Indexed Universal Life Insurance | IUL

Indexed Universal Life Insurance (IUL)

What is an IUL?

Indexed Universal Life Insurance (IUL) is a type of permanent life insurance that provides both a death benefit and a cash value component. Unlike traditional life insurance policies, the cash value of an IUL is tied to a stock market index, allowing policyholders to reap potential investment gains.

How Does It Work?

IUL works by distributing premiums between a death benefit and a cash value account. The cash value account is linked to a stock market index, such as the S&P 500. When the index performs well, the cash value increases. However, if the index performs poorly, your cash value won’t decrease thanks to a guaranteed minimum interest rate. This unique feature offers a balance of growth potential with downside protection.

Why is IUL a Great Addition to Every Retirement Portfolio?

IUL can be a powerful tool in your retirement planning arsenal for several reasons. Firstly, the cash value grows tax-deferred, meaning you won’t pay taxes on gains, and if structured properly, the retirement income can remain generally tax-free. Secondly, you can take out loans against your policy’s cash value, providing a source of income in retirement. Lastly, the death benefit provides a tax-free inheritance to your beneficiaries, ensuring financial security for your loved ones.

Optional Living Benefits

IUL policies often come with optional riders for chronic, critical, and terminal illnesses. These riders allow you to access a part of your death benefit while still alive if you meet certain health-related criteria. This can provide much-needed funds for medical expenses, home modifications, or even everyday living expenses.

Act Today

Understanding the ins and outs of Indexed Universal Life Insurance can be complex. That’s why we at Retirement Benefits Inc. are here to help. Contact us today for more information and to get a personalized quote. Secure your financial future with an IUL policy and enjoy the peace of mind it brings. Don’t wait, take the first step towards securing your financial future today.

*RBI does not provide legal or tax advice. Please consult your attorney or tax advisor for such advice.

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