Indexed universal life insurance (IUL) can be a powerful financial tool, offering growth potential and long-term security. However, like a finely tuned sports car, it requires careful management to perform at its best. One common pitfall is overlooking fees and costs. If maximum funding in your policy doesn’t lead to reduced fees over time, it could signal improper structuring. Adjustments to the premium or death benefit may be necessary with the help of a knowledgeable specialist.
Understanding caps and participation rates is equally important. These limits, set by insurers, determine how much of the market’s gains your policy captures. Reviewing these details prepares you for potential gaps between market performance and policy returns. Similarly, market volatility can impact your cash value growth. While IULs protect against losses, understanding the risks of fluctuating markets will help you stay confident during downturns.
Regular policy reviews are essential to keep your IUL aligned with your goals. Annual check-ins allow you to evaluate its performance and make adjustments as needed. Lastly, practice moderation when withdrawing cash. Taking out too much too soon can deplete your policy. By withdrawing conservatively, you preserve your IUL’s longevity and maintain steady progress toward your financial future.
source: https://iulmadeeasy.com/common-iul-mistakes-and-5-ways-to-prevent-them/
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