What is an IUL?
An IUL (Indexed Universal Life) insurance policy is a type of permanent life insurance that offers a death benefit along with a cash value component that grows based on the performance of a stock market index (like the S&P 500)
✅ Premiums – You pay premiums, part of which goes toward the death benefit, and the rest builds cash value.
✅ Cash Value Growth – Instead of a fixed interest rate, the cash value grows based on a stock market index (but it’s not directly invested in the market).
✅ Flexibility – You can adjust your premium payments and death benefit within certain limits.
✅ Downside Protection – IUL policies usually have a floor rate (often 0%), meaning you won’t lose money even if the market drops. However, they also have a cap rate, which limits how much you can earn.
How does an IUL Work?
Pros and Cons of an IUL
Pros of IUL:
✔ Tax-free cash value growth (as long as it’s properly structured)
✔ Potential for higher returns compared to traditional whole life insurance
✔ Flexibility in premiums and death benefits
✔ Market gains without direct investment risk
Cons of IUL:
❌ Caps on earnings – Your returns are limited even if the market does exceptionally well
❌ Complex structure – Requires careful management and understanding
❌ Higher fees – Costs can be higher than other life insurance options
IUL can be a powerful wealth-building tool, but it’s not for everyone.
License Verification
National Producer #: 7331655
What Are You Waiting For? Let’s Get Protection In Place!