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Indexed Universal Life

Indexed universal life (IUL) policies are a type of permanent life insurance that helps policyholders build their wealth, while also providing a death benefit for their loved ones. When the policyholder pays their premium, a portion of the payment goes toward the policy, while the other portion is added to the policy’s cash value.

 

Before deciding that an IUL is the right choice for you, it’s important to understand how these policies work.

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How Do IULs Work?

IULs are permanent policies, meaning they will last for your entire life as long as you continue to pay the premiums. These policies will include a death benefit, which will be paid out to your beneficiary when you pass away. 

 

There is a cash value component that can be accessed by only you, the policyholder, while you’re still alive. This cash value can increase in value over time, earning interest based on the performance of a stock market index, such as the S&P 500. When the index moves up or down, so does the cash value.

 

You have the option to borrow against the cash value, which can be a great benefit when its needed. However, any loans left unpaid when you die will be deducted from your policy’s death benefit.

Is An IUL Right for You?

Whether an IUL is right for you will ultimately depend on your specific needs. However, there are some pros and cons to consider.

Pros

  • Higher Return Potential
  • More Flexibility
  • Tax-Free Capital Gains
  • Death Benefit

Cons

  • Caps on Returns
  • No Guarantees
  • Fees

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Learn More About IUL Policies Today

Let the insurance experts at American Family Solutions help you find a life insurance policy that works for you! Give us a call today to learn more about your options and if an IUL policy will be best for you.

214-643-6001

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We are not connected with or endorsed by the United States government or the federal Medicare program. We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all your options. American Family Solutions is an independent financial services firm helping individuals create retirement strategies using a variety of investment and insurance products to custom suit their needs and objectives. Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Any comments regarding safety and guaranteed income streams refer only to fixed insurance products. They do not refer, in any way to securities or investment advisory products. Insurance and Annuity product guarantees are subject to the claims-paying ability of the issuing company. No legal advice, options or recommendations are being made in respect to this proposal. You should consult your tax professional or attorney concerning such advice and opinions.