Why "Living Benefits" matter to you and family

Indexed Universal Life (IUL) is a type of life insurance policy that allows you to invest your cash value in an index fund strategy. An index fund is a collection of stocks or bonds that follows a certain market or sector, such as the S&P 500. Index funds are popular because they offer low fees, diversification, and consistent returns.

With an IUL policy, you can choose to allocate your cash value between a fixed account that pays a guaranteed interest rate, or an equity index account that tracks the performance of a selected index fund. The advantage of the equity index account is that you can benefit from the growth potential of the stock market, while being protected from losses by a minimum guaranteed rate. This means that even if the index fund goes down, you will not lose any money from your cash value.

An IUL policy also gives you flexibility in paying your premiums, adjusting your death benefit, and accessing your cash value through loans or withdrawals. You can use your cash value for various purposes, such as retirement income, education expenses, or emergency funds. However, you should be aware of the fees, charges, and risks involved in an IUL policy, such as surrender charges, policy lapses, tax implications, and market volatility.

An IUL policy is a complex financial product that requires careful planning and professional guidance. It is not suitable for everyone, and it is not a substitute for a diversified investment portfolio. You should consult a qualified financial advisor before purchasing an IUL policy.

Conclusion:

IUL is a type of life insurance that has tax benefits and can help you grow your money without paying taxes on your profits, not the tax on the increase in value of something you own.

An IUL policy or annuity can be a great way to build and protect your wealth! But you need to make sure it is set up correctly with a trustworthy company and a knowledgeable agent. If not, you might end up spending more money than you need to.

Example of uninsured in a real life.