What Is An IUL?
Indexed Universal Life (IUL) insurance provides more than just a death benefit. It allows for tax-free* income while protecting your cash value and offering growth based on market indexes. Explore how an IUL can enhance your financial strategy.
What Is Indexed Universal Life Insurance?
An indexed universal life (IUL) insurance policy is a type of life insurance that can provide more than just a death benefit. An IUL gains interest based on an index (as its name implies), at a reasonable rate,** while also keeping your money protected. You can withdraw the money from your IUL at any time to act as a source of tax-free* income for yourself. Your beneficiaries will also receive the death benefit payout from the IUL tax-free* and without having to go through probate. So, what is indexed universal life insurance, how does it work, and how can it help you? Contact us to learn more.
What is Indexed Universal Life Insurance, and How Does It Work?
First, you contribute a certain amount of money to your IUL. The money that remains, after fees are dedicated, is your IUL’s cash value. Because this money is tied to an underlying index, you may earn interest on it at a reasonable rate.** You may also have the option to select multiple indexes, instead of relying on just one. This spreads out the potential for indexed interest. You can then withdraw money whenever you need it, tax-free.* Unlike traditional retirement savings options, insurance products like IULs provide a great deal of flexibility. To find out more about these various options, contact us.
IUL Benefits
An IUL gives your beneficiaries a tax-free* death benefit upon your death, as is typical of life insurance. This is the purpose of life insurance, after all. But you can also use an IUL as a source of income for yourself while you’re still alive. Benefits an IUL may offer compared to other retirement income options may include:
- Tax laws function differently for an IUL (but be sure to consult a qualified tax advisor about this)
- There are no RMDs (required minimum distributions)
- Your cash value is not negatively affected by the fluctuations of the stock market
- There is no contribution limit, which may be very helpful if you've already maxed out your retirement accounts
Explore Your Retirement Options with IUL
To determine if an IUL is right for you, you should get educated about your options in retirement. And we can help you do that. Get in touch with us today! We can go over what an IUL is and whether or not it could be a good fit for you.
