Indexed Universal Life (IUL) – Additional Points

  • Because IULs offer IRS approved tax-advantaged savings and are funded with after-tax dollars, taxes are paid on the “seed” rather than the “harvest” leaving people with more money when they retire.
  • Savings are secured by the issuing company. Insurance companies are required by law to have 100% or more, of all liabilities covered by the company’s assets. IULs are offered by some of the oldest, largest and most financially stable institutions in the world.
  • Shortly after the market crash of 2008, The Wall Street Journal reported that IULs were “This year’s hottest life-insurance product … well-suited to an era of sudden ‘flash crashes’ and overall uncertainty: it appeals to people eager to capture stock-market gains while avoiding undue risk”  (June 5, 2010).
  • Savings can be accessed prior to age 59.5 without penalty and allow for tax-deferred accumulation as well a tax-free distribution option.
  • Death benefits are paid to beneficiaries tax-free.
  • Account values are linked to indices such as Barclays and the S&P 500 index.
  • Through the use of IUL-based, three-to-one leveraged plans – our programs can also add up to three times (or more) money to retirement savings when compared to pre-tax plans (i.e., 401(k), 403(b), 457, IRAs) or after-tax options (i.e., Roth 401k, Roth IRA, certificates of deposits, taxable brokerage accounts, etc.) providing executives and key staff access to increased benefits without increasing budgeted amounts.
  • IULs offer an option to those who would like to save for the future without the risk – where their principal and interest gains are annually locked in and contractually protected against loss.