Protection. Growth. Flexibility.
Indexed Universal Life Insurance (IUL) is more than just life insurance - it's a powerful financial tool that provides lifelong protection, potential for tax-advantaged cash growth, and access to living benefits during your lifetime.
Lifetime Protection + Market-Linked Growth
IUL offers permanent life insurance coverage with a cash value component that grows based on the performance of a market index (such as the S&P 500). However, your money is not directly invested in the market, protecting your cash value from market losses.
- Growth Potential - Earn interest based on index performance (up to a cap).
- Downside Protection - A guaranteed floor (typically 0%) prevents negative returns.
- Tax-Deferred Accumulation - Let your money grow without immediate taxation.
Indexed Universal Life Insurance (IUL)
Tax-Advantaged Cash Access
You can access your IUL's cash value tax-free through policy loans, which can be used for:
- Retirement income
- Education expenses
- Business opportunities
- Emergency funds
There are no age restrictions or penalties like with 401(k)s or IRAs, and loans don't trigger taxable events when structured properly.
Living Benefits: Protection While You're Alive
IUL policies often come with Accelerated Benefit Riders - also known as Living Benefits - at no or minimal extra cost. These provide access to the death benefit while you're still alive, under specific circumstances:
Critical Illness:
Receive a lump sum if diagnosed with a covered condition (e.g., heart attack, stroke, cancer).
Chronic Illness:
Access your policy's death benefit if you're unable to perform 2 out of 6 daily living activities.
Terminal Illness:
If diagnosed with a terminal illness, you can receive a portion of the death benefit early.
Tax-Free Death Benefit
Like traditional life insurance, IUL provides a tax-free death benefit to your loved ones - ensuring they're financially protected in your absence.
Key Considerations
While an IUL is flexible and powerful, it's not a 'set it and forget it' policy. Consider:
- Proper Funding - To build cash value and keep the policy active
- Fees & Charges - Especially during early years
- Customized Design - Work with an advisor to structure it based on your goals
Who Should Consider an IUL?
- Individuals who want life insurance + investment growth
- Families seeking tax-free legacy planning
- Professionals or business owners who value tax diversification
- Those looking for supplemental retirement income with liquidity
