Benefits of an IUL Policy
IUL’s have become popular in the past few years due to their unique benefits over more traditional life insurance. For those looking to leverage their investment in life insurance, this can be a wise choice.
Secure Your Family's Future with Indexed Universal Life Insurance
Are you looking for smarter way to do life insurance that provides tax-free higher returns through investment (typically 8-12% per year) and minimizes downside risk? An IUL policy might be right for you.
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Fill out the form below to learn if you qualify for IUL Coverage
By entering your information into forms and clicking the button, you understand that each individual agent’s results may vary and you are giving consent to receive calls text message, or emails regarding your specific inquiry, (at any phone number or email address you provide) from an insurance representative or one of our licensed insurance business partners, and you agree that calls may use an automatic telephone dialing system or an prerecorded or artificial voice to deliver messages even if you are on a government do-not-call (DNC) registry. This agreement is not an enrollment condition.
Overview
Indexed Universal Life Insurance is a type of life insurance that can help protect your loved ones and build wealth. The unique feature of IUL compared to traditional Universal Life Insurance or conventional life insurance is that the cash value of your insurance payment can be invested in various stock market indexes, giving you the potential for higher returns than traditional savings accounts (typically 8-12% per year).
This means that if the indexes perform well, your cash value can grow even faster.
Additionally, this type of insurance offers flexibility in terms of adjusting your payments and death benefit over time, making it a popular choice for those looking for long-term financial protection. If your index goes down your policy can be structured in a way that your cash value may not go down as much or at all.
Bottom Line: Faster tax-free growth of the wealth built in your life insurance policy with options to minimize risk.
Get Higher Returns
IUL policies have the potential for higher returns by utilizing call options to access the benefits of equity indexes. In contrast, whole life insurance policies and fixed universal life insurance policies typically offer a minimal interest rate that may not be guaranteed. The actual annual return on an IUL policy is dependent on the performance of its underlying index, but the insurance company may still provide a guaranteed minimum return on the investment.
Customize Your Investment Goals
With IUL insurance, policyholders have the flexibility to customize their policy to meet their investment goals. They can determine the amount of risk they are comfortable with in the market, make adjustments to death benefit amounts as necessary, and select from a variety of riders to tailor the policy to their specific needs.
Secure Your Retirement Funds
Social Security benefits can be an important retirement income source, but claiming them early or working while receiving them can reduce the benefit amount. However, with an IUL policy, cash value accumulation and loans don't count towards the earnings thresholds. This allows policyholders to supplement Social Security benefits without reducing the benefit amount.
Enjoy Tax-Free Capital Gains
Indexed universal life insurance policyholders can avoid paying capital gains tax on the growth in cash value unless they surrender the policy before maturity. This benefit also applies to loans taken against the policy's cash value, making it a convenient source of cash without triggering taxes and penalties from early withdrawals from other financial accounts like a 401(k) or IRA.
Protect Your Loved Ones with Tax-Free Death Benefit
Similar to other life insurance policies, IUL insurance can offer a death benefit for your loved ones. The death benefit can be utilized to cover expenses such as funeral costs, outstanding debts, college expenses, or daily living expenses. Moreover, this benefit can be passed on to beneficiaries without incurring taxes
How does IUL compare to other types of life insurance?
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Dimensions
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Indexed Universal Life
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Traditional Universal Life
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Traditional Life Insurance
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|---|---|---|---|
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Premiums
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Flexible
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Fixed, determined at policy issuance
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Fixed, determined at policy issuance
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Cash Value
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Tied to an index. Participate in gains in the market with no losses. Gains between 5%-12%.
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Typically earned by dividends.
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None
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Death Benefit
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Adjustable to your needs
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Fixed
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Fixed
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Investment Risk
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Moderate, policy holder is not directly invested in the market
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Moderate to high, dependent on the investment performance policy holder's cash value is invested in market
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Low to moderate, insurance company invests premiums
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Principal Risk
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No
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No
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No
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Policy Loans
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Available
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Available
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None
|
|
Tax Implications
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Tax-Deferred Growth, Tax-Free Withdrawals
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Tax-Deferred Growth, Tax-Free Withdrawals
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N/A
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Rate of Return
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Variable
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Fixed
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N/A
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Who is behind FFL Allegiance Financial Group
Michael Pfeil has been helping clients in the Baltimore area since 2012, focusing on Mortgage Protection, Final Expense and Retirement Income Planning. With over 14 years of experience in the financial services industry, Michael has a passion for helping people and a practical approach to life insurance that benefits those he works with.
Michael is proud to be part of Family First Life, which allows him to offer his clients the best possible life insurance products. He enjoys meeting new people every day and finds it rewarding to help them safeguard their most valuable asset: their family. Michael also enjoys assisting people in planning for retirement and ensuring that they never outlive their money.
Michael has been married for over 25 years and has two children. He is licensed to provide financial services in multiple states, including Delaware, District of Columbia, Florida, Maryland, New Jersey, North Carolina, Pennsylvania, Tennessee, Texas, and Virginia. With his years of experience and dedication to his clients, Michael Pfeil is a trusted advisor in the financial services industry.
How to Learn More: What are my next steps?
- Fill out the form below and you’ll have the option to schedule yourself into a 30 minute appointment with a FFL Allegiance Insurance Financial Professional.
- During the 30 minute session we will get to understand your unique situation and goals to ensure if an Indexed Universal Life Insurance Policy is right for you.
- You will be provided necessary information to make an informed decision.
By entering your information into forms and clicking the button, you understand that each individual agent’s results may vary and you are giving consent to receive calls text message, or emails regarding your specific inquiry, (at any phone number or email address you provide) from an insurance representative or one of our licensed insurance business partners, and you agree that calls may use an automatic telephone dialing system or an prerecorded or artificial voice to deliver messages even if you are on a government do-not-call (DNC) registry. This agreement is not an enrollment condition.
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By entering your name and information above and clicking this button, you are consenting to receive calls or emails regarding your life insurance options, (at any phone number or email address you provide) from a life insurance representative or one of our licensed insurance agent business partners, and you agree such calls may use an automatic telephone dialing system or an artificial or prerecorded voice to deliver messages even if you are on a government do-not-call registry. This agreement is not a condition of enrollment.
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