Your Questions, Answered

What Is Indexed Universal Life Insurance?

Learn How an IUL May Fit Into Your Retirement Plan

A Different Kind of Life Insurance

Indexed universal life insurance Explained

Indexed universal life insurance (IUL) is an insurance policy that may be useful in retirement. Because you can fully fund it, an IUL offers a potential option for retirees to generate tax-free* income and a death benefit. An IUL is “universal” life insurance, which means it can offer more than just a traditional life insurance policy. For instance, you may be able to protect your cash value, yet still receive a tax-free* income from your IUL. Because your money is used to buy an insurance product, the issuing company agrees that your money is not at risk of loss in the stock market. Instead, your life insurance links to a chosen index, giving you indexed interest potential on your money.

Get In Touch
smiling couple walking with bicycles what is indexed universal life insurance

How It Works

IULs Explained

When you fund an IUL, some of the money buys your life insurance coverage. The rest, after any costs get taken out, is the cash value of your plan. Your cash value may possibly earn a rate of return because an IUL links to an index — but potential interest earnings do not carry the same risk as a market investment. You can potentially see earnings when the index is up, yet have no loss of principal when the index is down.

IULs also offer flexibility — you can select a variety of indexes instead of just one, allowing you to somewhat diversify your money inside the IUL. Be sure to connect with us and we'll help you find the right choices for your situation.

Read More

IUL Benefits

What Is Indexed Universal Life Insurance in Terms of Benefits?

IULs provide a death benefit and a tax-free* income strategy. Unlike IRA or 401(k) accounts, an IUL does not cap how much you can contribute, and there are no early withdrawal fees. If the index that ties into your IUL drops, your principal does not. When you take money from the account, there is no income tax. Any growth in your IUL is also tax-free* income to you. You may also be able to lock in your potential gains, or pull out money whenever you choose.

Read More

Your Legacy

Think About Your Legacy For the Ones You Love and Leave Behind

Some people use an IUL as a way to protect their wealth for their families. Beneficiaries generally receive a larger sum of death benefit than what you put into the policy, and it is possible that your death benefit increases over time. IULs do not require probate court — the death benefit simply goes to the people you designate, with no tax on the amount they receive.

As with any tax questions, be sure to consult a qualified tax advisor. Contact us today or register for one of our complimentary tax-free* income seminars or webinars to learn more.

Read More
Scroll to Top