Indexed Universal Life
Indexed Universal Life (IUL) Insurance
IUL is a type of permanent life insurance that combines life insurance protection with a cash value component that can grow based on the performance of a market index.
Key Features
- Life Insurance Coverage
- Provides a death benefit to your beneficiaries, similar to other life insurance policies.
Cash Value Growth
- Part of your premium goes into a cash value account.
- Growth is linked to a stock market index (e.g., S&P 500), but you do not invest directly in the market.
- Includes a cap rate (maximum interest) and a floor rate (often 0%) to protect against losses.
Flexibility
- You can adjust premiums and death benefits within policy limits.
- Option to borrow against the cash value, often tax-free if managed properly.
Tax Advantages
- Cash value grows tax-deferred.
- Loans and withdrawals can be structured to minimize taxes.
Why People Choose IUL
- Potential for higher growth than traditional universal life.
- Downside protection during market downturns.
- Can be used for retirement income, college funding, or other financial goals.
How to Get IUL Insurance
Your decision to buy a IUL policy should be guided by your specific situation and what matters to you.
If you need term life insurance, we’re here to help. Give Fassbender Insurance Agency a call to get started.