Indexed Universal Life
Building Cash Value with Indexed Universal Life (IUL)
One of the key benefits of an Indexed Universal Life (IUL) policy is the ability to build cash value over time. This cash value can serve as a financial asset that grows tax-deferred and can be accessed for various needs, such as retirement income, emergencies, or major life expenses.
Grow, Protect, and Secure with IUL
How to Choose the Right IUL Policy
Define Your Objectives
Decide if your focus is life insurance, cash value growth, or retirement income.
Understand Features
Look at premium flexibility, cash value growth, index strategies, caps, and floors.
Review Costs
Check all fees, including insurance charges and surrender penalties, to avoid excessive costs.
Research Providers
Choose a financially stable company with good ratings and a reputation for reliability.
Consider Riders
Explore optional riders like long-term care or critical illness for enhanced protection.
Consult an Expert
Work with a financial advisor to review personalized illustrations and clarify terms.
The Key to Growing Wealth While Protecting Loved Ones
Your path to financial freedom begins with the right insurance plan, one that not only protects your loved ones but also helps you build wealth over time. With the right guidance and a tailored strategy, we can help you achieve the security and growth you deserve, all while giving you peace of mind for the future.
Frequently Asked Question
The cash value grows based on the performance of a selected market index. The insurer credits your policy’s cash value with a portion of the index’s gains, subject to caps, floors, and participation rates.
No, the cash value is protected from market losses due to a floor, typically 0%. This means you won’t lose money in a market downturn.
The cap is the maximum amount of interest the cash value can earn, even if the market index performs better. For example, if the cap is 10% and the market earns 12%, the policy will credit only 10%.
Yes, many IUL policies allow you to choose from various market indexes, such as the S&P 500, NASDAQ, or others.
Unlike traditional universal life insurance, which has a fixed interest rate for cash value growth, IUL policies offer the potential for higher returns tied to market indexes, while still offering downside protection.
If you withdraw more than your available cash value, your policy could lapse, or the death benefit may be reduced. It’s important to monitor withdrawals carefully.
Yes, you can adjust your premiums to increase or decrease over time based on your changing needs and financial situation.
IUL policies can be a good option for those seeking permanent life insurance with flexible premiums and the potential for cash value growth. However, it’s important to assess your financial goals and work with a financial advisor to determine if it fits your needs.