Indexed Universal Life

Indexed Universal Life (IUL) is a version of cash value life insurance*. So why is insurance included on an investment website?  The answer is simple, this type of insurance is unique and structured differently than more widely known policy options. The objective in this regard is to place greater emphasis on cash value accumulation rather than traditional protection alone.  Life insurance is a tax-efficient vehicle overall – the death benefit is not only paid tax-free to beneficiaries but the cash value inside the policy can provide a living benefit and grow tax-deferred and be accessed tax-free through withdrawals or loans taken against the policy.  In other words, it can be a great source of tax-free income later in retirement or possibly allow you to self-bank along the way.    

To learn more about how an IUL works, watch this short video and accompanying IUL information sheet from one of our strategic partners, Midland National.   

IUL has been referred to as the “Rich Man's Roth” in reference to the Roth IRA.  Individuals who are more affluent usually earn a higher income that causes them to be phased out of being able to contribute to a Roth IRA, so a potential alternative for tax-free income could be the IUL.  You do not have to be affluent to make this strategy work, however, but longer-term allocations to a policy are probably required. This strategy is not intended to be a primary strategy, but rather complement or be a supplement to other investment allocations.  We disclaim the fact that life insurance's primary purpose is protection, and we believe you need to separately analyze your required protection coverage needs for you and your family.   

Please contact us if you would like more information on this topic or would like us to help you evaluate if it is a good fit for you. 

*Insurance services are offered through our affiliated company, Nashional Insurance.