IUL (Index Universal Life Insurance) vs Index Annuity

An annuity is a financial product that pays out a fixed stream of payments to an individual, typically used as an income stream during retirement. An immediate annuity begins paying out immediately, while a deferred annuity starts at a later date.

An indexed universal life (IUL) insurance policy is a type of permanent life insurance that also includes a savings component that grows at a rate tied to an index, such as the S&P 500. The policyholder can use the cash value for retirement income or other purposes.

In summary, an annuity is a financial product that pays out a fixed income stream and it is usually used for retirement income, while an IUL is a type of life insurance that has a savings component and it is tied to an index like the S&P 500.

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