What Is An IUL?
Which IUL is right for your retirement? Our team can help answer your questions about Indexed Universal Life Insurance. Reach out to us for more information.
Do You Have Life Insurance?
Are you looking for life insurance? Or, do you just want a second opinion on the insurance you already have? We can help! The answer to the best life insurance policy for you varies based on many factors. But, we can help you navigate your options.
Many people know that life insurance leaves money to your heirs when you pass away. However, the right type can actually be used by you as a source of income while you’re still alive. Specifically, you might be able to do this with indexed universal life (IUL) insurance.
How Does Indexed Universal Life Insurance Work
In exchange for the premium you pay, an insurance company gives you a life insurance policy. An IUL policy is typically “max-funded” meaning the total premium is paid upfront.
The insurance company keeps your money protected. The policy is linked to an index, allowing it to gain interest. But, the money isn’t invested in the stock market. In fact, no matter what happens in the market, you know that the money in your IUL is protected.
You may also have the option to link your IUL to multiple indexes. This spreads the potential rate of return, rather than just relying on the performance of one.
If you borrow against your cash value (the money kept in the IUL) you can use it as a source of tax-free* income. If you have money in retirement accounts and don’t want to dip into them yet, purchasing an IUL and taking money out of it instead may be a good option for you.
IUL Benefits
An IUL offers numerous benefits to you if you choose to use it for retirement. These include:
- Protection of your cash value from the risk of the stock market
- Potential for indexed interest
- Possibility of “locking in” potential gains
- Flexibility of choices
- Tax-free* income
- Early withdrawal has no penalties