There are many answers to that question – index universal life insurance (IUL) can be a savings vehicle for college, retirement, and anything else you want to save for or it could be a life insurance policy that could provide a great inheritance for your children or grandchildren. How can it be all of those things? We’ll explain it for you!
You can gain interest.
Index universal life policies have living benefits as well as death benefits; this allows you to access the cash value any time you want, or leave it to your beneficiaries when you pass away. These policies gain interest based on a fixed rate or based on an index like the S&P 500, so you can gain interest on your policy. There is no market risk with IULs, so you’ll benefit when the market is up, but never lose money when the market is down.
It’s income tax-free and doesn’t have tons of penalties and fees.
Another great feature of IULs is that the money you withdraw from the policy is tax-free! You won’t have to pay income taxes on the cash value, which is why many people use it as a tax-free retirement income or as a savings plan for college expenses. Also, it doesn’t have fees and penalties that can come with 529 plans, IRAs, or 401(k)s.
Take care of your loved ones.
If you would prefer to use IULs as life insurance rather than savings, your beneficiaries won’t have to go through the probate process to get their inheritance, which saves them time and money. They’ll also get more money than you originally put into the policy because the cash value will have earned interest overtime. It’s a great policy to have if you intend to leave money to your beneficiaries, but would still like to have access to the cash in case of emergencies.
Now for the big question – how much will it cost? IUL premiums and benefits are flexible, so you can figure out how much you or your family will need in benefits and create a plan based on your budget. If you’re interested in an index universal life product visit one of the following pages, or simply fill out the form to the right. We’ll help you find a plan that meets your needs!
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