IUL Policy
Understanding an IUL Policy
An indexed universal life (IUL) policy is a type of life insurance policy that provides both a death benefit and long-term financial flexibility. In addition to serving its purpose of providing for your loved ones, an IUL policy offers:
- Cash value access
- Flexible options
- Asset protection
Why Consider an IUL Policy?
An IUL policy can offer additional benefits compared to standard universal life insurance, by providing growth potential tied to market indexes—without the downside risk. Interest is credited based on market performance, but your principal remains protected.* This blend of security and growth makes an IUL policy ideal for those seeking more flexible options.
How It Works
The premium you pay covers a portion of the cost (based on the life expectancy of the insured). The remaining amount is added to the policy’s cash value. The cash value is credited with interest when the market index it’s tied to increases. Also, some policies allow you to select multiple indexes instead of just one.
Additional Benefits
Unlike 401(k)s or IRAs, an IUL policy has no annual contribution caps. It also doesn’t have required minimum distributions (RMDs). You can also withdraw from the cash value at any time—penalty-free. And because it’s not considered a traditional investment, some tax benefits may apply. You could also use an IUL to cover long-term care (LTC) costs.
67% of Americans will need LTC.
Can you afford >$90K a year for LTC?
Schedule an appointment for your full Retirement Blueprint™ and learn how building a solid retirement plan can help. We serve clients across Ohio, including Columbus, Lancaster, Amlin, and Lithopolis. So if you live nearby, reach out. We can help you determine if an IUL policy might fit your financial goals.