Equity Indexed Universal Life Insurance: Buyer’s Guide (Companies + Rates)
Equity indexed universal life insurance is a permanent policy that can build cash value based on the stock market. Equity indexed universal life insurance rates are in the mid-range, balancing affordability with the benefits of growth potential. However, there are some problems with indexed universal life insurance, so it may or may not be the best option for you.
Free Life Insurance Comparison
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
UPDATED: Jul 8, 2021
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident life insurance decisions. Comparison shopping should be easy. We are not affiliated with any one life insurance provider and cannot guarantee quotes from any single provider. Our life insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance related. We update our site regularly, and all content is reviewed by life insurance experts.
- Equity indexed universal life insurance is a permanent life insurance policy with a cash value that grows based on the stock market
- Equity indexed universal life insurance rates are in the mid-range, balancing affordability with growth potential
- While equity indexed universal life insurance can grow quickly, the cash value can also decrease if the premiums become more expensive than what you earn in interest
If you’re not sure if you should be looking to buying term life insurance or another type of policy, figure out what you want your policy to do for you.
Some life insurance policies allow you to protect your family after you pass away as well as give you the potential to grow your wealth. Equity indexed universal life insurance may be able to help you build cash value with less risk.
Enter your ZIP code into our free quote comparison tool above to compare equity indexed universal life insurance quotes today.
Table of Contents
What is equity indexed universal life insurance?
Equity indexed universal life insurance is a permanent life insurance policy with flexible premiums and a cash value that grows based on an equity index.
Part of the premiums goes into the cash value, while the rest goes toward the cost of the policy.
There is typically a minimum premium amount that accounts for the cost of the insurance and a stable interest rate. However, if you pay more than the minimum, the cash value of the policy will grow more quickly.
Universal life insurance policies usually grow based on an interest rate determined by the life insurance company and the performance of their portfolio.
An equity indexed universal life insurance policy follows the performance of the stock market, so this could provide more growth.
The equity indexed universal life insurance company will typically set a guaranteed interest rate, so you won’t lose money if the stock market goes down. They will also set a cap, so you won’t be able to earn more than a certain rate.
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
How much are equity indexed universal life insurance rates?
Let’s take a look at some average monthly rates for different types of insurance:
Policy Type at $100K | 20-Year-Old Average Monthly Rates | 40-Year-Old Average Monthly Rates | 60-Year-Old Average Monthly Rates |
---|---|---|---|
Term (20 years) | $15 | $23 | $110 |
Whole | $70 | $128 | $302 |
Universal | $36 | $63 | Rate not available |
Get Your Rates Quote Now |
Because of the potential to grow your cash value more than other policies, you should expect to pay higher rates for equity indexed universal life insurance.
Should I buy equity indexed universal life insurance?
Equity indexed universal life insurance allows you to take advantage of some of the benefits of the variable universal life insurance without the risk of losing money if the stock market drops.
While the premiums are more expensive than some types of insurance, they are lower than others. Mid-range rates balance with the benefits that the policy offers.
However, the problems with indexed universal life insurance are that the cash value can decrease if the premiums become more expensive than what you earn in interest, and the policies are often difficult to understand and set up.
Use an indexed universal life insurance calculator to see how much coverage you can afford. Enter your ZIP code into our free quote comparison tool below to find affordable equity indexed universal life insurance today.