Flexibility Meets Growth | Inside IUL Policies

In an IUL, a portion of the premium is allocated to an account linked to a stock market index. Returns are based on the index’s performance but are subject to caps and floors to balance growth potential with risk management.

IUL offers the potential for higher returns through the indexed account and flexibility in premiums and death benefits, unlike traditional whole life insurance, which has fixed returns and less flexible terms.

While the fixed account in an IUL offers stable returns, the indexed account’s performance can fluctuate with the market. Caps and floors help manage the risk, but there is still exposure to market volatility.

Caps limit the maximum return achievable in the indexed account, while floors protect against loss, often ensuring that the account doesn’t earn less than a 0% return, safeguarding the principal investment.

Yes, policyholders can borrow against or withdraw from the accumulated cash value in an IUL. However, this can impact the death benefit and may have tax implications.

IUL can be an effective tool for retirement planning, offering tax-deferred growth and potential tax-free income through policy loans or withdrawals, supplementing other retirement funds.

The death benefit in IUL policies is paid tax-free to beneficiaries and can be adjusted during the policy term within certain limits and underwriting requirements.

Consider your long-term financial goals, risk tolerance, and the need for flexibility in premiums and death benefits. Understand the policy’s caps, floors, and fee structure to make an informed decision.

Tax-deferred growth allows the policy’s cash value to grow without immediate tax implications, potentially leading to more significant accumulation over time, benefiting long-term financial planning.