Indexed Universal Life (IUL)
What can an Indexed Universal Life Policy (IUL) do for you?
An excellent option for permanent life Insurance is the Indexed Universal Life (IUL) insurance policy. IUL’s come with a variety of potential benefits. Here are ten common advantages associated with IUL:
Death Benefit Protection: Like other life insurance policies, IUL provides a death benefit to beneficiaries in the event of the insured’s death. This can help provide financial security for your loved ones or business partners.
Tax-Deferred Growth: The cash value component of an IUL grows tax-deferred. This means you won’t pay taxes on the gains as long as they remain within the policy, allowing for potential compounded growth over time.
Flexible Premiums: IUL policies often offer flexibility in premium payments. Policyholders can adjust the amount and timing of premium payments within certain limits, providing adaptability to changes in financial circumstances.
Market-Linked Returns: IUL policies are tied to the performance of a stock market index, such as the S&P 500. This allows policyholders to benefit from potential market gains while being protected from market losses due to a guaranteed minimum interest rate.
No Loss of Principal: While IUL policies allow policyholders to participate in market gains, they typically include a guaranteed minimum interest rate. This ensures that the policy’s cash value won’t decrease, even if the linked index performs poorly.
Policy Loans and Withdrawals: IUL policies often allow policyholders to take loans or make withdrawals from the accumulated cash value. These can be used for various purposes, such as supplementing retirement income or covering unexpected expenses.
Lifetime Coverage: IUL policies typically provide coverage for the entire lifetime of the insured, as long as premiums are paid. This is in contrast to term life insurance, which provides coverage for a specified term.
Living Benefits: Many IUL policies offer living benefits, allowing policyholders to access a portion of the death benefit if they experience a qualifying terminal illness, chronic illness, or Critical Illness. This feature can provide financial protection when you need it most.
Estate Planning: IUL can be a useful tool for estate planning. The death benefit can be used to provide liquidity for estate taxes or to pass on wealth to heirs efficiently.
Creditor Protection: In some jurisdictions, the cash value of life insurance, including IUL, may be protected from creditors, offering an additional layer of asset protection.
It’s important to note that the benefits of an IUL can vary depending on the specific policy and the insurance company offering it. It’s advisable to carefully review the terms and features of any policy and consult with a financial professional to ensure it aligns with your financial goals and needs.
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Contact Mike at ISE Insurance today to see of an IUL is the right tool to help you protect what’s important to you