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Flexible Premium Contributions - an Important Advantage of Indexed Universal Life Insurance

Flexible premium contributions are an important advantage of Indexed Universal Life Insurance. Not only might you be able to skip payments when need be, but in many cases you can catch up by making large contributions that would have been allowed in past years. By way of contrast, if one skips making a contribution to his 401(k) or IRA in one year, the IRS won't let you double up the next year.

IUL on the other hand will allow you to skip any number of years, so long as there is enough left in the Account Value to cover ongoing expenses and interest on any existing policy loan. Then, when you have a good year in earnings, you may play catch-up and contribute up to the maximum cumulative contributions the IRS would have allowed from policy inception. (Back to IUL Table of Contents)
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