Indexed Universal Life Insurance
Indexed Universal Life: Grow. Protect. Retire Tax-Free.
What is Indexed Universal Life Insurance (IUL)?
Perhaps the greatest legacy you can leave behind…
Indexed Universal Life (IUL) insurance is a powerful financial tool that combines life insurance protection with tax-free wealth accumulation. Unlike traditional life insurance, an IUL builds cash value based on the performance of a selected market index, such as the S&P 500.
Key Benefits of IUL Insurance
Tax-Free Growth – Your cash value accumulates tax-deferred.
Market-Linked Growth – Gains are tied to a market index with no downside risk.
Flexible Access to Cash – Policy loans can be taken tax-free for any purpose.
Lifetime Protection – Unlike term life insurance, an IUL never expires if properly funded.
Estate Planning & Legacy Building – Provides a tax-free death benefit to heirs.
How Does an IUL Work?
An IUL policy offers a unique combination of growth potential and safety, ensuring steady wealth accumulation while protecting against market downturns. Expand each section to learn more.
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You make flexible premium payments into your policy, just like other life insurance policies.
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Instead of earning fixed interest, the cash value grows based on the performance of a stock market index. Unlike direct stock investments, an IUL has:
A 0% (or more) Floor – Never lose money in a downturn.
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Unlike traditional retirement accounts (401(k)s, Roth IRAs), you can access your cash value tax-free at any time through policy loans.
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An IUL provides a permanent life insurance benefit that ensures your family receives a tax-free payout upon your passing.
Why Choose an IUL Over Other Retirement Plans?
Why an IUL is a Better Choice
No Market Losses – Even during economic downturns, your cash value is protected.
Unlimited Contributions – Unlike a 401(k) or IRA, you can save as much as you want.
Tax-Free Retirement Income – Access funds without penalties or taxation.
No Required Distributions – Unlike a 401(k), an IUL has no mandatory withdrawals at age 73.
Built-in Life Insurance Benefit – Ensures a tax-free legacy for your heirs.
Who Should Consider an IUL?
An Indexed Universal Life policy is ideal for individuals who:
✔ Want tax-free income in retirement
✔ Have maxed out their 401(k) or IRA contributions
✔ Want to protect their wealth from market downturns
✔ Need estate planning & legacy protection
✔ Own a business and need additional tax-advantaged savings
Using an IUL for Retirement Planning
One of the most powerful ways to use an IUL is as a tax-free retirement income source. Here’s how:
Fund the Policy Aggressively – The more cash value you build, the more you can withdraw later.
Use Policy Loans for Tax-Free Income – Borrow against your policy instead of withdrawing taxable funds from a 401(k).
Leverage Lifetime Benefits – Unlike other retirement accounts, an IUL provides financial security for your entire life.
IUL for Children: Creating Generational Wealth
One unique feature of an IUL is the ability to set up a policy for your child or grandchild. This strategy helps:
Build long-term tax-free wealth for the next generation.
Provide future financial security with a growing cash value.
Ensure lifetime insurance protection at the lowest premium rates.
While 401(k)s and Roth IRAs are common retirement strategies, they have limitations that an IUL can overcome.
“An Indexed Universal Life policy isn’t just life insurance—it’s a tax-free wealth-building strategy that protects your future while giving you access to cash when you need it. Imagine growing your money with market gains while never risking a single dollar to losses—this is the power of IUL.”
— Unplugged Financial