Indexing as an investment strategy has been around for a long time. The most popular is the S&P 500 Index, one of the top market benchmarks of our economy. There are several ways to purchase an index like the S&P 500: Options, Mutual Funds, ETFs, Annuities, Indexed Universal Life and Variable Universal Life. The last two are cash value life insurance. There are actually four types of cash value life insurance policies that, if designed correctly, can offer tax-free withdrawals to basis and collateralized policy loans of gain as long as the contract is kept in force for the life of the policy insured. The four policy crediting options use dividends, interest rate, indices and sub accounts to generate returns. You’ll need to undergo a risk tolerance test to select the crediting method best suited for you. Indexed Universal Life is one of the most popular product lines to offer indices, again both domestic and foreign. It’s generally structured to perform 200 basis points above the insurance company’s interest crediting rate. The insurance company buys options for a specific index; if the option is profitable the insurance company makes money and passes the gain onto the policyholder. Keep in mind   Read more…