Indexed Universal Life Insurance (IUL)

Description

Indexed Universal Life Insurance (IUL) is a powerful financial tool that combines lifelong life insurance protection with the potential to build cash value linked to the performance of a stock market index—such as the S&P 500. It offers flexible premiums, tax-advantaged growth, and a living benefit that can support your retirement, wealth transfer goals, or legacy planning.


How It Works:

With an IUL policy, a portion of your premium pays for the life insurance coverage, while the remainder goes into a cash value account. This account earns interest based on the performance of a selected market index—but without being directly invested in the market, protecting you from negative returns with a built-in floor (usually 0%) and a cap or participation rate.


Key Features:

  • Lifelong Coverage: As long as premiums are maintained, coverage remains in force for your entire life.
  • Cash Value Growth: Earn interest based on index performance, with downside protection during market declines.
  • Flexible Premiums: Increase, decrease, or skip premium payments within policy limits as your financial situation changes.
  • Tax-Advantaged: Cash value grows tax-deferred, and policy loans or withdrawals can be accessed tax-free if structured properly.
  • Access to Living Benefits: Many policies include riders for chronic, critical, or terminal illness—allowing you to use part of the death benefit while still living.

Why Choose an IUL Policy?

IUL is an ideal solution for individuals who want permanent life insurance paired with growth potential and flexibility. It serves as a multifaceted financial vehicle that can be used for:
  • Supplementing retirement income
  • Building tax-free generational wealth
  • Funding college or major life expenses
  • Protecting against income loss and final expenses

Who It’s Best For:

  • Families and individuals planning long-term wealth accumulation
  • Professionals and business owners seeking tax-efficient retirement strategies
  • High-income earners maxing out qualified retirement plans
  • Anyone wanting life insurance with the potential to grow assets over time

Benefits at a Glance:

  • Market-Linked Growth Without Market Losses
  • Lifetime Death Benefit Protection
  • Flexible Premiums and Withdrawals
  • Tax-Free Access to Cash Value (via loans and withdrawals)
  • Powerful Tool for Retirement and Estate Planning