Rising living costs in North Carolina show the importance of preparing for the future. That includes savings and protecting against worst-case scenarios that could happen today. Indexed life insurance can help Hope Hills, NC with both.

The Mechanics of Indexed Life Insurance

Indexed life insurance combines the death benefit protection of traditional life insurance with an investment opportunity linked to a market index. These policies are unique because they offer potential cash value growth based on the performance of a market index, like the S&P 500. The exact index followed can vary from one policy to another, but they’re generally well-known and broad market indices.

This allows policyholders to capitalize on potential gains that a market index will likely have over time should the index go down. However, an indexed life insurance policy typically limits how much of those losses the policyholder sees.

To do this, the policy credits interest to the cash value based on a formula linked to the chosen index. This isn’t the same as directly investing in the stock market, as the credited rate comes with participation requirements, maximum caps, and loss mitigations.

Choosing the Right Policy with Cross Creek Insurance

If indexed life insurance sounds like something you would like, contact the independent insurance agents at Cross Creek Insurance. The Cross Creek Insurance team is well-versed in life insurance, including indexed policies, and can help you determine whether one of these policies would make sense for you. Assuming one does, they’ll ensure you find an indexed life insurance policy that meets your needs well.