Secure financial growth and protection under one policy for every member of your family.
Like an umbrella shielding your family in the rain, an IUL policy protects what matters most—your loved ones, your future, and your peace of mind.
Indexed Universal Life Insurance
The Most Universal Financial Tool -
The Indexed Universal Life Insurance (IUL) is designed to do more than just protect your loved ones.
It provides you with a dynamic, tax-advantaged savings strategy, flexible coverage, and the opportunity to
grow wealth without the risk of market volatility. Whether you're looking for retirement income, protection, or a way
to leave a legacy, the IUL adapts to your unique needs, offering financial security and growth throughout your lifetime."
Benefit: Tax-Free Retirement Income
The IUL offers one of the most powerful advantages in retirement planning—tax-free income. Unlike traditional retirement accounts such as 401(k)s or IRAs, which are taxed when you withdraw funds, an IUL allows you to access your accumulated cash value tax-free. This means you keep every dollar you've worked hard to grow, allowing you to maintain your lifestyle and financial independence during your retirement years.
With an IUL, you can:
Enjoy tax-free withdrawals through policy loans that never need to be repaid as long as the policy is active.
Avoid the risk of future tax rate increases eating into your retirement savings.
Gain financial peace of mind knowing your income is insulated from taxes and market volatility.
Benefit: Tax-Free Retirement Income
The IUL offers one of the most powerful advantages in retirement planning—tax-free income. Unlike traditional retirement accounts such as 401(k)s or IRAs, which are taxed when you withdraw funds, an IUL allows you to access your accumulated cash value tax-free. This means you keep every dollar you've worked hard to grow, allowing you to maintain your lifestyle and financial independence during your retirement years.
With an IUL, you can:
Enjoy tax-free withdrawals through policy loans that never need to be repaid as long as the policy is active.
Avoid the risk of future tax rate increases eating into your retirement savings.
Gain financial peace of mind knowing your income is insulated from taxes and market volatility.
Meet Lisa, a 45 year-old professional planning for retirement
Lisa has been diligently saving in her 401(k), but she’s worried about market downturns and rising taxes in the future. After learning about the IUL, she starts redirecting part of her savings into a policy designed for long-term growth and tax-free income.
Fast forward 20 years: Lisa is 65 and ready to retire. Her IUL has grown to provide her with $80,000 per year in tax-free income. Unlike her 401(k), she doesn’t lose a chunk of her income to taxes, nor does she stress about the market crashing. Lisa’s retirement years are spent traveling, enjoying time with her family, and living the life she worked so hard to build—worry-free.
Meet James, a 38 year old father of two.
James wants to make sure his family is taken care of no matter what happens. He invests in an IUL that not only offers a $500,000 death benefit but also includes living benefits.
At 50, James faces an unexpected health issue requiring long-term care. Thanks to his IUL, he access a portion of the policy’s living benefits to cover medical costs, avoiding financial strain on his family. Even after using the living benefits, the death benefit remains intact, securing his family’s future.
When James recovers, he continues to grow his policy’s cash value, which he plans to use for tax-free retirement income later in life. The IUL gives James peace of mind, knowing he’s protected during life’s uncertainties and his family’s financial future is secure.
Benefit: Protection for You and Your Family
At its core, an IUL is a life insurance policy, which means it provides essential protection for your loved ones. In the event of your passing, the death benefit offers a tax-free payout to your beneficiaries, ensuring their financial security during a challenging time. But unlike traditional life insurance, an IUL goes further—it protects you while you're alive, offering living benefits that you can access if needed.
With an IUL, you can:
Provide a financial safety net for your family through the death benefit.
Access living benefits in case of chronic illness, critical illness, or other emergencies.
Rest easy knowing your policy adapts to your changing life needs over time.
Benefit: Accessing Funds Without Penalty or Taxes
An IUL offers unparalleled flexibility by allowing you to access your accumulated cash value whenever you need it, without the penalties or tax implications that often come with traditional retirement accounts. Whether it's for an emergency, major purchase, investing in or expanding a business venture or simply supplementing your income, the cash value of your policy is available to you through tax-free policy loans. This feature ensures that your money is not locked away, giving you financial freedom throughout your life.
With an IUL, you can:
Access funds at any time without early withdrawal penalties.
Avoid mandatory withdrawal requirements like those in a traditional retirement accounts.
Use tax-free loans while still benefiting from growth on your cash value
Meet David, a 30-year-old entrepreneur
David has an IUL that he’s been funding for over a decade, building up substantial cash value. When an unexpected opportunity arises to invest in a promising business venture, David needs quick access to funds. Instead of taking out a high-interest loan or withdrawing from a tax-deferred account like an IRA, he uses his IUL’s cash value to secure a policy loan.
The process is seamless—no credit check, no waiting period, and no taxes owed.
David borrows $50,000 from his $500,000 cash value. While he is charged 4% interest on the loaned amount, the $50,000 still earns 6% net growth, and the remaining $450,000 continues earning the full 10% interest. This ensures his money continues working for him, even while he uses it for his investment opportunity.
Later, David repays the loan on his own terms, ensuring flexibility without disrupting his long-term growth. His IUL gives him the freedom to handle emergencies and seize opportunities, all while continuing to grow his financial foundation.
Benefit: Securing an Emergency Fund
Life is full of unexpected events, and having quick access to funds in times of need is essential. An IUL serves as a built-in emergency fund, allowing you to access your cash value when unforeseen circumstances arise. Unlike traditional savings accounts or retirement plans, there are no penalties, restrictions, or taxes when you borrow against your policy. This makes an IUL an excellent financial safety net.
With an IUL you can:
Prepare for unexpected expenses like medical bills, car repairs or job loss.
Avoid depleting savings or using high-interest credit cards.
Borrow funds quickly and on your own terms, with jumping through hoops or worrying about late payment fees.
Meet Angela, a single mom navigating life's unexpected challenges
Angela has been steadily building her IUL’s cash value for years. When her car suddenly breaks down, leaving her with a $5,000 repair bill, she avoids dipping into her savings or resorting to high-interest credit cards. Instead, Angela uses her IUL’s cash value to take a quick policy loan to cover the cost.
She’s charged a reasonable interest rate on the loan but continues to earn interest on her cash value—only adjusted by the loan amount. Angela is relieved to have access to funds without penalty, stress, or lengthy approval processes. Once her finances stabilize, she repays the loan at her convenience, ensuring her policy continues to grow.
With her IUL, Angela has peace of mind knowing she’s prepared for life’s unexpected twists and turns.
Benefit: Establishing a College Savings Account
Saving for your child’s education can be daunting, especially with the rising costs of tuition. An IUL offers a smart and flexible alternative to traditional college savings plans like 529 accounts. With an IUL, your cash value grows tax-deferred and can be accessed tax-free for college expenses—or any other purpose. Plus, unlike a 529 plan, there are no restrictions on how the funds are used, giving you full control and flexibility.
With an IUL you can:
Save for your child’s education while enjoying tax-free growth and withdrawals.
Avoid restrictions or penalties if your child chooses a different path, such as trade school or starting a business.
Continue growing your cash value even while accessing funds for tuition or other educational expenses.
Meet Michael and Sarah, parents of two children with big dreams.
Michael and Sarah started funding an IUL shortly after their children were born, planning to use it as a flexible savings tool for their future education. By the time their eldest, Emma, is ready for college, the policy will have grown substantially in cash value.
When Emma enrolls in a university, Michael and Sarah will take a tax-free policy loan of $30,000 to cover her first two years of tuition. Unlike a 529 plan, the funds aren’t tied to educational expenses, so if Emma later decides to pursue a business venture instead of completing her degree, the remaining funds are still available to support her dreams.
The best part? While Michael and Sarah repay the loan at their own pace, their IUL continues earning interest on the full cash value, ensuring their savings for their younger child, Ethan, also grow.
With an IUL, Michael and Sarah are confident they’re financially prepared to support their children’s goals—whatever path they choose.
Benefit: Leaving a Legacy
One of the most meaningful benefits of an IUL is its ability to help you leave a lasting legacy for your loved ones. Unlike traditional investments, which may be subject to taxes, fees, and market risks, the death benefit from an IUL is passed on to your beneficiaries tax-free. This ensures your loved ones receive the full financial support you intended, providing stability and security for future generations.
With an IUL you can:
Ensure your family is financially protected in the event of your passing.
Leave a tax-free inheritance that can be used for any purpose, such as paying off debts, funding education, or supporting a business.
Create generational wealth without the complications of probate or taxation.
Meet Mary, a grandmother focused on family
Mary has always dreamed of leaving a financial legacy for her grandson. She establishes an IUL in her 40s and funds it consistently over the years. By the time she passes away, her policy has not only provided her with supplemental retirement income during her lifetime but also left a $500,000 tax-free death benefit to her grandson.
This legacy allows her grandson to start his adult life debt-free, pursue higher education without financial strain, and even invest in his dreams. Mary’s careful planning and use of an IUL ensure her family is cared for long after she’s gone, creating a ripple effect of opportunities and security for generations to come.
The Cost of an IUL: A Long-Term Perspective
While the initial cost of an Indexed Universal Life (IUL) policy might seem high, it’s important to view this financial tool
througha long-term lens. In the early years, a portion of your premium goes toward the cost of insurance (COI), which
includes mortalitycharges and administrative fees. However, as the policy matures and your cash value grows, the dynamics
shift. The accumulation of cash value allows the policy to become self-sustaining, effectively reducing the COI over time. This self-
insurance mechanism ensures that as you age, the burden of costs diminishes while your cash value continues to grow and compound.
The real value of an IUL lies in its ability to generate a tax-free income stream that can far exceed the upfront costs. This benefit is particularly
significant for individuals with long-term financial goals. As your cash value compounds over time—leveraging concepts like the Rule of 72—the
the returns can be substantial. The key is patience and a clear understanding of your financial objectives. While IULs may not be the ideal choice for everyone, their numerous advantages, such as tax-free growth, lifetime income, and financial flexibility, make them a compelling option to explore for those seeking long-term security and prosperity.
Frequently Asked Questions
Common Questions Answered for your convenience.
What is the minimum amount I can put into an IUL to max fund it?
The minimum amount to max fund an IUL depends on several factors, including your age, health, financial capacity, and long-term goals. For instance, a healthy 20-year-old might start with as little as $123 per month, while a 60-year-old could require around $412 monthly to achieve the same strategy. It's important to note that younger individuals can contribute smaller amounts over a longer period, whereas older individuals may need to invest larger sums in a shorter timeframe. Every situation is unique, which is why sitting down with a professional is essential. Together, we can review the specifics and tailor a plan to maximize your IUL's potential and ensure the best possible outcome for your circumstances.
Can I lose my cash value?
No, one of the key advantages of an IUL is that your cash value is protected. Your money is not directly invested in the market; instead, it’s indexed to the market. This means your cash value earns credits based on the market’s performance without being exposed to market losses.If the market performs negatively, your gains are safeguarded thanks to the IUL’s built-in protections. Additionally, each year your account resets with a new beginning balance that includes the gains you’ve already earned. This ensures steady growth without the risk of losing your accumulated cash value.
Do I have access to any of my money in this policy say for an emergency? What if I wanted to buy a house and need a down payment?
Yes, you can access the cash value in your policy through policy loans. While it’s generally recommended to let your policy grow for as long as possible to maximize cash value accumulation, you can typically access funds after 30 days to 1 year, depending on the policy.Policy loans offer a flexible and tax-advantaged way to use your cash value for emergencies or large purchases, like a down payment on a house. By borrowing against your policy rather than withdrawing, your money can continue to grow, allowing you to address immediate needs without sacrificing long-term growth potential.
Policy loans? Do I have to pay these loans back and am I charged interest?
While repaying a policy loan is not mandatory, it’s strongly recommended. If left unpaid, the loan can impact your policy’s performance by reducing cash value growth and potentially lowering the death benefit over time.Yes, you are charged interest on the borrowed amount, but here’s the advantage: you’re not withdrawing the money outright. Instead, your full cash value continues to earn interest. For example, if your policy’s cash value is $100,000 earning 10% interest and you borrow $20,000 at 4% interest, the $20,000 still nets 6% interest, while the remaining $80,000 earns the full 10%.Now, compare this to borrowing from a bank. Bank loans typically come with higher interest rates, mandatory repayment schedules, and no opportunity for the borrowed money to keep working for you. Plus, missed payments can result in penalties or late fees.With an IUL, you’re in control. Your money continues to grow, and you’re free to manage repayments on your terms—giving you financial flexibility and ongoing value.
How will this effect my taxes?
It won’t! The money you contribute to an IUL policy is after-tax dollars, and because it’s structured as a life insurance policy, the gains grow tax-deferred. Even better, when you access the cash value through loans, those funds are generally tax-free.This tax-advantaged design allows your money to grow and be used without additional tax burdens, making an IUL a powerful tool for both financial growth and long-term planning.
I heard you can have a tax-free retirement. Is that true?
Yes, it’s absolutely true! By funding your IUL policy with after-tax dollars, the gains are treated as insurance benefits, as long as you comply with IRS regulations (TEFRA, DEFRA, and TAMRA) and keep the policy in force. This allows you to access your cash value during retirement without paying taxes on those funds. Starting an IUL as early as possible maximizes these benefits. The longer your policy has to grow and compound, the greater your potential for tax-advantaged growth. This makes an IUL a powerful tool for securing a tax-free retirement and achieving financial peace of mind.
