Indexed Universal Life
(IULs)
- Permanent life insurance that combines a death benefit with a flexible cash value component.
- Cash value growth is linked to the performance of a stock market index (e.g., S&P 500).
- Features a ‘floor’ (often 0%) that protects against market losses, ensuring the cash value doesn’t drop due to market performance.
- Offers flexible premiums, allowing policyholders to adjust payments within certain limits.
- Potential for higher returns than traditional whole life or universal life policies.
- Tax-deferred growth on cash value and tax-free withdrawals via policy loans.
- No 59 ½ rule like traditional retirement plans.
- Adjustable death benefits to meet changing needs over time.
- Ideal for those seeking both protection and a vehicle for potential wealth accumulation.