Indexed universal life insurance is another type of permanent life insurance. This means that the policies have a cash value component in addition to a death benefit. The cash value in your policy can earn interest based on different stock market index options available in the specific policy. This is where the name “Indexed Universal Life” comes from.
While traditional whole life policies grow a cash value based on a fixed rate of return, the cash value growth inside of an indexed universal life (IUL) can vary based on how the specific indices perform.
We do not believe that an IUL policy is meant for everyone. This is just one tool in a vast array of financial service tools to help specific customers. We never promote this to be a primary retirement product to replace your traditional 401(k), Roth IRA, or other retirement investment vehicles. In fact, in our opinion, only a very select few individuals may need this type of product. Generally, we see high-net-worth individuals who may consider this product for its specific tax and estate planning benefits. Anyone considering this type of product should work with a qualified advisor and obtain multiple opinions to ensure it is the right vehicle and effectively addresses the issue they are trying to solve.
Proper policy design is critically important for these types of plans. It is best to work with an experienced agent who knows how to design a policy that will meet your specific needs & goals. We work with the top life insurance companies offering IUL policies & our experienced agents can help you find the right product and design a plan that works best for you.
If you feel you have a need for this type of product, one of our experienced agents can help provide information to you to see if this might meet your specific needs.