Index Universal Life Insurance
Index Universal Life Insurance (IUL) is a type of permanent life insurance that combines a death benefit with a cash value component that grows based on the performance of a stock market index, like the S&P 500.
How It Works:
- Death Benefit: Your beneficiaries receive a tax-free payout when you pass away—just like with traditional life insurance.
- Cash Value Growth: A portion of your premium goes into a cash value account, which earns interest based on the performance of a market index.
- If the index goes up, your cash value grows (up to a cap).
- If the market goes down, your cash value is protected by a “floor” (usually 0%), so you don’t lose money—just won’t earn during that period.
- Flexible Premiums & Benefits: You can adjust your premiums and death benefit over time, depending on your financial situation.
Key Features:
- Tax-deferred cash value growth
- Market-linked gains with downside protection
- Policy loans or withdrawals from the cash value
- Permanent coverage (as long as premiums are paid)
- Can be used for retirement income, college planning, or emergencies
Important Considerations:
- Growth is capped (you may not get full market returns)
- Policy fees and costs can be higher than term insurance
- Must be managed carefully to avoid lapses or tax consequences
Who It’s Good For:
- People looking for lifelong coverage
- Those who want to build wealth with less risk than direct investing
- Individuals with long-term financial planning goals
Contact Us Today
Call Unlock Affordable Hope to learn more about your options and to find out if Index Universal Life Insurance may be a good fit for your situation.