Index Universal Life Insurance can help balance your needs for life insurance and cash accumulation to help you reach your financial goals. The policy’s stock market index-linked accounts provide more potential for cash value growth than traditional Universal Life insurance, and less risk than Variable Universal Life insurance.
How much less risk? How about a guaranteed zero downside in your cash value account from equity market volatility combined with a potential annual growth rate of up to 12%?
Now that I have your attention…
What is Index Universal Life Insurance?
Like other Universal Life policies, Index Universal Life is a form of permanent life insurance that can provide lifelong insurance protection, as long as all premiums are paid to keep the policy in force.
It may also accumulate cash value to help you cover the cost of future insurance needs, and you can access the cash value while the policy is in force.
Our Index Universal Life policy offers a choice of two indexed accounts and two fixed interest accounts with a guaranteed minimum rate of return to help your cash value grow. You control how to allocate the portion of your premium payment that goes to these accounts.
Choose one or both indexed accounts or fixed interest accounts according to your objectives. Distribute the cash value portion of your premium among the options to suit your risk tolerance and personal preferences.
The interest rate applied to the policy’s cash value can be linked to the annual performance of two underlying indexes – the S&P 500 and the Russell 2000.
What is an “Index”?
An index acts like a barometer of a certain subset of the stock market, making it easier to see how one set of stocks performs relative to another. Indexes don’t focus on any one company’s stock, which can fluctuate because of a company’s individual business circumstances (like a fire at a plant or changes in executive leadership) that may have little to do with the economic forces affecting a market sector.
Instead, indexes represent a pool of stocks that generally includes companies having similar characteristics such as size, or the industry that the companies do business in.
These options allow you to take advantage of the market’s annual gains, but unlike direct investment in the stock market, Index Universal Life policy provides a “floor” that can protect you from market-related losses in years when the indexes perform poorly.
5 Key Benefits of Owning Index Universal Life Insurance
Tax-free Life insurance protection – Life Insurance can help replace the income that makes your family’s lifestyle possible after you’re gone. The death benefit is generally income tax-free and can be an important advantage for your beneficiaries.
Access to cash value – The policy’s cash value can help build the foundation of your personal and family financial plans,
and may be used to supplement your retirement income or fund a child’s education. Properly structured (which I can do for you) these withdrawals can be 100% tax free as well.
Flexibility when you need it – Adjust the policy as your needs change with flexible premium amounts and timing, flexible death benefit options, and the ability to increase or decrease the face amounts.
No Retirement Plan Type contribution limits – so you may continue to take advantage of tax-deferred growth even if you’ve maximized your retirement plan savings limit.
Protected from Legal Action – Life insurance and all associated cash values within a life insurance policy cannot be seized, garnished or awarded as a result of legal damages/restitution.
Make the smart choice
We understand your need for permanent life insurance coverage, and your desire for potential cash value growth. An Index Universal Life policy can help you plan for your loved ones’ financial future today – even if you should pass away. Let’s Talk.