit you?
A benefit that an FIUL offers is peace of mind. You can rest assured that if something happens to you, your family and loved ones are taken care of. It can also put you at ease to know the accumulation potential is protected. You’re not exposing your hard-earned money to a volatile market, creating for yourself a tax-deferred asset that has built-in protection.
Why does F&G focus on FIULs and not term life insurance?
Historically, our company was a term provider — and we’re committed to serving that business — but we’ve adapted and re-focused to fit the changing needs of customers and the needs of the industry.
F&G has been in the FIUL market since 2003. It’s a market we’ve been committed to. We’ve dedicated resources to developing some of our FIULs, and we have a focused effort on being able to provide strong solutions to customers. FIULs are the fastest growing segment of the life insurance market. It’s a space that’s growing, and we’re going to keep at it.
Now that you’ve read a bit more about FIULs, talk with your financial professional to see if an FIUL fits your financial needs.