How do I know if I need life insurance?
The main purpose of life insurance is to provide a financial benefit to your loved ones if you die. If anyone is financially dependent on you, it’s likely you need life insurance.
Do I need life insurance if I don’t have dependents?
Even if you don’t have dependents, a fixed index universal life insurance policy can still benefit you down the road. For example, you might access the cash value to help cover an unexpected expense or potentially supplement your retirement income. Or suppose you had unsettled debt at the time of your death. The death benefit from life insurance could help pay that down, and help your loved ones cover final expenses.
What if I already have a policy through work?
Many employers offer term life insurance as a benefit. But as the name suggests, term policies cover you only for a specified period of time. This generally means that if you leave your job, your life insurance coverage ends. Purchasing your own permanent life insurance policy (such as FIUL) can provide financial reassurance over the long term, even if you switch jobs.
How much insurance do I need?
The short answer: It depends on a lot of factors. Your financial professional can help you assess your needs – both today, and into the future. Or, for a quick estimate, try our handy calculator.
What is underwriting?
Insurance companies use underwriting to make sure they can meet their guarantees before they sell you a policy. Underwriting is the process of assessing the risk of insuring you, and helping determine the cost of insurance. That’s why most life insurance policies require a medical exam: The younger and healthier you are, the less your policy is likely to cost.
What is indexed interest?
Simply put, it’s interest your policy earns based on positive changes in an external index. Allianz is a leader in indexed products. We track the performance of one or more indexes for you – and if the return is positive, you have the opportunity to earn indexed interest. But because you’re not actually participating in the market or buying shares in any index, your principal is never at risk due to market downturns (although certain fees and expenses will reduce policy values).
How is indexed interest calculated?
Indexed interest is determined through a combination of index allocation options and crediting methods. Every policy year you can place your accumulation value in one or more allocation options, which track the performance of an external index. If the external index has a positive result, we then use a crediting method – which is a formula to determine how much indexed interest your policy will earn. Because no single allocation or crediting method performs best in all situations, your financial professional can help you determine which combination may fit your financial goals.