Indexed Universal Life (IUL) Insurance can be obtained online, through an agent, or directly from an insurance company. Although this is good, it is best to buy your IUL policy from a Texas licensed insurance agent. This is because insurance agents are experts at helping policyholders find IUL coverages that best suit their current and future needs. Also, insurance agents are experienced and versed in everything an IUL policy covers, and they know licensed insurance companies in the locality that offer good IUL coverage. Hence, having an insurance agent handle your IUL insurance decisions will save you a lot of stress, and ensure you get a comprehensive IUL coverage at an affordable price. There are two IUL options and plans available in Texas:
Index Universal Life (IUL)
Variable Universal Life (VUL)
NOTE: selling and/or advising on VUL requires additional licensing (securities Series 6, 7, 65, 63 Broker-dealer, asset under management, and or variable products licenses), in addition to a life insurance license. Ensure you talk to a Texas licensed insurance agent about what VUL policy entails and the risk associated with the policies and their cash values.
Before settling for any IUL coverage, ensure you get quotes from different insurers. This would help you compare prices and settle for the option that best suits your needs. The benefit of over-insuring and over funding your IUL Insurance is that the cash values grow tax-free if a loan is taken from the policy the death benefit will be maintained.
You need Indexed Universal Life (IUL) Insurance if you:
want a lifelong insurance plan that can be used as a financial safety net for your loved ones in the event of your demise or
need to borrow from the cash values for college funding, home mortgage, buying a vehicle, starting a business, or a property or
want flexibility in adjusting premium payments and death benefits while building cash value.
Speak to a Texas state-licensed insurance agent to discuss your needs. A knowledgeable agent would be able to help determine which type of IUL Insurance best fits your needs.
You can buy an Indexed Universal Life (IUL) policy from an insurance company or agent. However, before looking for a specific insurance company or agent, consider the following:
Ensure you check the company’s financial rating, Comdex rating and complaint history. You can do this by contacting the TDL Consumer Help Line at (800) 252-3439.
Get quotes from at least three insurance companies in Texas to ensure you’re getting the best deal. Ensure that the IUL quotes you are comparing offers similar coverage. Sometimes a less expensive policy might have fewer features or lower death benefits, while a more expensive policy might offer a better feature and higher death benefits.
The following Indexed Universal Life (IUL) Insurance options are available in Texas:
Index Universal Life (IUL): This policy includes a cash value account that is tied to the stock market index, which grows tax-deferred with a unique feature of no market loss and the growth capped.
Variable Universal Life (VUL): This policy comes with an investment component where policyholders can directly invest in the stock market and can either gain or lose. Note that selling and/or advising on VUL requires additional licensing (securities Series 6, 7, 65, 63 Broker-dealer, asset under management, and or variable products licenses.), in addition to a life insurance license. Ensure you talk to a Texas licensed insurance agent about what VUL policy entails.
Individuals can go for any of the above mentioned IUL options depending on their needs. Contact a Texas-based insurance agent for guidance regarding the best IUL coverage that suits your current and future needs.
Anyone qualifies for an Indexed Universal Life (IUL) insurance in Texas. However, the following requirements might apply:
Interested persons must be living in the United States or be a foreign national that the insurance company is willing to insure.
Interested persons must be US citizens/national or lawful residents.
Interested persons must be residents in the state of Texas.
Contact your Texas licensed insurance agent to know if you qualify for the IUL policy.
You can buy Indexed Universal Life (IUL) Insurance in the following ways:
Insurance agents: These individuals typically serve as an intermediary between insurance buyers and insurance companies. They represent insurance companies by selling their products to buyers. You can choose to purchase an IUL policy from an insurance agent who sells IUL coverage from the company they represent.
Insurance brokers: They represent the insurance buyers and not insurance companies. You can buy an IUL policy from insurance brokers who work independently and do not have contracts with any specific insurance companies. Insurance brokers typically work with several insurance companies and can provide you with several quotes and IUL plans that you can choose from.
Online: You can also buy IUL insurance from online insurance agents or brokers. There are also websites where you can get quotes from different insurance companies for free.
Individuals should do their due diligence to purchase IUL policies from insurance companies, agents, or brokers licensed by the Texas Department of Insurance (TDI). Speak to a knowledgeable Texas licensed insurance agent if you are confused about where to purchase your IUL policy.
There are several ways to get Indexed Universal Life Insurance in Texas. For instance:
Contact existing insurer: If you already have an existing policy, you can speak to your insurer about your interest in getting an IUL policy.
Seek out a new insurer: You can get an IUL policy from a new insurer through an agent, broker.
Online: You can also get an IUL policy from different insurance companies, agents, or brokers. However, speaking to a knowledgeable Texas insurance agent is recommended to ensure that your needs are met. Be careful not to purchase an IUL policy from an insurer solely based on a low price without understanding the policy coverage and if it meets your current and future needs.
Regardless of how you get your IUL policy, ensure you work with a licensed insurer. Do not purchase an IUL policy you do not understand, or one you are not sure suits your specific needs.
An affordable Indexed Universal Life (IUL) Insurance can be purchased online, from an insurance agent, or directly from an online third-party insurance agency website. However, it is advisable to purchase an IUL policy through an agent to be able to get a policy at a competitive price.
Individuals can apply for Indexed Universal Life (IUL) Insurance through any of the following ways:
Online: There are several third-party websites online where you can apply for IUL insurance. You can compare quotes from different insurers and choose the best insurer that suits your needs. You simply have to register on their website and fill out an application form. You will be required to provide personal details and answers to a series of health and lifestyle-related questions. The insurer can do further investigation to either get more information about you or confirm the information you provided during your application. This, of course, would usually be done with your permission. Once your application is received, the insurer will keep you up-to-date on the application process via your email or the prefered means of communication which you would have indicated in your application.
Insurance agents: The agent helps you apply for IUL insurance. You only need to provide them with the necessary information like your family’s health history, your medical history, and your financial information. You do not need to speak with the insurer directly, your insurance agent will handle everything. After understanding your needs, the insurance agent will assess them and help you establish your goals. They will look for an IUL coverage that best suits your needs at an affordable rate.
In-person: Individuals can go to any licensed insurance company of their choice and apply for IUL insurance. If they need any help with filling out the form, they can talk directly with the licensed insurance agent.
Although applying for IUL insurance online or in-person is good, you always benefit by applying through an agent. Most insurance agents are knowledgeable about IUL coverages from different companies, and they can help you compare quotes so that you can settle for the IUL coverage that will best suit your needs. Contact a Texas licensed insurance agent for more information regarding the IUL insurance process.
Knowledgeable Insurance agents, and brokers can help individuals apply for Indexed Universal Life (IUL) Insurance. Insurance brokers typically help to find a policy that suits your needs for a reasonable price. They research based on your needs and present you with the best options. Note that you will be required to pay a fee if you are applying for an IUL policy through a broker. On the other hand, insurance agents are individuals in your locality who are knowledgeable about how to apply for an IUL policy. They help policyholders explore options, compare rates, and handle the back and forth while their application is underwritten.
Yes, it’s the best thing to do. Buying an Indexed Universal Life (IUL) Insurance through an agent can help you get the best IUL policy that suits your needs at a price you can afford. They can also help you at any time after purchasing the policy if you have questions, complaints, issues, changes, or a need to file a claim.
Yes. You can purchase Indexed Universal Life (IUL) Insurance through a Texas licensed agent.
It is good to seek the services of a knowledgeable insurance agent when considering buying Indexed Universal Life (IUL) Insurance. Some reasons why you need an agent for IUL insurance in Texas are:
To get the best policy that suits your needs.
To get all the necessary information about IUL policy to help you make intelligent decisions.
To get an IUL policy at a reasonable rate. Insurance agents can use their experience as leverage to help you with the best possible riders and options available for your needs, thereby helping you save money and get adequate coverage for your loved ones.
For an effortless and faster application process.
To get good professional insight regarding information and to make inquiries about your IUL policy.
To get someone who has your best interest at heart and help you navigate through a smooth process with your IUL policy.
It is very crucial to get your Indexed Universal Life (IUL) Insurance via a knowledgeable Texas insurance agent because they can help you compare quotes from multiple insurers and most importantly, design the policy in such a way that it meets your short and long-term needs.
The design of the IUL may be tailored for multiple uses, among which the main ones are:
Maximizing living benefits - by using the cash values while you are still alive for:
Tax-free retirement income,
To use the cash value as a credit line, against which you can borrow against, and
To help you cover the final medical expenses.
Paying off the policy as soon as possible, to use the cash values to cover the cost of insurance for the rest of your life. (Most IULs are paid for in 20 years, where there is enough accumulated cash value, to cover the cost of insurance for 25 additional years or more). The longer you live after the policy got paid, the more your cash value grows (depending on the market, the contract terms, and the cost of insurance). Once the cash value surpasses the amount of the death benefit, the death benefit starts growing too, mirroring the cash value balance.
Make sure to speak with a knowledgeable Texas life insurance agent who is experienced in designing Indexed Universal Policies (IUL) for your type of needs.
An Indexed Universal Life (IUL) Insurance agent represents an insurance company who negotiates and sells IUL insurance contracts to insurance buyers. There are two kinds of insurance agents:
Independent agents: These types of agents work with many different insurers. This allows them to have multiple products with a wide variety of coverage options and prices that help them provide the best service to their clients.
Captive agents: These types of agents represent one company and because they do not represent multiple companies, they can not give you different and best options available to you that suit your needs.
You can either choose between a Captive agent or an Independent agent. You could consider getting an independent agent if you want to compare Indexed Universal Life (IUL) plans from different insurers. However, if you already have an insurance company in mind and they only work with captive agents, you can just speak with their agent. No matter the type of insurance agent you want to go for, ensure you choose one who:
Is licensed by the Texas Department of Insurance (TDI).
Understands your current and future needs.
Explains everything about IUL coverage in a manner you can easily comprehend.
Does not pressure you into making an insurance decision but patiently guides you through choosing the right IUL coverage, features, and amount that best suits your personal and family needs.
Is willing to periodically review your IUL policy to ensure that it continually suits your needs and circumstances.
There are over 33,000 insurance agents in Texas who can guide you through purchasing an Indexed Universal Life (IUL) policy. These agents can be found online, through referrals and TDI website. Below are some tips that can help you find the right IUL insurance agent who is proficient in IUL Insurance:
Referrals: You can get recommendations from friends, family, neighbors, and financial advisors who have purchased an IUL policy via an insurance agent.
Experience: Ask your intended agent how long they have been in business. You want an agent who is experienced in IUL policies, not a newbie. The agent should have been in the insurance business for at least three to five years and be able to explain the differences between the cash value life insurance, the advantages, and disadvantages, and different policy riders available. If the agent brings in a manager or coworker that means that he/she is not experienced in the IUL policies and does not understand them to help you and your best interest in the process.
Expertise: Ensure you get insurance agents who have a baseline knowledge of IUL policy, who are competent, and have the necessary educational requirement relevant to IUL insurance. Make sure the agent understands the IUL policy they are selling to you, so you don't end up with a policy that doesn't suit your needs.
Licensing: Only go for insurance agents who are duly licensed by the Texas Department of Insurance (TDI). Do not settle for unlicensed agents even if they seem to be experts in IUL policy to avoid scams.
Complaints: Use the Look up a company or agent feature on the TDI website to check if any complaints have been filed against your intended insurance agent. You can also contact the TDI Helpline at (800) 252-3439:
to find out agents' licensure or
if any complaints have been filed against them or
if TDI has taken any disciplinary actions against them.
Internet search: You can do an internet search to look for insurance agents in your locality. Then you can freely choose about five agents and type their names on your search engine to learn more about them. Also, you can check if any complaints have been filed against them by simply typing their names versus complaints on the search engine. If any complaints pop up, ensure you check the credibility of the source.
Insurance agents that are proficient in implementing Indexed Universal Life (IUL) Insurance can be found online, through referrals or on the TDI website. Ensure you do your due diligence to verify the licensure of your intended insurance agent.
Having an insurance agent to guide you through selecting and purchasing Indexed Universal Life (IUL) Insurance is very important. Working with a Texas insurance agent is beneficial in the following ways:
Your insurance agent will ask you questions to understand your financial goals and objectives.
After understanding your financial goals, the insurance agent will recommend what you need to do to meet your financial needs so you can choose the best IUL coverage that suits your situation.
If you are comfortable with their recommendations, the agent will work with you to purchase an IUL policy to protect your loved ones in the event of your death, while also building a tax-free cash value.
Your insurance agent will continue to work with you through periodic reviews to update you on your IUL policy. They would also update you on better coverages and add-ons that are beneficial to you.
Your insurance agent should help you choose the best Indexed Universal Life (IUL) coverage tailored to your specific needs at the most competitive rates. They guide you in the process of applying and purchasing the policy. Your insurance agent can also give accurate advice and explain difficult financial and insurance terms in ways that you can understand.
The first thing to do before comparing Indexed Universal Life (IUL) Insurance quotes is to assess your needs. Next, you need to determine how much coverage you want. After determining your specific needs, you would have to find insurers that offer the types of policies you want. The best way to find an IUL policy with a reasonable price that fits your needs is to compare quotes from multiple insurers. This is because the price for IUL policy varies widely. You can get IUL quotes through the following medium:
Online: Individuals can find free quotes online from various websites and compare quotes. If you don’t have the luxury of time to check various websites, you can use a website that provides quotes from multiple companies. One seeming advantage of getting free quotes online is that you can get amazing deals but it can be misleading as the quote may not have the full disclosure as it is a third-party website. It may misguide you and you may not be successful in achieving your life insurance goals. You can also end up going for an insurer offering the lowest price without fully understanding and verifying the coverages. Talk to a Texas insurance agent about any information you get online and any questions you have on the IUL coverages.
Calling insurance agents: One can just look up names of insurance companies online, then call the insurers and ask for IUL quotes. Contact only insurers licensed by the Texas Department of Insurance (TDI) to avoid being a victim of a scam.
Visiting local insurance agencies: One can go in person to multiple local insurance agencies to get quotes.
Working remotely with an insurance broker: You can get an independent insurance broker to help you compare IUL insurance quotes. An independent insurance broker will help you shop around to get the best IUL coverages at low prices from several insurance companies.
After getting quotes from several insurance companies, you have to look beyond the premiums to check if the policy covers what you want. You can create a spreadsheet that contains the following:
Name of the insurer.
Key features that come with the IUL policy.
Riders that each insurer adds to the IUL policy and the benefits of the riders.
Once you have all of this information organized, you can compare each quote to see which policies give you the best value. Be careful not to choose to go for an insurer simply because the quotes are cheaper. Instead, try to do your due diligence to ensure that the insurer you go for offers the right IUL coverage that suits your current and future needs. Also, as you compare quotes from several insurers, make sure you compare IUL policies of insurers that provide the same coverages to compare prices accurately.
Generally, Texans are at liberty to compare as many quotes as they want. However, it is good to compare at least three quotes. Ensure that you compare Indexed Universal Life (IUL) options with similar coverages and don't be too quick to settle for the cheapest. This is where a knowledgeable and experienced agent can help guide you through the process of selection between Company A and Company B. Besides the basic quote, the agent can further research the insurer on numerous other important performance metrics, such as the:
Assets of insurer
Liabilities carried by the insurer
Surplus of the insurer.
All of them have an effect on the pricing of the cost of insurance. With Company A you may be able to buy $55,000 in death benefit, compared to the same premium with company B you may be able to buy $83,000. of the death benefit.
You can get as many quotes as you want. Getting at least three quotes from different insurance companies is highly recommended.
Having a local insurance agent for Indexed Universal Life (IUL) Insurance is good because these agents are familiar with your locality. Local agents will help you find coverages that can fit your needs and can adjust coverages to meet local insurance needs. In addition, you will find it easier to reach your local agents because their offices and businesses are in your local area.
Although working with a local insurance agent is very good, it is no longer as important as it used to be. This is because one can now get an IUL policy from start to finish online or remotely. Hence, it doesn't matter if the agent you are working with is local or national. Most agents are even licensed in multiple states, so it's okay to go for any insurance agent. Just ensure the insurance agent you settle for is duly licensed, and the IUL policy you purchase covers your needs.
No. In most cases, Indexed Universal Life (IUL) Insurance agents do not charge policyholders who purchase IUL insurance through them.
Most insurance agents get paid in commission by the insurance company they represent. This is usually based on the number of Indexed Universal Life (IUL) Insurance policies they sell. This commission is usually built into the premium; hence, they do not come at an extra cost to the policyholder.
In addition to commissions, captive agents might get paid salaries plus benefits and may be paid a life income by the insurer. Captive agents in most cases get paid till the policy is in force.
In contrast, independent Texas life insurance agents are solely paid on commission. The more people buy their policies, the more money they make, and if those insured renew their policies, independent agents will continue to make commissions for those policies.
Yes. You can buy life insurance from any authorized online agency portal. However, purchasing an Indexed Universal Life (IUL) coverage from a state-licensed knowledgeable, experienced insurance agent is always better. This is because it saves you money, time and gives you better services.
Speak to a Texas licensed insurance agent for more clarity on buying an IUL policy.
Yes, anyone that is determined insurable by the insurer can get Indexed Universal Life (IUL) Insurance. Individuals who are citizens or residents in Texas or the United States are eligible for this policy. Contact a Texas licensed insurance agent to determine your eligibility for an IUL policy. Some insurance companies do insure foreign nationals. Check with a state-licensed agent.
Yes, you can get Indexed Universal Life (IUL) at any time, but it is better to get it as soon as possible so that there will be sufficient time to build your cash value. Talk to a Texas insurance agent to know the appropriate time to get an IUL Insurance.
Yes, you can within reason or for the purpose of tax-free income for the future. Over-insuring your life simply means having too much Indexed Universal Life (IUL) Insurance. This leads policyholders to buy more IUL coverage or get a higher death benefit than necessary. Speak to a Texas insurance agent to know how you can benefit from over insuring your IUL policy.
Although over-insuring your life may result in paying more premiums, it may be a useful option if it is done to get more tax-free income, asset protection or for gifting. Contact your licensed insurance agent to see if lowering your policy amount is right for you.
Yes, you should over-insure your life if you want more tax-free income for future purposes and you can afford the payment.
Buying too much Indexed Universal Life (IUL) Insurance is a smart decision because it would be of immense benefit if your future needs increase or you want tax-free income in the future.
Indexed Universal Life (IUL) Insurance cannot be renewed because it does not expire if you continue to pay your annual premiums on your policy anniversary date or before. If you can not pay the same amount any one year you should contact your agent and or the insurance company to see what is the minimum you can pay to keep the policy in force (alive). Contact a knowledgeable Texas Insurance agent for further clarity on this matter.
The best kind of Indexed Universal Life (IUL) Insurance to purchase depends significantly on your personal needs and the future financial plans you have for your family. For instance:
Index Universal Life (IUL): This policy would be a better option if you want coverage that includes a cash value account that is linked to the stock market index, which grows tax-deferred with a unique feature of no market loss. IUL cash value grows at a compounding rate and you can loan tax-free from your policy and don't have to pay the loan back if you do not wish to or cannot pay it back; it will all be repaid out of your death benefit.
Variable Universal Life (VUL): Individuals who are willing to take greater risks in the market can get this policy. VUL typically comes with an investment component where policyholders can directly invest in the stock market and can either gain or lose.
Note: Selling and/or advising on VUL requires additional licensing (securities Series 6, 7, 65 or 63 Broker-dealer, asset under management, and or variable products licenses), in addition to a life insurance license.
Contact a Texas-based insurance agent to guide you into getting the right type of IUL coverage that suits your needs.
The type of Indexed Universal Life (IUL) Insurance policy best for singles largely depends on their personal needs, goals, and financial conditions. Unmarried individuals who want the advantage of death benefits while investing in the stock market index should consider getting an IUL policy, as they can get tax-free income in the future and not have to worry about running out of money in their retirement years. Zero-loss feature guarantees that the cash value is not lost even during the stock market downturns.
In contrast, Variable Universal Life (VUL) Insurance may be a better option for singles who want to invest in the stock market itself. The only problem with going for VUL is that singles can lose money in their cash value if the market takes a downturn. Note that selling and/or advising on VUL requires additional securities licensing on top of the life insurance license.
Typically, there are just two Indexed Universal Life (IUL) Insurance plans that are available in Texas. These plans are:
Indexed Universal Life (IUL): This provides lifelong coverage that includes a cash value account that is tied to the stock market index and it grows tax-deferred with a unique feature of no market loss and growth is compounding.
Variable Universal Life (VUL): This provides lifelong coverage with an investment component where policyholders can directly invest in the stock market and can come with profit or loss. Note that selling and/or advising on VUL requires the life insurance agent to possess additional securities licensing (Series 6, 7, 65 or 63 Broker-dealer, asset under management, and or variable products licenses).
Discuss with a Texas-based insurance agent to know which IUL insurance plan will work best for your specific needs.
Yes. Bundling Final Expense insurance with your Indexed Universal Life (IUL) Insurance helps you have coverage for your funeral costs and other final expenses after your death. Asides having death benefits that your beneficiaries can use to pay off death, college tuition fees, and daily expenses with a cash value, you can also have coverage that is solely tailored towards meeting your funeral expenses. Discuss with your Texas life insurance agent how to bundle IUL with Final Expense the best way.
The refusal to pay policy premiums causes your Indexed Universal Life (IUL) policy to lapse. Typically, insurers give policyholders about three to five years to reinstate their policy after it lapses. However, specific requirements for reinstatement must be met. Most times, former policyholders would have to submit a reinstatement application and fill out a questionnaire about their health, proving that their health condition is still the same as when they first purchased the policy. Some insurers might ask for medical reports from the policyholder’s doctor or request that a medical examination be done. Policyholders might not be able to reinstate their policy if their health has changed for the worse.
Insureds who qualify for policy reinstatement would have to pay all the premiums owed. Some Insurers can charge some interest on past due premiums. It is always better to reinstate an existing policy rather than apply for a new one. This is because purchasing a new policy tends to be more expensive than reinstating an existing policy. If the policyholders’ health hasn’t changed, the insurer might have them pay the original pricing on their policy.
If the reinstatement was approved with a change in health for the worse, the premium rate is likely to be affected. But only due to health. The fact that the insured may now be older does not have any effect on the cost. The premium will be based on the age of policyholders when they first applied for IUL coverage.
Speak to a licensed Texas life insurance agent, to learn how to reinstate your lapsed IUL policy.
If you purchased your Indexed Universal Life (IUL) policy online, you could just log in to the insurance company’s website to confirm if your policy is still active. You can also contact the insurance company via email or phone number or contact the insurance agent that helped you get the plan to confirm your IUL coverage.
You can find out your Indexed Universal Life (IUL) Insurance by:
Contacting your insurer.
Checking your insurance policy documents.
Talking with the insurance agent who assisted you with the purchase.
To find out if you have Indexed Universal Life (IUL) Insurance, you can check your policy documents or your homepage on the insurance company’s website where you purchased the policy. Alternatively, you can talk to your insurance agent about your IUL policy and any further questions and clarification you have.
Yes, you can combine Indexed Universal Life (IUL) Insurance with other life insurance policies like Term Life Insurance. Term Life Insurance offers insurance coverage that is quite different from an IUL policy. The only similarity between them is that they all have death benefits. Depending on your financial resources and goals, you can combine other policies with IUL Insurance to provide the protection you seek. If the insurance policies are obtained from the same insurer, it is possible to get lower monthly premiums, especially through the combined use of alternative life insurance plans. However, it might not be the case if the policies are from different insurers. Speak to a licensed Texas insurance agent to know if you can get cheaper rates when you combine other policies with your IUL policy.
Indexed Universal Life (IUL) insurance is very beneficial because it allows you to meet the financial needs of your loved ones at your demise, while allowing your cash value to grow tax-free and compound annually without any market risk. IUL also helps you build cash value from which you can withdraw, borrow against, or use to pay premiums.
The cash value can yield tax-free income in later years, which can be used to pay bills like mortgage, outstanding loans, college funding, medical expenses, and much more. However, the debt owed on the outstanding loans will be deducted from the death benefit paid out to your beneficiaries at your demise. Contact a Texas-based licensed insurance agent to know if IUL is a good deal for you and how it can meet your current and future needs.