Index Universal Life Insurance

Indexed universal life insurance (IUL) is a type of permanent life insurance. Permanent life insurance provides lifelong protection. They are designed to cover you until your death.

Life insurance that includes indexes is called indexed universal life insurance (IUL). The benefits of permanent life insurance last a lifetime. Their purpose is to provide you with coverage until the end of your life.

Indexed Universal Life includes a cash value component. After policy charges such as the cost of insurance are paid, the remaining premium can be allocated to a selection of stock market indexed accounts and/or a fixed interest account. This allows the cash value to grow and accumulate over time.

Index universal life insurance allows you to earn interest on your cash value based on the performance of a stock market index, such as the S&P 500. However, due to floor and cap concept you will not lose money

IUL policies typically have the following features/benefits for different age groups:

• Death benefit: This is the tax-free amount of money that will be paid to your beneficiaries if you die while the policy is in force.

• Cash value: This is the tax deferred amount of money that you have accumulated in your policy over time. You can borrow against your cash value or withdraw it, but you will have to pay taxes on any withdrawals.

• Protected till you live

• Living benefits

• Tax-Advantaged Partial Withdrawals, Wash Loans and Variable Interest Loans

• Protection of growth and principal due to Floor/cap concept

• Flexible premiums

• Robust design (Max funded IUL) will act as a cash cow with increasing death benefit

• IUL for kids helps Offers long-term financial protection and potential growth opportunities.

• IUL for kids can help lock their insurability at a young age/prime health

• IUL for kids can help in college funding, first home down payment, other key expenses

• No impact on social security benefits

The amount of your death benefit and cash value will depend on a number of factors, including your age, health, and the amount of premiums that you pay.

IUL differs from other types of permanent cash value life insurance. In addition to offering a traditional guaranteed minimum interest rate on fixed interest accounts, an IUL policy also allows you to earn interest linked to the performance of a selected stock market index over a specific period of time. This can include indices such as the S&P 500®, Russell 2000®, EURO STOXX 50® and the NASDAQ-100®.

With an IUL policy, you can direct the cash value into one or more stock market indexed accounts. These accounts aren’t directly invested in the stock market, but their performance is based on the performance of the selected stock market indices.

If the stock market index goes down, your IUL policy will never be credited with a negative interest rate due to the guaranteed minimum interest rate or “floor.” This provides downside protection when the stock market index is negative and the potential for strong cash value accumulation when the stock market index is positive.

While you have the potential to earn higher returns when the stock market index is positive, you can rest assured that you won’t have to worry about negative returns.

IUL policies can be a good option for people who want to grow their wealth and protect their loved ones. However, it is important to understand the risks and limitations of these policies before you buy one.

Locked-in rates

Tax-free dividends

Accumulation benefit

Flexibility

Secure guaranteed level premiums that never go up in your lifetime, even if interest rates change, or you switch jobs or experience major life changes.

Use non-taxed dividends to pay your premium and add to the cash value of your account.

As soon as you begin making payments, you build the policy’s cash value. Borrow against your accrued savings and still keep the policy intact.

Adjust your policy and benefits as life circumstances and stages change.

Why buy universal life insurance?