Indexed Universal Life
A universal life insurance policy is a form of permanent life insurance that provides the insured with protection and an element of savings, also known as cash value.
Indexed Universal Life
An indexed universal life (IUL) policy allows the policyholder to decide how much money can go into an indexed account. The most common indices are the S&P 500 or the NASDAQ-100.
Now this may sound confusing to some, but luckily Seeds Financial Planning is here to make sure you fully understand your life insurance options and your savings. Therefore, before we get into the benefits of Indexed Universal Life, let’s take a look at how these policies actually work.
How Do IUL’s Work?
When you pay the premiums for this policy, part of it will go to your policy, while the rest will be added to your cash value. This cash value will be credited with an interest that is based on a market index.
Many policies allow their policyholders to choose multiple rates. Indexed Universal Life offers the insured a selection of indices to choose from, as well as a guaranteed minimum fixed interest rate.
What Makes IUL’s Great?
One of the biggest benefits of owning permanent life insurance is the ability to build up cash value that you can access when you need it. Every policyholder has the right to request a loan from the insurance company using the surrender value of his policy as collateral for the loan, there are no conditions to be able to request money from the insurance company.
The main reason you have purchased life insurance is the death benefit, but it can also be used to protect you, your family, and your business while you live.
One of the best advantages of an IUL is the fact that the cash will grow tax-deferred, while the death benefit remains. Not only that, but the cash value of the policy can be used to pay premiums, and you have the flexibility to adjust the death benefit.
Other great advantages of a Universal Life Index are:
- Low premiums
- Flexibility
- Less risk because the is not invested directly in the stock market
- Cash value can be accessed at any time
Overall, an IUL is a great savings vehicle, especially when it comes to savings and avoiding taxes during your retirement.
Lifetime Income
The fear of surviving retirement income has become a very realistic concern for many Americans facing retirement.
Retirement is more than you save. It is also important for your income to last a lifetime, to convert the cash value of your policy into retirement income in your old age.
Use Time In The Planning For Your Future
Time can be your best ally or your worst enemy when saving. In addition to allowing you to accumulate greater amounts of money, if you save in a constant and disciplined way, it also allows that capital to yield more with compound interest if you start saving earlier. That is, it causes you to reach your purchase value targets due to inflation.
When planning for the future of you and your family, it is important to consider at what age you should start saving money. Taxes, inflation, and market volatility: we are here to help you avoid it.
Life Benefits
You probably think of life insurance as a tool to protect your loved ones if you die, but did you know that certain modern life insurance policies offer added benefits that you don’t need to die for, while saving money for your retirement? The Living Benefit can provide a financial resource if you experience a qualifying terminal, chronic or critical illness.
- Diabetes is the leading cause of kidney failure and blindness among adults.
- A stroke occurs every 40 seconds in the United States.
- Heart disease, cancer, stroke, and diabetes and the leading causes of death and disability in the United States.
- 7 out of 10 deaths as a result of chronic disease.
- Approximately 530,000 bankruptcies file annually due to medical debt
Call us Today!
We’re here to make sure you understand all of your options, including indexed universal Life policies for your retirement.
To find out more about these policies and how you can be approved, call us today for a free 30-minute consultation.
Small Increases Now Can Add
Up to Big Savings Later
In 20 years you'd have
In 30 years you'd have
In 40 years you'd have
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Scratcher Ticket
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$35
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$11,468
$20,305
$32,181
$4.95
Coffee
at Coffee Shop
(30/month)
$150
(per month)
$49,149
$87,021
$137,918
$10
Dinner Out (1 person)
