Life Insurance Payout

A Life Insurance Payout refers to the sum given to beneficiaries after the policyholder's demise. Characteristically:

• Tax-Free: Beneficiaries usually receive this amount without tax obligations.
• Components: It generally includes the policy's face value and any gains from the cash value, subject to the chosen death benefit option.

In the context of Indexed Universal Life (IUL) Policies:

• Potential Increase in Death Benefit: Linking the cash value to a stock market index can enhance the death benefit, despite the absence of direct market investments.

This feature of IUL policies offers a unique way to potentially augment the death benefit, providing added value to policyholders and their beneficiaries.