Strategy

What if you could create a retirement strategy that addressed structural, market, and tax risks with additional flexibility and benefits? Good news: You can with Indexed Universal Life insurance (IUL)!

Structural Risk

Indexed Universal Life insurance offers flexibility to save in ways that benefit you. Unlike an IRA, there are no IRS restrictions on when the money can be taken out, and when money is withdrawn, it can be done so tax-free via policy loans.1 Additionally, IULs provide the opportunity to build cash value within the policy.

Market Risk

Indexing Growth Defined

Indexed Universal Life insurance allows you to participate in the gains of a stock market index with a growth cap. With this indexing strategy, your principal is fully protected by a guaranteed interest rate floor during a market loss. Indexed Universal Life insurance does not directly participate in any stock or equity investments or index.

For example, your money in an IUL would accrue accordingly:

 

The illustration above is for informational purposes and intended only to demonstrate how a hypothetical IUL policy with a growth cap of 12% and growth floor of 0% might have performed had it existed over the period depicted in the chart, based on the stated assumptions. Actual performance would have been higher or lower than assumed and likely would have fluctuated based on product guarantees and carrier rate-setting procedures. This illustration does not represent any specific product and does not reflect the costs of any optional riders or the effects of any withdrawals on policy values.

Tax Risk

Indexed Universal Life insurance offers tax-free growth over time with access to tax-free funds in retirement. Today’s tax rates have dropped substantially and are at historic lows. This means that taxes are at reduced rates, making it an opportune time to consider an IUL policy.

Additionally, IUL policies address tax risk through tax-free policy loans.1

More than just a Retirement Plan

In addition to addressing the risks of retirement, Indexed Universal Life insurance provides financial security to your beneficiaries in the form of a tax-free death benefit and, in some cases, can include living benefits in the event of disability or chronic illness. There are no IRS penalties for withdrawing loans before age 59 ½ and no requirement to withdraw money after age 70 ½.