What exactly is an indexed universal life insurance IUL in the United States?
The globalization and internationalization of asset allocation has become the trend and hotspot of overseas international wealth management and global capital operation in the past few years. In the face of the surging global asset allocation boom, overseas financial institutions and wealth management companies have become more active and active in international asset investment and wealth management, and are more aggressive and eager to choose international financial products.
During the same period, a very popular financial product in the United States also caught the eye of asset allocators. This financial product is not only popular in the United States, but also vigorously promoted by many wealth management institutions and promoted by professionals. People suddenly find that friends around them are talking about it, and asset allocation wealth companies are recommending it. Many banks And customers of insurance companies are asking about it.
What kind of financial product is this, it has such great appeal and market power–the Indexed Universal Life Insurance (IUL), which is quite popular in the United States.
According to the latest data from LIMRA, Indexed Universal Life Insurance (IUL Indexed Life Insurance), the largest growth product in the US financial industry, is showing extremely strong momentum. This positive will further attract the favor of global wealth investors. As the U.S. S&P 500 hit a record high, financial investment products linked to the index all moved higher. Among them, the most exciting thing for investors is IUL, indexed universal lifeinsurance,. It is worth noting that this financial product has been very strong since its inception, and it has occupied half of the US life insurance market.
How did IUL come about?
American society is inclusive and complex, and its financial products have been constantly changing. With the constant changes in the U.S. economy, financial market, laws and regulations, the extremely important insurance wealth management products in asset allocation and wealth management are also constantly evolving and developing. rise rapidly. This is an inevitable trend in the development of financial products in each country.
In the United States, the rapid development of life insurance, or just after the end of World War II, the leading products at that time were very common and traditional whole life and term life. Whole life cost is relatively high, but it has cash value and is insured for life. The term life is cheaper, but it has a term, usually 20-30 years. In the 1980s, a universal life insurance began to appear in the US market, which is a permanent insurance, and the premium can be paid flexibly and can fluctuate within a certain range. Such products of course make up for the shortcomings of whole life insurance premiums that are expensive and non-floating.