LIFE INSURANCE
Indexed Universal Life (IUL) Insurance Policy
Protect your legacy and your loved ones.
What is an IUL?
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Benefits of an IUL
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Funding an IUL
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LIFE INSURANCE
What is an Indexed Universal Life Insurance Policy
IUL stands for “Indexed Universal Life”. Like all types of life insurance, IULs provide a death benefit. However, indexed universal life insurance in retirement can offer more than just a death benefit–it has the potential to act as a source of tax-free* income for you while you’re still alive.
<span data-metadata=""><span data-buffer="">IUL Policies 101
Most people know the basics of life insurance. You purchase it to provide for your family after you pass away. However, the right type of life insurance in retirement can benefit you in other ways, too. An Index Universal Life policy may be an excellent way to store some of your money and keep it protected.
Purchasing an IUL Policy
If you think one of these products could be right for you, we suggest reaching out to a financial professional. We can help you arrive at the right solution for your specific needs. Get in contact with us today so we can learn about your situation and financial goals.
Indexed Interest at a Reasonable Rate (Over Time)
With an IUL, your money is kept safe. Additionally, however, you can choose to have your rate of return linked to an index. In this way, IUL owners can earn interest on the cash value of their IUL at a reasonable rate of return over time. When the index is up, you will earn interest, and yet, when the index is down, the cash value of your policy will not decrease. No matter what happens in the market, an IUL provides protection for the money you put into it.
LIFE INSURANCE
Benefits of an IUL Insurance Policy
In addition to simply providing a death benefit, IUL’s can help retirees in many ways. First, indexed universal life insurance in retirement offers some additional flexibility over some other financial vehicles. IULs have no required minimum distributions (RMDs) or fines for withdrawing money earlier than age 59 1/2.
Tax-Free* Retirement With an IUL?
An indexed universal life insurance (IUL) policy can potentially act as a source of tax-free* income for retirees. With an IUL, policyholders can have access to the cash value of their account, without paying taxes on that money.* Finding ways to earn income tax-free* can greatly impact your retirement. No one knows for sure what the tax laws will be in the future or how those will affect your money. However, we do know that making a strategy for that possibility can help.
Avoid Probate Court
IULs also give policyholders a way to protect their legacy. For instance, the money left for your beneficiaries is often much more than you initially put into the policy. Additionally, because it is a life insurance policy benefit, your loved ones won’t need to go through probate to have access to the benefit amount.
LIFE INSURANCE
Funding an Indexed Universal Life Insurance Policy
You can fund your policy with one lump sum of money. Or, you can fund it over time (however, an IUL is typically “max-funded”). Additionally, you can access the cash value of your policy at any time.
Interest on IULs
Essentially, when you fund an IUL, part of your premium pays for life insurance coverage. The rest (minus expenses), is your cash value. This money may grow at an interest rate, linked to an index. In this way, IUL owners can earn a reasonable rate of return** while also keeping the money they contributed to the IUL protected (even in the event of a market drop).
How IUL Funds are Distributed
Utilizing indexed universal life insurance in retirement, you can access the money you contributed at any time, with no penalties for doing so (unlike with traditional retirement income options) and use the money for whatever you need.
Terry P. | Client since 2022
“Great products and people – easy to work with. NO PRESSURE!!! And we get pumpkin pies around the holidays!”
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