What is an IUL?
Flexible Premium Payments: IUL policies allow policyholders to adjust their premium payments within certain limits. This flexibility accommodates changing financial situations, enabling individuals to pay more or less as needed while maintaining their coverage.
Potential for Higher Returns: The cash value in an IUL is linked to a stock market index, offering the possibility of higher returns compared to other permanent life insurance products. This means that during favorable market conditions, the cash value can grow significantly.
Downside Protection: IULs typically include a guaranteed minimum interest rate, ensuring that the cash value does not decrease even if the linked index performs poorly. This feature provides a safety net against market downturns.
Tax Advantages: The cash value of an IUL grows on a tax-deferred basis, meaning that policyholders do not incur taxes on gains as long as they remain within the policy. Additionally, loans taken against the cash value are generally tax-free, provided they are managed correctly.
Death Benefit: Like all life insurance policies, IULs provide a death benefit to beneficiaries upon the policyholder's death. This benefit is typically income-tax-free, offering financial security for loved ones.
“If my insurance carrier goes out of business, my family won't receive the death benefits.”
Policy guarantees are based on issuing insurer’s ability to pay claims as they arise. To understand how insurers measure up for financial stability, check their ratings. Insurance carriers are rated by independent, third-party agencies that evaluate and
assign ratings to carriers based on their financial strength, creditworthiness and ability to meet policyholder obligations.
State-level insurance guaranty associations provide an added layer of consumer protection. These associations protect policyholders if an insurance company can’t meet its obligations.
“Life insurance is only for covering funeral or burial expenses.”
You probably think of life insurance as offering protection for your loved ones when you’re no longer around. It’s true that it’s a product designed to provide that protection first. However, IUL policies offer multiple benefits:
Legacy – Protection for your loved ones and a death benefit to your family after you’re gone, no matter how long you live.
Living – If you qualify with a critical, terminal or chronic illness, a policy that includes a living benefits rider will let you tap into your death benefit early to access money for your needs.
Aspirations – IULs can be used to save for retirement and generate income from your policy when you access its cash value.
“IUL policies are subject to market loss.”
With an indexed universal life policy, you can place the account value into an index crediting option where its growth is tied to market-linked indexes (like the S&P 500®). Your money is never actually invested in the market, however. This allows you to get a portion of the upside from index performance, without risk of market loss.
That’s different from variable universal life policies, where your account value is invested in the stock market and subject to the market’s ebbs and flows. Read your contract carefully to understand any risk that may impact your policy.
“All life insurance policies require a medical exam and take a long time to get.”
Most carriers today offer exam-free underwriting to make the process easier and more efficient. Carriers may ask for a brief telephone interview or medical records, but even that is becoming less common as underwriters continue to innovate and make better use of technology.
“Life insurance costs too much money.”
Many people understand the importance of life insurance but assume it's unaffordable. In fact, a study by LIMRA and Life Happens found that most clients overestimate the cost of a life insurance policy by as much as two-thirds.
This misperception contributes to a life insurance coverage gap, preventing many Americans from securing financial protection. Talk to a financial professional - life insurance may not be as expensive as you think.
“Only a family's breadwinner needs life insurance.”
Life insurance policies aren’t just for breadwinners. Life insurance can have real benefits for the rest of the family, from stay-at-home parents to children.
Many stay-at-home parents handle money, cook meals and take care of the home. These tasks are worth an estimated $145,000 a year. A life insurance policy can protect the value of this work just like it protects a working spouse’s income.
Policies called Juvenile IULs can help you save in anticipation of your children or grandchildren’s different life stages. Families can purchase insurance on the lives of dependent children to prepare for future financial needs, like savings, education planning and protecting their future insurability.
How Our Client Process Works
Enjoy our efficient service with regular updates and your participation ensured.
Step 1. Complimentary Introduction Meeting (Via Zoom or Phone Call)
Our first meeting will be a relaxed conversation where we get to know you and your goals without any pressure.
We'll discuss and teach you key financial concepts, and if we're a good match, we'll collect your financial information for a comprehensive one-page Financial Needs Analysis.
Step 2. We Prepare a Customized Strategy
We organize your information and craft a personalized plan that evaluates and compares all available options from more than a dozen companies. We do all of this at no cost to you. 100% Complimentary.
Step 3. We Present Your Proposal
During our second meeting, we will present your strategy and make any necessary changes. If you're happy with your plan, we can help you implement it.
If the timing isn't right, that's okay - you can hold onto your plan and reach out to us when you're ready.
Step 4. Annual Reviews
We will stay in contact annually to assess your existing accounts and adapt them to accommodate any changes in your life, income, expenses, employment, etc.