Indexed Universal Life Insurance
A flexible premium universal life product with an indexed feature. An Indexed Universal Life policy (IUL) functions similarly to universal life; however, the client can choose to allocate their policy’s values into a Fixed Account or an Indexed Account. An IUL also supplies a floor that ensures your cash value will not decrease because you are not directly invested in the market.
How does Indexed Universal Life insurance work?
When you pay your IUL premium, you have the flexibility to choose between a minimum and maximum amount. The premium goes in to the Fixed Account where premium expenses are deducted. The remainder has the potential to build policy cash value that can be accessed through policy loans and withdrawals**. This account value is allocated between the Fixed Account and Indexed Accounts based on your instructions.
Why is this important?
The ability to increase or decrease premiums in the future to accommodate your budget or cash flow needs.
Death benefit flexibility
The option to adjust the policy’s death benefit should your life insurance protection needs change in the future.
Builds cash value
Accumulates valuable long-term cash values for future cash needs such as helping fund a child’s college education, paying off your mortgage early, funding a business opportunity or supplementing retirement income.
Life insurance death proceeds are paid out income-tax free and the IUL policy’s cash values accumulate tax-deferred, an important feature when you consider how taxation can have an adverse effect on your savings growth potential.
Favorable loan feature
The ability to access the IUL policy’s cash value tax-free through policy loans allows you to maximize your cash needs without sacrificing valuable life insurance protection. (Loan balances will reduce the death benefit.)
The option to design an IUL policy that reflects your particular needs and situation.