Life Insurance

What Is an IUL?

Indexed Universal Life Insurance

What is an IUL? An indexed universal life (IUL) insurance policy offers a variety of advantages.

An IUL, like any other type of life insurance, provides a death benefit to your beneficiaries. However, it also has elements that will benefit you, the policyholder, while you are still alive. Firstly, you may be able to earn a fair rate of return** on your max-funded IUL. This is because it earns interest based on the performance of an index (hence, the name “indexed” universal life). Furthermore, because it is a life insurance product, it may provide tax advantages that typical savings accounts or retirement plan accounts do not.

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How Does Indexed Universal Life Insurance Work?

An IUL is often "max-funded," which means the entire life insurance premium is paid upfront. When you pay the full premium to finance an IUL, a portion of it is used to pay for life insurance coverage. After that coverage, including expenses, the remaining balance is your "cash value." You may be able to receive interest at a reasonable rate** on this money based on one or more indexes. However, it is crucial to note that an IUL is not an investment, because it doesn't put your money at risk. This product provides a level of protection that many other financial options do not, while also potentially offering higher returns,** making it potentially extremely valuable.

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Now, let's look at some of the benefits:

IUL Benefits

An IUL offers numerous benefits, assuming you choose to make it a part of your retirement strategy. For example:

Interested in learning more about indexed universal life insurance? Reach out to us to get educated.

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